Harmony Gold Mining Company Limited (Harmony) has received a number of enquiries and proposals from interested third parties regarding the direct or indirect acquisition of its assets in Papua New Guinea.
Harmony's Board of Directors has given careful consideration, with the assistance of its advisers, to all of these enquiries and proposals and is of the view that the disposal of the Company’s Papua New Guinea assets at this early stage of their development will not realise their full potential value. This is particularly relevant in relation to the Wafi-Golpu project, where the pre-feasibility study is expected to be completed by the middle of 2012 and the feasibility study during 2014.
Drilling at the Wafi-Golpu project continues to confirm the world class nature of this ore body. The Board believes that the results of the ongoing drilling and the completion of the feasibility study should significantly increase the confidence in and the potential value of the Wafi-Golpu project.
Harmony has sufficient operating cash flow and financing facilities to fund the completion of the drilling and the feasibility studies. The Board is confident that Harmony will be able to fund its share of the capital required to bring the Wafi-Golpu project to production.
Exploration in respect of Harmony's assets in Papua New Guinea which fall within and outside the Harmony/Newcrest Morobe joint venture areas, continues to deliver promising results.
The Board believes that the continuation of Harmony's current strategy of investing in the development of its assets in Papua New Guinea is in the best interests of Harmony and its shareholders.
This press release has been issued for information purposes only and does not constitute a cautionary announcement. Shareholders are referred to Harmony’s website to read more about the company and its assets in Papua New Guinea (www.harmony.co.za).
Chairman of the Board
This press release contains forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “plans,” “should” and other similar words. All statements addressing events or developments that Harmony expects or anticipates will occur in the future, statements regarding the plans and objectives for future operations and other proposed or contemplated transactions, statements of future performance, statements of the assumptions underlying or relating to any of the foregoing statements, and other statements that other than statements of historical fact, are considered to be “forward-looking statements.”
Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Harmony's most recent Annual Report on Form 20-F under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of Harmony's underlying assumptions prove incorrect, actual results could vary materially from those currently anticipated. In addition, undue reliance should not be placed on Harmony's forward-looking statements. Except as required by law, Harmony disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.
For more details contact:
Chief Executive Officer
Tel: +27 011 411 2011 (mobile)
Tel: ++27 (0) 83 265 0274 (mobile)