|
Report for the second quarter ended 30 June 2001
Production up 12%
Profits from gold up 80%
Cash costs US$208/oz
LETTER TO SHAREHOLDERS
The performance of the South Deep Joint Venture has improved significantly
following the early resolution of the industrial unrest at the end of the
previous quarter and the increased number of days worked. Gold revenue
increased by 18% to R95.9 million and profit from gold went up by 80%. This
increase was mainly as a result of the 12% increase in gold production from
1 176 kg to
1 320 kg, as well as an increase in the gold price received (excluding
hedging profits) to R70 492 per kg, even though grade recovered was slightly
down from the last quarter.
The improvement in production saw cash cost increase to US$208/oz due to
increased tonnage throughput.
Operating profit was up 6% from R25.5 million to
R27.2 million as a result of an increase in gold revenue, but profit after
tax only improved marginally, due to a provision for taxation.
Capital expenditure for the quarter totalled
R71.9 million. The South Deep project progressed satisfactorily.
Shareholders are referred to the further joint cautionary announcement which
appears in todays press, and are advised to continue to exercise caution
when dealing in their shares until a further announcement is made.
RB Kebble JF Brownrigg
Chief Executive Officer Managing Director
Johannesburg
3 August 2001
The following table represents the hedge book as at 30 June 2001:
Years to 31.12.01 31.12.02 31.12.03
Fixed forward contract
Amount hedged (oz 000) 105 35 38
Average price ($/oz) 266 260 260
Fixed forward contract
Amount hedged (oz 000) - 105 -
Average price (R/oz) - 1 822 -
Call options sold
Amount hedged (oz 000) - 35 40
Average price ($/oz) - 325 325
Call options bought
Amount hedged (oz 000) - 70 76
Average price ($/oz) - 420 420
Gold lease rate swaps
Amount hedged - - -
Years to 31.12.04 31.12.05 31.12.06
Fixed forward contract
Amount hedged (oz 000) 42 21 -
Average price ($/oz) 260 260 -
Fixed forward contract
Amount hedged (oz 000) - - -
Average price (R/oz) - - -
Call options sold
Amount hedged (oz 000) 42 42 42
Average price ($/oz) 325 325 325
Call options bought
Amount hedged (oz 000) 77 38 -
Average price ($/oz) 420 420 -
Gold lease rate swaps
Amount hedged - 214 -
Years to 31.12.07 31.12.08 31.12.09
Fixed forward contract
Amount hedged (oz 000) - 42 42
Average price ($/oz) - 320 320
Fixed forward contract
Amount hedged (oz 000) - 42 42
Average price (R/oz) - 2 800 2 800
Call options sold
Amount hedged (oz 000) 42 42 42
Average price ($/oz) 325 325 325
Call options bought
Amount hedged (oz 000) - - -
Average price ($/oz) - - -
Gold lease rate swaps
Amount hedged 157 - 126
Years to Total
Fixed forward contract
Amount hedged (oz 000) 325
Average price ($/oz)
Fixed forward contract
Amount hedged (oz 000) 189
Average price (R/oz)
Call options sold
Amount hedged (oz 000) 327
Average price ($/oz)
Call options bought
Amount hedged (oz 000) 261
Average price ($/oz)
Gold lease rate swaps
Amount hedged 497
CONSOLIDATED INCOME STATEMENT
US$ million Quarter Quarter Year
ended ended ended
30.06.01 31.03.01 31.12.00
Unaudited Unaudited Audited
Revenue from gold 11.9 10.3 47.4
At spot 11.2 10.2 46.6
Hedging profits 0.7 0.1 0.8
Costs and other expenses (9.7) (9.1) (36.8)
Production costs (8.5) (7.6) (30.9)
Non-cash items (1.2) (1.5) (5.9)
Profit from gold 2.2 1.2 10.6
Plus 2.9 3.4 23.4
Sundry revenue 0.1 0.3 2.8
Net interest income 2.8 3.1 20.6
Less (1.7) (1.4) (12.0)
Net premiums on put and
call options - - (2.8)
Administration costs and
amortisation of corporate
assets (1.6) (1.1) (6.9)
Exploration and new business - (0.2) (1.0)
Prestea operating loss and
mine closure costs (0.1) (0.1) (1.3)
Operating profit 3.4 3.2 22.0
Restructuring costs - - (3.3)
Profit before taxation 3.4 3.2 18.7
Taxation (1.5) (1.3) (6.7)
Normal taxation (0.8) (1.0) (6.9)
Deferred taxation (0.7) (0.3) 0.2
Attributable to outside
shareholders - - 0.1
Profit after taxation 1.9 1.9 12.1
Headline earnings per
share - cents 2 2 13
Earnings per share - cents 2 2 12
Number of shares in
issue (million) 105.4 105.4 105.4
CONSOLIDATED INCOME STATEMENT (cont.)
