/ 2 June 1997

Gencor to split gold, non-gold interests

MONDAY, 12.30PM

GENCOR is busy with plans to separate its gold and non-gold interests, involving the division of its base metals and precious metals operation with non-gold interests to be transferred to a new company around London-registered subsidiary Billiton International.

In a bid to raise between 600-million and 1,2-billion to fund international expansion, base-metal interests including aluminium, copper, zinc, tin and titanium operations, and Ingwe coal will be moved under Billiton. Precious metals will remain with Gencor’s listing on the Johannesburg Stock Exchange, with Gengold and Impala Platinum provinding the company’s local focus.

Gencor has made no secret of its foreign expansion plans, and has made it clear it would resort to foreign capital markets to raise the amounts it needs for expansion. Last year, 51% of Gencor’s earnings came from outside SA. The company believes that raisning capital in London will be an important towards reintegrating SA business back into the mainstream of international capital markets.