| Thu 9 May 2002, 0:00 | | Western Areas Limited - Quarterly Results Ended |
|
Western Areas Limited
Registration number 1959/003209/06
Incorporated in the Republic of South Africa
JSE share code: WAR ISIN: ZAE000016549
Quarterly results ended 31 March 2002
- Profit from gold up 51%
- Gold production increased by 4%
- Cash costs improve to US$159/oz
CONSOLIDATED INCOME STATEMENT
US$ Million
Quarter Quarter Year
ended ended ended
31.03.02 31.12.01 31.12.01
Unaudited Unaudited Reviewed
12.7 14.1 47.9 Revenue from gold at spot
(7.9) (10.5) (40.0) Costs and other expenses
(7.2) (8.3) (33.8) Production costs
(0.7) (2.2) (6.2) Non-cash items
4.8 3.6 7.9 Profit from gold
2.6 4.4 13.7 Plus
0.6 2.5 3.4 Sundry revenue
2.0 1.9 10.3 Net interest received
(0.9) (1.8) (6.6) Less
Administration costs and
(1.0) (1.6) (5.8) amortisation of corporate assets
0.1 - (0.2) Exploration and new business
- (0.2) (0.6) Prestea mine closure costs
Operating profit before derivative
6.5 6.2 15.0 transactions
(13.0) (5.1) (3.8) Less
Net amortised premiums on put
(6.1) (2.6) (2.1) and call options
(5.0) (3.2) (3.3) Exchange losses
(1.9) 0.7 1.6 Hedging (loss)/profit
(Loss)/profit before non-recurring
(6.5) 1.1 11.2 costs
(0.2) (3.7) (4.5) Non-recurring costs
(6.7) (2.6) 6.7 (Loss)/profit before taxation
3.5 2.2 (5.2) Taxation
(0.7) (0.4) (1.0) Normal taxation
4.2 2.6 (4.2) Deferred taxation
- (0.2) (0.3) Attributable to outside shareholders
Attributable (loss)/profit after
(3.2) (0.6) 1.2 taxation
Headline (loss)/earnings per share -
(3) - 3 cents
(3) - 1 (Loss)/earnings per share - cents
105.4 105.4 105.4 Number of shares in issue (million)
CONSOLIDATED INCOME STATEMENT
R Million
Quarter Quarter Year
ended ended ended
31.03.02 31.12.01 31.12.01
Note Unaudited Unaudited Reviewed
Revenue from gold at spot 145.9 142.3 414.2
Costs and other expenses (91.5) (106.3) (345.6)
Production costs (83.2) (83.7) (292)
Non-cash items (8.3) (22.6) (53.6)
Profit from gold 54.4 36.0 68.6
Plus 29.6 45.1 118.3
Sundry revenue 7.0 25.4 29.3
Net interest received 22.6 19.7 89.0
Less (10.8) (18.1) (56.0)
Administration costs and
amortisation of corporate assets (11.8) (16.3) (49.9)
Exploration and new business 1.0 - (1.3)
Prestea mine closure costs - (1.8) (4.8)
Operating profit before derivative
transactions 73.2 63.0 130.9
Less (149.5) (52.0) (32.8)
Net amortised premiums on put
and call options 1 (69.9) (26.1) (18.2)
Exchange losses 1 (57.7) (32.5) (28.4)
Hedging (loss)/profit 1 (21.9) 6.6 13.8
(Loss)/profit before non-recurring
costs (76.3) 11.0 98.1
Non-recurring costs (2.4) (37.8) (38.5)
(Loss)/profit before taxation (78.7) (26.8) 59.6
Taxation 41.3 23.2 (45.0)
Normal taxation (7.5) (3.5) (8.9)
Deferred taxation 48.8 26.7 (36.1)
Attributable to outside shareholders (0.6) (2.3) (2.3)
Attributable (loss)/profit after
taxation (38.0) (5.9) 12.3
Headline (loss)/earnings
per share - cents (34) (15) 24
(Loss)/earnings per share - cents (36) (5) 12
Number of shares in issue (million) 105.4 105.4 105.4
Note:
1. The derivative structures in place are based upon options bought and sold
and fixed forward contracts. Premium income and expenses are amortised to
the income statement over the period of the structures. Exchange
gains/losses on the premium liability and cash balances are reflected in the
income statement.
