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Harmony disposes of part of its Gold Fields stake

Harmony Gold Mining Company Limited (NYSE: HMY JSE: HAR) today announced that it had disposed of 30 million Gold Fields shares to the value of $315 million. The placement which took place overnight was completed at a price of USD10,50 per share. Harmony still owns 26,6 million Gold Fields shares which it plans to retain.

“Gold Fields’ invitation to appoint Norilsk Nickel to its board seems to circumvent some of our potential to deploy this entire stake strategically. We retain a 5,4% stake in Gold Fields in the interim to allow us to participate in any appropriate re-structuring of Gold Fields that should eventuate. We still think that there is a good chance that Gold Fields is restructured in a way that puts some of its assets back in play, we see this as a natural consequence of Gold Fields’ corporate shareholders, and its own attempts at re-structuring the company.” Commented Harmony CEO, Bernard Swanepoel.

The proceeds from the placement will be utilised to retire short term debt and ensure funding of the company’s Hidden Valley Project in PNG. This growth project, which is planned to commence construction in July 2005, will add approximately 300 000 ounces to the company’s gold production base and 4,0 million ounces of silver production. One of the considerations in our decision to self-fund Hidden Valley was that we could remain unhedged. A decision to project finance Hidden Valley would likely have required part of Hidden Valley’s production to be hedged.

The company is also considering the buy back of its own shares in terms of existing approval from its shareholders.

“We have consciously remained internally focused despite the complications surrounding the bid process and we continue to do so. Our re-structuring is nearing completion and we have continued to spend on building our growth projects of which Hiddey Valley is the newest. The process of completion of our current project portfolio will substantially enhance the quality of Harmony’s asset portfolio.” Bernard added.

For more details contact:

Bernard Swanepoel
Chief Executive
+27(0)83 303 9922

Ferdi Dippenaar
Marketing Director
+27(0)82 807 3684

Brenton Saunders
Executive, Investor Relations
+27(0)83 607 4060

Vusi Magadana
Investor Relations Officer
Office: +27 11 684 0149
Mobile: +27(0)72 157 5986
This email address is being protected from spambots. You need JavaScript enabled to view it.

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