|
WESTERN AREAS LIMITED - QUARTERLY RESULTS ENDED 31 DECEMBER 2002
Western Areas Limited
Registration Number 1959/003209/06
Incorporated in the Republic of South Africa
Share code: WAR
ISIN ZAE000016549
Quarterly results ended 31 DECEMBER 2002
* Gold sold increased by 17% to 57,520 ounces
* Recovered grade increased to 7.08 g/t
* Production costs decreased by 5% to R68,901 per kg
* Profit before tax of R231.5 million for December quarter
* 31% increase in tonnes milled for 2002
LETTER TO SHAREHOLDERS
Profit from gold for the quarter increased by 4% to R36.4 million. The
increase being mainly due to an increase in gold sold of 17% and a welcome
reduction in production costs of 3%, in spite of a drop in the spot price
received of 6% to R100,447 per kg due to Rand strength.
The cash costs of R68,901 per kg reflect a cost reduction of 5% from the
previous quarter. Whilst cost reduction programs have been implemented by mine
management, the drive to reduce cash costs further will continue unabated. The
increase in total costs by 11% to R143.2 million was mainly due to inventory
changes of R10 million.
Profit before taxation increased to R231.5 million from a loss of R731.8
million in the previous quarter. The turnaround was attributed to an exchange
profit on the option premium liability and the inclusion of the hedgebook
closure costs of R592.5 million in the previous quarter.
The sale of Barnato Exploration Limited ("Barnex"), is continuing and
shareholders will be informed of developments in due course.
The final commissioning of the new twin shaft system, associated
infrastructure and the surface facilities required will be completed on time and
under budget. Notable achievements during the past quarter included significant
progress with the installation of the permanent man and rock winders, the
installation of the pipelines required down the shaft and the commencement of
the permanent steelwork installation in the main shaft.
The current value of investments and cash on hand provide sufficient
resources to meet the obligations with respect to further project development
expenditure.
Whilst the operational safety reflected an excellent improvement in lost time
injury figures, it is with regret that we report one fatallity during the
quarter.
RB Kebble JF Brownrigg
Chief Executive Officer Managing Director
Johannesburg
13 February 2003
PRODUCTION RESULTS
Year Year Quarter Quarter
ended ended ended ended
31.12.01 31.12.02 30.09.02 31.12.02
IMPERIAL
Ore milled, tons/tonnes (000)
Western Areas section 518 616 165 147
South Deep section 226 297 96 72
Surface material 3 66 - 40
Total ore milled 747 979 261 259
Yield, grams per ton/tonne
Western Areas section 0.226 0.200 0.181 0.229
South Deep section 0.239 0.236 0.228 0.266
Surface material 0.068 0.019 - 0.012
Average grade recovered 0.228 0.199 0.199 0.206
Gold production, ounces/kilograms
Western Areas section 116,727 122,786 29,907 33,625
South Deep section 54,171 70,226 21,788 19,149
Surface material 212 1,225 257 486
Total gold production 171,110 194,237 51,952 53,260
Work-in-progress (531) (2,122) (2,781) 4,260
Total gold declared 170,579 192,115 49,171 57,520
Quarter Quarter Year Year
ended ended ended ended
31.12.02 30.09.02 31.12.02 31.12.01
METRIC
Ore milled, tons/tonnes (000)
Western Areas section 133 150 560 469
South Deep section 65 87 270 206
Surface material 36 - 60 3
Total ore milled 234 237 890 678
Yield, grams per ton/tonne
Western Areas section 7.86 6.20 6.82 7.74
South Deep section 9.17 7.83 8.10 8.20
Surface material 0.42 - 0.63 2.08
Average grade recovered 7.08 6.83 6.79 7.85
Gold production, ounces/kilograms
Western Areas section 1,045 930 3,819 3,631
