| Tue 4 Feb 2003, 8:50 | | African Rainbow Minerals Gold Limited - Results Fo |
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African Rainbow Minerals Gold Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1997/015869/06)
(Share code: OAD ISIN ZAE000039244)
("ARMgold" or "the Company")
RESULTS FOR THE QUARTER ENDED 31 DECEMBER 2002
HIGHLIGHTS - December 2002 Quarter
* Gold production increased by 4%
* Cash operating cost of R59 357/kg (US$195/oz)
* Cash operating income of R348,3 million (US$36,8 million)
* Cash operating margin of 40%
* Headline earnings of 228 cps (US$ cps 24)
* Commencement of growth projects
HIGHLIGHTS - 2002 Calendar Year
* Achieved stated objective by producing in excess of 1 million attributable
ounces
* Cash operating margin of 46%
* Cash operating income amounted to R1,6 billion (US$157,0 million)
Performances exceeded expectations and stated objectives
* Headline earnings of 1 212cps (US$ cps 117)
* Cash on hand of R2,1 billion (US$214,4 million)
"We Do It Better" STRATEGIC OVERVIEW
Executive Chairman`s review - December 2002
"Another solid performance for the quarter that was in line with our objectives,
while results for 2002 reflect the continuous growth of the Company. Our focus
for the future is to continue to be Globally Competitive through a continuous
drive to improve on our track record, coupled with an aggressive qualitative
growth strategy."
* Our "We Do It Better" management style continues to contribute towards the
Company`s being Globally Competitive.
* ARMgold is continuing with its organic growth objectives. The Board has
approved the deepening of Tshepong and the restarting of Nyala Shaft, with a
planned capital expenditure of R280,0 million (US$32,6 million) and R67,0
million (US$7,8 million) respectively. These projects will create 2 500
additional job opportunities in the Welkom Area.
* There is now a better understanding of the Mining Charter and the scorecard.
Discussions on possible acquisitions are proceeding well. Announcements will be
made in due course.
* With its strong cash position and a proven track record, ARMgold is well
positioned to make value adding acquisitions.
* Our Prospectus, issued in 2002 for our listing, projected a decrease in
ounces to be produced during 2003, mainly due to the depletion of the No. 2
Shaft shaft pillar, in Orkney. The committed organic growth projects and planned
acquisitions will counter the ounces depleted.
* Cash operating income for the 2002 calendar year amounted to R1,6 billion
(US$157,0 million), an increase of 426% from the R308,7 million (US$35,1
million) achieved in the 2001 calendar year.
* Attributable production amounted to 1,091 million ounces, an increase of 567
000 ounces, or 108%, on production in the 2001 calendar year.
* Good safety improvements for the quarter.
* Strong focus on HIV/AIDS awareness programme.
* Freegold achieved outstanding performances for the year 2002.
* The Freegold Joint Venture took over operational control of St. Helena Mine
on 31 October 2002.
* The process for the ADR listing on the New York Stock Exchange is
continuing.
* The ARMgold share price continued to perform well during the quarter.
Market capitalisation recently reached US$1 billion.