CONSOLIDATED BALANCE SHEET
US$ Million R Million
Quarter Year Quarter Year
ended ended ended ended
31.03.02 31.12.01 31.03.02 31.12.01
Unaudited Reviewed Note Unaudited Reviewed
383.2 363.7 Non-current assets 4,333.9 4,353.0
237.5 217.9 Mining assets 2,685.8 2,608.4
130.0 130.9 Deferred premium costs 1,470.3 1,566.8
11.8 11.2 Listed investments 133.5 133.5
3.9 3.7 Other long-term assets 44.3 44.3
135.9 135.7 Current assets 1,535.8 1,624.1
2.0 0.9 Inventories 22.3 10.3
4.5 3.8 Receivables 50.5 45.7
43.2 38.8 Loan to JCI Gold Limited 1 488.5 464.0
86.2 92.2 Cash and short-term funds 974.5 1,104.1
519.1 499.4 Total assets 5,869.7 5,977.1
222.6 213.5 Equity 2,517.9 2,555.3
220.9 211.9 Shareholders' equity 2,498.7 2,536.7
1.7 1.6 Outside shareholders' interests 19.2 18.6
288.2 278.3 Non-current liabilities 3,259.1 3,331.2
31.8 34.2 Deferred taxation 360.1 408.9
111.8 110.7 Deferred premium income 1,264.0 1,324.8
144.6 133.4 Long-term liabilities 1,635.0 1,597.5
8.3 7.6 Current liabilities 92.7 90.6
519.1 499.4 Total equity and liabilities 5,869.7 5,977.1
Note:
1. The loan to JCI Gold Limited, repayable on 30 June 2002, is secured by a
pledge of marketable securities and carries interest at prime overdraft rate
plus 1,5%
CONSOLIDATED CASH FLOW STATEMENT
US$ Million
Quarter Quarter Year
ended ended ended
31.03.02 31.12.01 31.12.01
Unaudited Unaudited Reviewed
Cash flow from operating
activities
1.6 3.5 8.9 Cash from operations
- (0.1) (0.1) Interest paid
- (2.5) (9.7) Taxation paid
Net cash generated by/(utilised in)
1.6 0.9 (0.9) operating activities
Investing activities
Capital expenditure on
(8.0) (14.4) (45.9) the South Deep project
- (11.5) (13.5) Investment in listed shares
- - 0.2 Proceeds on sale of assets
(0.5) (1.7) (9.5) Increase in loan to JCI
- 14.8 19.6 Decrease in advances
- 0.2 0.3 Increase in long-term advances
0.4 - 1.2 Interest received
Net cash utilised in
(8.1) (12.6) (47.6) investing activities
Financing activities
- (5.0) - Decrease in short-term loans
- 104.2 104.2 Income from derivative transaction
(4.7) - - Exchange loss
Net cash (utilised in)/generated
(4.7) 99.2 104.2 by financing activities
(11.2) 87.5 55.7 Net cash (utilised)/generated
Opening balance of cash and cash
92.2 3.7 37.6 equivalents
5.2 1.0 (1.1) Translation adjustment
Closing balance of cash and
86.2 92.2 92.2 cash equivalents
CONSOLIDATED CASH FLOW STATEMENT
R Million
Quarter Quarter Year
ended ended ended
31.03.02 31.12.01 31.12.01
Unaudited Unaudited Reviewed
Cash flow from operating activities
Cash from operations 18.6 35.0 77.2
Interest paid - (0.6) (0.6)
Taxation paid - (25.2) (83.6)
Net cash generated by/(utilised in)
operating activities 18.6 9.2 (7.0)
Investing activities
Capital expenditure on
the South Deep project (91.7) (145.1) (396.3)
Investment in listed shares - (116.3) (116.3)
Proceeds on sale of assets - - 1.7
Increase in loan to JCI (6.3) (16.8) (82.2)
Decrease in advances - 149.3 169.1
Increase in long-term advances - 2.4 2.4
Interest received 4.4 - 10.0
Net cash utilised in
investing activities (93.6) (126.5) (411.6)
Financing activities
Decrease in short-term loans - (50.3) -
Income from derivative transaction - 1,238.4 1,238.4
Exchange loss (54.6) - -
Net cash (utilised in)/generated
by financing activities (54.6) 1,188.1 1,238.4
Net cash (utilised)/generated (129.6) 1,070.8 819.8
Opening balance of cash and cash
equivalents 1,104.1 33.3 284.3
Translation adjustment
Closing balance of cash and
cash equivalents 974.5 1,104.1 1,104.1
STATEMENT OF CHANGE IN SHAREHOLDERS' EQUITY
Number of
ordinary
shares
issued Share Share Retained
and paid capital premium earnings Total
Millions Rm Rm Rm Rm
Group and company
Balance at
31 December 2001 105.4 105.4 2,387.2 44.1 2,536.7
Attributable profit
for the quarter - - - (38.0) (38.0)
Balance at
31 March 2002 105.4 105.4 2,387.2 6.1 2,498.7
LETTER TO SHAREHOLDERS
Profit from gold increased by 51%, from R36.0 million to R54.4 million.
Significant contributing factors to this improvement were the
increase in the spot gold price and the increase in production.
Gold production increased by 4.2%, from 43 564 ounces to 45 397 ounces.
The attributable profit/(loss) after taxation fell to (R38 million)
as a result of the derivative transaction costs and hedging losses
of (R127.6 million) and (R21.9 million) respectively.
Cash costs were well contained at R58 882 per kilogram (US$159 per ounce).
Negotiations in relation to the derivative transaction continue with
a view to optimising the benefits to shareholders. As soon as these
negotiations are complete, an announcement will be made.
Development at the South Deep project progressed well, with capital
expenditure amounting to R91.7 million for the quarter.
RB Kebble JF Brownrigg
Chief Executive Officer Managing Director
Johannesburg
9 May 2002
WESTERN AREAS LIMITED
Registration Number 1959/003209/06
Incorporated in the Republic of South Africa
Share code: WAR ISIN: ZAE000016549
PO Box 61719, Marshalltown 2107
Telehone: +27 (11) 688-5000
Fax: +27 (11) 834-9195
Office of South African Transfer Securities
Computershare Services Limited
PO Box 1053, Johannesburg, 2001
Office of UK Transfer Securities
Capita IRG Plc
Balfour House,
390/398 High Road, Ilford, Essex,
LG1 1NQ
