Mid-quarter and Gold Fields Bid Update From Harmony
March 10 2005 - 11:36AM
PR Newswire (US)
Mid-quarter and Gold Fields Bid Update From Harmony JOHANNESBURG,
South Africa, March 10 /PRNewswire-FirstCall/ -- Harmony Gold
Mining Company Limited (NYSE:HMY)(JSE:HAR) provided an update on
both its operations and its bid for Gold Fields (NYSE:GFI)(JSE:GFI)
at a media and analyst briefing held today. CE Bernard Swanepoel's
presentation covered details of the Competent Person's Report
("CPR") on the company's reserves, the timetable for competition
authority approval and progress on the Papua New Guinea Hidden
Valley growth project and exploration portfolio following the
allocation of its mining license. He also confirmed that Harmony
would be extending its deadline for Gold Fields shareholders to
tender into its subsequent offer. The CPR, now in the process of
being filed with the JSE, shows that Harmony's audited proven and
probable reserves total 52.1 million ounces. Another 8,3 million
ounces of inferred reserves bring Harmony's total to 60,4 million
ounces, in line with the guidance given at the December quarterly
results presentation and representing only a 3% difference between
Harmony's and SRK's reserve estimates. Swanepoel said that due to
the December Christmas holiday, the current reporting period was
traditionally a slow quarter, much in line with what the local
industry experiences every year. Harmony would also be testing its
balance sheet for any impairment charges under the new
macroeconomic assumptions due to the 'stronger-for-longer' South
African Rand environment. Any such charges would be reported at the
end of the March quarter. With regard to Harmony's offers for Gold
Fields, Swanepoel said the company's expected closing date for the
subsequent offer would be extended to 12 p.m. (South African time)
on the 20th of May and that 128 910 Gold Fields shares had been
tendered so far, in line with what is customary for a conditional
offer. "We are extending the date to allow for as much flexibility
as possible to accommodate the delay due to the process at the
Competition Tribunal," said Swanepoel. "Harmony's balance sheet is
strong and sustainable and our operations have been restructured to
exist profitably with a strong Rand. We are currently building five
growth projects in South Africa and have exciting projects that
will be developed in Papua New Guinea. We don't need Gold Fields.
We will not pursue this merger if it is not justifiable at the
right price and on the right terms." Swanepoel said the current
ratio between the two company's share prices was 'crazy' and that
any decisions about the offer would be taken solely with the best
interests of Harmony and its shareholders in mind. He said that
despite the rumours floating around, the only certainty in the
market remains Harmony's offer to Gold Fields' shareholders. Copies
of this announcement and the update briefing presentation are
available on Harmony's transaction website
(http://www.harmony.co.za/) Unless the context otherwise requires,
the definitions contained in the offer document or the registration
statement sent to Gold Fields shareholders have the same meaning in
this announcement. The directors of Harmony accept responsibility
for the information contained in this announcement. To the best of
the knowledge and belief of the directors of Harmony (who have
taken all reasonable care to ensure that such is the case), the
information contained in this announcement is in accordance with
the facts and does not omit anything likely to affect the import of
such information. In connection with the proposed acquisition of
Gold Fields, Harmony has filed a registration statement (File no:
333-120975) on Form F-4 (which was declared effective by the
Securities and Exchange Commission ("SEC") on February 28, 2005)
and filed a final prospectus, dated February 25, 2005, with the SEC
pursuant to Rule 424(b)(3) of the Securities Act of 1933, to
register the Harmony ordinary shares (including Harmony ordinary
shares represented by Harmony American Depositary Shares ("ADSs"))
to be issued in exchange for Gold Fields ordinary shares held by
Gold Fields shareholders located in the United States and for Gold
Fields ADSs held by Gold Fields shareholders wherever located, as
well as a Statement on Schedule TO. Investors and holders of Gold
Fields securities are strongly advised to read the registration
statement, the related exchange offer materials and the final
prospectus, the Statement on Schedule TO and any other relevant
documents filed with the SEC, as well as any amendments and
supplements to those documents, because they contain important
information. Investors and holders of Gold Fields securities may
obtain free copies of the registration statement, related exchange
offer materials, the final prospectus and the Statement on Schedule
TO, as well as other relevant documents filed or to be filed with
the SEC, at the SEC's web site at http://www.sec.gov/. Investors
and holders of Gold Fields securities will receive information at
an appropriate time on how to obtain transaction-related documents
for free from Harmony or its duly designated agent. The final
prospectus and other transaction-related documents may be obtained
for free from MacKenzie Partners, Inc., the information agent for
the U.S. offer, at the following address: 105 Madison Avenue, New
York, New York 10016; telephone 1 (212) 929 5500 (call collect) or
1 (800) 322 2885 (toll-free call); e-mail . This communication is
for information purposes only. It shall not constitute an offer to
purchase or exchange or the solicitation of an offer to sell or
exchange any securities of Gold Fields or an offer to sell or
exchange or the solicitation of an offer to buy or exchange any
securities of Harmony, nor shall there be any sale or exchange of
securities in any jurisdiction in which such offer, solicitation or
sale or exchange would be unlawful prior to the registration or
qualification under the laws of such jurisdiction. The distribution
of this communication may, in some countries, be restricted by law
or regulation. Accordingly, persons who come into possession of
this communication should inform themselves of and observe these
restrictions. The solicitation of offers to buy Gold Fields
ordinary shares (including Gold Fields ordinary shares represented
by Gold Fields ADSs) in the United States will only be made
pursuant to a prospectus and related offer materials that Harmony
has sent to holders of Gold Fields securities. The Harmony ordinary
shares (including Harmony ordinary shares represented by Harmony
ADSs) may not be sold, nor may offers to buy be accepted, in the
United States prior to the time the registration statement becomes
effective. No offering of securities shall be made in the United
States except by means of a prospectus meeting the requirements of
Section 10 of the United States Securities Act of 1933, as amended.
DATASOURCE: Harmony Gold Mining Company Limited CONTACT: Ferdi
Dippenaar, +27-11-684-0140, +27-82-807-3684, or Vusi Magadana,
+27-11-684-0140, +27-72-157-5986, both of Harmony Gold; or South
Africa Beachhead Media & Investor Relations: Jennifer Cohen,
+27-11-214-2401, +27-82-468-6469, , or Patrick Lawlor,
+27-11-214-2410, +27-82-459-6709, ; or United States - Financial
Dynamics Business Communications: Hollis Rafkin-Sax,
+1-212-850-5789, +1-917-509-0255, , or Torie Pennington,
+1-212-850-5629, +1-917-838-1369, ; or United Kingdom - Financial
Dynamics Business Communications, Nic Bennett, +44-207-269-7115,
+44-7979-536-619, , or Charles Watenphul, +44-207-269-7216,
+44-7866-438-013, ; or US Information Agent - MacKenzie Partners,
Inc: Daniel Burch, +1-212-929-5500, , or Steve Balet,
1-800-322-2885 Web site: http://www.harmony.co.za/
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