SALIENT FEATURES
Quarter Quarter
Calendar ended ended
Line Year Year Sept Dec Variance Change
No 2001 2002 Consolidated 2002 2002 %
1 2 400 6 778 Tones milled `000 1 688 1 738 50 3
Gold produced
2 16 292 33 932 - kg 8 307 8 649 342 4
3 524 1 091 - `000 oz 267 278 11 4
Gold price received
4 72 546 104 264 - R/kg 105 328 99 634 (5 694) (5)
5 258 314 - US$/oz 314 328 14 4
6 8,76 10,34 Exchange rate US$1=R 10,43 9,46 (0,97) (9)
Revenue
7 1 181,9 3 537,9 - R million 874,9 861,7 (13) (2)
8 134,9 342,2 - US$ million 83,9 91,1 7 9
Cash operating cost
9 873,3 1 914,4 - R million 465,6 513,4 (48) (10)
10 53 600 56 421 - R/kg 56 053 59 357 (3 304) (6)
11 364 282 - R/tonne 276 295 (19) (7)
12 190 170 - US$/oz 167 195 (28) (17)
13 38 25 - US$/ton 24 28 (4) (18)
Cash operating income
14 308,7 1 623,4 - R million 409,3 348,3 (61) (15)
15 35,1 157,0 - US$ million 39,2 36,8 (2) (6)
16 111,5 974,2 Headline earnings 275,2 217,5 (58) (21)
- R million
Earnings per share - cents
17 265 1 222 - Basic earnings 288 235 (53) (18)
18 223 1 212 - Headline earnings 288 228 (60) (21)
CONSOLIDATED REVIEW
Comparisons on a quarter on quarter basis
CASH OPERATING INCOME
Cash operating income decreased by 15% from R409,3 million (US$39,2 million)
to R348,3 million (US$36,8 million), mainly due to:
* the lower Rand gold price resulted in a revenue decrease of R47,2 million
(US$4,9 million) partially off-set by a 3% increase in tonnes milled - R24,0
million (US$2,5 million), and a 1% increase in grade - R10,0 million (US$1,0
million).
* a 10% increase in cash operating cost of R47,8 million (US$9,6 million),
mainly due to the inclusion of the attributable cost of St. Helena Mine - R21,1
million (US$2,2 million); the re-opening of No. 3 Shaft in Orkney - R5,5 million
(US$0,6 million); and a reduction in gold inventory - R15,0 million (US$1,6
million).
ORGANIC GROWTH
Tshepong North Deepening Project
Total capital required for the project is expected to amount to R280,0 million
(US$32,6 million) to fund the extension of the infrastructure with two
additional working levels. The NPV of the net cashflow of the project, at a
real discount rate of 10%, is R765,0 million (US$80,9 million), and the IRR of
the project is 51%. This project, when in full production in 2007, will add 83
000 ounces per annum attributable to ARMgold and will create 980 new job
opportunities.
Nyala Shaft
The Shaft is currently under care and maintenance. Total capital expenditure of
R67,4 million (US$7,9 million) will allow for the pillar extraction over a life
of seven years and will eliminate R165,5 million (US$19,3 million) care and
maintenance cost which would have been incurred during this period. A total of
80 000 ounces per annum will be attributable to ARMgold. The NPV of the net
cashflow of the project, at a real discount rate of 10%, is R120,0 million
(US$12,7 million), and the IRR of the project is 46%. Restarting of this Shaft
will create 1 500 new job opportunities during the next three years.
St. Helena
The Joint Venture took operational control on 31 October 2002. Extensive
restructuring is required over the next two quarters in order to realise the
full potential of the mine. Annual attributable ounces will amount to 60 000
ounces.
No. 3 Shaft, Orkney
The Shaft is now operational. Capital expenditure required for Shaft repair work
until June 2003 will amount to R7,0 million
(US$0,8 million). The Shaft will initially generate 27 000 ounces per annum. A
potential resource of 3,8 million ounces is currently being evaluated. The
company is currently conducting research on different mining methods to improve
recoveries of the ore body.
PROJECTS UNDER CONSIDERATION
Tshepong South
Sinking of the Shaft commenced in 1993 and was suspended during 1999. The Shaft
is within 120 metres of its design depth. Ore reserves are currently being
evaluated and the required capital investment determined.
Joel
The mine was successfully restructured and became profitable during 2002. Re-
evaluation of the ore body is currently underway and initial results warrant a
re-look at this resource.
ATTRIBUTABLE MINERAL RESERVES AND RESOURCES STATEMENT
Gold ounces
As at 1 July 31 December
2002 2002
Proven and probable 7,8 Moz 8,5 Moz
Measured and indicated 12,3 Moz 15,7 Moz
Inferred 10,4 Moz 12,4 Moz
The information contained in the table above is in the process of being audited
by SRK.
EMPLOYEE RELATED MATTERS
Wage Negotiations
Annual wage negotiations at Orkney and Welkom operations were concluded at a
9,5% increase. At Freegold, negotiations for the Senior Level employees are
currently being conducted.
Safety and Health
Overall safety performances have improved significantly over the past quarter.
