Following the commissioning of the second furnace (EF2) at the Columbus Metallurgical
Complex, throughput at the smelter improved, resulting in a drawdown of recycling
metal inventories. The recycling division is expected to average 23.0 tonnes of feed
material per day in the first quarter of 2019, compared to an average feed rate of 22.0
tonnes per day in 2018.
Gold production during Q1 2019 was negatively impacted by the ongoing AMCU strike
and is expected to be approximately 104,000oz, 90% of what was planned under strike
conditions, and 36% of production levels relative to the same period in 2018. Unit
operating and all in sustaining costs will be negatively impacted by the reduced
production levels.
Details of the Placing
The Placing will be made outside the United States in reliance on Regulation S
(“Regulation S”) under the U.S. Securities Act of 1933, as amended (the “Securities Act”)
to persons who are not U.S. persons (as defined in Regulation S), and within the United
States only to persons reasonably believed to be qualified institutional buyers within the
meaning of Rule 144A under the Securities Act in transactions exempt from the
registration requirements of the Securities Act. No American Depositary Shares
representing ordinary shares of the Company are being offered in the Placing. In South
Africa, the Placing will be made only by way of separate private placements to: (i)
selected persons falling within one of the specified categories listed in section 96(1)(a)
of the South African Companies Act, 2008 ("South African Companies Act"); and (ii)
selected persons, acting as principal, acquiring Placing Shares for a total acquisition
cost of R1,000,000 or more, as contemplated in section 96(1)(b) of the South African
Companies Act ("South African Qualifying Investors").
The Placing Shares will be issued by the Company under and in accordance with its
existing general authority to issue shares for cash, granted by shareholders at the 2018
annual general meeting of the Company (the “General Authority”) and will be issued
only to public shareholders in accordance with the General Authority.
The price per ordinary share at which the Placing Shares will be placed (the "Placing
Price") will be decided at the close of the Bookbuild. The timing of the closing of the
Bookbuild, the Placing Price and allocations are at the discretion of the Company and
the Sole Bookrunner. The Placing Price will be announced as soon as practicable on the
Stock Exchange News Service of the exchange operated by the JSE Limited ("JSE") after
the close of the Bookbuild.
The Placing Shares, when issued, will be fully paid and will rank pari passu in all respects
with the existing ordinary shares in the issued share capital of the Company, including
the right to receive all dividends and other distributions declared, made or paid after
the date of issue of the Placing Shares.
Subject to the approval by the JSE, listing and trading of the Placing Shares on the JSE
("Admission") is expected to commence at 09h00 Monday, 15 April 2019 (or such other