Release Date: 02/08/2004 17:05:00 Code(s): MTX
Metorex Limited - Strategic Re-Organization
METOREX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
Share code: MTX
ISIN : ZAE000022745
(`Metorex` or `the company`)
STRATEGIC RE-ORGANIZATION
Metorex is a mid-tier diversified mining group in Southern Africa positioned for
growth, organically and by the acquisition of longer life, quality ore resources
and/or mining projects.
Shareholders have been previously advised that the O`Okiep Copper (OCC) project
viability has been affected by both lower dump grades and the Rand/Dollar
exchange rate. The company has now given notice to the Unions and Authorities
that they wish to negotiate a restructuring of OCC and, if necessary, a phased
closure of the OCC operations. This decision has been influenced by the recent
strength of the Rand on the current and future OCC earnings. An impairment
provision will be made against these assets subject to finalization of the above
discussions.
Staff from OCC will be deployed where possible within the Metorex group and
asset sales will reduce the financial effects of this decision. Shareholders are
further notified that the Maranda Mine reserves are fully depleted and the mine
is being closed in an orderly manner with the knowledge and co-operation of all
staff. The Maranda closure has been fully provided for.
Shareholders are further advised that the Middleburg Colliery commenced
production in June 2004 and is operating at profitable levels ahead of
management expectations. Opening of the Chibuluma South orebody is progressing
well and initial production is anticipated in late 2004 to coincide with the run
down of the Chibuluma West operations. Financing and market discussions of the
Ruashi Copper Cobalt project in the DRC are proceeding.
Johannesburg
2 August 2004
Sponsor:
Barnard Jacobs Mellet Corporate Finance
(Pty) Limited
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