DRD
DRDD
DRD - DRDGold Limited - Emperor Hedge book closed out
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
ARBN: 086 277 616
JSE trading symbol: DRD
ISIN: ZAE000058723
Issuer code: DUSM
Nasdaq trading symbol: DROOY
("DRDGOLD")
EMPEROR HEDGE BOOK CLOSED OUT
Emperor Mines Limited ("Emperor" or "the company") announces that, in accordance
with the recently announced decision to pay out debt and hedge liabilities, the
company has now closed out its gold forward-sell hedge book of 145,695 ounces at
a spot price of US$670/oz, effective Monday, 14 May 2007.
The hedge book was closed out for a total of US$34.2m, and the ANZ Bank has
agreed to defer the settlement of the amount till 31 December 2007, following
the receipt of funds rising from the sale of Emperor`s stake in the Porgera
Joint Venture ("the Porgera transaction").
This deferral facility attracts an interest rate of LIBOR + 3.7% margin, also
payable on settlement in December.
Emperor`s Chief Executive, Brad Gordon, said that closing out of the hedge book
was a major step in the company`s strategy to reduce all debt and hedge
liabilities following the restructure of the company as announced earlier in the
year.
"The Porgera transaction has provided a unique opportunity for the company to
free itself from significant debt and hedge obligations in order to more
aggressively pursue opportunities for the future."
"Closing our hedge book is yet another step in re-positioning the company
following the Porgera transaction, and this, together with the planned
retirement of the company`s ANZ finance facility, will allow us to consider
future opportunities from a stronger financial base," Mr Gordon said.
FURTHER INFORMATION:
Patrick Bindon
Director - Corporate Communications
Emperor Mines Limited
AUS +617 3007 8000
FAX +617 3007 8080
pbindon@emperor.com.au
16 May 2007
Sponsor
Standard Bank
Date: 16/05/2007 08:24:01 Produced by the JSE SENS Department.
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