| Johnson
Matthey announces that it is to merge its Australasian
gold operations with those of AGR, a gold refining
joint venture between the Western Australian Government
and Australian Gold Alliance Pty Ltd.
The
merger will allow the new entity, which is to be
known as AGR Matthey, to focus its combined refining
operations on the former AGR site in Perth, and
to consolidate its fabricated product activities
on the former Johnson Matthey site in Melbourne.
This rationalisation will both reduce costs and
improve efficiencies.
Johnson
Matthey will hold a 20% stake in AGR Matthey and
will also receive a payment of Australian $7 million
(£2.5million). In addition, the new entity
will take over responsibility for its own precious
metals leases.
The
formation of this new joint venture will give rise
to an exceptional loss of approximately £6
million, almost all of which relates to goodwill
that arose in 1990 and has already been written
off to reserves. There will also be a subsequent
exceptional charge of around £2 million arising
from Johnson Matthey's share of the rationalisation
costs.
Commenting
on the merger Chris Clark, Chief Executive of Johnson
Matthey said, "Combining these two businesses
is a sensible strategic move which will improve
the service we can provide to the Australian mining
industry, whilst at the same time reducing costs
and improving profits".
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Enquiries:
Johnson
Matthey
David
Morgan
Executive Director
Group Corporate Development
020 7269 8405
John
Sheldrick
Group Finance Director
020 7269 8438
Ian
Godwin
Group Corporate Communications Manager
020 7269 8410
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