R million Quarter Quarter Year
ended ended ended
30.06.01 31.03.01 31.12.00
Unaudited Unaudited Audited
Revenue from gold 95.9 81.0 329.1
At spot 90.1 80.2 323.4
Hedging profits 5.8 0.8 5.7
Costs and other expenses (78.3) (71.2) (255.2)
Production costs (68.7) (59.7) (214.0)
Non-cash items (9.6) (11.5) (41.2)
Profit from gold 17.6 9.8 73.9
Plus 23.4 27.0 162.8
Sundry revenue 0.4 2.3 19.7
Net interest income 23.0 24.7 143.1
Less (13.8) (11.3) (83.1)
Net premiums on put and
call options - - (19.6)
Administration costs and
amortisation of corporate
assets (13.0) (8.8) (47.4)
Exploration and new business (0.1) (1.5) (6.8)
Prestea operating loss
and mine closure costs (0.7) (1.0) (9.3)
Operating profit 27.2 25.5 153.6
Restructuring costs - - (22.7)
Profit before taxation 27.2 25.5 130.9
Taxation (11.4) (10.2) (46.7)
Normal taxation (6.1) (7.6) (48.2)
Deferred taxation (5.3) (2.6) 1.5
Attributable to outside
shareholders - - 0.4
Profit after taxation 15.8 15.3 84.6
Headline earnings
per share - cents 15 13 90
Earnings per
share - cents 15 15 80
Number of shares
in issue (million) 105.4 105.4 105.4
CONSOLIDATED CASH FLOW STATEMENT
US$ million Quarter Quarter Year
Ended ended ended
30.06.01 31.03.01 31.12.00
Unaudited Unaudited Audited
Cash flow from
operating activities
Cash from/(utilised in)
operations 3.1 1.2 (5.4)
Interest paid - - (6.0)
Taxation paid (6.5) (0.8) (1.1)
Net cash (utilised in)/
generated by
operating activities (3.4) 0.4 (12.5)
Investing activities
Capital expenditure on the
South Deep project (10.5) (7.2) (38.0)
Proceeds on sale
of assets - - 2.3
Net proceeds on disposal
of investments - 0.2 -
Decrease/(increase)
in advances 3.0 (0.5) 3.1
(Increase)/decrease
in short-term
cash advances - - 36.1
Interest received 0.3 0.8 14.2
Dividends received - - 0.1
Net cash (utilised in)/
generated by investing
activities (7.2) (6.7) 17.8
Financing activities
Cash distribution - - (87.4)
Repayment of long-term
borrowings - - (4.3)
Net cash utilised in
financing activities - - (91.7)
Net cash utilised (10.6) (6.3) (86.4)
Opening balance of cash
and cash equivalents 29.3 37.6 143.5
Translation adjustment - (2.0) (19.5)
Closing balance of cash
and cash equivalents 18.7 29.3 37.6
CONSOLIDATED CASH FLOW STATEMENT (cont.)
