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{{Short description|Former gold mining company of Western Australia}}
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{{Infobox Company
{{Use Australian English|date=March 2017}}
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| company_name = Sons of Gwalia
{{Use dmy dates|date=June 2022}}
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| company_logo = [[File:Sons of Gwalia.JPG|150px]]
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{{Infobox company
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| vector_logo =
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| name = Sons of Gwalia Limited
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| company_type = Public
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| logo = [[File:Sons of Gwalia.JPG|150px]]
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| genre =
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| vector_logo =
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| fate = [[Administration (insolvency)|Administration]]
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| type = Public
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| foundation = <!-- this parameter modifies "Founded" -->
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| genre =
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| founder = Peter & Chris Lalor
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| fate = [[Administration (law)|Administration]]
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| location_city = [[Perth, Western Australia|Perth]]
| foundation = 28 August 1981
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| location_country = {{AUS}}
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| founder = Peter & Chris Lalor
| location = <!-- this parameter modifies "Headquarters" -->
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| location_city = [[West Perth, Western Australia|West Perth]]
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| origins =
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| location_country = [[Australia]]
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| key_people = John Leevers - [[Managing director|MD]]/[[Chief executive officer|CEO]] <br /> Peter Lalor - [[Chairman]] <br /> Chris Lalor - [[Executive director]]
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| location = <!-- this parameter modifies "Headquarters" -->
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| area_served =
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| origins =
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| industry = Resources
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| key_people = John Leevers – [[Managing director|MD]]/[[CEO]]<br>Peter Lalor – [[Chairman]]<br>Chris Lalor – [[Executive director]]
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| products = Gold, Tantalum
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| area_served =
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| production = Tantalum: {{convert|2290000|lb|kg|abbr=on}}<br /> Gold: {{convert|521081|ozt|kg|abbr=on}}
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| industry = Mining
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| revenue =
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| products = Gold, tantalum
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| production = Tantalum: {{convert|2.29|e6lb|e6kg|abbr=unit}}<br>Gold: {{cvt|521081|ozt|kg}}
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| revenue =
| operating_income =
| operating_income =
| net_income =
| net_income =
| num_employees =
| num_employees =
| parent =
| parent =
| subsid =
| subsid =
| owner =
| owner =
| company_slogan =
| company_slogan =
| homepage =
| homepage =
| dissolved = 2006
| dissolved = 2006
| footnotes =
| footnotes =
}}
}}


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'''Sons of Gwalia''' was a [[Western Australia]]n [[mining]] company that mined [[gold]], [[tantalum]], [[spodumene]], [[lithium]] and [[tin]]. It was Australia's third-largest gold producer and controlled more than half the world's production of tantalum,<ref name="smh.com.au">[http://www.smh.com.au/articles/2004/09/03/1093939143587.html Sons of Gwalia's gold hedging had big holes] ''[[The Sydney Morning Herald]]'', published: 4 September 2004. Retrieved 4 September 2009</ref> before entering [[Administration (law)|administration]] in August 2004<ref name="delisted">[http://www.delisted.com.au/Company/7589 SONS OF GWALIA LIMITED (SGW)] delisted.com.au. Retrieved 5 February 2010</ref> following a financial collapse.
'''Sons of Gwalia''' was a [[Western Australia]]n [[mining]] company which mined [[gold]], [[tantalum]], [[spodumene]], [[lithium]] and [[tin]].

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Sons of Gwalia was Australia's third-largest gold producer and also controlled more than half the world's production of tantalum,<ref name="smh.com.au">[http://www.smh.com.au/articles/2004/09/03/1093939143587.html Sons of Gwalia's gold hedging had big holes] ''[[The Sydney Morning Herald]]'', published: 4 September 2004, accessed: 4 September 2009</ref> before entering [[Administration (insolvency)|administration]] in August 2004 <ref name="delisted">[http://www.delisted.com.au/Company/7589 SONS OF GWALIA LIMITED (SGW)] delisted.com.au, accessed: 5 February 2010</ref> following a financial collapse.


==History==
==History==
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===First incarnation===
The original "Sons of Gwalia" was a [[gold]] mine established in the late 19th century, and which gave its name to the nearby town of [[Gwalia, Western Australia|Gwalia]]. The [[Gwalia Gold Mine|original mine]] is notable in that it was founded and managed by [[Herbert Hoover]] (later to become the President of the United States). That mine closed down in 1963.


===First and second incarnations===
===Second incarnation===
The original, '''Sons of Gwalia G. M. Co.''' was formed in 1897 by George William Hall, major investor [[William Pritchard Morgan]] and others to own and operate the [[Gwalia Gold Mine|Sons of Gwalia mine]], which had been discovered in March 1896 by prospectors A. Glendinning, Jack Carlson and Frank White, who had named it after [[Gwalia|the Welsh homeland]] of the syndicate funder, Coolgardie storekeeper Thomas Tobias. The mine gave its name to the adjacent town of [[Gwalia, Western Australia|Gwalia]].<ref>{{cite news | first = John | last = Meiklejohn | title = Romantic History of a Great Mine – The Sons of Gwalia | date = 8 May 1927 | url = http://nla.gov.au/nla.news-article58318861 | work = The Sunday Times | pages = 39 | accessdate = 14 January 2014}}</ref>
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The current Sons of Gwalia began operations in 1981.<ref name="smh" >[http://www.smh.com.au/news/business/how-sons-of-lalor-built-then-sank-sons-of-gwalia/2005/08/21/1124562748347.html How sons of Lalor built, then sank, Sons of Gwalia] ''[[The Sydney Morning Herald]]'', published: 22 August 2005, accessed: 5 February 2010</ref>

In May 1897, [[Herbert Hoover]], manager and inspecting engineer of the London and Western Australian Exploration Company, an associate of the British management firm Bewick, Moreing & Co., inspected the Sons of Gwalia operation and recommended the acquisition of the mine.<ref name=hcwa>{{cite web | url = http://inherit.stateheritage.wa.gov.au/Public/Content/PdfLoader.aspx?id=ff4f9ee8-e45d-474e-9e7d-3b904a5747eb&type=assessment | title = Gwalia Museum Group 6 | accessdate = 14 January 2014 | date = 7 September 2006 | work = Register of Heritage Places – Assessment Documentation | publisher = Heritage Council of Western Australia}}</ref><ref name="Hoover">{{cite book|last1=Hoover|first1=Herbert|title=The Memoirs of Herbert Hoover, Years of Adventure, 1874-1920|url=https://archive.org/details/memoirsofherbert0002hoov|url-access=registration|date=1951|publisher=The Macmillan Company|location=New York|page=[https://archive.org/details/memoirsofherbert0002hoov/page/33 33]}}</ref><ref name="Blainey">{{cite book|last1=Blainey|first1=Geoffrey|authorlink=Geoffrey Blainey|title=The Rush That Never Ended|url=https://archive.org/details/rushthatneverend0000blai|url-access=registration|date=1963|publisher=Melbourne University Press|location=Melbourne|pages=[https://archive.org/details/rushthatneverend0000blai/page/202 202]}}</ref>

