| Thu 3 Oct 2002, 17:19 | | Anglogold Limited - Anglogold CEO Projects Growth |
|
Anglogold Limited
North American investor relations contact:
Charles Carter
cecarter@anglogold.com
Telephone: (800) 417-9255 or (212) 750-7999
Fax: (212) 750-5626
www.anglogold.com
ANGLOGOLD CEO PROJECTS GROWTH OUTLOOK FOR COMPANY
DENVER - October 2, 2002 - Speaking at the Denver Mining Investment Forum
conference today, AngloGold (NYSE:AU) CEO Bobby Godsell announced that the
company was on track to produce 6 million ounces of gold in 2002 and that
AngloGold was looking to increase production over the next three to four years
to a possible 6 .5 million ounces as anticipated expansion projects came on
stream. Godsell also indicated that the company`s successful organic growth
intiatives had the potential to increase AngloGold`s total proven and probable
reserve by as much as 20% by year-end. As part of this increase, he indicated
that reserve increase on South African assets could be as high as 30% when
reserves are restated at the end of the calendar year.
Godsell said, " AngloGold`s core purpose to date has been to grow shareholder
value out of gold. In the current stronger price environment and with our
robust asset base we are able to combine our successful value focus with a
sustained growth program. We will, however, continue to measure our performance
in terms of our success in generating returns for our shareholders.
"With the company enjoying record net cash operating margins of 47% or $140 per
ounce produced, and the lowest cash and total costs of the major gold producers,
we are in a strong position going forward", Godsell said. He noted that in the
first six months of 2002 AngloGold had outperformed a solid 2001, with headline
earnings up 44% to $176 million, total cash costs down 17% to $156 per ounce,
and returns on capital employed maintained at 16% and return on equity higher at
21%. The annualized yield on the mid-year dividend was 5.5%. "In the first six
months of this year we generated cash of just over $300 million from
operations, reinvested $118 million in organic growth, and paid out $109 million
in dividends. This strong cash generation, reinvestment in our future, and
reward for shareholders today through dividends is the compelling characteristic
of AngloGold" he said.
Godsell noted that of AngloGold`s five major organic growth projects funded over
the last several years, the Sunrise Dam expansion was now complete in Australia,
with the CC&V joint venture in Colorado seeing its official opening later this
week. "These projects, together with two expansion programs in South Africa and
one new mine, will add 15 million new ounces to the life of AngloGold
operations, at reduced cash costs," Godsell said. He also indicated that in
addition to these five projects the company was currently working on expanding
the Cuiba operation in Brazil and had also recently completed a feasibility
study on the Amapari Project, also in Brazil. "In the context of the devaluation
of the South African rand, we are now also examing six additional new projects
in South Africa, most of which are extensions to existing operations."
Bobby Godsell`s full speech is available on
http://www.videonewswire.com/event.asp?id=8108
Ends.
Disclaimer
Except for the historical information contained herein, there are matters
discussed in this news release that are forward-looking statements. Such
statements are only predictions and actual events or results may differ
materially. For a discussion of important factors including, but not limited
to, development of the Company`s business, the economic outlook in the gold
mining industry, expectations regarding gold prices and production, and other
factors, which could cause actual results to differ materially from such
forward-looking statements, refer to the Company`s annual report for the year
ended 31 December 2001 which was filed with the Securities and Exchange
Commission on 18 March 2002.
Date: 03/10/2002 08:00:01 AM Produced by the JSE SENS Department