R million Quarter Quarter Year
Ended ended ended
30.06.01 31.03.01 31.12.00
Unaudited Unaudited Audited
Cash flow from operating
activities
Cash from/(utilised in)
operations 24.9 9.9 (37.7)
Interest paid - - (41.9)
Taxation paid (51.9) (6.5) (7.4)
Net cash (utilised in)/
generated by operating
activities (27.0) 3.4 (87.0)
Investing activities
Capital expenditure on the
South Deep project (84.7) (56.2) (263.7)
Proceeds on sale of assets - - 15.8
Net proceeds on disposal
of investments - 1.7 -
Decrease/(increase)
in advances 24.0 (4.1) 21.8
(Increase)/decrease in
short-term cash advances - - 250.6
Interest received 2.8 6.3 98.8
Dividends received - - 0.4
Net cash (utilised in)/
generated by investing
activities (57.9) (52.3) 123.7
Financing activities
Cash distribution - - (606.0)
Repayment of long-term
borrowings - - (30.0)
Net cash utilised in
financing activities - - (636.0)
Net cash utilised (84.9) (48.9) (599.3)
Opening balance of cash
and cash equivalents 235.4 284.3 883.6
Translation adjustment
Closing balance of cash
and cash equivalents 150.5 235.4 284.3
CONSOLIDATED BALANCE SHEET
US$ million Quarter Quarter Year
ended ended ended
30.06.01 31.03.01 31.12.00
(Notes) Unaudited Unaudited Audited
Capital employed
Shareholders' equity 321.4 319.9 337.8
Outside shareholders'
interests 2.2 2.2 2.3
Deferred taxation 50.4 49.8 52.6
Long-term liabilities 2.3 2.3 2.4
376.3 374.2 395.1
Represented by
Mining assets 297.0 288.5 300.6
Unlisted investments 0.2 0.2 0.3
Long-term advances 5.2 8.2 8.1
Net current assets 73.9 77.3 86.1
Current assets 86.1 93.8 105.3
Inventories 2.1 1.6 1.8
Receivables 4.5 4.3 10.8
Loan to JCI Gold Ltd (1) 43.4 41.8 38.0
Short-term cash
advances (2) 17.4 16.8 17.1
Cash and short
term funds 18.7 29.3 37.6
Current liabilities 12.2 16.5 19.2
Payables and
provisions 12.2 16.5 19.2
376.3 374.2 395.1
CONSOLIDATED BALANCE SHEET (cont.)
R million Quarter Quarter Year
ended ended ended
30.06.01 31.03.01 31.12.00
(Notes) Unaudited Unaudited Audited
Capital employed
Shareholders' equity 2 585.2 2 569.2 2 553.9
Outside shareholders'
interests 17.4 17.4 17.4
Deferred taxation 405.6 400.3 397.7
Long-term liabilities 18.3 18.3 18.3
3 026.5 3 005.2 2 987.3
Represented by
Mining assets 2 389.2 2 317.3 2 272.9
Unlisted investments 1.9 1.9 2.2
Long-term advances 41.7 65.7 61.6
Net current assets 593.7 620.3 650.6
Current assets 692.0 753.2 796.0
Inventories 16.7 13.0 13.6
Receivables 35.9 34.2 81.4
Loan to JCI Gold Ltd (1) 349.1 336.1 287.2
Short-term cash
advances (2) 139.8 134.5 129.5
Cash and short
term funds 150.5 235.4 284.3
Current liabilities 98.3 132.9 145.4
Payables and
provisions 98.3 132.9 145.4
3 026.5 3 005.2 2 987.3
Notes:
The loan to JCI Gold Limited is repayable on
31 December 2001, is secured by a pledge of marketable securities and
carries interest at prime plus 1.5%.
(2) Short term cash advances consist of advances made to Durban Roodepoort
Deep, Limited amounting to
R139.8 million. These advances carry interest at prime plus 1.5%, are
secured by a pledge of marketable securities with a current market value of
R120 million, and are guaranteed by Consolidated African Mines Limited and
JCI Gold Limited. These advances are repayable on
31 December 2001.
PRODUCTION RESULTS
Quarter Quarter Year
ended ended ended
Metric 30.06.01 31.03.01 31.12.00
Ore milled, tonnes (000)
Western Areas section 113 94 345
South Deep section 51 48 204
Surface material 1 2 60
Total ore milled 165 144 608
Yield, grams per tonne
Western Areas section 8.32 8.69 10.43
South Deep section 7.37 7.32 7.00
Surface material 1.16 2.93 0.57
Average grade recovered 7.72 8.22 8.33
Gold production, kilograms
Western Areas section 942 821 3 599
South Deep section 377 349 1 426
Surface material 1 6 34
Total gold production 1 320 1 176 5 058
Work-in-progress (42) 8 4
Total gold declared 1 278 1 184 5 062
PRODUCTION RESULTS (cont.)
