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.
Raising
funds
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 Harmonys 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 Harmonys stated intention to have zero net debt by June 2009,
the proceeds will primarily be used to reduce debt levels.
Nedbank
loan
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 December 2009.
Capital
projects
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.
ends.
Issued by Harmony Gold
Mining Company Limited
22 December 2008
For more details contact:
Frank
Abbott
Interim Financial Director
on +27(0)82 800 4290
or
Graham Briggs
Chief Executive Officer
on +27(0)83 265 0274
or
Marian van der Walt
Executive: Corporate &
Investor Relations
on +27 (0)82 888 1242
Corporate
Office:
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 (11) 411 2000
For
more information on
Harmony, please visit
www.harmony.co.za
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JSE:
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HAR |
NYSE:
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HMY |
NASDAQ:
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HMY |
ISIN No.:
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ZAE000015228 |