ARMgold`s management team has taken the necessary precautions to ensure that
prudent operating measures are in place to reduce the possibility of work-
related injuries.
Notwithstanding very intensive and focused safety programmes, three Freegold
employees died as a result of work-related incidents at Tshepong Mine. Our
condolences are extended to the families, friends and communities of Julius
Maluleke, Ntsi Tlelaka and Japie de Lange.
The company is committed to working with employees, trade unions and government
bodies towards improving health and safety in the work place.
The Safety and Health sub-committee of the Board is currently evaluating
programmes and quantifying long-term risks and their effect thereof on the
business.
Joining in the Fight against HIV/AIDS
ARMgold is currently engaged in a carefully designed HIV/AIDS programme. The
company has a well functioning committee structure with organised labour and is
participating in local initiatives in Orkney and Welkom. There are peer
educators and Health and Safety Committees at all our business units and all
participate in this initiative. An impact study is currently being conducted to
determine the full extent of the Company`s exposure and what additional actions
should be implemented. "Condomtainers" are placed at various shafts and condoms
are also freely available at various locations on the mines and hostels.
Voluntary testing is encouraged and community based projects are supported.
OPERATIONAL REVIEW
All currency conversions were done at R9,46/US$1
Orkney Operations
Cash operating income decreased by 12% from R173,2 million (US$18,3 million) to
R153,2 million (US$16,2 million) with the lower gold price accounting for a
reduction in revenue of R20,0 million (US$2,1 million).
It is anticipated that cash operating income will decrease from next quarter,
mainly as a result of depletion of the shaft pillar at No. 2 Shaft, Orkney. The
shaft pillar will be depleted by June 2003 and will result in an immediate loss
of approximately 300 kilograms of gold per month from this source. The increase
in cash cost, due to the depletion of ore reserves, will be in the region of
approximately US$20/oz. No retrenchments are envisaged, as employees will be re-
deployed at No. 3 Shaft and in the Free State.
Organic growth projects and acquisitions will counter ounces depleted.
Welkom Operations
A cash operating loss of R4,0 million (US$0,4 million) was incurred during the
quarter. This was partially due to the unexpected failure of infrastructure at
No. 1 Shaft. A programme has been introduced to reduce the risk of similar
occurrences in future. The strategy is to run these operations on at least a
break-even until the ore reserve of the GK Block becomes available for mining in
approximately 18 months. However, the business unit is expected to return to
profitability by the end of the next quarter.
Freegold Operations (Attributable)
Cash operating income decreased by 13% from R229,1 million (US$24,2 million) to
R199,0 million (US$21,0 million). The lower gold price resulted in a decrease of
R24,9 million (US$2,6 million). Cash operating cost increased by R28,8 million
(US$3,0 million), mainly as a result of the inclusion of R21,1 million (US$2,2
million) incurred by the St. Helena Mine.
The introduction of the ARMgold and Harmony best practices has been very
successful during the past year. The objective of increasing performances and
reducing costs, coupled with better utilisation of the ore body, in order to
enhance shareholder value, was achieved during the year.
