AngloGold Gets Approval From South African Reserve Bank
Date: Thursday, September 27, 2001
AngloGold Limited is pleased to announce that it has received permission from the South African Reserve Bank to proceed with its proposed acquisition of Normandy Mining Limited.
AngloGold announced its intention to make an offer to acquire the entire issued share capital of Normandy on September 5, on the basis of 2.15 AngloGold shares per 100 Normandy shares.
Approval of the transaction by the South African Reserve Bank was one of several conditions of the proposed offer. This approval has now been granted.
AngloGold chairman and CEO, Bobby Godsell, said: “This affirms the South African Government’s approval for the strategy that AngloGold is pursuing, namely to continue to grow this company through value-enhancing global consolidation.”
“The proposed merger with Normandy is a company-transforming event for AngloGold and an important strategic move that improves our core asset base and future growth prospects in each of the regions in which we operate,” he said.
”The transaction further diversifies risk and enhances AngloGold’s earnings outlook to produce a company of sufficient scale to take the lead in ongoing industry rationalisation and the benefits that will flow from this.” On completion of a successful transaction, the new AngloGold is expected to have combined annual production of over 9 million ounces of gold and reserves of 106 million ounces.
AngloGold is a company that targets competitive returns on shareholders’ equity and capital employed, generates strong cash flows per share, and provides a good dividend payout after providing for long-term growth.
For the six months ended 30 June 2001, AngloGold reported an operating profit of US$234 million, and a net profit of US$106 million, with US$92 million paid out in dividends. Production from outside South Africa grew to 33%, operating profits to 46%, EBITDA to 51% and cash earnings to 56%.
Disclaimer
Except for the historical information which may be contained herein, there maybe matters discussed in this news release that are forward-looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors including, but not limited to, development of the Company's business, the economic outlook in the gold mining industry, expectations regarding gold prices and production, and other factors, which could cause actual results to differ materially from such forward-looking statements, refer to the Company's annual report on the Form 20-F for the year ended December 31, 2000 which was filed with the Securities and Exchange Commission on April 23, 2001.
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