Harmony Gold Mining Company Ltd Release Date: 01/12/2006 17:55:00 Code(s): HAR
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
JSE share code: HAR
HARMONY TENDERS ITS WESTERN AREAS SHARES
Johannesburg. Friday 1 December 2006. Harmony Gold Mining Co. Ltd ("Harmony")
announced today that it had tendered its Western Areas shares for conversion to
Gold Fields shares.
This follows the offer made by Gold Fields to the Western Areas minority
shareholders contained in the circular dated 30 October 2006. Upon receipt of
its shares, Harmony will own 2.75% of the enlarged share capital of Gold Fields
having exchanged its ownership in Western Areas.
Chief Executive Bernard Swanepoel says, "Accepting the Gold Fields shares in
lieu of Western Areas shares will facilitate the liquidation of our investment
which although already approved by Harmony"s board of directors, will only be
concluded at an opportune time."
Harmony acquired its stake (44 985 939 shares) in Western Areas at a cost of
R44.23 per share on 9 March 2006. This investment was accounted for using the
equity method of accounting and Harmony"s share of the net loss for the period
since the acquisition resulted in a decrease in value per share to an estimated
value* of R40.61 per share. The proceeds on the share conversion amounts to
R47.26 per share, resulting in an estimated accounting profit of R6.65 per
* Harmony"s share of Western Areas" results for the months of October 2006 and
November 2006 were estimated based on their September 2006 quarterly results.
For further information contact
Chief Executive - Harmony Gold
Cell. +27 83 303 9922
General Manager, Investor Relations
Cell. +27 82 654 9241
Merrill Lynch South Africa (Pty) Limited
Date: 01/12/2006 05:55:02 PM Supplied by www.sharenet.co.za
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