|
DRDGOLD - Acquisition Facility And Issue Of Shares For Cash
Durban Roodepoort Deep, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
(Share code: DUR)
(ISIN: ZAE000015079)
(ARBN number 086 277 616)
(NASDAQ Trading Symbol: DROOY)
(`DRDGOLD`)
ACQUISITION FACILITY AND ISSUE OF SHARES FOR CASH
1. ACQUISITION FACILITY
QuestCo is authorised to announce that DRDGOLD has reached agreement with the
Investec Group (`Investec`) for the provision of a US$50 million three-year loan
facility (`the acquisition facility`). The acquisition facility is to be
utilised specifically for acquisitions in the furtherance of DRDGOLD`s growth
strategy and is secured by DRDGOLD`s international investments.
An amount of US$7 million of the acquisition facility has been utilised by
DRDGOLD to follow its rights in the Emperor Mines Limited (`Emperor`) rights
issue. The rights offer was over-subscribed and DRDGOLD`s shareholding in
Emperor remains at 45.3%.
2. ISSUE OF SHARES FOR CASH
On 24 June 2004 and 15 September 2004, respectively, DRDGOLD entered into two
separate loan agreements with Investec (`the agreements`), in terms of which
Investec provided to DRDGOLD loan facilities of, in aggregate, R200 million
(`the facilities`).
The agreements provide that Investec may call for the repayment of any drawn
down portion of the facilities and that DRDGOLD may elect to repay the
facilities either in cash or through an issue of new DRDGOLD shares or a
combination thereof.
In the current financial year, DRDGOLD has drawn down R160 million. DRDGOLD has
settled this drawn down portion of the facility through the issue of 13 387 981
new shares under its general authority to issue shares for cash (`the new
shares`), which general authority was granted to the directors of DRDGOLD at the
company`s annual general meeting held on Friday, 28 November 2003.
The new shares were issued at an average price of R12.04 cents per new share,
which represents an average discount of 3.7% to the 30-day trade-weighted
average price per DRDGOLD share calculated from the date of issue of the new
shares in respect of each of the tranches.
Funds advanced under the agreements have also been utilised to settle the
outstanding hedge under the `gold for electricity` contract with Eskom, to fund
retrenchment packages for workers retrenched at Blyvooruitzicht and for general
working capital purposes.
3. PRO FORMA FINANCIAL EFFECTS
The pro forma financial effects set out below have been prepared to assist
shareholders to assess the impact of the issues of the new shares (`the issues`)
on the earnings, headline earnings, net asset value and tangible net asset value
per DRDGOLD share. The material assumptions are set out in the notes following
the table. These pro forma financial effects have been disclosed in terms of
the Listings Requirements of the JSE Securities Exchange South Africa and do not
constitute a representation of the future financial position of DRDGOLD.
Before the After the Change
issues issues (%)
(cents) (cents)
Earnings per share (331) (1) (309) (2) 6.6%
Headline earnings per share (328) (1) (306) (2) 6.7%
Net asset value per share 244 (3) 298 (4) 22.1%
Tangible net asset value 244 (3) 298 (4) 22.1%
per share
Notes:
1. The earnings and headline earnings per share, as set out in the `Before the
issues` column of the table are based on the audited financial results of
DRDGOLD for the twelve months ended 30 June 2004 and 216 509 843 weighted
average number of shares in issue.
2. The earnings per share and headline earnings per share, as set out in the
`After the issues` column of the table, are based on 229 897 824 weighted
average number of shares in issue and the assumptions that:
* the issues were effective on 1 July 2003;
* the new shares were issued at a price of R12.04 per new share;
* interest was earned on the cash raised at a rate of 6.25%; and
* tax on the interest was charged at 30%.
3. The net asset value per share and tangible net asset value per share as set
out in the `Before the issues` column of the table are based on the audited
balance sheet of DRDGOLD at 30 June 2004 and 233 307 667 shares in issue.
4. The net asset value per share and tangible net asset value per share as set
out in the `After the issues` column of the table are based on a total of
246 695 648 shares in issue and the assumption that the new shares were
issued on 30 June 2004 at an issue price of R12.04 per new share.
The pro forma financial effects have been prepared according to South African
Statements of Generally Accepted Accounting Practice and have not been audited.
The pro forma financial information included in this announcement does not
purport to be in compliance with Regulation S-X of the rules and regulations of
the US Securities Exchange Commission.
Johannesburg
15 November 2004
Financial adviser
QuestCo (Pty) Ltd
(Registration number 2002/005616/07)
Sponsor
Standard Bank
Date: 15/11/2004 02:53:04 PM
Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
