To: long-gone who wrote (29001 ) 2/25/1999 5:57:00 PM From: goldsnow Read Replies (1) | Respond to of 116790
S.Africa gold firms eyeing Australasia expansion 09:22 a.m. Feb 25, 1999 Eastern By Darren Schuettler JOHANNESBURG, Feb 25 (Reuters) - South African gold companies, healthy again after a difficult restructuring in the face of weak gold prices, are on the prowl for expansion opportunities in Australia and Asia. Late on Wednesday turnaround specialist Durban Roodepoort Deep launched a hostile takeover bid for Australia's Emperor Mines and its underperforming mine in Fiji. Analysts said other South African gold players, including bullion giant AngloGold Ltd, have expressed interest in the region as they seek to expand globally. ''I think this is a trend that we are going to see in the future,'' Merrill Lynch Smith Borkum analyst Dave Hall said on Thursday. ''The North American market is consolidated and the South African market is mostly consolidated and the one market that hasn't is Australia,'' Hall added. AngloGold, the world's biggest gold producer, has said that the company's future growth plans include Australia and Asia. ''We look to the Australasian region for our next move. We're looking at joint ventures with junior mining companies as well as our own exploration,'' Jonathan Best, AngloGold's executive director of finance, said earlier this month. AngloGold, born from a merger of the gold assets of Anglo American Corp last year, is moving to diversify its asset base from its current dominant position in South Africa. It recently acquired the North and South American gold mines of sister company Minorco SA which has exploration offices in Perth and Brisbane. Gold Fields Ltd, the world's third largest gold producer behind Canada's Barrick Gold Corp, has said it will be an aggressive bidder for promising mining projects outside South Africa. Harmony Gold Co, which expanded into Canada last year, is actively evaluating opportunities in Australia through its exploration subsidiary Lydex. Meanwhile, Durban Roodepoort Deep said it would seek a listing on the Australian Stock Exchange to facilitate trade in new shares it planned to issue under the Emperor offer. The Johannesburg-based company also said it would be looking at a number of other gold mining and exploration projects in the Australasian region. ''Our Australian listing is not solely intended to provide Emperor shareholders with an exchange to trade their DRD shares, but also an indication of our serious intentions in this region,'' said DRD chief executive Mike Prinsloo. Investors were less enthusiastic about the Emperor bid with DRD shares off 50 cents at 14.25 rand on the Johannesburg bourse on Thursday. ''There has been quite a fight over the company and maybe shareholders don't know how successful Durban will be in its bid,'' another mining analyst said. DRD said it decided to make an offer of one new DRD share for every five Emperor shares after prolonged talks with Emperor management failed to win a friendly takeover agreement. The bid represents a 5.4 percent premium on the trading value of Emperor and DRD shares over the past month. A major Emperor shareholder, Consolidated African Mines and its associates, have agreed to tender their 17.42 percent stake in the Australian company to DRD. Emperor is attractive to DRD because its Vatukoula gold mine in Fiji is a good, but underperforming asset which DRD believes it can turn around. ((Johannesburg newsroom, +27-11-775-3131, fax +27-11-775-3132, newsroom+reuters.co.za)) Copyright 1999 Reuters Limited.