HAR - Harmony - Harmony continues to strengthen its balance sheet Release Date: 22/12/2008 10:01:20 Code(s): HAR
HAR - Harmony - Harmony continues to strengthen its balance sheet
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
HARMONY CONTINUES TO STRENGTHEN ITS BALANCE SHEET
Johannesburg, 22 December 2008. Harmony Gold Mining Company Limited ("Harmony")
is pleased to announce that despite international financial turmoil, it
continues to strengthen its balance sheet.
Harmony has completed a capital raising by issuing shares for cash in the open
market pursuant to its mandate given by shareholders at the Annual General
Meeting. In the capital raising 10 504 795 shares have been placed between 25
November 2008 and 19 December 2008, at an average subscription price of R93.20,
raising R979 million before costs. The average issue price compares favourable
with the weighted average share price on the JSE over the same period of R92.79
per share. The number of shares issued is equivalent to 2.6% of Harmony`s issued
share capital of 403 424 148 shares as at 30 September 2008. The cost of the
placement was approximately R15 million, or 1.5% of the value of shares issued.
In line with Harmony`s stated intention to have zero net debt by June 2009, the
proceeds will primarily be used to reduce debt levels.
Harmony has repaid R1,25 bn of the R2bn Nedbank debt which was repayable by
December 2008. The Nedbank loan facility of R750 million is now repayable by
Harmony recognises that its pipeline of projects is the future of the company
and regularly reviews its cash flow to ensure that it supports the continuation
of its projects. During a recent review Harmony reaffirmed its commitment to
its capital expenditure plans.
Issued by Harmony Gold Mining Company Limited
22 December 2008
For more details contact:
Interim Financial Director
on +27(0)82 800 4290
Chief Executive Officer
on +27(0)83 265 0274
Marian van der Walt
Executive: Corporate and Investor Relations
on +27(0)82 888 1242
Randfontein Office Park
P O Box 1
South Africa 1796
T +27 (11) 411 2000
For more information on Harmony, please visit www.harmony.co.za
22 December 2008
Merrill Lynch South Africa (Proprietary) Limited
Date: 22/12/2008 10:01:20 Supplied by www.sharenet.co.za
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