Anglogold Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1944/017354/06)
ISIN Number: ZAE000014601
JSE Share Code: ANG
NEWS RELEASE
CORPORATE AFFAIRS DEPARTMENT
16th FLOOR, 11 DIAGONAL STREET
JOHANNESBURG 2001
TELEPHONE: (+27 11) 637-6385
FAX : (+27 11) 637-6399/6400
18 January 2002
ANGLOGOLD CLOSES ITS OFFER FOR NORMANDY
At the scheduled close of its offer for Normandy Mining today in Sydney,
AngloGold had not achieved a level of acceptance that warrants an extension
of the offer. The company believes that it is not possible for AngloGold to
obtain majority control of Normandy and has therefore closed its offer.
AngloGold's Chairman and CEO, Bobby Godsell, said: "We are clearly
disappointed at not being able to do this transaction. We gave the bid our
very best effort. The competing bidder has seen more value in the Normandy
assets than we were able to identify reliably and therefore made a higher
offer. Newmont's original offer valued Normandy at A$1.70 per share and
Newmont subsequently offered an additional cash consideration of 45 cents
per share. In contrast, our original offer valued Normandy at $1.43 per
share and we subsequently increased this offer by 30 cents per share. The
relative performance of the Newmont and AngloGold shares has considerably
narrowed this gap during the course of the bid. We have made it clear that
we will not overpay for acquisitions and we could see no basis to further
increased our offer for Normandy."
AngloGold will continue to grow the value of this company through organic
growth: the company currently has five major capital projects in development
which will be coming into production over the next three years, and which
will produce around 20 million ounces of gold in total over the life of the
projects at an average cash cost of approximately $147 per ounce. AngloGold
will also seek value growth through its substantial and focused exploration
programme.
Here the company is particularly encouraged by its activities in the Tanami
Desert in Australia, as well as by those in Peru, and the exploration
adjacent to its properties in Tanzania, Mali, and Western Australia.
Finally, it will also seek to grow the value of AngloGold through the
acquisition of both individual ore bodies and corporate entities where these
acquisitions enhance value in AngloGold.
Mr Godsell went on to say: "AngloGold has long been an advocate of the need
for consolidation in the gold mining industry and this process has been
given considerable impetus by the contest for Normandy. AngloGold's long-
term strategy formulation will continue to be informed by our belief in the
importance of value-creating consolidation.
"AngloGold's major strategic objective remains strengthening value creation,
earnings, profitability and dividend performance, in the interests of all of
its stakeholders and, most particularly, its shareholders."
ends
www.anglogold.com
Queries:
In South Africa
Steve Lenahan
+2711 637 6248 (tel)
+2711 637 6107 (fax)
+27 83 308 2200 (mobile)
slenahan@anglogold.com
Shelagh Blackman
+2711 637-6379 (tel)
+2711 637-6399 (fax)
+27 83 308 2471 (mobile)
sblackman@anglogold.com
n Australia
Andrea Maxey
+61 8 9425 4604 (tel)
+61 8 9625 4650 fax)
+61 438 001 393 (mobile)
amaxey@anglogold.com.au
Hamish Douglass
Deutsche Bank
+61 2 9258 2039 (tel)
+61 2 9258 2440 (fax)
+61 419 560 349 (mobile)
hamish.douglass@db.com
In Europe
Tomasz Nadrowski
+41 22 718 3312 (tel)
+41 22 718 3335 (fax)
+41 79 345 9774 (mobile)
tnadrowski@anglogold.com
Alex Buck
+44 20 7664 8712 (tel)
+44 20 7664 8711 (fax)
+44 7932 2740 452 (mobile)
abuck@anglogold.com
In the USA
Charles Carter
800 417 9255 toll free
+1 212 750 7999 (tel)
+1 212 750 5626 (fax)
ccarter@anglogold.com
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