The tables below set out the highlights of the progress achieved during the
year at Freegold:
Unit cost reduction
Indicator Feb-02 Dec-02 Improvement
R/tonne R/tonne %
Overheads 69 29 58
Hostel cost 15 12 20
Plant cost 25 21 16
Supervisory labour 94 75 20
Operational labour 137 106 23
Stores 94 69 27
Energy 50 31 38
Performance indicators for the 2002 calendar year
Jan Feb Mar Apr May Jun
Bambanani
Reef metres 139 153 125 178 189 178
Tonnes/Tec* 23 25 30 28 30 32
M2/Tec* 2,3 4,4 4,8 4,7 5,3 5,3
M/dev employee 1,8 3,8 3,5 3,6 3,7 4,1
Ore reserves generated - m2 13 592 15 918 13 764 14 048 16 083 14 153
Joel
Reef metres 19 83 50 70 78 42
Cost R/tonne 317 650 428 336 330 267
Kudu & Sable
M2 mined 585 388 667 563 769 905
M2/Tec* 2,0 1,3 2,2 1,9 2,4 2,6
Ore reserves generated - m2 1 600 3 500 2 100 1 100 1 300 1 000
Tshepong
Face length -m 3 133 3 280 3 317 3 361 3 259 3 511
Tonnes milled/Tec* 35 34 36 37 37 39
M2/Tec* 9,7 9,9 9,4 9,8 9,7 9,7
M/dev employee 3,5 4,4 4,2 4,6 4,7 5,1
M2 mined 20 135 34 914 33 130 34 200 33 100 33 800
Cost R/tonne 362 422 399 375 379 317
Jul Aug Sep Oct Nov Dec
Bambanani
Reef metres 211 220 114 211 184 214
Tonnes/Tec* 30 26 32 32 33 33
M2/Tec* 5,3 4,8 5,6 5,3 5,3 5,2
M/dev employee 3,6 3,6 3,9 4,0 4,4 4,5
Ore reserves generated - m2 19 198 17 238 9 533 22 820 22 629 20 563
Joel
Reef metres 81 160 138 141 101 147
Cost R/tonne 400 310 351 316 325 367
Kudu & Sable
M2 mined 1 038 1 513 2 003 2 272 2 371 2 385
M2/Tec* 2,5 3,0 3,7 3,8 3,7 4,2
Ore reserves generated - m2 1 200 1 700 2 300 2 500 3 000 3 500
Tshepong
Face length -m 3 388 3 438 3 371 3 300 3 590 3 635
Tonnes milled/Tec* 40 39 43 39 42 45
M2/Tec* 10,1 10,4 10,3 10,8 11,0 11,4
M/dev employee 4,7 4,9 4,8 5,0 5,3 5,4
M2 mined 34 500 36 000 35 600 37 000 38 000 39 100
Cost R/tonne 377 380 342 383 369 344
Performance at Tshepong mine has improved continuously during the 2002 calendar
year and is now setting industry best efficiencies of 24,4m2/ISE** and 11,4
m2/Tec*.
It is evident from the above indicators that outstanding productivity
improvements were achieved and that significant progress has been made in the
creation of flexibility and opening up the ore body for better utilisation.
Good progress has been made with negotiations for implementing continuous
operations and we are confident that implementation will commence in the near
future. Continuous operations will further reduce costs, make more resource
available for mining and will create 2 500 new job opportunities.
* TEC is defined as: Total Employees Costed
** ISE is defined as: In Stope Employees
BASIS OF ACCOUNTING
The unaudited results for the quarter and the 2002 calendar year have been
prepared on the historical costs basis in accordance with the South African
Statements of Generally Accepted Accounting Practice. The accounting policies
are, in all material respects, consistent with the annual financial statements
for the year ended 31 December 2001.
AUDIT REVIEW
The results for the 2002 calendar year have been reviewed in terms of Rule 3.23
of the listing requirements of the JSE Securities Exchange SA by the Company`s
auditors, PricewaterhouseCoopers Inc. This review opinion is available on
request from the Company Secretary.
