12 March 1998: Further to GlassOnline reports of 12 and 19 February 1998 and 5 March 1998, Australia“s Sons of Gwalia and Gwalia Consolidated are expected to complete the planned corporate restructur…
12 March 1998: Further to GlassOnline reports of 12 and 19 February 1998 and 5 March 1998, Australia“s Sons of Gwalia and Gwalia Consolidated are expected to complete the planned corporate restructuring to consolidate core gold and tantalum assets by April this year, Peter Lalor, executive chairman, said at a recent press briefing. Gwalia Consolidated is set to become a wholly-controlled entity of Sons of Gwalia and will subsequently be delisted from the Australian stock exchange. If shareholders accept the deal, US tantalum powder producer Cabot will also take a 7% stake in Sons of Gwalia. Lalor reportedly said the restructuring will remove existing cross shareholdings, which could have made Gwalia Consolidated the target of a takeover bid. The new arrangement will leave gold as the company“s core business, with the industrial minerals activity, including tantalum, accounting for 25% of its operations. Lalor also reiterated that the company has a long-term commitment to gold. “We don“t intend to go into base metals, although we may review the geographical location of our activities. We will also maintain a large gold hedge book,” he said. Gwalia expects to record a A$ 50 million pre-tax profit at the end of June. “I see no reason to change that view. In 1998-99, we are forecast to see higher earnings-per-share and gross underlying profit growth. Our gold hedge book has helped Sons of Gwalia in recent months. It is a fantastic tool for us,” Lalor said, noting that the company has not yet been affected by the Asian economic crisis.