Harmony Has Spent Over R1,7 Billion In The Past 12 Months On Growth Projects, Release Date: 25/04/2005 08:31:44 Code(s): HAR Harmony Has Spent Over R1,7 Billion In The Past 12 Months On Growth Projects,
Exploration, Restructuring And Capex.
Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1950/038232/06)
Share code: HAR ISIN: ZAE000015228
("Harmony")
PRESS RELEASE
HARMONY HAS SPENT OVER R1,7 BILLION IN THE PAST 12 MONTHS ON GROWTH PROJECTS,
EXPLORATION, RESTRUCTURING AND CAPEX.
Johannesburg, Monday 25 April 2005 - Harmony Gold Mining Company Limited
(NYSE: HMY JSE: HAR) today announced that its restructuring programme was
nearing completion.
"In the past year Harmony has spent over R1,7 billion on improving and growing
its operations. In the past 12-months Harmony has spent R856 million on capital
expenditure, R235 million on exploration and corporate expenditure and R 618
million on restructuring. This is designed to return all of Harmony"s
operations to profitability, whilst continually upgrading the average quality
of our portfolio through high-quality organic growth and acquisitive
opportunities. The benefits of this process should become more evident from the
June quarter." commented Chief Executive Bernard Swanepoel.
Production in the March quarter declined by 14,1% to 679 251 oz compared to the
December quarter and cash operating costs increased by 10,9% to R85 863/kg
(US$445/oz) as a result of a number of operational disruptions. The company
reported a cash operating loss of R54,7 million (US$9,12 million).
"The normal festive season and public holiday disruptions associated with the
March quarter were compounded by several period specific events including a
fire at Bambanani, a strike at the Free State operations, a 1% decrease in the
rand Gold Price received and loss of Sunday work permission in the Free State."
continued Bernard.
Harmony continues to focus on returning the South African operations to
profitability and seek other growth opportunities.
Commenting on Harmony"s new business Bernard said: "At Harmony it"s business as
usual. The Gold Fields bid is but one of our new business initiatives. In
addition to all of our organic growth projects in South Africa which continue
at full steam, we also have a new mine we plan to build in Papua New Guinea
along with several exciting exploration projects in the area. Furthermore our
new business arm continues to scour the earth for value -adding opportunities
that fit our skill set and competitive advantages."
The Gold Fields bid now heads to the next stage, the South African Competition
Tribunal hearing, which is scheduled for 3-6 May 2005. Following this and
assuming a successful ruling, Harmony"s offer will for the first time be
unconditional marking the end of a period of extensive delay, interference and
frustration orchestrated by Gold Fields.
"This tribunal ruling will hopefully allow Gold Fields shareholders to finally
have a say in how and who runs Gold Fields through having the Harmony bid go
unconditional." Bernard concluded.
Additional Information
March Dec %
2005 2004 Variance
Production - kg 21 126 24 604 - 14
Production - oz 679 251 791 033 - 14
Revenue - R/kg 83 273 84 031 -1
Revenue - US$/oz 433 434 No change
Cash cost - R/kg 85 863 77 415 +11
Cash cost - US$/oz 445 400 +11
Exchange rate - USDZAR 5.99 6,03 -1
March 2005 Dec 2004
Cash operating profit (Rm) (55) 163
Cash operating profit margin (3%) 8%
Cash earnings (loss) per share (14) 47
Headline EPS (cents) (107) (88)
In connection with the proposed merger, Harmony will file with the United
States Securities and Exchange Commission ("SEC"), a registration statement
on Form F-4, which will include a preliminary prospectus and related
exchange offer materials, to register the Harmony ordinary shares
(including Harmony ordinary shares represented by Harmony American
Depository Shares ("ADSs")) to be issued in exchange for Gold Fields
ordinary shares held by holders located in the United States of America
("United States" or "US") and for Gold Fields ADSs held by holders 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 and the preliminary prospectus, the related exchange offer
materials and the final prospectus (when available), 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 will
contain important information. Investors and holders of Gold Fields
securities may obtain free copies of the registration statement, the
preliminary and final prospectus and related exchange offer materials and
the Statement on Schedule TO, as well as other relevant documents filed
with the SEC, at the SEC"s web site at www.sec.gov and will receive
information at an appropriate time on how to obtain transaction-related
documents for free from Harmony or its duly designated agent.
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 in the
US, 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 US will only be
made pursuant to a prospectus and related offer materials that Harmony expects
to send 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 US prior to the time the
registration statement becomes effective. No offering of securities shall be
made in the US except by means of a prospectus meeting the requirements of
Section 10 of the United States Securities Act of 1933, as amended.
Forward-looking Statements
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
Statements in this announcement include "forward-looking statements" that
express or imply expectations of future events or results. Forward-looking
statements are statements that are not historical facts. These statements
include financial projections and estimates and their underlying assumptions,
statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future performance.
Forward-looking statements are generally identified by the words "expect,"
"anticipates," "believes," "intends," "estimates" and similar expressions. All
forward-looking statements involve a number of risks, uncertainties and other
factors, and Harmony cannot give assurances that such statements will prove to
be correct. Risks, uncertainties and other factors that could cause actual
events or results to differ from those expressed or implied by the forward-
looking statements include, without limitation, the satisfaction of closing
conditions, the acceptance or rejection of any agreement by regulators, delays
in the regulatory processes, changes in the economic or political situation in
South Africa, the European Union, the US and/or any other relevant
jurisdiction, changes in the gold industry within any such country or area or
worldwide and the performance of (and cost savings realised by) Harmony.
Although Harmony"s management believes that the expectations reflected in such
forward-looking statements are reasonable, investors and holders of Gold Fields
securities are cautioned that forward-looking information and statements are
subject to various risks and uncerta inties, many of which are difficult to
predict and generally beyond the control of Harmony, that could cause actual
results and developments to differ materially from those expressed in, or
implied or projected by, the forward-looking information and state ments. These
risks and uncertainties include those discussed or identified in the public
filings with the SEC made by Harmony and Gold Fields, including those listed
under "Cautionary Statement Concerning Forward-Looking Statements" and "Risk
Factors" in the preliminary prospectus included in the registration statement
on Form F-4 that Harmony will file with the SEC. Harmony does not undertake any
obligation to update any forward-looking information or statements. You may
obtain a free copy of the registration statement and preliminary and final
prospectus (when available) and other public documents filed with the SEC in
the manner described above.
Issued by Harmony Gold Mining
Company Limited
25 April 2005
For more details contact:
Bernard Swanepoel
Chief Executive
on +27(0)83 303 9922
or
Ferdi Dippenaar
Marketing Director
on +27(0)82 807 3684
or
Brenton Saunders
Executive, Investor Relations
on +27(0)83 607 4060
Investor Relations Officer
Vusi Magadana
Office: +27 11 684 0149
Mobile: +27(0)72 157 5986
Vusi.magadan@harmony.co.za
For the comprehensive set of
results please visit
www.harmony.co.za
Corporate Office: Suite No.1 Private Bag X1 Melrose Arch Johannesburg
South Africa 2076 T +27 (11) 684 0140 F +27 (11) 684 0188
www.harmony.co.za NYSE : HMY JSE : HAR
Date: 25/04/2005 08:32:12 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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