The London and West Australian Exploration Company acquired the Sons of Gwalia property on 17 November 1897, and Bewick Moreing & Co launched '''Sons of Gwalia, Limited''' on the London Stock Exchange in January 1898.<ref name=hcwa/>
Hoover was appointed superintendent of the Sons of Gwalia Mine and managed it from May to November 1898 before moving on to China. He was later to become [[List of presidents of the United States|31st]] [[president of the United States]] (1929–1933).<ref name=hcwa/>

The mine operated continuously until 1963, when it closed and Sons of Gwalia, Limited was liquidated.<ref name=hcwa/>

====Geology====
Gold [[mineralization (geology)|mineralization]] occurred in the mine [[schist]], which was up to 150 metres thick. [[Lens (geology)|Lenticular]] [[ore]] bodies occurred in this schist, with the eastern limb called the Main Lode dipping 45 degrees to the east, and the western limb called the West Lode dipping 38 degrees to the east, since the surface expression was horseshoe shaped plunging to the south at a 70-degree angle. The Mine schist is bracketed by a [[hanging wall]] of [[basalt]] and a [[foot wall]] of [[ultramafic rock]]. [[Pyrite]] was the most common of the [[sulfide minerals]] in the ore body. The Gwalia lode system was developed down to 1750 m.<ref>{{cite book|last1=Kalnejais|first1=J.|title=Sons of Gwalia Gold Deposit, Leonora, in Geology of the Mineral Deposits of Australia and Papua New Guinea|date=1990|publisher=The Australasian Institute of Mining and Metallurgy|location=Melbourne|isbn=0949106429|pages=353–355|editor=F.E. Hughes}}</ref>

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===Third incarnation===
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'''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]]).<ref name="smh">[http://www.smh.com.au/news/business/how-sons-of-lalor-built-then-sank-sons-of-gwalia/2005/08/21/1124562748347.html How sons of Lalor built, then sank, Sons of Gwalia] ''[[The Sydney Morning Herald]]'', published: 22 August 2005. Retrieved 5 February 2010</ref>


In 1998, the company closed its [[Laverton Gold Mine]], which it sold to [[Focus Technologies Limited]] for A$2.68 million in July 2002.<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=4740&announcementId=634452 Acquisition Agreement North Laverton Western Australia] Focus ASX announcement, published: 16 August 2002, accessed: 28 January 2010</ref>
In 1998, the company closed its [[Laverton Gold Mine]], which it sold to Focus Technologies Limited (later Focus Minerals Limited) for [[A$]]2.68 million in July 2002.<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=4740&announcementId=634452 Acquisition Agreement North Laverton Western Australia] Focus ASX announcement, published: 16 August 2002. Retrieved 28 January 2010</ref>


The company appointed [[Mark Cutifani]], well regarded in the mining industry,<ref name=shock >[http://www.smh.com.au/articles/2004/01/19/1074360696236.html?from=storyrhs Geologist brings 'new eyes' to Sons of Gwalia] ''[[The Sydney Morning Herald]]'', published: 20 January 2004, accessed: 8 February 2010</ref> as managing director on 13 March 2000.<ref name=Cutifani >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=168275 Managing Director Appointment] SGW ASX announcement, published: 13 March 2000, accessed: 8 February 2010</ref>
The company appointed [[Mark Cutifani]], well regarded in the mining industry,<ref name=shock>[http://www.smh.com.au/articles/2004/01/19/1074360696236.html?from=storyrhs Geologist brings 'new eyes' to Sons of Gwalia] ''[[The Sydney Morning Herald]]'', published: 20 January 2004. Retrieved 8 February 2010</ref> as managing director on 13 March 2000.<ref name=Cutifani>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=168275 Managing Director Appointment] SGW ASX announcement, published: 13 March 2000. Retrieved 8 February 2010</ref>


On 4 September 2000, [[2000 Australia Beechcraft King Air crash|a flight]] to the Gwalia mine with seven SGW employees failed to land, instead continuing on to [[Burketown, Queensland|Burketown]], where it eventually crashed, having run out of fuel. The pilot and the plane's seven passengers were killed.<ref name=Crash >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=202941 Media Release re: Aircraft Accident] SGW ASX announcement, published: 5 September 2000, accessed: 8 February 2010</ref>
On 4 September 2000, [[2000 Australia Beechcraft King Air crash|a flight]] to the Gwalia mine with seven SGW employees failed to land, instead continuing on to [[Burketown, Queensland|Burketown]], where it eventually crashed, having run out of fuel. The pilot and the plane's seven passengers were killed.<ref name=Crash>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=202941 Media Release re: Aircraft Accident] SGW ASX announcement, published: 5 September 2000. Retrieved 8 February 2010</ref>


In February 2001, the company announced it had consolidated its [[Southern Cross, Western Australia|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.<ref name=Pacmin >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=237659 Rationalisation of Southern Cross Region of WA] SGW ASX announcement, published: 23 August 2001, accessed: 8 February 2010</ref>
In February 2001, the company announced it had consolidated its [[Southern Cross, Western Australia|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.<ref name=Pacmin>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=237659 Rationalisation of Southern Cross Region of WA] SGW ASX announcement, published: 23 August 2001. Retrieved 8 February 2010</ref>