South Deep section 596 678 2,186 1,685
Surface material 15 8 38 7
Total gold production 1,656 1,616 6,043 5,323
Work-in-progress 132 (87) (67) (17)
Total gold declared 1,788 1,529 5,976 5,306
INCOME STATEMENT
US$ Million
Year Year Quarter Quarter
ended ended ended ended
31.12.01 31.12.02 30.09.02 31.12.02
Company Company Company Company
Audited Unaudited Unaudited Unaudited
Revenue from gold at spot 47.9 60.1 15.8 18.6
Costs and other expenses (39.9) (44.7) (12.4) (14.8)
Production costs (33.8) (38.7) (11.3) (11.8)
Non-cash items (6.1) (6.0) (1.1) (3.0)
Profit from gold 8.0 15.4 3.4 3.8
Plus 10.2 4.9 0.3 0.2
Sundry revenue 0.5 0.5 0.1 0.1
Net interest receipts 9.7 4.4 0.2 0.1
Less (5.9) (4.6) (0.9) (1.7)
Administration costs and
amortisation of corporate assets (5.9) (4.7) (0.9) (1.7)
Exploration and new business - 0.1 - -
Prestea mine closure costs - - - -
Operating profit before
derivative transactions and
non-recurring costs 12.3 15.7 2.8 2.3
Less (4.5) (8.0) (16.2) 21.7
Net amortised premiums
on put and call options (2.8) (34.9) (12.8) (6.1)
Hedging (loss)/profit 1.6 (3.2) 0.1 -
Exchange profit/(loss) (3.3) 30.1 (3.5) 27.8
Profit/(loss) before non-recurring costs 7.8 7.7 (13.4) 24.0
Hedgebook closure costs - (56.5) (57.0) -
Non-recurring income/(costs) (4.0) 1.0 - 0.1
Profit/(loss) before taxation 3.8 (47.8) (70.4) 24.0
Taxation (2.1) 19.5 32.3 (13.8)
Normal taxation (0.9) - - 1.4
Deferred taxation (1.2) 19.5 32.3 (15.2)
Attributable profit/(loss) after taxation 1.7 (28.3) (38.1) 10.3
Headline earnings/(loss) per share - cents 2 (27) (36) 10
Earnings/(loss) per share - cents 2 (27) (36) 10
Number of shares in issue (million) 105.4 105.4 105.4 105.4
R Million
Quarter Quarter Year Year
ended ended ended ended
31.12.02 30.09.02 31.12.02 31.12.01
Company Company Company Company
Notes Unaudited Unaudited Unaudited Audited
Revenue from gold at spot 179.6 163.7 629.7 414.2
Costs and other expenses (143.2) (128.8) (468.4) (345.2)
Production costs (114.1) (117.2) (405.8) (292.2)
Non-cash items (29.1) (11.6) (62.6) (53.0)
Profit from gold 36.4 34.9 161.3 69.0
Plus 1.9 2.4 51.1 88.1
Sundry revenue 1.2 0.7 5.3 4.1
Net interest receipts 0.7 1.7 45.8 84.0
Less (16.9) (8.6) (48.8) (51.2)
Administration costs and
amortisation of corporate assets (16.8) (8.6) (49.6) (51.1)
Exploration and new business (0.1) - 0.8 (0.1)
Prestea mine closure costs - - - -
Operating profit before
derivative transactions
and non-recurring costs 21.4 28.7 163.6 105.9
Less 209.3 (168.0) (84.4) (38.5)
Net amortised premiums on
put and call options 1 (58.8) (132.8) (366.2) (24.2)
Hedging (loss)/profit 1 (0.3) 1.1 (33.2) 13.8
Exchange profit/(loss) 1 268.4 (36.3) 315.0 (28.1)
Profit/(loss) before
non-recurring costs 230.7 (139.3) 79.2 67.4
Hedgebook closure costs - (592.5) (592.5) -
Non-recurring income/(costs) 2 0.8 - 10.5 (34.3)
Profit/(loss) before taxation 231.5 (731.8) (502.8) 33.1
Taxation (133.7) 335.5 204.5 (17.8)
Normal taxation 13.3 - - (7.8)
Deferred taxation (147.0) 335.5 204.5 (10.0)
Attributable profit/(loss)
after taxation 97.8 (396.3) (298.3) 15.3
Headline earnings/(loss)
per share - cents 93 (376) (283) 13
Earnings/(loss) per share - cents 93 (376) (283) 15
Number of shares in issue (million) 105.4 105.4 105.4 105.4
Notes:
1. The derivative structures in place are based upon options bought and sold.
Option premium income and expenses are amortised to the income statement over
the period of the options. Exchange gains/losses on the premium liability and
cash balances are reflected in the income statement.
2. Non-recurring income for the year to date relates mainly to a revaluation of
the CAWMS liability in the June quarter at the South Deep Mine.
