DRD drdgold limited

To list fully on the ASX

  1. 6,931 Posts.
    From the Sydney Morning Herald.

    DRD seeks full listing on the ASX (update)
    PERTH, June 11 AAP|Published: Tuesday June 11, 12:16 PM



    South Africa's fourth largest gold miner, Durban Roodepoort Deep Ltd, intends to seek full listing on the Australian Stock Exchange.

    DRD is listed on the Johannesburg, London, Brussels and Frankfurt stock exchanges as well as NASDAQ in the US and the Paris Bourse.

    In Australia, the stock currently trades under the status of a foreign entity.

    With a market capitalisation of around $1.6 billion, it was included in the ASX Top 100 companies by market valuation in April.

    Chief executive and chairman Mark Wellesley-Wood said a full listing would provide DRD's 1200 Australian shareholders, who own nearly five per cent its 177 million shares, more opportunities to trade their shares and attract new Australian shareholders.

    He said DRD is one of the most traded gold stocks in the world with nearly 90 per cent free float of the stock and with its capital traded at about 150 per cent per annum.

    Nearly 70 per cent of the company is owned by private US based shareholders who actively trade the company's shares on NASDAQ.

    Mr Wellesley-Wood said the full listing would not only improve the liquidity of DRD's shares for Australian shareholders, it would also assist the company with any potential future acquisitions in the Australasian region.

    In Australasia, DRD operates the Tolukuma gold mine in Papua New Guinea and the Daylesford project in Victoria.

    He said the company is actively planning to increase production organically and through acquisitions in South Africa and Australasia.

    Th group recently raised $US40 million through a placement if 10 million new shares to shareholders primarily in Canada and the United States.

    Around US$35 million is being used to close out the company's revenue hedge book while the balance will fund exploration at Tolukuma.

    DRD's intention to seek full listing on the ASX comes a few days after it initiated proceedings in the Western Australia Supreme Court against a number of individuals and companies for the recovery of misappropriated funds.

    DRD's former chief financial officer and chief executive of the group's Australasian operations, Charles Mostert, a former consultant to DRD, John Stratton, Noble Investments Pty Ltd, Leadenhall Australia Limited, Advent Investors Pty Ltd and Timothy Lebbon were all identified by Mr Wellesley Wood as defendants.

    The claim relates to an agreement made in December 1999 for the acquisition by DRD from Noble, Leadenhall and Advent of 11.15 million shares in Australian company Continental Goldfields Ltd.

    "The reason for the action is that we believe the defendants were party to a transaction whereby DRD agreed to pay more than six times the market value for shares that it did not want," Mr Wellesley Wood said.

    "Conflicts of interest have...resulted in a loss for DRD shareholders...of R35 million."



    Regards

    Desmond
 
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