| Thu 19 Apr 2001, 0:00 | | Avgold - Abridged Report For Quarter Ended 31 Marc |
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AVGOLD LIMITED
(Registration number 1990/007025/06)
(Incorporated in the Republic of South Africa)
ABRIDGED REPORT
FOR THE QUARTER ENDED 31 MARCH 2001
AVGOLD
Headline earnings remained constant quarter on quarter. Lower gold production
at ETC led to a reduced operating profit of R7,1 million. This was offset by
investment proceeds of R6,0 million arising from Avgold's reduced participation
in Rand Refinery.
The R700 million funding facility for the completion of Target has been
successfully syndicated. First drawdown will occur at the end of April 2001.
ETC
Recovered grade decreased to 8,57g/t. This was partly offset by increased
milled tonnage. Gold production should be back to normal during the next
quarter.
TARGET
Underground development and infrastructure construction is in accordance with
plan. Stoping on the narrow reef horizon is progressing while blasting of the
first massive open stope has commenced.
Construction of the new metallurgical plant is on schedule to be completed
before December 2001.
The project is expected to be completed within time and budget.
DIRECTORATE
Messrs R A D Wilson and T V Spindler resigned as directors on 1 and 28 February
2001, respectively.
HEDGE BOOK AT 31 MARCH 2001
Mark to market value was R136,0 million. Post 31 March 2001 a further 250 000
oz have been hedged completing the requirements of Target's funding
arrangements.
Period ending June 2001 June 2002 June 2003 June 2004 June 2005 June 2006
Dollar forward
sales contracts
Quantity sold kg 164 403 825
oz 5 264 12 952 26 534
US$/oz 333 334 318
Rand forward sales contracts
Quantity sold kg 1 053 7 639 9 134 6 711 6 350 3 060
oz 33 862 245 610 293 653 215 762 204 167 98 370
R/kg 82 284 83 593 83 895 85 280 94 271 101 458
FINANCIAL SUMMARY - UNAUDITED
Rand thousands US$ thousands
Quarter ended 31 March 2001 31 Dec 2000 31 March 2001 31 Dec 2000
Revenue 54 639 57 650 7 029 7 632
Costs and expenses 47 554 46 430 6 118 6 146
Operating profit 7 085 11 220 911 1 486
Headline profit 13 080 13 789 1 683 1 826
Headline earnings
per share cents 2 2 - -
Cash generated by
operating activities 373 11 220 48 1 485
Net cash/(borrowings) (121 621) 27 764 (15 604) 3 598
Total assets 2 435 375 2 314 042 312 468 299 863
Shareholders' interest 2 150 930 2 136 800 275 973 276 895
OPERATING SUMMARY - UNAUDITED
Quarter ended
March 2001 March 2000 Dec 2000
Metric
Ore milled tonnes 80 398 49 443 74 866
Gold sold kg 689 613 748
Yield g/t 8,57 12,40 9,99
Cash cost R/kg 63 123 58 429 53 865
Non-cash cost R/kg 5 852 11 658 8 048
Total cost R/kg 68 975 70 087 61 913
Gold price realised R/kg 79 259 62 657 76 811
Capital expenditure R thousands 151 222 118 000 141 022
Imperial
Ore milled tons 88 624 54 501 82 525
Gold sold oz 22 164 19 707 24 040
Yield oz/t 0,25 0,36 0,29
Cash cost US$/oz 253 291 222
Non-cash cost US$/oz 23 58 33
Total cost US$/oz 276 349 255
Gold price realised US$/oz 317 312 316
Capital expenditure US$ thousands 19 454 19 000 18 668
Note: The results attributable to the Target mine are not included in the above
statistics, other than in capital expenditure, as that mine is in a development
stage.
On behalf of the board
R P Menell D N Murray
Chairman Managing Director
Directors: R P Menell (Chairman), D N Murray (Managing), D N Campbell,
D D de Beer, J J Geldenhuys, B M Menell, W A Nairn, G S Potgieter,
G J Robbertze, J C Steenkamp, J Thomas (Mrs)
Company secretary: R H Phillips
Johannesburg
19 April 2001
56 Main Street, Johannesburg, South Africa 2001.
PO Box 62379, Marshalltown, South Africa 2107