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.<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=687628 Intention to Make Takeover Bid for PacMin Mining Corporation] SGW ASX announcement, published: 7 February 2001, accessed: 8 February 2010</ref> At the close of offer on 16 October 2001, SGW held 98.9% of all Pacmin shares and proceeded to compulsory acquisition.<ref name="asx.com.au">[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=687749 Close of offer for PML/proceeding to compulsory acquisition] SGW ASX announcement, published: 16 October 2001, accessed: 8 February 2010</ref> In retrospect, the purchase of Pacmin and Tarmoola was seen as very expensive, especially in the light of gold reserve write downs and operational difficulties at the Tarmoola mine.<ref>[http://www.abc.net.au/insidebusiness/content/2004/s1192487.htm ASX to probe Sons of Gwalia collapse] ''[[ABC Australia]]'', published: 5 September 2004, accessed: 8 February 2010</ref><ref>[http://metalsplace.com/news/articles/129/gwalia-sweats-on-review/ Gwalia sweats on review] metalsplace.com, published: 8 August 2004, accessed: 8 February 2010</ref>
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.<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=687628 Intention to Make Takeover Bid for PacMin Mining Corporation] SGW ASX announcement, published: 7 February 2001. Retrieved 8 February 2010</ref> At the close of offer on 16 October 2001, SGW held 98.9% of all Pacmin shares and proceeded to compulsory acquisition.<ref name="asx.com.au">[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=687749 Close of offer for PML/proceeding to compulsory acquisition] SGW ASX announcement, published: 16 October 2001. Retrieved 8 February 2010</ref> 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.<ref>[http://www.abc.net.au/insidebusiness/content/2004/s1192487.htm ASX to probe Sons of Gwalia collapse] ''[[ABC Australia]]'', published: 5 September 2004. Retrieved 8 February 2010</ref><ref>[http://metalsplace.com/news/articles/129/gwalia-sweats-on-review/ Gwalia sweats on review] metalsplace.com, published: 8 August 2004. Retrieved 8 February 2010</ref>


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.<ref>[http://www.asx.com.au/asxpdf/20030213/pdf/00344554.pdf Response to UBS Warburg Statement] SGW ASX announcement, published: 13 February 2003, accessed: 8 February 2010</ref> The following day, managing director Mark Cutifani, in a surprise move,<ref name="shock"/> resigned from his position.<ref name="Director Resignation">[http://www.asx.com.au/asxpdf/20030214/pdf/00344933.pdf Director Resignation] SGW ASX announcement, published: 14 February 2003, accessed: 8 February 2010</ref> In July 2003, the company announced the results of a restructering, aimed at improving the performance of SGW.<ref>[http://www.asx.com.au/asxpdf/20030701/pdf/00368237.pdf Results of Restructuring] SGW ASX announcement, published: 1 July 2003, accessed: 8 February 2010</ref> In October that year, the company successfully raised A$63 million by issuing new shares.<ref name=raise >[http://www.asx.com.au/asxpdf/20031015/pdf/3jcn669x8bllb.pdf Capital Raising] SGW ASX announcement, published: 15 October 2003, accessed: 8 February 2010</ref>
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.<ref>[http://www.asx.com.au/asxpdf/20030213/pdf/00344554.pdf Response to UBS Warburg Statement] SGW ASX announcement, published: 13 February 2003. Retrieved 8 February 2010</ref> The following day, managing director Mark Cutifani, in a surprise move,<ref name="shock"/> resigned from his position.<ref name="Director Resignation">[http://www.asx.com.au/asxpdf/20030214/pdf/00344933.pdf Director Resignation] SGW ASX announcement, published: 14 February 2003. Retrieved 8 February 2010</ref> In July 2003, the company announced the results of a restructuring, aimed at improving the performance of SGW.<ref>[http://www.asx.com.au/asxpdf/20030701/pdf/00368237.pdf Results of Restructuring] SGW ASX announcement, published: 1 July 2003. Retrieved 8 February 2010</ref> In October that year, the company successfully raised A$63 million by issuing new shares.<ref name=raise>[http://www.asx.com.au/asxpdf/20031015/pdf/3jcn669x8bllb.pdf Capital Raising] SGW ASX announcement, published: 15 October 2003. Retrieved 8 February 2010</ref>


Almost a year after the resignation of Mark Cutifani, John Leevers was appointed as 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 instead appointed as managing director and CEO.<ref name=Resign >[http://www.asx.com.au/asxpdf/20040119/pdf/3kd04br76h8hr.pdf Appt of MD/Non Exec Chairman&Changes to Board of Directors] SGW ASX announcement, published: 19 January 2004, accessed: 8 February 2010</ref>
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.<ref name=Resign>[http://www.asx.com.au/asxpdf/20040119/pdf/3kd04br76h8hr.pdf Appt of MD/Non Exec Chairman&Changes to Board of Directors] SGW ASX announcement, published: 19 January 2004. Retrieved 8 February 2010</ref>


===Administration===
===Administration===
The company entered [[Administration (insolvency)|administration]] in August 2004 <ref name="delisted"/> following a financial collapse,<ref name="smh"/> with debts exceeding $800 million after suffering from falling gold reserves and hedging losses.<ref name=Ernst >[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ Ernst &Young agrees to $125m Sons of Gwalia settlement] ''[[The West Australian]]'', published: 4 September 2009, accessed: 4 September 2009</ref> Sons of Gwalia was Australia's third-largest gold producer and also controlled more than half the world's production of tantalum.<ref name="smh.com.au"/>
The company entered [[Administration (law)|administration]] in August 2004<ref name="delisted"/> following a financial collapse,<ref name="smh"/> with debts exceeding $800 million after suffering from falling gold reserves and hedging losses.<ref>[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ Ernst &Young agrees to $125m Sons of Gwalia settlement] ''[[The West Australian]]'', published: 4 September 2009. Retrieved 4 September 2009</ref> Sons of Gwalia was Australia's third-largest gold producer and also controlled more than half the world's production of tantalum.<ref name="smh.com.au"/>