OPERATING RESULTS
ARMgold FREEGOLD ARMgold
Attri-
butable
Line Orkney Welkom Total to Con-
No. Unaudited Operations Operations Total Freegold ARMgold solidated
1 Ore milled - t`000
Dec-02 474 139 614 2 250 1 125 1 738
2 Sept-Q2 456 136 592 2 192 1 096 1 688
3 Jun-02 478 107 585 2 283 1 142 1 727
4 Mar-02 464 117 581 2 087 1 044 1 625
5 Dec vs Sept % Change 4 2 4 3 3 3
6 Yield - g/t
Dec-02 7,46 3,45 6,55 4,12 4,12 4,98
7 Sept-02 7,49 3,68 6,61 4,01 4,01 4,92
8 Jun-02 7,66 4,41 7,06 4,13 4,13 5,12
9 Mar-02 7,64 5,29 7,17 3,81 3,81 5,01
10 Dec vs Sept % Change (0) (7) (1) 3 3 1
11 Gold produced - kg
Dec-02 3 540 480 4 020 9 259 4 630 8 649
12 Sept-02 3 414 500 3 914 8 787 4 393 8 307
13 Jun-02 3 659 473 4 132 9 419 4 709 8 841
14 Mar-02 3 545 620 4 165 7 942 3 971 8 135
15 Dec vs Sept % Change 4 (4) 3 5 5 4
16 Ounces produced - oz`000
Dec-02 114 15 129 298 149 278
17 Sept-02 110 16 126 283 141 267
18 Jun-02 118 15 133 303 151 284
19 Mar-02 114 20 134 255 128 262
20 Dec vs Sept % Change 4 (4) 3 5 5 4
21 Cash operating revenue
- R million
Dec-02 352,6 47,7 400,3 922,8 461,4 861,7
22 Sept-02 359,1 53,0 412,1 925,6 462,8 874,9
23 Jun-02 385,7 52,1 437,9 981,1 490,6 928,5
24 Mar-02 378,9 66,5 445,4 854,8 427,4 872,8
25 Dec vs Sept % Change (2) (11) (3) (0) (0) (2)
26 Cash operating costs
- R million
Dec-02 199,3 51,6 251,0 524,7 262,4 513,4
27 Sept-02 185,8 46,1 232,0 467,3 233,6 465,6
28 Jun-02 212,4 42,9 255,4 411,3 205,6 461,0
29 Mar-02 192,3 56,2 248,5 452,0 226,0 474,5
30 Dec vs Sept % Change (7) (12) (8) (12) (12) (10)
31 Cash operating income
- R million
Dec-02 153,2 (4,0)149,3 398,1 199,0 348,3
32 Sept-02 173,2 6,9 180,2 458,3 229,1 409,3
33 Jun-02 173,3 9,2 182,5 569,9 285,0 467,5
34 Mar-02 186,6 10,3 196,9 402,8 201,4 398,3
35 Dec vs Sept % Change (12) (157) (17) (13) (13) (15)
36 Cash operating costs
- R/kg
Dec-02 56 312 107 573 62 433 56 674 56 674 59 357
37 Sept-02 54 437 92 208 59 262 53 181 53 181 56 053
38 Jun-02 58 058 90 853 61 810 43 662 43 662 52 143
39 Mar-02 54 250 90 557 59 656 56 914 56 914 58 320
40 Dec vs Sept % Change (3) (17) (5) (7) (7) (6)
41 Cash operating costs
- U$/oz
Dec-02 185 354 205 186 186 195
42 Sept-02 162 275 177 159 159 167
43 Jun-02 176 275 187 130 130 158
44 Mar-02 148 247 163 155 155 159
45 Dec vs Sept % Change (14) (29) (16) (17) (17) (17)
46 Cash operating costs
- R/tonne
Dec-02 420 371 409 233 233 295
47 Sept-02 408 339 392 213 213 276
48 Jun-02 445 401 437 180 180 267
49 Mar-02 415 479 428 217 217 292
50 Dec vs Sept % Change (3) (9) (4) (9) (9) (7)
51 Capital - R million
Dec-02 13,0 5,5 18,5 24,5 12,3 30,8
52 Sept-02 17,4 5,4 22,8 23,6 11,8 34,6
53 Jun-02 15,3 4,3 19,5 14,6 7,3 26,8
54 Mar-02 7,4 3,1 10,6 17,1 8,6 19,2
55 Dec vs Sept % Change 25 (3) 19 (4) (4) 11
56 Exchange rate - US$1
Dec-02 9,46 9,46 9,46 9,46 9,46 9,46
57 Sept-02 10,43 10,43 10,43 10,43 10,43 10,43
58 Jun-02 10,27 10,27 10,27 10,27 10,27 10,27
59 Mar-02 11,39 11,39 11,39 11,39 11,39 11,39
60 Dec vs Sept % Change 9 9 9 9 9 9
