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ANGLOVAAL MINING LIMITED - Statement On Shareholding
ANGLOVAAL MINING LIMITED
(Reg. No. 1933/004580/06)
(Incorporated in the Republic of South Africa)
Share codes:
JSE Securities Exchange, South Africa: AIN (ISIN:000017141)
London Stock Exchange: AGM
("Avmin" or "the Company")
ANGLOVAAL MINING LIMITED - STATEMENT ON SHAREHOLDING
Avmin shareholders are referred to the announcements today indicating that
Harmony Gold Mining Company Limited ("Harmony") and African Rainbow Minerals
Gold Limited ("ARMgold") will acquire a significant shareholding in Avmin.
The shareholding is being purchased from Anglo South Africa Capital
(Proprietary) Limited ("Anglo American") and Arctic Resources Limited ("Arctic")
for a cash consideration of R43,50 per Avmin share. Harmony and ARMGOLD, which
together will own 34.5% of Avmin, will consolidate their holdings on a 50:50
basis in a new structure. Subject to approval by the Avmin Board of Directors,
this transaction will result in the three Anglo American-nominated directors on
the Avmin board being replaced by directors nominated by Harmony and ARMgold.
Avmin welcomes this development as it has been a strategic objective of the
Board and management for some time to accelerate transformation of the company
by achieving a significant black shareholding. The inclusion of ARMgold as a
major shareholder achieves this objective and will also make a major
contribution towards meeting the five-year requirements for Avmin and its
subsidiaries under the new Mineral and Petroleum Resources Development Act,
thereby protecting shareholder value and promoting growth.
In volatile markets, particularly for the rand exchange rate, Avmin is well
placed compared with its peers in the South African mining industry to deliver
value through earnings and growth for all its shareholders. This will be
accomplished through its strengths, which include:
AVMIN DEBT-FREE
The recent strong exchange rate has provided the opportunity for Avmin to repay
all debt related to Chambishi Metals Plc ("Chambishi") on favourable terms.
This debt amounted to R1,44 billion in June 2002, and has reduced by R440
million to R1,00 billion currently due to the strengthening of the rand. With
cash of R1,08 billion (including proceeds of US$73 million from the recent sale
of 13,3% of Avgold Limited ("Avgold")), Avmin is now entirely debt-free on a net
basis at the centre. Major subsidiaries Assmang Limited and Avgold carry low
levels of debt, with no support required from Avmin.
SUPERIOR ASSETS
Avmin"s disposal of non-core assets and major capital spending programmes over
the last five years have resulted in a portfolio consisting entirely of low-
cost, high-margin mining and smelting operations in precious, ferrous and base
metal sectors. The proposed sale of Chambishi and ETC (by Avgold) will complete
this process. This portfolio provides resilience in earnings to uncertainties
in exchange rates, product markets and new legislation.
NEW PROJECTS
Two major new projects - Two Rivers Platinum and the Nkomati Nickel expansion
await approval - and a major new gold project at Target North is under
investigation.
Avmin chairman Rick Menell comments: "With a strong balance sheet, a well-
diversified portfolio of attractive mines and exciting new projects, we look
forward to working with Avmin"s new shareholders in pursuing our strategy of
optimising operations and head-office structures, and generating attractive new
investment opportunities in all our chosen businesses."
Ends
Johannesburg
02 May 2003
Contact details:
Ebrahim Takolia
General Manager - Investor Relations
Anglovaal Mining
Direct Line: +27 11 634 0333
Fax: +27 11 634 0383
Mobile: 083 291 3384
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
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