AngloGold Gets Approval From South African Reserve Bank.Business Editors JOHANNESBURG, South Africa--(BUSINESS WIRE)--Sept. 27, 2001 AngloGold (NYSE NYSE See: New York Stock Exchange : AU) is pleased to announce that it has received permission from the South African Reserve Bank The South African Reserve Bank is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920," as a direct result of the abnormal monetary and financial conditions which World War I had brought. to proceed with its proposed acquisition of Normandy Mining Limited. AngloGold announced its intention to make an offer to acquire the entire issued share capital of Normandy on September 5, on the basis of 2.15 AngloGold ordinary shares per 100 Normandy shares. Approval of the transaction by the South African Reserve Bank was one of several conditions of the proposed offer. This approval has now been granted. AngloGold chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Bobby Godsell, said: "This affirms the South African Government's approval for the strategy that AngloGold is pursuing, namely to continue to grow this company through value-enhancing global consolidation." "The proposed merger with Normandy is a company-transforming event for AngloGold and an important strategic move that improves our core asset base and future growth prospects in each of the regions in which we operate," he said. "The transaction further diversifies risk and enhances AngloGold's earnings outlook to produce a company of sufficient scale to take the lead in ongoing industry rationalisation and the benefits that will flow from this." On completion of a successful transaction, the new AngloGold is expected to have combined annual production of over 9 million ounces of gold and reserves of 106 million ounces. AngloGold is a company that targets competitive returns on shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. and capital employed Capital Employed 1. The total amount of capital used for the acquisition of profits. 2. The value of all the assets employed in a business. 3. Fixed assets plus working capital. 4. Total assets less current liabilities. , generates strong cash flows per share, and provides a good dividend payout after providing for long-term growth. For the six months ended June 30 2001, AngloGold reported operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $234 million and net profit of $106 million. Headline earnings Headline Earnings A basis for measuring earnings per share implemented by the Institute of Investment Management and Research. This method accounts for all the profits and losses from operational, trading, and interest activities, that have been discontinued or acquired at any were $122 million with $91 million declared as dividends. Production from outside South Africa grew to 33%, operating profits to 46%, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become to 51% and cash earnings to 56%. Disclaimer Except for the historical information contained herein, there are matters discussed in this news release that are forward-looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors including, but not limited to, development of the Company's business, the economic outlook in the gold mining industry, expectations regarding gold prices and production, and other factors, which could cause actual results to differ materially from such forward-looking statements, refer to the Company's annual report on the Form 20-F for the year ended December 31, 2000 which was filed with the Securities and Exchange Commission on April 23, 2001. |
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