OPERATING RESULTS
Rand/Metric
Quarter Quarter
Calendar ended ended
Line Year Year Consolidated Sept Dec
No. 2001 2002 for the period 2002 2002 Variance Change
Unaudited Unaudited Unaudited Unaudited %
1 2 400 4 513 Ore milled-`000 tonnes 1 131 1 229 98 9
-underground
2 0,0 2 265 - surface 557 509 (48) (9)
3 2 400 6 778 - total 1 688 1 738 50 3
4 6,79 7,19 Yield - g/tonne 7,10 6,79 (0,30) (4)
- underground
5 0,0 0,67 - surface 0,50 0,59 0,08 17
6 6,79 5,01 - average 4,92 4,98 0,06 1
7 16 292 32 402 Gold produced - kg 8 026 8 349 323 4
- underground
8 0,0 1 530 - surface 281 300 19 7
9 16 292 33 932 - total 8 307 8 649 342 4
10 72 546 104 264 Gold price - R/kg 105 328 99 634 (5 694) (5)
11 8,76 10,34 Exchange rate - R/US$ 10,43 9,46 (0,97) (9)
12 364 282 Total cash operating 276 295 (19) (7)
costs - R/tonne
13 53 600 56 421 - R/kg 56 053 59 357 (3 304) (6)
14 55 924 60 545 Total production costs 60 526 63 806 (3 280) (5)
- R/kg
15 55 924 60 577 Total cost of sales 60 526 63 806 (3 280) (5)
- R/kg
16 40 111 Capital expenditure 35 31 4 12
- R million
17 168 187 Productivity per 194 182 (12) (6)
employee - g/tec
18 4,4 4,7 - m2/tec 5,1 4,7 (0,4) (7)
19 25 37 - tonnes/tec 39 37 (2) (6)
FINANCIAL RESULTS
ABRIDGED INCOME STATEMENT
Rand/Metric
Quarter Quarter
Calendar ended ended
Line Year Year Sept Dec
No. 2001 2002 2002 2002
Audited Reviewed Consolidated Unaudited Unaudited Variance Change
R`mil R`mil for the period R`mil R`mil R`mil %
1 1 181,9 3 537,8 Gold revenue 874,9 861,7 (13,2) (2)
2 873,3 1 914,4 Cash operating costs 465,6 513,4 (47,8) (10)
3 308,7 1 623,4 Cash operating income 409,3 348,3 (61,0) (15)
4 0,0 1,1 Post retirement benefits 0,0 0,0 0,0 0
5 (2,6) 18,7 Rehabilitation costs 2,8 2,5 0,3 10
6 40,5 121,3 Amortisation 34,4 36,0 (1,6) (5)
7 270,8 1 482,3 Operating income 372,1 309,9 (62,3) (17)
8 26,5 38,0 Corporate expenditure 9,5 10,6 (1,0) (11)
9 53,7 0,0 Tribute expenditure 0,0 0,0 0,0 0
10 190,7 1 444,3 Mining income 362,6 299,3 (63,3) (17)
11 25,3 103,8 Other income/expenses -net 61,9 61,1 (0,8) (1)
12 216,0 1 548,1 Income before taxation 424,5 360,4 (64,1) (15)
13 83,6 565,6 Taxation 149,3 135,7 13,7 9
14 132,5 982,5 Income for the period 275,2 224,7 (50,5) (18)
Adjustments:
15 21,0 8,4 - Profit on sale of 0,00 7,2 (7,2) (0)
mining assets
16 111,5 974,1 Headline earnings 275,2 217,5 (57,7) (21)
Earnings per share - cents
17 265 1 222 - Basic earnings 288 235 (53) (18)
18 223 1 212 - Headline earnings 288 228 (60) (21)
19 40 000 0,0 Dividends per share - cents 0,0 0,0 0,0 0
20 0,0 0,0 Capitalisation issue 0,0 0,0 0,0 0
per share - cents
Calculated number of
share in issue
21 0,50 80,38 - Weighted average 95,50 95,50 0,0 0
(million)
OPERATING RESULTS
Dollar/Imperial
Quarter Quarter
Calendar ended ended
Line Year Year Consolidated Sept Dec
No. 2001 2002 for the period 2002 2002 Variance Change
Unaudited Unaudited Unaudited Unaudited %
1 2 646 4 975 Ore milled - `000 tonnes 1 247 1 355 108 9
- underground