In March 2005, the company sold its gold mining operations, consisting of the [[Marvel Loch Gold Mine]], the [[Gwalia Gold Mine]], the [[Carosue Dam Gold Mine]] and the [[Tarmoola Gold Mine]], to [[St Barbara Mining Limited]] for [[Australian dollar|A$]]38 Million.<ref>[http://www.corporatefile.com.au/documents/OB/MD%20CEO%20on%20Outlook%20&%20Strategy%2028.06.05.pdf St Barbara Mines Limited - Lodgment of Open Briefing] published: 28 June 2005, accessed: 3 September 2009</ref><ref>[http://www.asx.com.au/asxpdf/20050321/pdf/3q6t94nvdv8h3.pdf ''The West Australian''], published 16 March 2005, accessed: 3 September 2009</ref> [[Talison Minerals]] paid $205 million to buy the Wodgina and Greenbushes tantalum business of Sons of Gwalia but has since temporarily closed Wodinga because of falling tantalum prices.<ref name=Ernst >[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ Ernst &Young agrees to $125m Sons of Gwalia settlement] ''[[The West Australian]]'', published: 4 September 2009, accessed: 4 September 2009</ref>
In March 2005, the company sold its gold mining operations, consisting of the [[Marvel Loch Gold Mine]], the [[Gwalia Gold Mine]], the [[Carosue Dam Gold Mine]] and the [[Tarmoola Gold Mine]], to [[St Barbara Mining Limited]] for A$38 million.<ref>[http://www.corporatefile.com.au/documents/OB/MD%20CEO%20on%20Outlook%20&%20Strategy%2028.06.05.pdf St Barbara Mines Limited – Lodgment of Open Briefing] {{webarchive|url=https://web.archive.org/web/20090915073001/http://www.corporatefile.com.au/documents/OB/MD%20CEO%20on%20Outlook%20%26%20Strategy%2028.06.05.pdf |date=15 September 2009 }} published: 28 June 2005. Retrieved 3 September 2009</ref><ref>[http://www.asx.com.au/asxpdf/20050321/pdf/3q6t94nvdv8h3.pdf ''The West Australian''], published 16 March 2005. Retrieved 3 September 2009</ref> [[Talison Minerals]] paid $205 million to buy the [[Wodgina mine|Wodgina]] and [[Greenbushes, Western Australia|Greenbushes]] tantalum business of Sons of Gwalia but temporarily closed Wodgina because of falling tantalum prices.<ref>[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ Ernst &Young agrees to $125m Sons of Gwalia settlement] {{webarchive|url=https://web.archive.org/web/20110205090753/http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement |date=5 February 2011 }} ''[[The West Australian]]'', published: 4 September 2009. Retrieved 4 September 2009</ref> The mine re-opened, but closed again after less than a year.<ref name="Wodgina-tant-closed">{{cite news|url=http://au.news.yahoo.com/thewest/business/a/-/business/12702333/gam-closes-wodgina-tantalum-mine/|title=GAM closes Wodgina tantalum mine|last=Emery|first=Kate|date=24 January 2012|work=[[The West Australian]]|accessdate=8 July 2012|quote=Worldwide softening tantalum demand and delays in receiving Governmental approval for installation of necessary crushing equipment are among contributing factors in this decision|url-status=dead|archiveurl=https://web.archive.org/web/20121204055041/http://au.news.yahoo.com/thewest/business/a/-/business/12702333/gam-closes-wodgina-tantalum-mine/ |archivedate=4 December 2012}}</ref>


In a landmark decision, the shareholders of Sons of Gwalia were awarded the same status as non-shareholding creditors on 27 February 2006 because the company breached continuous disclosure obligations or misled them about its financial status.<ref>[http://www.asx.com.au/asxpdf/20060227/pdf/3vmjjgpsw64g3.pdf IMF's ann: Sons of Gwalia Full Court Decision] ASX announcement, published: 27 February 2006, accessed: 12 January 2010</ref> On 29 August 2006, Sons of Gwalia (SGW) was delisted from the [[Australian Securities Exchange]].<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00641608 Removal from Official List] ASX announcement, published: 29 August 2006, accessed: 12 January 2010</ref>
In a landmark decision, the shareholders of Sons of Gwalia were awarded the same status as non-shareholding creditors on 27 February 2006 because the company breached continuous disclosure obligations or misled them about its financial status.<ref>[http://www.asx.com.au/asxpdf/20060227/pdf/3vmjjgpsw64g3.pdf IMF's ann: Sons of Gwalia Full Court Decision] ASX announcement, published: 27 February 2006. Retrieved 12 January 2010</ref> On 29 August 2006, Sons of Gwalia (SGW) was de-listed from the [[Australian Securities Exchange]].<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00641608 Removal from Official List] ASX announcement, published: 29 August 2006. Retrieved 12 January 2010</ref>


On 4 September 2009, the former auditors of Sons of Gwalia, [[Ernst & Young]], agreed to a $125 million settlement over their role in the gold miner’s collapse. [[Ferrier Hodgson]], the company's administrator, had claimed Ernst & Young was negligent over the accounting of gold and dollar hedging contracts. He hopes $178 million of assets will assist in bringing the long-running administration to a close in December 2009.<ref name=Ernst >[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ Ernst &Young agrees to $125m Sons of Gwalia settlement] '[[The West Australian]]'', published: 4 September 2009, accessed: 4 September 2009</ref>
On 4 September 2009, the former auditors of Sons of Gwalia, [[Ernst & Young]], agreed to a $125 million settlement over their role in the gold miner's collapse. [[Ferrier Hodgson]], the company's administrator, had claimed Ernst & Young was negligent over the accounting of gold and dollar hedging contracts. It is hoped the $178 million of assets will assist in bringing the long-running administration to a close in December 2009.<ref>[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ Ernst &Young agrees to $125m Sons of Gwalia settlement] '[[The West Australian]]'', published: 4 September 2009. Retrieved 4 September 2009</ref>


In addition to the $125 million from E & Y, SoG's former directors, the Lalor brothers, agreed to a $53 million settlement over their role in the company's collapse.<ref name=Ernst >[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ Ernst &Young agrees to $125m Sons of Gwalia settlement] ''[[The West Australian]]', published: 4 September 2009, accessed: 4 September 2009</ref>
In addition to the $125 million from E & Y, SoG's former directors the Lalor brothers, agreed to a $53 million settlement over their role in the company's collapse.<ref>[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ Ernst &Young agrees to $125m Sons of Gwalia settlement] ''[[The West Australian]]', published: 4 September 2009. Retrieved 4 September 2009</ref>


==Production==
==Production==
Annual production figures of the company:
Annual production figures of the company:

