Harmony Gold Mining Company Limited: Convertible Bond Issue

Harmony Gold Mining Company Limited: Convertible Bond Issue


LONDON, March 31 /PRNewswire/ -- 


    Incorporated in the Republic of South Africa
    (Registration number 1950/038232/06)
    Share Code: HAR ISIN:ZAE 000015228


    Harmony Gold Mining Company Ltd ("Harmony") today announces that it
intends to issue ZAR1,700 million (c.US$270 million) of convertible bonds
(the "Bonds").



    The proceeds of the issue will be used primarily to refinance Harmony's
existing South African Rand debt, hence benefiting from the attractive
financing opportunities currently available in the convertible bond market.



    Terms of the Bonds



    Subject to the terms and conditions of the Bonds, the Bonds will be
issued by Harmony and will be convertible into approximately 14 million new
Harmony ordinary shares (the "Shares"), representing approximately 5% of
Harmony's issued ordinary share capital. The Bonds will be denominated in
Rand and will be issued at 100% of their principal amount. The coupon on the
Bonds will be 4.875% payable semi-annually in arrears and the conversion
price will be ZAR121.



    The Bonds are expected to settle on or about 21 May 2004. Applications
will be made for the Bonds to be admitted to the Official List of the UK
Listing Authority and to the London Stock Exchange plc's market for listed
securities.



    J.P. Morgan Securities Ltd. is the lead manager of the Bond issue.



    Background information



    Harmony Gold Mining Company Limited



    Harmony is the largest gold producer in South Africa and the sixth
largest gold producer in the world. Harmony is listed on stock exchanges in
Johannesburg, New York, London, Paris, Berlin and Brussels, and has a market
capitalisation of approximately US$ 4.0 billion. Since becoming an
independent mining company in 1995, Harmony has implemented a successful
strategy of delivering shareholder value by pursuing a focused strategy of
growth through acquisitions. Harmony has completed some 25 acquisitions, many
of which have also provided the company with opportunities for significant
organic growth. As at 30 June 2003, Harmony's mining operations in South
Africa and Australia reported in aggregate total proven and probable reserves
of approximately 61.9 million ounces, and a gold resource in excess of 410
million ounces.



    In the United Kingdom, this announcement is directed
exclusively at persons who have professional experience in matters relating
to investments who fall within Article 19 or 49 of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2001. In the United Kingdom, the
Bonds will only be issued to such persons.



    This announcement is not for distribution in or into the
United States or to US persons. This announcement is not an offer of
securities for sale in the United States or to US persons. The securities
referred to herein may not be offered or sold in the United States or to US
persons unless they are registered under the US Securities Act of 1933 or
exempt from registration. There will be no public offering of the securities
referred to herein in the United States.


    For further information please contact:
    Ferdi Dippenaar
    Harmony
    [phone]

    Ian Hannam
    JPMorgan
    [phone]


DATASOURCE: Harmony Gold



Ferdi Dippenaar, Harmony, [phone]. Ian Hannam, JPMorgan,
[phone]

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