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

To: Rarebird who wrote (206)	7/19/1999 6:59:00 PM
From: baystock	Respond to of 851

Here is a recent article: bday.co.za 13 July 1999 Durban Deep bids for Hargraves Ilja Graulich DURBAN Roodepoort Deep is planning further expansions into the Australasian region, intending to make a bid for the 81% of Australian gold mining company Hargraves it does not already hold. The offer combines scrip plus cash, made up of one Durban Deep share and A$0,70 in cash for every seven Hargraves shares. The offer is at a premium of 41% above the weighted average price of Hargraves shares over the past 30 trading days, based on Durban Deep's weighted average Nasdaq price over that period. With 101-million shares in issue, Hargraves is valued at A$0,42 a share, a 12,4% premium on yesterday's price. The cash part, if all holders take up the offer, will cost Durban Deep about R33m. According to the March quarterly results, the company has about R90m in cash available. At the end of April, Durban Deep acquired a direct 13% stake in Hargraves at A$0,31 a share and upped this holding to 19% after Hargraves acquired Diversified Mineral Resources, in which Durban Deep had a 14,9% interest. Hargraves is one of the lowest cost producers in Australia, with cash operating costs of about $160 an ounce. The mine produced 70000 ounces of gold from its Browns Creek mine in New South Wales during 1997/98. Durban Deep has said it intends building a base in Australia that would yield about 400000 ounces of gold to complement its local production of about 700000 ounces annually from its underground and surface operations. At the time of acquiring the first stake, Durban Deep CE Mike Prinsloo said that a high-yielding ore body at deeper levels formed a substantial part of the Hargraves mine, and SA expertise in deep mining would come in handy. Given the current low gold price, Durban Deep issued a statement last week saying that the jittery market was creating a great deal of speculation - not all of it "well informed". It felt it was necessary to reassure shareholders and investors that the company was not experiencing difficulties. Durban Deep attempted its first venture into the Australian market at the beginning of the year, when it made a take-over bid for Emperor Mines in a paper deal valued at that stage of about R270m. However, the deal fell through. Durban Deep said there were no talks between the two groups. Prinsloo says the company will continue looking for other possible acquisitions, especially at those companies producing at cash costs of less than $200 an ounce.