BALANCE SHEET
US$ Million
Year Quarter Year
ended ended ended
31.12.01 30.09.02 31.12.02
Company Company Company
Audited Unaudited Unaudited
Non-current assets 343.5 385.3 467.7
Mining assets 210.8 266.7 332.6
Deferred premium costs 130.6 116.4 132.2
Loan to Randfontein Estates Limited - - -
Other long-term assets 2.1 2.2 2.9
Current assets 154.0 68.8 40.2
Inventories 0.9 4.0 4.3
Receivables 5.3 5.6 5.7
Listed investments 20.2 17.8 21.5
Distribution assets - 30.6 -
Loan to JCI Gold Limited -
Western Areas Limited 36.6 - -
Loan to JCI Gold Limited -
Barnato Exploration Limited - - -
Cash and short-term funds 91.0 10.8 8.7
Total assets 497.5 454.1 507.9
Equity 212.0 154.0 197.5
Shareholders` equity 212.0 154.0 197.5
Outside shareholders` interests - - -
Non-current liabilities 278.2 260.3 298.1
Deferred taxation 31.9 2.8 20.3
Provision for post-retirement
medical benefits 1.6 0.5 0.7
Provision for environmental
rehabilitation 0.8 1.0 1.9
Option premium payable 132.7 155.0 159.0
Deferred premium income 111.2 101.0 116.2
Current liabilities 7.3 39.8 12.3
Payables and provisions 7.3 9.2 12.3
Shareholders for distribution - 30.6 -
Total equity and liabilities 497.5 454.1 507.9
R Million
Year Quarter Year
ended ended ended
31.12.02 30.09.02 31.12.01
Company Company Company
Note Unaudited Unaudited Audited
Non-current assets 4,065.1 4,050.5 4,111.7
Mining assets 2,890.9 2,802.5 2,523.1
Deferred premium costs 1,148.8 1,224.2 1,563.8
Loan to Randfontein Estates Limited - - -
Other long-term assets 25.4 23.8 24.8
Current assets 349.8 723.4 1,843.9
Inventories 37.4 42.0 10.3
Receivables 49.7 58.7 63.8
Listed investments 1 187.1 187.1 242.1
Distribution assets - 321.8 -
Loan to JCI Gold Limited -
Western Areas Limited - - 438.5
Loan to JCI Gold Limited -
Barnato Exploration Limited - - -
Cash and short-term funds 75.6 113.8 1,089.2
Total assets 4,414.9 4,773.9 5,955.6
Equity 1,716.2 1,618.4 2,538.2
Shareholders` equity 1,716.2 1,618.4 2,538.2
Outside shareholders` interests - - -
Non-current liabilities 2,591.9 2,737.2 3,329.7
Deferred taxation 176.7 29.7 381.3
Provision for post-retirement
medical benefits 6.4 6.4 20.1
Provision for environmental
rehabilitation 16.9 10.3 9.5
Option premium payable 1,382.2 1,628.5 1,588.0
Deferred premium income 1,009.7 1,062.3 1,330.8
Current liabilities 106.8 418.3 87.7
Payables and provisions 106.8 96.5 87.7
Shareholders for distribution - 321.8 -
Total equity and liabilities 4,414.9 4,773.9 5,955.6
Note:
1. At 31 December 2002, the market value of Barnex was R130 million and Randgold
and Exploration Company Limited R174.3 million.
STATEMENT OF CHANGE IN SHAREHOLDERS` EQUITY
Number of Retained
ordinary earnings/
shares issued Share Share (Accumulated
and paid capital premium deficit) Total
Millions Rm Rm Rm Rm
Company
Balance at 31 December 2001 105.4 105.4 2,387.2 45.6 2,538.2
Attributable loss
for the period - - - (298.3) (298.3)
Capital reduction - - (523.7) - (523.7)
Balance at 31 December 2002 105.4 105.4 1,863.5 (252.7) 1,716.2
CASH FLOW STATEMENT
US$ Million
Year Year Quarter Quarter
ended ended ended ended
31.12.01 31.12.02 30.09.02 31.12.02
Company Company Company Company
Audited Unaudited Unaudited Unaudited
Cash flow from/(utilised in)
operating activities
Cash from/(utilised in) operations 18.8 (40.9) (56.3) 7.9
Interest received 1.5 0.9 0.2 -
Interest paid (0.4) - - -
Dividends received - 0.1 0.1 -
Taxation paid (9.5) - - -
10.4 (39.9) (56.0) 7.9
Investing activities
Additions to mining assets - South Deep (45.3) (41.4) (9.9) (10.9)
Proceeds on disposal of mining assets 0.4 - - -
Net (increase)/decrease in other
long-term assets 2.4 0.1 - (0.2)
Repayment of loan by JCI Gold Limited 1.4 (0.6) - -
Advances to JCI Gold Limited (8.2) - - -
