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Harmony Disposes Of Its Remaining Interest In Gold Fields Limited

Release Date: 17/11/2005 07:00:54      Code(s): HAR
Harmony Disposes Of Its Remaining Interest In Gold Fields Limited               
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE 
UNITED STATES, CANADA OR JAPAN                                                  
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number 1950/038232/06)                                            
Share code: HAR & ISIN: ZAE000015228                                            
NYSE: HMY                                                                       
("Harmony")                                                                     
HARMONY DISPOSES OF ITS REMAINING INTEREST IN GOLD FIELDS LIMITED ("the         
disposal")                                                                      
Harmony (NYSE: HMY; JSE: HAR) today announced that it had disposed of its       
remaining 26,5 million Gold Fields Limited  ("Gold Fields") shares at an average
price of R93.228 per share.  The process was concluded through market disposals 
which commenced on 10 November 2005 and an open market offering on 15 and 16    
November 2005.                                                                  
"The disposal of our remaining shares in Gold Fields has significantly          
strengthened our balance sheet.  In addition, with Harmony"s re-structuring     
process being concluded during the previous quarter, the company is well-       
positioned to fully exploit the current higher gold price in Rand/kg terms.     
This bodes well for Harmony which, through the development of our range of      
growth projects in South Africa and Papua New Guinea, will be transformed from a
high cost marginal producer to producing high margin quality ounces", commented 
Harmony CEO, Bernard Swanepoel.                                                 
The proceeds of the disposal will be utilised to continue to invest in Harmony"s
pipeline of long life high-quality new mines and expansion projects, to retire  
short-term liability and as working capital within the Harmony operations.      
The table below shows the pro forma per share effects of the sale of the Gold   
Fields shares on Harmony for the financial year ended 30 June 2005. The pro     
forma financial effects have been prepared for illustrative purposes only and,  
because of their nature, may not fairly present Harmony"s financial position,   
changes in equity, results of operation or cash flows at and for the financial  
year ended 30 June 2005, or the effect on future earnings.  The financial       
effects are determined in accordance with the Listings Requirements of the JSE  
Limited.                                                                        
Historical   After the   %                    
                                  Before the   disposal(2) Change               
                                  disposal(1)  (cents)                          
                                  (cents)                                       
Net asset value                   5630         5735        1.87                 
Tangible net asset value          5054         5159        2.09                 
Basic earnings                    (955)        (855)       10.48                
Headline earnings                 (408)        (393)       3.75                 
Number of shares (`000)           393 341      393 341     0.00                 
Weighted average number           361 817      361 817     0.00                 
of shares in issue (`000)                                                       
Notes:                                                                          
1.Extracted from the published financial results of Harmony for the financial   
year ended 30 June 2005.                                                        
2. Pro forma financial effects after the disposal.                              
3. In relation to the pro forma net asset value per share it is assumed that the
disposal was effective on 30 June 2005.                                         
4. In relation to the pro forma earnings and headline earnings per share, it is 
assumed that the transaction was effective on 1 July 2004.                      
5. It is assumed that the proceeds of the disposal were received on 30 November 
2004, being the effective date of acquisition of the Gold Fields shares and     
remained in cash and cash equivalents, earning interest at a weighted average   
after tax interest rate of 5.04%, after taking into account the payment of      
transaction costs.                                                              
6. The profit on the disposal was excluded in the calculation of headline       
earnings per share.                                                             
Johannesburg                                                                    
16 November 2005                                                                
Sole Bookrunner                                                                 
Merrill Lynch South Africa (Pty) Limited                                        
Sponsor to Harmony                                                              
Merrill Lynch South Africa (Pty) Limited                                        
Reporting accountants to Harmony                                                
PWC                                                                             
Attorneys to Harmony                                                            
Cliffe Dekker Inc.                                                              
This communication is for information purposes only.                            
This announcement does not constitute an offer of securities for sale or a      
solicitation of an offer to purchase securities in the United States or any     
other jurisdiction in which such an offer or solicitation is unlawful. The      
securities referred to in this announcement have not been and will not be       
registered under the U.S. Securities Act of 1933, as amended, and may not be    
offered or sold in the United States, except pursuant to registration or an     
applicable exemption from registration.  No public offering of securities is    
being made into the United States.                                              
Within the United Kingdom, this announcement is directed only at persons who    
have professional experience in matters relating to investments who fall within 
article 19(5) of the United Kingdom Financial Services and Markets Act 2000     
(Financial Promotion) Order 2005 (as amended) (the `Order") or are persons      
falling within article 49(2)(a) to (d) (`high net worth individuals,            
unincorporated associations etc.") of the Order (all such persons together being
referred to as `relevant persons").  This communication must not be acted on or 
relied on by persons who are not relevant persons.  Any investment or investment
activity to which this communication relates is available only to relevant      
persons and will be engaged in only with relevant persons. As regards all       
persons other than relevant persons, the details of the placing and bookbuilding
set out in this announcement are for information purposes only.                 
Forward-looking Statements                                                      
Statements in this communication 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 United States of America 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 Harmony"s   
securities are cautioned that forward-looking information and statements are    
subject to various risks and uncertainties, 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 statements.        
Harmony does not undertake any obligation to update any forward-looking         
information or statements.                                                      
This announcement has been issued by, and is the sole responsibility of,        
Harmony.                                                                        
Date: 17/11/2005 07:01:01 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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