Quarter Quarter Year
ended ended ended
ImperiaL 30.06.01 31.03.01 31.12.00
Ore milled, tons (000)
Western Areas section 125 104 380
South Deep section 56 52 224
Surface material 1 2 66
Total ore milled 182 158 670
Yield, ounces per ton
Western Areas section 0.242 0.245 0.304
South Deep section 0.216 0.234 0.204
Surface material 0.032 0.092 0.017
Average grade recovered 0.226 0.239 0.243
Gold production, ounces
Western Areas section 30 270 26 400 115 694
South Deep section 12 121 11 217 45 831
Surface material 32 180 1 093
Total gold production 42 423 37 797 162 618
Work-in-progress (1 334) 257 129
Total gold declared 41 089 38 054 162 747
COST AND REVENUE PER UNIT OF PRODUCTION
Quarter Quarter Year
ended ended ended
30.06.01 31.03.01 31.12.00
Imperial US$ US$ US$
Per ton milled
Production costs 47 48 46
Other expenses and
non-cash costs 7 10 9
Total costs 54 58 55
Per ounce produced
Production costs 208 201 190
Other expenses and
non-cash costs 29 38 36
Total costs 237 239 225
Gold price received (spot)
Per ton milled 62 65 69
Per ounce produced 273 269 286
Capital commitment at end of
period ($ million) 15 10 9
Conversion rates used:
US$ 1 = Rands
Average rate for period 8.0314 7.8264 6.9362
Rate at period ended 8.0436 8.0325 7.5605
COST AND REVENUE PER UNIT OF PRODUCTION (cont.)
Quarter Quarter Year
ended ended ended
30.06.01 31.03.01 31.12.00
Metric R R R
Per tonne milled
Production costs 416 416 352
Other expenses and
non-cash costs 58 80 68
Total costs 474 496 420
Per kilogram produced
Production costs 53 726 50 472 42 276
Other expenses
non-cash costs 7 473 9 681 8 139
Total costs 61 199 60 153 50 415
Gold price received (spot)
Per tonne milled 546 559 532
Per kilogram produced 70 492 67 732 63 888
Capital commitment at end
of period (R million) 117 81 66
Conversion rates used:
US$ 1 = Rands
Average rate for period 8.0314 7.8264 6.9362
Rate at period ended 8.0436 8.0325 7.5605
South Deep Shaft Sinking
Main Shaft Quarter Quarter
Ended ended
30.06.01 31.03.01
Sinking (metres) 10 10
Metres per calendar day 0.11 0.11
Distance below collar
(metres) 2 899 2 889
Days on development 85 days - 90 days-
110 lev station 110 level
Cubic metres broken in
dev. (Plan) 2 187 5 928
Cubic metres broken in dev.
(Actual) 2 904 8 303
Metres/Calendar day sink
(excl dev. days) 1.11 3.25
South Deep Shaft Sinking (cont.)
Vent Shaft Quarter Quarter
Ended ended
30.06.01 31.03.01
Sinking (metres) 0 4
Metres per calendar day 0.00 0.36
Distance below
collar (metres) 2 759.5 2 759.5
Days on development 91 days - 47 days-
100 lev devel. 100A lev
station
31 days -
100 lev
station
Cubic metres broken
in dev. (Plan) 3 610 2 017
Cubic metres broken
in dev. (Actual) 4 548 2 861
Metres/Calendar day sink
(excl dev. days) 0.00 1.48
Summarised Development Results
Total Primary Primary
Development Development Sampled
Quarter Ending (m) (m) (m)
30.06.01 1 188 94.4 78.0
31.03.01 1 769 102.5 125.0
Year to 30.06.01 2 957 196.9 203.0
Summarised Development Results (cont.)
Channel Channel
Width Value Channel
Quarter Ending (m) (g/t) (cm-g/t)
30.06.01 237 5.0 1 185
31.03.01 311 5.3 1 648
Year to 30.06.01 282 5.2 1 466
Development
Quarter Quarter Year
Ended ended to date
Metric 30.06.01 31.03.01 30.06.01
Advance on reef and
country rock (metres) (metres) (metres)
Ventersdorp Contact
Section 418 404 822
Upper Elsburg Section 770 1 365 2 135
Total metres 1 188 1 769 2 957
Development (cont.)
Quarter Quarter Year
Ended ended to date
Imperial 30.06.01 31.03.01 30.06.01
Advance on reef and
country rock (feet) (feet) (feet)
Ventersdorp Contact
Section 1 371 1 325 2 696
Upper Elsburg
Section 2 526 4 478 7 004
Total metres 3 897 5 803 9 700
WESTERN AREAS LIMITED
Registration Number 1959/003209/06
Incorporated in the Republic of South Africa
PO Box 61719, Marshalltown 2107
Telephone: +27(11) 688-5000
Fax: +27(11) 834 9195
Office of South African Transfer Secretaries
Mercantile Registrars Limited
PO Box 1053, Johannesburg, 2001
Investor and media relations:
For further information contact Kathy du Plessis on:
Tel: +27(11) 728-4701
Fax: +27(11) 728-2547
e-mail: westernareas@dpapr.com
www.westernareas.co.za
--------------------------------------------------------------------------------
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
