| Wed 24 Apr 2002, 0:00 | | Avgold: Abridged Report For The Quarter Ended 31 M |
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AVGOLD LIMITED
(Registered number 1990/007025/06)
(Incorporated in the Republic of South Africa)
JSE Share code: AVG
ISIN Code : ZAE000012175
56 Main Street, Johannesburg, South Africa 2001
PO Box 62379, Marshalltown, South Africa 2107
ABRIDGED REPORT
for the quarter ended 31 March 2002
AVGOLD
* Headline earnings (excluding Target) for the quarter ended 31 March 2002
increased to R8,1 million from R7,9 million in the previous quarter.
ETC
* It is with deep regret that the Board reports that a
fatal accident occurred at ETC on 18 March 2002.
* Cash costs reduced to US$191/oz (US$212/oz).
* Cash generation for the quarter was R19,6 million.
* Over 200 employees to be retrenched as a result of the ongoing
restructuring of the mine at a cost of R3,5 million,
which will be expensed during the June 2002 quarter.
TARGET
* Mine officially opened on 8 March 2002.
* The Mine Health and Safety Council's 1 000 Fatality-Free
Production Shifts Award presented to the mine on 1 March 2002.
* Nearly 42 000 ounces of gold sold over the last quarter;
gold production was at an average yield of 5,98g/t.
It is anticipated that the capitalisation of revenue and costs
will cease during the June 2002 quarter.
NORTHERN FREE STATE
* Exploration drilling programme continuing with results
still anticipated during the early part of the next financial year.
HEDGE BOOK AT 31 MARCH 2002
The hedge book represents 56,6% of estimated production to June 2006. Mark
to market value was a negative R1 181 million.
Period ending June 2002 June 2003 June 2004 June 2005 June 2006
Dollar forward sales contracts
Quantity sold kg 1 579 1 601 1 458 672
oz 50 769 51 481 46 885 21 620
US$/oz 313 298 284 290
Rand forward sales contracts
Quantity sold kg 2 585 9 179 7 830 7 679 3 730
oz 83 111 295 096 251 733 246 876 119 923
R/kg 80 988 83 013 85 135 94 009 100 985
FINANCIAL SUMMARY - UNAUDITED
Rand thousands US$ thousands
Quarter ended 31 March 2002 31 Dec 2001 31 March 2002 31 Dec 2001
Revenue 64 885 62 670 5 585 6 362
Costs and expenses 56 811 54 795 4 890 5 563
Operating profit 8 074 7 875 695 799
Headline profit 8 075 7 911 695 803
Headline earnings
per share cents 1 1 - -
Cash generated
from/(utilised by)
operating activities 12 366 (2 102) 1 247
(284)
Net borrowings 612 551 601 846 53 242 50 448
Total assets 3 118 493 3 058 128 271 055 256 339
Shareholders' interest 2 210 901 2 199 786 192 169 184 391
OPERATING SUMMARY - UNAUDITED
Quarter ended
March 2002 March 2001 Dec 2001
Metric
Ore milled tonnes 74 397 80 398 84 092
Gold sold kg 673 689 700
Yield g/t 9,05 8,57 8,33
Cash cost R/kg 71 462 63 123 67 139
Non-cash cost R/kg 12 906 5 852 11 108
Total cost R/kg 84 368 68 975 78 247
Gold price realised R/kg 91 684 79 259 89 493
Capital expenditure R thousands 26 554 151 222 214 512
Imperial
Ore milled tons 82 008 88 624 92 695
Gold sold oz 21 649 22 164 22 514
Yield oz/t 0,26 0,25 0,24
Cash cost US$/oz 191 253 212
Non-cash cost US$/oz 35 23 35
Total cost US$/oz 226 276 247
Gold price realised US$/oz 318 317 283
Capital expenditure US$ thousands 2 286 19 454 21 777
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. It is anticipated that the mine will commence its
contribution to the Avgold results in the June 2002 quarter.
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)
*Executive Directors
Company secretary: S E Sather
Johannesburg
24 April 2002