===Gold===
===Gold===
{| class="wikitable"
{| class="wikitable"
Line 76: Line 89:
| '''Cost'''
| '''Cost'''
|- align="center"
|- align="center"
| 1997-98 <ref name=Quartereight >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=346992 Media Release: Highlights from Quarterly Report 30-6-98] SGW ASX announcement, published: 17 July 1998, accessed: 8 February 2010</ref>
| 1997–98<ref name=Quartereight>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=346992 Media Release: Highlights from Quarterly Report 30-6-98] SGW ASX announcement, published: 17 July 1998. Retrieved 8 February 2010</ref>
| {{convert|517,978|ozt|kg|abbr=on}}
| {{cvt|517978|ozt|kg}}
|
|
|
|
|- align="center"
|- align="center"
| 1998-99
| 1998–99
|
|
|
|
|
|
|- align="center"
|- align="center"
| 1999-2000 <ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=192176 Fourth Quarter Activities Report] SGW ASX announcement, published: 20 July 2000, accessed: 8 February 2010</ref>
| 1999–2000<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=192176 Fourth Quarter Activities Report] SGW ASX announcement, published: 20 July 2000. Retrieved 8 February 2010</ref>
| {{convert|413,184|ozt|kg|abbr=on}}
| {{cvt|413184|ozt|kg}}
|
|
| A$337/ozt (A$10.8/g)
| A$337/ozt (A$10.8/g)
|- align="center"
|- align="center"
| 2000-01 <ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=410295 Fourth Quarter Activities Report/Media Release] SGW ASX announcement, published: 19 July 2001, accessed: 8 February 2010</ref>
| 2000–01<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=410295 Fourth Quarter Activities Report/Media Release] SGW ASX announcement, published: 19 July 2001. Retrieved 8 February 2010</ref>
| {{convert|438,166|ozt|kg|abbr=on}}
| {{cvt|438166|ozt|kg}}
|
|
|
|
|- align="center"
|- align="center"
| 2001-02 <ref name=Quartertwo >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=495665 Fourth Quarter Activities Report] SGW ASX announcement, published: 18 July 2002, accessed: 8 February 2010</ref>
| 2001–02<ref name=Quartertwo>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=495665 Fourth Quarter Activities Report] SGW ASX announcement, published: 18 July 2002. Retrieved 8 February 2010</ref>
| {{convert|541,224|ozt|kg|abbr=on}}
| {{cvt|541224|ozt|kg}}
|
|
|
|
|- align="center"
|- align="center"
| 2002-03<ref name=Annual >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00386788 Sons of Gwalia annual report 2003] accessed: 12 January 2010</ref>
| 2002–03<ref name=Annual>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00386788 Sons of Gwalia annual report 2003]. Retrieved 12 January 2010</ref>
| {{convert|577,702|ozt|kg|abbr=on}}
| {{cvt|577702|ozt|kg}}
|
|
| A$454/ozt (A$14.6/g)
| A$454/ozt (A$14.6/g)
|- align="center"
|- align="center"
| 2003-04 <ref name=Quarter >[http://www.asx.com.au/asxpdf/20040714/pdf/3m4sxwd0q9cyf.pdf Sons of Gwalia fourth quarter report 2004] accessed: 12 January 2010</ref>
| 2003–04<ref name=Quarter>[http://www.asx.com.au/asxpdf/20040714/pdf/3m4sxwd0q9cyf.pdf Sons of Gwalia fourth quarter report 2004]. Retrieved 12 January 2010</ref>
| {{convert|521,081|ozt|kg|abbr=on}}
| {{cvt|521081|ozt|kg}}
|
|
| A$438/ozt (A$14.1/g)
| A$438/ozt (A$14.1/g)
|- align="center"
|- align="center"
| 2004–05
| 2004-05
|
|
|
|
Line 123: Line 136:
| '''Production'''
| '''Production'''
|- align="center"
|- align="center"
| 1997–98<ref name=Quartereight/>
| 1997-98 <ref name=Quartereight >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=346992 Media Release: Highlights from Quarterly Report 30-6-98] SGW ASX announcement, published: 17 July 1998, accessed: 8 February 2010</ref>
| {{convert|877,281|lb|kg|abbr=on}}
| {{cvt|877281|lb}}
|- align="center"
|- align="center"
| 1998–99
| 1998-99
|
|
|- align="center"
|- align="center"
| 1999-2000 <ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=192187 Fourth Quarter Activities Report] SGW ASX announcement, published: 20 July 2000, accessed: 8 February 2010</ref>
| 1999–2000<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=192187 Fourth Quarter Activities Report] SGW ASX announcement, published: 20 July 2000. Retrieved 8 February 2010</ref>
| {{convert|1,111,967|lb|kg|abbr=on}}
| {{cvt|1111967|lb}}
|- align="center"
|- align="center"
| 2000-01 <ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=410304 Fourth Quarter Activities Report/Media Release] SGW ASX announcement, published: 19 July 2001, accessed: 8 February 2010</ref>
| 2000–01<ref>[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=410304 Fourth Quarter Activities Report/Media Release] SGW ASX announcement, published: 19 July 2001. Retrieved 8 February 2010</ref>
| {{convert|1,625,364|lb|kg|abbr=on}}
| {{cvt|1625364|lb}}
|- align="center"
|- align="center"
| 2001–02<ref name=Quartertwo/>
| 2001-02 <ref name=Quartertwo >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=495665 Fourth Quarter Activities Report] SGW ASX announcement, published: 18 July 2002, accessed: 8 February 2010</ref>
| {{convert|2,138,841|lb|kg|abbr=on}}
| {{cvt|2138841|lb}}
|- align="center"
|- align="center"
| 2002–03<ref name=Annual/>
| 2002-03<ref name=Annual >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00386788 Sons of Gwalia annual report 2003] accessed: 12 January 2010</ref>
| {{convert|2,193,792|lb|kg|abbr=on}}
| {{cvt|2193792|lb}}
|- align="center"
|- align="center"
| 2003–04<ref name=Quarter/>
| 2003-04 <ref name=Quarter >[http://www.asx.com.au/asxpdf/20040714/pdf/3m4sxwd0q9cyf.pdf Sons of Gwalia fourth quarter report 2004] accessed: 12 January 2010</ref>
| {{convert|2,290,000|lb|kg|abbr=on}}
| {{convert|2.29|e6lb|e6kg|abbr=unit}}
|- align="center"
|- align="center"
| 2004–05
| 2004-05
|
|
|}
|}