2 0,0 2 497 - surface 614 561 (53) (9)
3 2 646 7 471 - total 1 861 1 916 55 3
4 0,2 0,21 Yield - oz/t 0,21 0,20 (0,01) (4)
- underground
5 0,0 0,02 - surface 0,01 0,02 0 17
6 0,2 0,15 - average 0,14 0,15 0 1
7 524 1 042 Gold produced -`000 oz 258 268 10 4
- underground
8 0,0 49 - surface 9 10 1 7
9 524 1 091 - total 267 278 11 4
10 258 314 Gold price - US$/oz 314 328 14 4
11 8,76 10,34 Exchange rate - R/US$ 10,43 9,46 (0,97) (9)
12 38 25 Total cash operating 24 28 (4) (18)
costs - US$/ton
13 190 170 - US$/oz 167 195 (28) (17)
14 199 182 Total production costs 180 210 (29) (16)
- US$/oz
15 199 182 Total cost of sales 180 210 (29) (16)
- US$/oz
16 4,5 10,8 Capital expenditure 3,4 3,3 0 3
- US$`million
17 5,4 6,0 Productivity per 6,2 5,9 0 (6)
employee - oz/TEC
18 47,4 50,3 - ft2/TEC 54,9 51,1 (3,8) (7)
19 27,6 41,1 - t/TEC 43,0 40,3 (3) (6)
FINANCIAL RESULTS
ABRIDGED INCOME STATEMENT
Dollar/Imperial
Quarter Quarter
Calendar ended ended
Line Year Year Sept Dec
No. 2001 2002 2002 2002
Unaudited Unaudited Consolidated Unaudited Unaudited Variance Change
US$`mil US$`mil for the period US$`mil RS$`mil US$`mil %
1 134,9 342,1 Gold revenue 83,9 91,1 7,2 9
2 99,7 185,1 Cash operating costs 44,6 54,3 (9,6) (22)
3 35,1 157,0 Cash operating income 39,2 36,8 (2,4) (6)
4 0,0 0,1 Post retirement benefits 0,0 0,0 0,0 0
5 (0,3) 1,8 Rehabilitation costs 0,3 0,3 0,0 0
6 4,6 11,7 Amortisation 3,3 3,8 (0,5) (15)
7 30,8 143,2 Operating income 35,7 32,8 (2,9) (8)
8 3,0 3,7 Corporate expenditure 0,9 1,1 (0,2) (22)
9 6,1 0,0 Tribute expenditure 0,0 0,0 0,0 0
10 21,7 139,6 Mining income 34,8 31,6 (3,1) (9)
11 2,9 10,0 Other income/expenses -net 5,9 6,5 0,5 9
12 24,6 149,7 Income before taxation 40,7 38,1 (2,6) (6)
13 9,5 54,7 Taxation 14,3 14,3 0,0 0
14 15,1 95,0 Income for the period 26,4 23,8 (2,6) (10)
Adjustments:
15 2,4 0,8 - Profit on sale 0,0 0,8 (0,8) (0)
of mining assets
16 12,7 94,2 Headline earnings 26,4 23,0 (3,4) (13)
Earnings per share - US cents
17 30 118 - Basic earnings 28 25 (3) (10)
18 25 117 - Headline earnings 28 24 (4) (13)
19 3 333 0,0 Dividends per share 0,0 0,0 0,0 0
- US cents
20 0,0 0,0 Capitalisation issue 0,0 0,0 0,0 0
per share - US$ cents
Calculated number of
shares in issue
21 0,50 80,38 - Weighted average 95,50 95,50 0,0 0
(million)
STATEMENT OF CHANGES IN EQUITY
Rand
Line CONSOLIDATED 31 Dec 2001 31 Dec 2002
No. for the calendar year Audited Reviewed
R`000 R`000
Share capital
Ordinary shares
1 Balance at beginning of the year 50 50
2 Ordinary shares issued during the year 0 46
3 Balance at end of the year 50 96
Share premium
4 Balance at beginning of the year 0 0
5 Share premium raised on issue of shares 0 1 209 973
6 Expenses written-off against share premium 0 (77 519)
7 Balance at end of the year 0 1 132 454
Retained earnings
8 Balance at beginning of the year 76 142 8 613
9 Net earnings for the year 132 471 982 584
10 Dividends paid during the year (200 000) 0
11 Capitalisation shares issued 0 (18)
12 Balance at end of the year 8 613 991 179
