Durban Roodepoort Deep - Press Release
DURBAN ROODEPOORT DEEP
23 May 2002
107/02-jmd
DRD ACCELERATES HEDGE CLOSE OUT
Durban Roodepoort Deep, Limited (DRD) has announced the placement of 10.0
million new shares to raise approximately $40 million, $35 million of which
will be used to accelerate the close out of the company`s hedge book
positions.
The balance of the proceeds, net of costs, will fund DRD`s exploration
programmes in Papua New Guinea and Australia, including the new Saki
project.
This buyback will result in the close out of 50% of the remaining revenue
hedge book.
Commenting on the placing by CIBC World Markets to primarily North American
investors, DRD`s Chief Financial Officer, Ian Murray, said: "The recent
strength in the Rand has provided us with the opportunity to close out
positions early.
"The gold price in Rand terms is now the lowest it has been since early
December 2001 and, given our intention to eliminate our hedge book, the
timing seems favourable. There was strong demand for the shares and the size
of the placement had to be increased from 7.0 to 10.0 million shares as a
result. The shares were placed with approximately 20 institutions, most of
which are new holders of DRD shares. The geographic spread of this placement
was 50% in Canada, 43% in the United States and 7% in Europe and the United
Kingdom.
"Today`s placement, together with other funding mechanisms we have in place
- such as the structured finance facility we have mandated Standard Bank to
arrange - will ensure that we can meet our commitments to fully participate
in the spot gold price from 30 June this year and to significantly uplift
our earnings."
Queries: James Duncan
+27 11 880 3924 (work)
+27 82 892 8052 (cell)
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