==Timeline==
==Timeline==
* 5 May 1983: Listed on the [[Australian Securities Exchange]].<ref name="delisted"/>
* 5 May 1983: Listed on the [[Australian Securities Exchange|Perth Stock Exchange]].<ref name="delisted"/>
* 30 July 1992: Changed name from Sons of Gwalia NL to Sons of Gwalia Limited.<ref name="delisted"/>
* 30 July 1992: Changed name from Sons of Gwalia NL to Sons of Gwalia Limited.<ref name="delisted"/>
* 13 March 2000: Mark Cutifani appointed as managing director.<ref name=Cutifani >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=168275 Managing Director Appointment] SGW ASX announcement, published: 13 March 2000, accessed: 8 February 2010</ref>
* 13 March 2000: Mark Cutifani appointed as managing director.<ref name=Cutifani/>
* 4 September 2000: [[2000 Australia Beechcraft King Air crash|A flight]] from Perth to the Gwalia mine fails to land and continues on to North Queensland, where it crashes without survivors.<ref name=Crash >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=202941 Media Release re: Aircraft Accident] SGW ASX announcement, published: 5 September 2000, accessed: 8 February 2010</ref>
* 4 September 2000: [[2000 Australia Beechcraft King Air crash|A flight]] from Perth to the Gwalia mine fails to land and continues on to North Queensland, where it crashes without survivors.<ref name=Crash/>
* 23 August 2001: SGW makes takeover offer for Pacmin Mining, valued at A$159 million.<ref name=Pacmin >[http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=text&issuerId=1167&announcementId=237659 Rationalisation of Southern Cross Region of WA] SGW ASX announcement, published: 23 August 2001, accessed: 8 February 2010</ref>
* 23 August 2001: SGW makes takeover offer for Pacmin Mining, valued at A$159 million.<ref name=Pacmin/>
* 16 October 2001: Compulsory acquisition of Pacmin announced,<ref name="asx.com.au"/> at a cost of A$210 million.<ref>[http://www.delisted.com.au/Company/6299/PACMIN%20MINING%20CORPORATION%20LIMITED PACMIN MINING CORPORATION LIMITED (PML)] delisted.com.au, accessed: 8 February 2010</ref>
* 16 October 2001: Compulsory acquisition of Pacmin announced,<ref name="asx.com.au"/> at a cost of A$210 million.<ref>[http://www.delisted.com.au/Company/6299/PACMIN%20MINING%20CORPORATION%20LIMITED PACMIN MINING CORPORATION LIMITED (PML)] delisted.com.au. Retrieved 8 February 2010</ref>
* 14 February 2003: Managing director Mark Cutifani resigned from his position.<ref name="Director Resignation"/>
* 14 February 2003: Managing director Mark Cutifani resigned from his position.<ref name="Director Resignation"/>
* 15 October 2003: The company successfully raised A$63 million by issuing new shares.<ref name=raise >[http://www.asx.com.au/asxpdf/20031015/pdf/3jcn669x8bllb.pdf Capital Raising] SGW ASX announcement, published: 15 October 2003, accessed: 8 February 2010</ref>
* 15 October 2003: The company successfully raised A$63 million by issuing new shares.<ref name=raise/>
* December 2003: Gwalia Gold Mine closed and placed in care and maintenance.<ref>[http://www.asx.com.au/asxpdf/20040218/pdf/3knxsmzrbq028.pdf Chairman's Summary Half Year Ended 31 December 2003] SGW ASX announcement, published: 18 February 2004, accessed: 8 February 2010</ref>
* December 2003: Gwalia Gold Mine closed and placed in care and maintenance.<ref>[http://www.asx.com.au/asxpdf/20040218/pdf/3knxsmzrbq028.pdf Chairman's Summary Half Year Ended 31 December 2003] SGW ASX announcement, published: 18 February 2004. Retrieved 8 February 2010</ref>
* 19 January 2004: John Leevers appointed as managing director. Peter and Chris Laylor to retire from company.<ref name=Resign >[http://www.asx.com.au/asxpdf/20040119/pdf/3kd04br76h8hr.pdf Appt of MD/Non Exec Chairman&Changes to Board of Directors] SGW ASX announcement, published: 19 January 2004, accessed: 8 February 2010</ref>
* 19 January 2004: John Leevers appointed as managing director. Peter and Chris Lalor to retire from company.<ref name=Resign/>
* 30 August 2004: [[Administration (insolvency)|Administrators]] appointed for the company.<ref name="delisted"/>
* 30 August 2004: [[Administration (insolvency)|Administrators]] appointed for the company.<ref name="delisted"/>
* 17 September 2004: Class action filed against company as well as directors, auditors and officers of company by share holders.<ref name="delisted"/>
* 17 September 2004: Class action filed against company as well as directors, auditors and officers of company by shareholders.<ref name="delisted"/>
* 28 January 2005: Five directors, including the chairman, and the company secretary resign.<ref name="delisted"/>
* 28 January 2005: Five directors, including the chairman, and the company secretary resign.<ref name="delisted"/>
* 15 March 2005: Managing director John Leevers resigns.<ref name="delisted"/>
* 15 March 2005: Managing director John Leevers resigns.<ref name="delisted"/>
* 21 March 2005: Gold operations sold to St Barbara for A$38 million.<ref name="delisted"/>
* 21 March 2005: Gold operations sold to St Barbara for A$38 million.<ref name="delisted"/>
* 15 September 2005: Share holders awarded equal status to creditors in court.<ref name="delisted"/>
* 15 September 2005: Shareholders awarded equal status to creditors in court.<ref name="delisted"/>
* 29 August 2006: Company delisted from the ASX after failing to pay its annual listing fee.<ref name="delisted"/>
* 29 August 2006: Company delisted from the ASX after failing to pay its annual listing fee.<ref name="delisted"/>


==References==
==References==
{{Reflist|3}}
{{Reflist}}


==External links==
==External links==
* [http://www.ferrierhodgson.com/en/Current%20Matters/Corporate%20Recovery%20Matters/Sons%20of%20Gwalia%20Limited.aspx Ferrier Hodgson website - Sons of Gwalia announcements]
* [http://www.ferrierhodgson.com/en/Current%20Matters/Corporate%20Recovery%20Matters/Sons%20of%20Gwalia%20Limited.aspx Ferrier Hodgson website – Sons of Gwalia announcements]
{{Gold mining companies of Australia}}
{{Gold mining companies of Australia}}
{{Authority control}}

[[Category:Defunct mining companies of Australia]]
[[Category:Defunct mining companies of Australia]]
[[Category:Companies formerly listed on the Australian Securities Exchange]]
[[Category:Companies formerly listed on the Australian Securities Exchange]]
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[[Category:Companies disestablished in 2006]]
[[Category:Companies disestablished in 2006]]
[[Category:Companies established in 1981]]
[[Category:Companies established in 1981]]
[[Category:History of mining]]
[[Category:1981 establishments in Australia]]
[[Category:2006 disestablishments in Australia]]

[[uk:Sons of Gwalia]]

Latest revision as of 05:26, 17 October 2023

Sons of Gwalia Limited
Company typePublic
IndustryMining
Founded28 August 1981
FounderPeter & Chris Lalor
Defunct2006
FateAdministration
Headquarters
West Perth
,
Australia
Key people
John Leevers – MD/CEO
Peter Lalor – Chairman
Chris Lalor – Executive director
ProductsGold, tantalum
Production output
Tantalum: 2.29 million lb (1.04 million kg)
Gold: 521,081 ozt (16,207.4 kg)

Sons of Gwalia was a Western Australian mining company that mined gold, tantalum, spodumene, lithium and tin. It was Australia's third-largest gold producer and controlled more than half the world's production of tantalum,[1] before entering administration in August 2004[2] following a financial collapse.

