Third incarnation
Sons of Gwalia NL was incorporated in August 1981. It issued its initial public prospectus in 1983 to raise $2.5 million on the Perth Stock Exchange (later the Australian Securities Exchange).[8]
In 1998, the company closed its Laverton Gold Mine, which it sold to Focus Technologies Limited (later Focus Minerals Limited) for A$2.68 million in July 2002.[9]
The company appointed Mark Cutifani, well regarded in the mining industry,[10] as managing director on 13 March 2000.[11]
On 4 September 2000, a flight to the Gwalia mine with seven SGW employees failed to land, instead continuing on to Burketown, where it eventually crashed, having run out of fuel. The pilot and the plane's seven passengers were killed.[12]
In February 2001, the company announced it had consolidated its Southern Cross operations, acquiring the remaining 30% of the Yilgarn Star Gold Mine it didn't own and merging the operation with Marvel Loch, closing the Yilgarn Star mill. It also acquired other interests in the region in this transaction.[13]
On 23 August 2001, SGW made a takeover offer for Pacmin Mining, owner of the Carosue Dam Gold Mine and the Tarmoola Gold Mine, valued at A$159 million.[14] At the close of offer on 16 October 2001, SGW held 98.9% of all Pacmin shares and proceeded to compulsory acquisition.[15] In retrospect, the purchase of Pacmin and Tarmoola was seen as very expensive, especially in the light of gold reserve writedowns and operational difficulties at the Tarmoola mine.[16][17]
In early 2003, the company started to show signs of being troubled. It had to deny reports by UBS Warburg on 13 February 2003, that one of its investment bankers had withdrawn support.[18] The following day, managing director Mark Cutifani, in a surprise move,[10] resigned from his position.[19] In July 2003, the company announced the results of a restructuring, aimed at improving the performance of SGW.[20] In October that year, the company successfully raised A$63 million by issuing new shares.[21]
Almost a year after the resignation of Mark Cutifani, John Leevers was appointed managing director of the company from 27 January 2004. In April 2004, the company's chairman Peter Lalor and his brother Chris, an executive director, having founded the company 22 years earlier, resigned from their positions on the board. John Leevers was appointed managing director and CEO.[22]
