Andulela May Boost Stake In Kilken To 59%
By Charlotte Mathews
20 Oct 2008 at 11:58 AM GMT-04:00
resourceinvestor.com
Mining investment house Andulela Investment Holdings would raise new funds through equity or debt next year but the amount it would need would depend on commodity prices and its acquisition opportunities, it said last week.
JOHANNESBURG (Business Day) -- The company, which is 35% owned by Jonah Capital, one of the companies founded by former AngloGold Ashanti chairman Sam Jonah, started trading on the JSE last Monday under its new name after reverse listing into the DNR Capital cash shell.
Andulela’s only assets are R3 million in cash and 29% of Kilken, a platinum tailings retreatment business, which it bought from Jonah Capital for R450 million. It has an option to increase the stake to 59% between April and October next year.
But CEO Ian Stalker said last week this would not necessarily cost another R450 million because the market would dictate the value of the stake.
Kilken has an agreement with Anglo Platinum to process tailings from the Amandelbult mine over the life of the mine, which is expected to be at least 50 years. Kilken produces about 1,000 oz of platinum group metals a month, which are sold back to Angloplat.
Stalker said Kilken would like to conclude similar agreements at other Angloplat mines but the latest generation of mines was designed to maximise extraction rates.
The attraction of Kilken was that it generated cash and operated at very low cost compared with other platinum processors, Kilken said. Andulela had considered copper tailings retreatment projects in the Democratic Republic of Congo as well, but had not done any detailed work on them.
The shares were untraded at 50c on Friday, but bid at 20c, compared with Andulela’s net asset value of 108c a share. |
