| Wed 24 Oct 2001, 0:00 | | Avgold - Abridged Report For The Quarter Ended 30 |
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AVGOLD LIMITED
(Registration number 1990/007025/06)
(Incorporated in the Republic of South Africa)
56 Main Street, Johannesburg, South Africa 2001.
PO Box 62379, Marshalltown, South Africa 2107
ISIN: ZAE000012175
Share code: AVG
ABRIDGED REPORT
for the quarter ended 30 September 2001
AVGOLD
* Results for the three months ended 30 September 2001 reflect an operating
profit of R6,5 million (R11,8 million) and an earnings loss of R0,7 million
(R14,3 million - profit).
* The earnings decline includes a non-capitalised foreign exchange loss of
R7,3 million on Target's borrowings.
* ETC gold sales increased to 738 kg (721 kg), but cash costs were higher at
US$259/oz (US$217/oz), directly related to mining a lower grade at the
Fairview mine, as well as higher labour and stores costs.
* Discussions regarding the possible sale of the ETC gold mining complex
continuing.
* Target mine remains on schedule for full production in the first quarter
of calendar 2002. Gold sales reached 841 kg for the quarter. Commissioning
of the metallurgical plant is expected to start during November 2001.
* Northern Free State exploration drilling programme ahead of schedule with
first reef intersections expected this quarter.
HEDGE BOOK AT 30 September 2001
The mark-to-market value of the hedge book based on a gold price of
US$292/oz and an exchange rate of R8,99 = US$1,00 was a negative R326
million, and represents 58 per cent of forecast production to June 2006.
Period ending June 2002 June 2003 June 2004 June 2005 June
2006
Dollar forward sales contracts
Quantity sold kg 237 1 579 1 601 1 458 672
oz 7 624 50 769 51 481 46 885 21 620
US$/oz 334 313 298 284 290
Rand forward sales contracts
Quantity sold kg 5 704 9 179 7 830 7 679 3 730
oz 183 381 295 097 251 733 246 876 119 923
R/kg 82 467 83 013 85 135 94 009 100 985
FINANCIAL SUMMARY - UNAUDITED
Rand thousand US$ thousand
Quarter ended 30 Sept. 30 June 30 Sept. 30 June
2001 2001 2001 2001
Revenue 65 485 58 300 7 898 7 269
Costs and expenses 59 030 46 479 7 119 5 795
Operating profit 6 455 11 821 778 1 474
Headline (loss)/profit (674) 14 329 (81) 1 787
Headline earnings
per share (cents) - 2 - -
Cash generated by
operating activities 5 073 47 761 612 5 955
Net borrowings 381 668 251 206 43 569 31 091
Total assets 2 813 587 2 688 106 321 186 332 690
Shareholders' interest 2 176 689 2 170 808 248 480 268 664
OPERATING SUMMARY - UNAUDITED
Quarter ended
Sept. 2001 Sept. 2000 June 2001
Metric
Ore milled tonnes 85 667 69 739 84 503
Gold sold kg 738 684 721
Yield g/t 8,61 9,81 8,54
Cash cost R/kg 69 090 62 332 55 977
Non-cash cost R/kg 10 953 8 910 8 455
Total cost R/kg 80 043 71 242 64 432
Gold price realised R/kg 88 791 69 105 80 819
Capital expenditure R thousand 139 803 125 731 186 241
Imperial
Ore milled tons 94 431 76 874 93 148
Gold sold oz 23 712 21 994 23 193
Yield oz/t 0,25 0,29 0,25
Cash cost US$/oz 259 280 217
Non-cash cost US$/oz 41 40 33
Total cost US$/oz 300 320 250
Gold price realised US$/oz 333 310 313
Capital expenditure US$ thousand 16 861 18 130 23 220
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)
Alternate Director: P G Marillier (Zimbabwean)
*Executive Directors
Company secretary: S E Sather
Johannesburg
24 October 2001