STATEMENT OF CHANGES IN EQUITY
Dollar
Line CONSOLIDATED 31 Dec 2001 31 Dec 2002
No. for the calendar year Audited Reviewed
US$`000 US$`000
Share capital
Ordinary shares
1 Balance at beginning of the year 10 10
2 Ordinary shares issued during the year 0 4
3 Balance at end of the year 10 14
Share premium
4 Balance at beginning of the year 0 0
5 Share premium raised on issue of shares 0 119 141
6 Expenses written-off against share premium 0 (7 615)
7 Balance at end of the year 0 111 526
Retained earnings
8 Balance at beginning of the year 13 196 11 651
9 Net earnings for the year 15 122 95 028
10 Dividends paid during the year (16 667) 0
11 Capitalisation shares issued 0 (2)
12 Balance at end of the year 11 651 106 677
Foreign currency translation reserve
13 Balance at beginning of the year (3 140) (10 939)
14 Exchange differeences for the current year (7 799) 39 954
15 Balance at end of the year (10 939) 29 015
ABRIDGED CASH FLOW
Rand
Line CONSOLIDATED 31 Dec 2001 31 Dec 2002
No. for the calendar year Audited Reviewed
R`000 R`000
R`mil R`mil
1 Net cash flows from operating activities 5,3 1,644,1
2 Net cash flow from investing activities (38,2) (1 109,4)
3 Net cash flow from financing activities 0,0 1 485,6
4 Net increase in cash and cash equivalents (32,9) 2 020,3
5 Cash and cash equivalents at the
beginning of the year 150,5 117,6
6 Cash and cash equivalents at the end of the year 117,6 2 137,9
ABRIDGED BALANCE SHEET
Rand
Line CONSOLIDATED 31 Dec 2001 31 Dec 2002
No. as at Audited Reviewed
R`mil R`mil
ASSETS
1 Non-current assets 85,9 1 604,4
2 Current assets 206,6 2 299,9
3 Cash and cash equivalents 117,6 2 137,9
4 Other 89,1 162,0
5 TOTAL ASSETS 292,6 3 904,3
EQUITY and LIABILITIES
Capital and Reserves
6 Ordinary share capital and share premium 0,1 1 132,6
7 Retained earnings 8,6 991,2
8 Shareholders` equity 8,7 2 123,7
9 Non-current liabilities 41,5 746,1
10 Long-term borrowings 0,0 505,4
11 Rehabilitation and closure cost obligation 41,5 240,7
12 Current liabilities 242,4 1 034,4
13 TOTAL EQUITY AND LIABILITIES 292,6 3 904,3
ABRIDGED BALANCE SHEET
Dollar
Line CONSOLIDATED 31 Dec 2001 31 Dec 2002
No. as at Audited Reviewed
US$`mil US$`mil
ASSETS
1 Non-current assets 7,1 186,8
2 Current assets 17,2 267,7
3 Cash and cash equivalents 9,8 248,9
4 Other 7,4 18,8
5 TOTAL ASSETS 24,3 454,5
EQUITY and LIABILITIES
Capital and Reserves
6 Ordinary share capital and share premium 0,0 111,5
7 Retained earnings 11,7 106,7
8 Foreign currency translation reserve (10,9) 29,0
9 Shareholders` equity 0,8 247,2
10 Non-current liabilities 3,5 68,8
11 Long-term borrowings 0,0 58,8
12 Rehabilitation and closure cost obligation 3,5 28,0
13 Current liabilities 20,0 120,5
14 TOTAL EQUITY AND LIABILITIES 24,3 454,5
AFRICAN RAINBOW MINERALS GOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/015869/06)
(Share code: OAD ISIN ZAE000039244)
("ARMgold" or "the Company")
www.armgold.com
Date: 04/02/2003 08:00:00 AM Produced by the JSE SENS Department
