HAR - Harmony - Harmony In Excellent Financial Health Release Date: 23/04/2009 07:05:02 Code(s): HAR
HAR - Harmony - Harmony In Excellent Financial Health
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration Number: 1950/038232/06
JSE Code: HAR
NYSE Code: HMY
NASDAQ Code: HMY
HARMONY IN EXCELLENT FINANCIAL HEALTH
Johannesburg, 23 April 2009. Harmony Gold Mining Company Limited ("Harmony") is
pleased to announce that it has delivered on its promise of reducing its debt,
preserving cash and positioning itself to become net debt free.
Rand Uranium proceeds - second and final tranche received
Harmony entered into agreements with Pamodzi Resources Fund 1 LLP ("PRF"), in
terms of which certain uranium and gold assets of Randfontein Estates Limited (a
wholly owned subsidiary of Harmony) were sold into a special purpose vehicle,
Rand Uranium (Proprietary) Limited ("Rand Uranium"), for a purchase
consideration of US$348 million. Harmony holds 40% of Rand Uranium`s
shareholding and in exchange for 60% of the issued share capital of Rand
Uranium, it was agreed that Harmony would receive US$209 million. PRF paid the
first tranche of US$40 million in November 2008. The second tranche of $169
million, plus interest thereon at 5% per annum, was payable in April 2009.
Shareholders` attention is drawn to various announcements made relating to the
transaction on 19 December 2007, 24 October 2008 and 21 November 2008.
On 20 April 2009 PRF paid approximately US$172 million to Harmony as final
payment in terms of the Rand Uranium transaction. Harmony`s Chief Executive
Officer, Graham Briggs says, "We are excited about the future of Rand Uranium
and look forward to sharing in Rand Uranium`s success, together with PRF and
their investors, First Reserve Corporation and AMCI Capital."
Harmony has completed its planned capital raising, exploiting favorable market
conditions by issuing a second tranche of shares for cash in the open market,
pursuant to its mandate given by shareholders at the Annual General Meeting.
In the capital raising 7 540 646 shares have been placed between 10 February
2009 and 6 March 2009 at an average subscription price of R124.45, raising R938
million before costs. The average issue price compares favourably with the
weighted average share price on the JSE over the same period of R122.75 per
share. The number of shares issued is equivalent to 1.9% of Harmony`s issued
share capital of 403 424 148 shares as at 30 September 2008. Combined with the
share issue announced in December 2008, the cumulative share issue amounts to
4.5% thereof. To date, the total number of shares in issue is 425,763,329. The
cost of the second placement was approximately R15 million, or 1.6% of the value
of the shares issued.
JP Morgan Equities Limited acted as transaction advisor.
The combined effect of the above is that Harmony is net debt free.
The proceeds from the capital raising and the Rand Uranium transaction totaling
R2.7 billion, will be utilized to repay Harmony`s convertible bond (due in May
2009) and its short term debt, leaving a positive cash balance of approximately
"Harmony is in excellent financial health with a strong balance sheet thanks to
all the measures that have been taken in the past 18 months. Our focus now
remains on achieving our overall targets and delivering consistent results",
Harmony Gold Mining Company Limited will be hosting analysts and fund managers
today. The presentation will be available on the company`s website at
www.harmony.co.za at 08:00 this morning.
Issued by Harmony Gold Mining Company Limited
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
PO Box 2
T: +27 (11) 411 2000
For more information on Harmony, please visit www.harmony.co.za
Transaction Advisor and Sponsor in respect of capital raising:
J.P. Morgan Equities Limited
Date: 23/04/2009 07:05:02 Supplied by www.sharenet.co.za
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