| Tue 17 Dec 2002, 9:12 | | DURBAN ROODEPOORT DEEP, LIMITED ACQUIRES 14% INTER |
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DURBAN ROODEPOORT DEEP, LIMITED ACQUIRES 14% INTEREST IN EMPEROR MINES LIMITED
Durban Roodepoort Deep, Limited (DRD)
ISIN: ZAE000015079
Share code: DUR
Durban Roodepoort Deep, Limited (DRD) is pleased to announce that it has entered
into a share purchase agreement to acquire approximately 14% of the issued share
capital of Emperor Mines Limited (Emperor). The agreement is subject only to
South Africa Reserve Bank approval.
The price payable is A$0.75 per Emperor share, which represents a 9% premium to
the weighted average share price for the 30-day trading period prior to the
execution of the agreement.
Emperor has recently begun a Phase 2 Expansion Plan at its flagship Vatukoula
gold mine in Fiji that is expected to lift annual gold production to 180 000
ounces and significantly reduce cash operating costs. The expansion is to be
fully financed via a A$26 million credit facility from ANZ Bank, cash reserves
and forecast cash flow.
With the Phase 2 Expansion under way and fully financed, Emperor is now in a
position to consider further growth opportunities. The timing of DRD`s
investment is recognition of this fact and is indicative of full support for
Emperor`s ambitions in the Australasian region.
Commenting on the transaction, DRD Chairman and Chief Executive Officer Mark
Wellesley-Wood said: "Emperor`s energetic management team has had considerable
recent success at its Vatukoula gold mine. We believe that this team will be
able to replicate its success elsewhere in the region."
Emperor Chief Executive Officer Greg Starr said in a company statement: "There
are numerous similarities between the business strategies and management styles
of Emperor and DRD. We believe that the relationship between the two companies,
cemented by this transaction, will offer both parties significant benefits in
enacting their growth strategies. We have great admiration for the current
management team at DRD and, with their support, hope to emulate the growth and
success they have achieved in South Africa in the Australasian region."
The Emperor statement welcomed DRD`s investment and added that the company was
"pleased to have a successful, growth-oriented mining company as its major
shareholder.
"Emperor looks forward to working closely with DRD management where common
objectives and synergies are believed to exist".
Following completion of the transaction it has been proposed that both Gordon
Toll and Ed Flood, representatives of Ivanhoe Mines Limited, the outgoing major
shareholder, will step down from the Board positions they hold at Emperor. The
independent directors of Emperor will then invite Mark Wellesley-Wood and David
Baker from DRD to join the Emperor Board.
For further information please contact::
In South Africa:
James Duncan
Russell & Associates
+2711 8803924 (office)
+27 82 892 8052 (mobile)
In Australia:
Paul Downie
Porter Novelli
+618 9386 1233 (office)
0414 947 129 (mobile)
Website: www.durbans.com
About Emperor Mines Limited:
Emperor Mines Limited (ASX code EMP) is an Australian based company that owns
the Vatukoula underground gold mine in Fiji and has gold exploration interests
around the mine site and elsewhere within the main island of Viti Levu and to
the northeast on the island of Vanua Levu.
Implementation of the Phase 2 Long Term Operating Strategy at Vatukoula is
currently underway. The strategy involves the expansion of activities to fully
utilize the production capability of the mine and thereby maximize efficiencies
through economies of scale. The Phase 2 Strategy aims to increase mine output
by 40% over the next 3 years to 800,000 tonnes (mill capacity) and gold
production by some 35% to approximately 180,000 ounces.
Over 6.4 million ounces of gold have been mined at Vatukoula since 1933. As at
30 June 2002 Emperor had 1.0 million ounces in reserves and 4.2 million ounces
in resources. On-going exploration is expected to further extend the life of the
mine.
The market capitalisation of Emperor is approximately A$80 million (US$44
million).
Emperor is also pursuing new gold mining opportunities which can generate
greater shareholder wealth.
For further information please contact:
Andrew Cooke
Company Secretary
Emperor Mines Limited
Phone: +612 9299 7422
Website: www.emperor.com.au
About Durban Roodepoort Deep, Limited
Durban Roodepoort Deep, Limited (DRD) is a dynamic, driven and independent gold
mining company. The company, established in 1895, is based in South Africa, with
substantial operations in that country and an operation in Papua New Guinea.
DRD`s mission is to maintain its independent status and to focus on extending
ore reserve life safely and profitably.
Gold is DRD`s main product, derived both from deep-level and opencast gold
mining, and from the retreatment of surface material. The current operations
have been amalgamated and acquired since 1997. Since then, production has risen
from under 100 000 ounces a year to 1.1 million ounces. DRD now ranks as fourth
largest in terms of gold production in South Africa and 13th internationally.
The company`s attributed mineral resource base as at 30 June 2002 was 611.3
million tonnes, containing 70.85 million ounces. Attributed mineral reserves
were 126.5 million tonnes, containing 16.3 million ounces of proved and probable
gold. Attributed underground mineral reserves comprised 15.0 million ounces.
East Rand Proprietary Mines (ERPM), in which DRD acquired a 40% interest in
October 2002, has an attributed mineral resource of 2.2 million and mineral
reserve of 0.6 million ounces.
The market capitalisation of this growth-orientated company is approximately
R7.0 billion (US$775 million).
DRD`s South African interests comprise:
* Blyvooruitzicht Mine;
* the North West Operations (Hartebeestfontein and Buffelsfontein Mines); and
* 40% of Crown Gold Recoveries and ERPM.
DRD`s operation in Papua New Guinea is the Tolukuma Mine.
DRD is a public company with its primary listing on the Johannesburg Stock
Exchange and secondary listings on the London Stock Exchange, the Brussels
Bourse, the Australian Stock Exchange (primary listing), the Paris Bourse and
Nasdaq in the United States. The company`s shares are also traded on the Berlin
OTC Market and the Regulated Unofficial Market of the Frankfurt Stock Exchange.
For further information please contact::
In South Africa:
James Duncan
Russell & Associates
(+2711) 8803924 (office)
(+27) 82 892 8052 (mobile)
In Australia:
Paul Downie
Porter Novelli
+618 9386 1233 (office)
0414 947 129 (mobile)
Website: www.durbans.com
Date: 17/12/2002 08:40:00 AM Produced by the JSE SENS Department