History[edit]

First and second incarnations[edit]

The original, Sons of Gwalia G. M. Co. was formed in 1897 by George William Hall, major investor William Pritchard Morgan and others to own and operate the Sons of Gwalia mine, which had been discovered in March 1896 by prospectors A. Glendinning, Jack Carlson and Frank White, who had named it after the Welsh homeland of the syndicate funder, Coolgardie storekeeper Thomas Tobias. The mine gave its name to the adjacent town of Gwalia.[3]

In May 1897, Herbert Hoover, manager and inspecting engineer of the London and Western Australian Exploration Company, an associate of the British management firm Bewick, Moreing & Co., inspected the Sons of Gwalia operation and recommended the acquisition of the mine.[4][5][6]

The London and West Australian Exploration Company acquired the Sons of Gwalia property on 17 November 1897, and Bewick Moreing & Co launched Sons of Gwalia, Limited on the London Stock Exchange in January 1898.[4] Hoover was appointed superintendent of the Sons of Gwalia Mine and managed it from May to November 1898 before moving on to China. He was later to become 31st president of the United States (1929–1933).[4]

The mine operated continuously until 1963, when it closed and Sons of Gwalia, Limited was liquidated.[4]

Geology[edit]

Gold mineralization occurred in the mine schist, which was up to 150 metres thick. Lenticular ore bodies occurred in this schist, with the eastern limb called the Main Lode dipping 45 degrees to the east, and the western limb called the West Lode dipping 38 degrees to the east, since the surface expression was horseshoe shaped plunging to the south at a 70-degree angle. The Mine schist is bracketed by a hanging wall of basalt and a foot wall of ultramafic rock. Pyrite was the most common of the sulfide minerals in the ore body. The Gwalia lode system was developed down to 1750 m.[7]

Third incarnation[edit]

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]

Administration[edit]

The company entered administration in August 2004[2] following a financial collapse,[8] with debts exceeding $800 million after suffering from falling gold reserves and hedging losses.[23] Sons of Gwalia was Australia's third-largest gold producer and also controlled more than half the world's production of tantalum.[1]

In March 2005, the company sold its gold mining operations, consisting of the Marvel Loch Gold Mine, the Gwalia Gold Mine, the Carosue Dam Gold Mine and the Tarmoola Gold Mine, to St Barbara Mining Limited for A$38 million.[24][25] Talison Minerals paid $205 million to buy the Wodgina and Greenbushes tantalum business of Sons of Gwalia but temporarily closed Wodgina because of falling tantalum prices.[26] The mine re-opened, but closed again after less than a year.[27]

In a landmark decision, the shareholders of Sons of Gwalia were awarded the same status as non-shareholding creditors on 27 February 2006 because the company breached continuous disclosure obligations or misled them about its financial status.[28] On 29 August 2006, Sons of Gwalia (SGW) was de-listed from the Australian Securities Exchange.[29]

On 4 September 2009, the former auditors of Sons of Gwalia, Ernst & Young, agreed to a $125 million settlement over their role in the gold miner's collapse. Ferrier Hodgson, the company's administrator, had claimed Ernst & Young was negligent over the accounting of gold and dollar hedging contracts. It is hoped the $178 million of assets will assist in bringing the long-running administration to a close in December 2009.[30]

In addition to the $125 million from E & Y, SoG's former directors the Lalor brothers, agreed to a $53 million settlement over their role in the company's collapse.[31]

Production[edit]

Annual production figures of the company:

Gold[edit]

Year Production Grade Cost
1997–98[32] 517,978 ozt (16,110.9 kg)
1998–99
1999–2000[33] 413,184 ozt (12,851.5 kg) A$337/ozt (A$10.8/g)
2000–01[34] 438,166 ozt (13,628.5 kg)
2001–02[35] 541,224 ozt (16,833.9 kg)
2002–03[36] 577,702 ozt (17,968.5 kg) A$454/ozt (A$14.6/g)
2003–04[37] 521,081 ozt (16,207.4 kg) A$438/ozt (A$14.1/g)
2004–05

Tantalum[edit]

Year Production
1997–98[32] 877,281 lb (397,928 kg)
1998–99
1999–2000[38] 1,111,967 lb (504,380 kg)
2000–01[39] 1,625,364 lb (737,253 kg)
2001–02[35] 2,138,841 lb (970,162 kg)
2002–03[36] 2,193,792 lb (995,087 kg)
2003–04[37] 2.29 million lb (1.04 million kg)
2004–05

Timeline[edit]

  • 5 May 1983: Listed on the Perth Stock Exchange.[2]
  • 30 July 1992: Changed name from Sons of Gwalia NL to Sons of Gwalia Limited.[2]
  • 13 March 2000: Mark Cutifani appointed as managing director.[11]
  • 4 September 2000: A flight from Perth to the Gwalia mine fails to land and continues on to North Queensland, where it crashes without survivors.[12]
  • 23 August 2001: SGW makes takeover offer for Pacmin Mining, valued at A$159 million.[13]
  • 16 October 2001: Compulsory acquisition of Pacmin announced,[15] at a cost of A$210 million.[40]
  • 14 February 2003: Managing director Mark Cutifani resigned from his position.[19]
  • 15 October 2003: The company successfully raised A$63 million by issuing new shares.[21]
  • December 2003: Gwalia Gold Mine closed and placed in care and maintenance.[41]
  • 19 January 2004: John Leevers appointed as managing director. Peter and Chris Lalor to retire from company.[22]
  • 30 August 2004: Administrators appointed for the company.[2]
  • 17 September 2004: Class action filed against company as well as directors, auditors and officers of company by shareholders.[2]
  • 28 January 2005: Five directors, including the chairman, and the company secretary resign.[2]
  • 15 March 2005: Managing director John Leevers resigns.[2]
  • 21 March 2005: Gold operations sold to St Barbara for A$38 million.[2]
  • 15 September 2005: Shareholders awarded equal status to creditors in court.[2]
  • 29 August 2006: Company delisted from the ASX after failing to pay its annual listing fee.[2]

