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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: I_C_Deadpeople who wrote (682)	4/10/2001 10:56:06 AM
From: russwinter	Respond to of 4051

Add Harmony to the potential restructuring of Aussie hedge books: Harmony Gold Mining Co Plans Further Acquisitions in Australia PERTH, April 10 Asia Pulse - South African miner Harmony Gold Mining Company Ltd, the world's sixth biggest gold miner, is planning to boost its presence in Australia through further acquisitions. Harmony already holds a 22.95 per cent stake in Sydney-based Goldfields Ltd and this week moved its shareholding in New Hampton Goldfields Ltd to 90 per cent. Chief executive Bernard Swanepoel today told journalists at the Australian Gold Conference in Perth that Harmony had become one of the world's leading producers after completing 15 acquisitions in the last five years. And the company aims to lift its production profile in Australian by targeting more domestic producers. "In Australia, if in another two or three years we only own the assets of New Hampton, it certainly would be seen as an unsuccessful investment endeavour in Australia," he said. Harmony plans to look at WMC Ltd's gold assets if they are put up for sale but it could be constrained by price. "I would really be lying if I say we would not at least have a look. We do not see ourselves as paying more than what we think assets are worth and the currency we come to the table with is a weak currency." Mr Swanepoel said Harmony's takeover of New Hampton delivered it assets that were not world class but the transaction represented an entry point into the Australian gold industry. "They are at the bottom end of the quality of assets available in Australia and clearly therefore our New Hampton investment should be seen as an entry point not as an end game. He said question marks remained over the future of the underground mine at Big Bell in Western Australia, which suffered a fatality last year, adding that it would be a "stretch" if New Hampton maintained its current production levels of 270,000 ounces. "It is possible that New Hampton will probably be cut back to a 200,000 ounce a year producer if that is the only level we can produce at at a profit. "It is still too early for me to make a final comment but not re-opening (the underground) it is certainly one of the options we have to keep on the table." But Mr Swanepoel said Harmony "was in the game" of turning around underperforming assets. "Assets which are underperforming are cheaper by definition and Harmony's story has really been about turning around underperforming assets." Meanwhile he said Harmony was reviewing its investment in leading Australian miner Goldfields but that did not imply it was up for sale. "Certainly one of the options is to sell it, another would be to look at ways to continue to increase our stake. "Or quite frankly we can sit around a table as New Hampton and Goldfields and other players in the Kalgoorlie area and look at the consolidation and the synergies that could be realised from that region. But he said that consolidation of the gold industry in Australia was likely to be driven by offshore companies. "We truly believe that consolidation will take place and unfortunately more and more we believe it will be driven by non-Australian companies. "The Australian companies do not seem to get of their backsides and do the consolidation." He said Harmony was not pursuing a specific target of production ounces in Australia but to become relevant and achieve critical mass, it would need to produce north of 500,000 ounces. "But it is not a hard target in which we will pay anything in order to get to. "We ultimately think we should be looking for investment opportunities which create shareholder value. "Size does come into the overall equation but its not a hard and fast objective or target," he said. ASIA PULSE