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Western Areas gains 7% on coup speculation
Hayley Goodwin
Posted: Thu, 11 Aug 2005
[miningmx.com] -- Shares in Western Areas, the beleaguered gold producer, are up on speculation that talks are afoot to move Brett Kebble into a non-executive position.
Johannesburg-listed Western Areas is the second highest mover on the bourse today, up 7.3% from yesterday’s close of R20.50, to R22.00 a share. 41 000 shares in the stock have been traded today, a “significant amount for the stock” according to a Johannesburg-based stockbroker. The JSE Gold Index had gained 1%.
Miningmx reported on Monday that Kebble, the CEO of both Western Areas and Randgold and Exploration, had been asked to relinquish his executive duties at Western Areas in order to secure refinancing for the company, which is planning to hold an R800m rights issue to finance its share of South Deep’s development.
“There is a helluva
fight under way,” a market source told Miningmx today, confirming that discussions between Kebble, shareholders and financiers were continuing. Western Areas spokesman Brian Gibson on Monday said that he was unaware of any plan to oust Brett Kebble. He also told Business Day today that if there were any formal moves by shareholders, Western Areas would issue a statement.
Kebble is also facing pressure from shareholders of Randgold & Exploration of which he is also CEO.
Bloomberg News reported earlier this week that Aflease Gold & Uranium Resources (Aflease) and Trinity Holdings may ask management to quit this week. "We require more transparency from a public company, shareholders have had enough," said Neal Froneman, CEO of Aflease.
Froneman told Bloomberg that shareholders wanted significant changes within a week. Quinton George, MD of Trinity Holdings, said investors were acting independently.
David Barritt, a spokesman
for Randgold & Exploration, said no formal notice had been provided to the company about the demands from shareholders.
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