Back from another trip to Washington: The gold story is going to break


From Business Report, South Africa
September 5, 2001

Johannesburg -- South African gold producer AngloGold
is to become the world's first truly global gold company
when it takes control of Normandy, Australia's largest
gold producer.

In a statement Wednesday, Anglogold said it would
offer Normandy shareholders 2.15 AngloGold shares
for every 100 Normandy shares.

The offer valued Normandy at 3.2-billion Australian
dollars and represented a premium of 29 percent to
Normandy's closing share price on the Australian
Stock Exchange on Tuesday, based on AngloGold's
closing share price on the New York Stock Exchange
on the same day.

"The combination of AngloGold and Normandy will
create the world's first truly global gold company
and represents an important step in the consolidation
of the gold industry," AngloGold chairman and chief
executive Bobby Godsell said.

Godsell said the combined annual gold production of
9.1-million ounces would reinforce AngloGold's
position as the world's leading gold producer and
would establish the company as the largest gold
producer in both Australia and Africa, with a
significant presence in North and South America.

"The new company will have a more diverse production
portfolio, with quality mining operations on four
continents, and with a good mix of deep-level,
shallow, and open pit operations. This should reduce
our cost of capital.

"Importantly, following completion of the merger,
the free float of AngloGold shares will almost double,
which should considerably enhance trading liquidity in
Johannesburg, New York, and, significantly, on the