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HARMONY GOLD MINING COMPANY LIMITED - A leading South African gold producer boosting cash flows, growing its SA gold portfolio

Release Date: 19/10/2017 07:06:00      Code(s): HAR       PDF(s):  
A leading South African gold producer – boosting cash flows, growing its SA gold portfolio

Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
(“Harmony” or “the company”)

A leading South African gold producer – boosting cash flows, growing its SA gold

Johannesburg.   19 October 2017. Harmony Gold Mining Company Limited (“Harmony”
and/or “the Company”) is pleased to announce that it has entered into an agreement
with AngloGold Ashanti Limited ("AngloGold Ashanti") to acquire its Moab Khotsong
and Great Noligwa mines, together with certain long life projects and tailings
dams, for a consideration of US$300 million in cash (“the Acquisition”).

Harmony believes the Acquisition will enhance its position as a robust cash-
generative gold mining company, increasing grades, driving down all-in sustaining
costs (“AISC”) and growing its South African gold portfolio. This value accretive
acquisition is in line with Harmony’s strategy to grow, produce safe profitable
ounces and increase margins. The Acquisition adds more than 250 000 ounces of
gold at an all-in sustaining cost below Harmony's target of US$950/oz, increasing
Harmony’s average recovered grade to 5.7g/t.          Synergies with Harmony’s current
asset   portfolio   is   expected   to   realise   further   upside,   progressing   pillar
extraction at Great Noligwa and reclamation at Mispah tailings.

"Buying Moab Khotsong means we boost our cash flows by more than 60%, increase
our average overall underground recovered grade by 12% and grow our South African
underground resource base by 38%.        The Acquisition benefits all our stakeholders.
It creates value for our shareholders, preserves jobs and sustains the surrounding
mining communities with the potential to significantly extend the life of mine
of the Moab Khotsong operations. We believe the South African gold mining
environment creates opportunities which Harmony has chosen to capitalise on,”
Peter Steenkamp, chief executive officer of Harmony said.

In terms of the JSE Listings Requirements, the Acquisition is classified as a
category 1 transaction. Important and pertinent details to the Acquisition are
provided in the JSE announcement which accompanies this announcement, which can
be found on our website at www.harmony.co.za.

The Acquisition is subject to approval from Harmony’s shareholders and other
conditions precedent, including regulatory approvals. The Board of Harmony has
unanimously approved the transaction and has resolved to recommend the Acquisition
to its shareholders.

Harmony’s CEO will give a live presentation pertaining to this transaction at
10:00 SA time today at the Hilton Hotel in Sandton. The investor presentation
accompanying     the   announcement   will   be   available   on   our   website   at

Harmony will host a media call at 08:00 SA time, an analyst call at 08:30 SA time
and an international call at 16:00 SA time.

Conference calls dial-in numbers
South Africa
0 800 201 648
011 535 3600
010 201 6800

0808 162 4061

+1 855 481 5362

+1 800 350 100

Other countries
+27 11 535 3600


For more details contact:

Lauren Fourie
Investor Relations Manager
+27 (0) 71 607 1498 (mobile)

Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)

19 October 2017

Transaction Sponsor:
UBS Limited

J.P. Morgan Equities South Africa Proprietary Limited.

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