References[edit]

  1. ^ a b Sons of Gwalia's gold hedging had big holes The Sydney Morning Herald, published: 4 September 2004. Retrieved 4 September 2009
  2. ^ a b c d e f g h i j k SONS OF GWALIA LIMITED (SGW) delisted.com.au. Retrieved 5 February 2010
  3. ^ Meiklejohn, John (8 May 1927). "Romantic History of a Great Mine – The Sons of Gwalia". The Sunday Times. p. 39. Retrieved 14 January 2014.
  4. ^ a b c d "Gwalia Museum Group 6". Register of Heritage Places – Assessment Documentation. Heritage Council of Western Australia. 7 September 2006. Retrieved 14 January 2014.
  5. ^ Hoover, Herbert (1951). The Memoirs of Herbert Hoover, Years of Adventure, 1874-1920. New York: The Macmillan Company. p. 33.
  6. ^ Blainey, Geoffrey (1963). The Rush That Never Ended. Melbourne: Melbourne University Press. pp. 202.
  7. ^ Kalnejais, J. (1990). F.E. Hughes (ed.). Sons of Gwalia Gold Deposit, Leonora, in Geology of the Mineral Deposits of Australia and Papua New Guinea. Melbourne: The Australasian Institute of Mining and Metallurgy. pp. 353–355. ISBN 0949106429.
  8. ^ a b How sons of Lalor built, then sank, Sons of Gwalia The Sydney Morning Herald, published: 22 August 2005. Retrieved 5 February 2010
  9. ^ Acquisition Agreement North Laverton Western Australia Focus ASX announcement, published: 16 August 2002. Retrieved 28 January 2010
  10. ^ a b Geologist brings 'new eyes' to Sons of Gwalia The Sydney Morning Herald, published: 20 January 2004. Retrieved 8 February 2010
  11. ^ a b Managing Director Appointment SGW ASX announcement, published: 13 March 2000. Retrieved 8 February 2010
  12. ^ a b Media Release re: Aircraft Accident SGW ASX announcement, published: 5 September 2000. Retrieved 8 February 2010
  13. ^ a b Rationalisation of Southern Cross Region of WA SGW ASX announcement, published: 23 August 2001. Retrieved 8 February 2010
  14. ^ Intention to Make Takeover Bid for PacMin Mining Corporation SGW ASX announcement, published: 7 February 2001. Retrieved 8 February 2010
  15. ^ a b Close of offer for PML/proceeding to compulsory acquisition SGW ASX announcement, published: 16 October 2001. Retrieved 8 February 2010
  16. ^ ASX to probe Sons of Gwalia collapse ABC Australia, published: 5 September 2004. Retrieved 8 February 2010
  17. ^ Gwalia sweats on review metalsplace.com, published: 8 August 2004. Retrieved 8 February 2010
  18. ^ Response to UBS Warburg Statement SGW ASX announcement, published: 13 February 2003. Retrieved 8 February 2010
  19. ^ a b Director Resignation SGW ASX announcement, published: 14 February 2003. Retrieved 8 February 2010
  20. ^ Results of Restructuring SGW ASX announcement, published: 1 July 2003. Retrieved 8 February 2010
  21. ^ a b Capital Raising SGW ASX announcement, published: 15 October 2003. Retrieved 8 February 2010
  22. ^ a b Appt of MD/Non Exec Chairman&Changes to Board of Directors SGW ASX announcement, published: 19 January 2004. Retrieved 8 February 2010
  23. ^ Ernst &Young agrees to $125m Sons of Gwalia settlement The West Australian, published: 4 September 2009. Retrieved 4 September 2009
  24. ^ St Barbara Mines Limited – Lodgment of Open Briefing Archived 15 September 2009 at the Wayback Machine published: 28 June 2005. Retrieved 3 September 2009
  25. ^ The West Australian, published 16 March 2005. Retrieved 3 September 2009
  26. ^ Ernst &Young agrees to $125m Sons of Gwalia settlement Archived 5 February 2011 at the Wayback Machine The West Australian, published: 4 September 2009. Retrieved 4 September 2009
  27. ^ Emery, Kate (24 January 2012). "GAM closes Wodgina tantalum mine". The West Australian. Archived from the original on 4 December 2012. Retrieved 8 July 2012. Worldwide softening tantalum demand and delays in receiving Governmental approval for installation of necessary crushing equipment are among contributing factors in this decision
  28. ^ IMF's ann: Sons of Gwalia Full Court Decision ASX announcement, published: 27 February 2006. Retrieved 12 January 2010
  29. ^ Removal from Official List ASX announcement, published: 29 August 2006. Retrieved 12 January 2010
  30. ^ Ernst &Young agrees to $125m Sons of Gwalia settlement 'The West Australian, published: 4 September 2009. Retrieved 4 September 2009
  31. ^ Ernst &Young agrees to $125m Sons of Gwalia settlement The West Australian', published: 4 September 2009. Retrieved 4 September 2009
  32. ^ a b Media Release: Highlights from Quarterly Report 30-6-98 SGW ASX announcement, published: 17 July 1998. Retrieved 8 February 2010
  33. ^ Fourth Quarter Activities Report SGW ASX announcement, published: 20 July 2000. Retrieved 8 February 2010
  34. ^ Fourth Quarter Activities Report/Media Release SGW ASX announcement, published: 19 July 2001. Retrieved 8 February 2010
  35. ^ a b Fourth Quarter Activities Report SGW ASX announcement, published: 18 July 2002. Retrieved 8 February 2010
  36. ^ a b Sons of Gwalia annual report 2003. Retrieved 12 January 2010
  37. ^ a b Sons of Gwalia fourth quarter report 2004. Retrieved 12 January 2010
  38. ^ Fourth Quarter Activities Report SGW ASX announcement, published: 20 July 2000. Retrieved 8 February 2010
  39. ^ Fourth Quarter Activities Report/Media Release SGW ASX announcement, published: 19 July 2001. Retrieved 8 February 2010
  40. ^ PACMIN MINING CORPORATION LIMITED (PML) delisted.com.au. Retrieved 8 February 2010
  41. ^ Chairman's Summary Half Year Ended 31 December 2003 SGW ASX announcement, published: 18 February 2004. Retrieved 8 February 2010

External links[edit]

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