HAR - Harmony Gold Mining Company - Unaudited Pro Forma Financial Effects On Release Date: 15/05/2008 16:17:02 Code(s): HAR
HAR - Harmony Gold Mining Company - Unaudited Pro Forma Financial Effects On
Harmony And Withdrawal Of Cautionary Announcement
Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1950/038232/06)
Share code: HAR & ISIN: ZAE000015228
UNAUDITED PRO FORMA FINANCIAL EFFECTS ON HARMONY AND WITHDRAWAL OF
Further to the announcement released on SENS on 22 April 2008 wherein it was
stated that Harmony and Newcrest Mining Limited ("Newcrest") had signed an
agreement which will allow Newcrest to earn 50% interest in Harmony`s Papua
New Guinea gold assets ("the joint venture"), shareholders are advised of the
pro forma financial effects of the transaction.
Newcrest will earn its 50% interest in the joint venture by contributing a
maximum of US$525 million(1). The commitment will be in two stages, namely, an
initial US$180 million payment to acquire a 30.01% interest by 30 June 2008,
together with a reimbursement to Harmony of US$45 million(1) in project
expenditure ("Stage 1 completion"); and a farm-in commitment for the remaining
19.99% of approximately US$300 million to fund project expenditure up to the
commencement of mining operations at Hidden Valley.
(1) Based on the current estimate of Harmony`s project expenditure of
US$150 million from 1 January 2008 to the expected Stage 1 completion date
of 30 June 2008.
2.Pro forma financial effects
The unaudited pro forma financial effects of the transaction have been
prepared for illustrative purposes only and because of its nature may not
fairly present Harmony`s financial position, changes in equity, results of
operations or cash flows. The pro forma financial effects are the
responsibility of the directors of Harmony.
Before the After the
transaction transaction Change
(cents) (cents) (%)
(Loss)/Earnings per share (44) 48 209
Fully diluted (loss)/earnings per share (44) 47 207
Headline earnings per share 35 36 3
Fully diluted headline earnings per share 35 36 3
Net asset value per share 6161 6264 2
Tangible net asset value per share 5546 5649 2
1.The pro forma financial effect was only calculated on Stage 1 of the
transaction whereby Newcrest acquires a 30.01% interest.
2.The pro forma financial effects are based on the unaudited results of
Harmony for the nine months ended 31 March 2008.
3.The financial impact on the earnings of Harmony is illustrated as if the
joint venture had been completed at 1 July 2007 while the impact on the net
assets of Harmony is shown as if the joint venture had been implemented on
31 March 2008.
4.The pro forma financial effects have been prepared using accounting policies
that comply with International Financial Reporting Standards. The accounting
policies are consistent with those applied in the previous financial year.
3.Withdrawal of cautionary announcement
Shareholders are advised that caution is no longer required when dealing in
For more details contact:
Chief Executive Officer
on +27 (0)83 265 0274
General Manager, Investor Relations
on +27 11 411 2314 or +27 (0)82 654 9241
15 May 2008
Merrill Lynch South Africa (Pty) Limited
Date: 15/05/2008 16:17:01 Supplied by www.sharenet.co.za
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