| Mon 9 Feb 2004, 9:23 | | PRESS RELEASE |
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ANGLOVAAL MINING LIMITED -
ANGLOVAAL MINING LIMITED
(Registration number 1933/004580/06)
(Incorporated in the Republic of South Africa)
(Share codes: JSE: AIN LSE: AGM)
(ISIN: ZAE000017141)
("Avmin")
Avmin Acquires Anglo American"s 25% Stake in Nkomati Nickel
Diversified mining company, Avmin, has acquired the remaining 25 percent of the
Nkomati operation from Anglo Operations Limited ("AOL"), a subsidiary of Anglo
American plc.
Nkomati was a joint venture entered into between Avmin and AOL in 1995, and
Avmin has managed the venture since inception. The purchase price is R260
million and will be settled in cash, which Avmin will fund from debt raised from
a South African institution. The effective date of the transaction was 1
February 2004.
Nkomati is South Africa"s only primary nickel producer and produces copper,
cobalt, and platinum group metals (PGM"s) as by-products. In 2003 Nkomati
produced 4 900 tons of nickel and 39 000 ounces of PGM"s. For the year ended 30
June 2003, Nkomati generated revenue of R503 million (2002: R434 million) and an
operating profit of R236 million (2002: R209 million). The mine currently
employs 100 people. The transaction values Nkomati at just over R1 billion and
will be value enhancing, allowing for improved cash flow into Avmin. In
addition, this acquisition provides Avmin with the strategic flexibility
required to advance on plans currently being considered for the significant
expansion of Nkomati.
As part of the broader transaction that Avmin is currently engaged in with
African Rainbow Minerals and Exploration Investments Limited ("ARMI") and
Harmony Gold Mining Company Limited, Avmin will be creating a significant PGM
portfolio. This portfolio currently includes Nkomati and 55% of the Two Rivers
project. At Two Rivers further capital provisions have been approved to conduct
trial mining and to develop necessary infrastructure. The addition of 41.5 % of
Modikwa, to be acquired from ARMI, and 100% of Kalplats, to be acquired from
Harmony, will significantly enhance this portfolio. The portfolio will have the
potential of achieving sizeable attributable PGM production levels through a
number of expansion plans that are currently being considered.
Announcing the acquisition, Jan Steenkamp, CEO of Avmin said:
"This purchase is a further step in our ongoing strategy of creating critical
mass in the PGM and nickel market. We look forward to developing these assets
to their fullest potential as we focus our efforts on positioning Avmin as South
Africa"s largest diversified and empowered mineral resources company."
Johannesburg
February 9,2004
For further information contact:
College Hill
Nicholas Williams +27 11 447 3030
Angela Parr
Avmin
Ebrahim Takolia, GM - Investor Relations +27 11 634 0333
+27 83 291 3384
Notes to Editors:
Avmin is a South African diversified mineral resources company listed on the JSE
and the London Stock Exchange. The group has a market capitalisation of R5.2
billion, with a share price of 4 650 cents as of 6 February 2004.
The company"s assets are as follows:
Avgold (42%), which operates the Target gold mine and which has a reserve and
resource base of over 7 million ounces of gold. Plans are also underway to
develop the area to the north of Target that has additional indicated and
inferred resources of over 60 million ounces,
Assmang (50%), an iron ore, manganese and chrome producer that is jointly
managed with listed company Assore Limited,
Two Rivers Platinum (55%), which is a partnership between Avmin and Impala
Platinum, and
Nkomati (100%).
The chairman of Avmin is Rick Menell (48yrs) and Jan Steenkamp (49yrs) is the
CEO.
Avmin has recently entered into a transaction with Harmony and ARMI, the essence
of which, if approved by shareholders, is as follows:
- Avmin will sell its 42% interest in Avgold to Harmony in exchange for Harmony
shares,
- Avmin will buy from ARMI, in exchange for Avmin shares
- its 13.6% of Harmony and
- its 41.5% of Modikwa joint venture,
- Avmin will buy 100% of Kalplats platinum discovery and associated mineral
rights from Harmony, for Avmin shares; and
- Harmony will merge its Avmin shares with the Avmin shares controlled by ARMI
to create a voting pool arrangement holding approximately 63% of Avmin"s
ordinary issued share capital.
Please visit the company"s website for more information at www.avmin.co.za where
you will find photographs of directors and management.
Date: 09/02/2004 09:00:24 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
