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Gold/Mining/Energy : DROOY Durban Deep- Best S. African Mine -- Ignore unavailable to you. Want to Upgrade?

To: POLARBEAR who wrote (201)	7/16/1999 6:41:00 PM
From: baystock	Read Replies (2) \| Respond to of 851

A very crude guess is that Drooy will issue at least 10 million new shares, and I base this on some info I gleaned from their old press releases. I did send the IR lady another e-mail where I asked her point blank how many shares Hardgraves had outstanding. This time she didn't bother to respond, since I guess it wasn't so easy to be evasive this time. I found the following on the Hargraves website: hargravesresources.com.au Announcement of Intention to make a Takeover by DRD Australasia ApS The Directors of Hargraves received advice today that DRD Australasia ApS, a wholly-owned subsidiary of Durban Roodepoort Deep Limited ('DRD'), intends to make a takeover offer for the 81% of Hargraves which it does not already own. The DRD announcement states that the Part A statement is anticipated to be available in early September 1999. The offer is 10 cents cash plus 1/7 of a DRD share for every Hargraves share. The independent directors of Hargraves do not have sufficient information at this time to make a recommendation to shareholders. The independent directors propose forming a sub-committee to consider the DRD offer as well as any other proposals which may be received. In accordance with the Corporations Law requirements, this sub-committee will shortly appoint an independent expert to consider the fairness & reasonableness of DRD's offer. Our early assessment based on available information is the offer values Hargraves at 47 cents per share based on the DRD's 30 day weighted average NASDAQ share price of US$1.7365 (from 27 May to 9 July) and an exchange rate of 0.6653 (9 July 1999). Given the Hargraves' weighted average share price for the same period (33.57 cents), this represents a premium of 41%. At the closing share price for DRD shares on Friday 9 July 1999 on the Johannesburg Stock Exchange of Rand 9.10 and an exchange rate of 4.06 Rand to the Australian dollar the offer equates to 42 cents per Hargraves share. Hargraves shares closed at 37.5 cents per share on Friday 9 July 1999. DRD is the largest shareholder in Hargraves and has 19% of the issued capital. Mike Prinsloo, Chief Executive Officer of DRD and Charles Mostert, Chief Financial Officer of DRD are directors of Hargraves. For further information contact: Brian Rear Chairman (02) 9252 2011 William Howe/Graeme Hogan - (02) 9223 9011 SITE INFO

To: POLARBEAR who wrote (201)	7/16/1999 8:12:00 PM
From: baystock	Read Replies (1) \| Respond to of 851

Okay here is a much better estimate of the dilution to DROOY: Hargraves has around 110 million shares outstanding post the DMR acquisition, which I deduced from the press releases on their website. Drooy is issuing 1 share for every 7 shares of Hargraves for the 81% that it does not already own. This translates into 12.7 million new shares for the 81% of the company. DROOY now has around 60 million shares. This means they are issuing 20% more shares to grow their production by 10%. But Hargraves should be able to double their production in time thanks to the Ivory Coast property picked up in the DMR acquisition. So IMO this deal is favorable to PATIENT DROOY shareholders since the production they are acquiring is much lower cost than DROOY's. Now all they have to do is complete the previously aborted acquisition of Emperor Mines on similar terms and they will be in good shape for the next millenium! Regards, Ram