Repayment of loan by
Durban Roodepoort Deep, Ltd 3.8 - - -
(45.5) (41.9) (9.9) (11.1)
Financing activities
Option premiums received 112.5 - - -
Option premiums paid (8.3) - - -
Exchange (loss)/gain - - - -
104.2 - - -
Net (decrease)/increase in cash and
cash equivalents 69.1 (81.8) (65.9) (3.2)
At beginning of period 32.2 92.2 77.1 10.8
Translation adjustment (10.3) (1.7) (0.4) 1.1
At end of period 91.0 8.7 10.8 8.7
R Million
Quarter Quarter Year Year
ended ended ended ended
31.12.02 30.09.02 31.12.02 31.12.01
Company Company Company Company
Unaudited Unaudited Unaudited Audited
Cash from/(utilised in) operations 76.6 (584.9) (428.4) 162.4
Interest received 0.1 1.7 9.4 10.8
Interest paid - - (0.1) (3.5)
Dividends received 0.3 0.6 0.9 0.4
Taxation paid - - - (81.9)
77.0 (582.6) (418.2) 88.2
Investing activities
Additions to mining assets - South Deep (105.3) (102.9) (432.9) (391.4)
Proceeds on disposal of mining assets - - - 3.8
Net (increase)/decrease in other
long-term assets (1.6) - (0.6) 20.5
Repayment of loan by JCI Gold Limited - - (5.0) 11.7
Advances to JCI Gold Limited - - - (71.0)
Repayment of loan by
Durban Roodepoort Deep, Ltd - - - 32.9
(106.9) (102.9) (438.5) (393.5)
Financing activities
premiums received - - - 1,242.4
Option premiums paid - - - (91.4)
Exchange (loss)/gain (8.3) 7.3 (156.9) -
(8.3) 7.3 (156.9) 1,151.0
Net (decrease)/increase in cash and
cash equivalents (38.2) (678.2) (1,013.6) 845.7
At beginning of period 113.8 792.0 1,089.2 243.5
Translation adjustment
At end of period 75.6 113.8 75.6 1,089.2
HEDGE BOOK
The folowing table represents the open hedge position:
Years to December 2003 2004 2005 2006 2007 2008
Put options bought
Amount hedged (oz 000s) 204 210 215 205 206 214
Average price ($/oz) 278.2 268.2 278.2 288.2 288.2 288.2
Call options sold
Amount hedged (oz 000s) 136 162 166 157 158 165
Average price ($/oz) 278.7 268.7 278.7 288.7 288.7 288.7
Call options bought
Amount hedged (oz 000s) 73 87 89 85 85 89
Average price ($/oz) 278.7 288.7 298.7 308.7 323.7 333.7
Call options sold
Amount hedged (oz 000s) 54 65 66 63 63 66
Average price ($/oz) 288.7 303.7 318.7 333.7 348.7 363.7
Call options sold
Amount hedged (oz 000s) 39 42 21
Average price ($/oz) 310.0 310.0 310.0
Years to December 2009 2010 2011 2012 2013 2014 Total
Put options bought
Amount hedged (oz 000s) 209 214 200 206 205 98 2,386
Average price ($/oz) 293.2 303.2 313.2 313.2 323.2 333.2 295.7
Call options sold
Amount hedged (oz 000s) 161 165 154 158 158 76 1,816
Average price ($/oz) 293.7 303.7 313.7 313.7 323.7 333.7 296.3
Call options bought
Amount hedged (oz 000s) 87 89 83 86 85 41 979
Average price ($/oz) 348.7 358.7 373.7 398.7 413.7 428.7 343.2
Call options sold
Amount hedged (oz 000s) 64 66 62 63 63 30 725
Average price ($/oz) 378.7 393.7 408.7 423.7 438.7 453.7 368.1
Call options sold
Amount hedged (oz 000s) 102
Average price ($/oz) 310.0
The mark to market valuation of the hedgebook as at 31 December 2002 was
(R928.9) million.
COST AND REVENUE PER UNIT OF PRODUCTION
Year Year Quarter Quarter
ended ended ended ended
31.12.01 31.12.02 30.09.02 31.12.02
US$ US$ US$ US$
IMPERIAL
Per ton/tonne milled
Production costs 45 40 44 46
Other expenses and non-cash costs 8 6 4 12
Total costs 53 46 48 58
Per ounce/kilogram produced
Production costs 198 199 217 222
Other expenses and non-cash costs 36 31 21 57
Total costs 234 230 238 279
Gold price received (spot)
Per ton/tonne milled 64 61 61 72
Per ounce/kilogram declared 281 313 322 324
Capital commitment at end of
period (US$ million)/(R million) 8 25 21 25
Conversion rates used:
US$ 1 = Rands
Average rate for period 8.6245 10.4808 10.3943 9.6567
Rate at period end 11.9700 8.6910 10.5130 8.6910
Quarter Quarter Year Year
ended ended ended ended
31.12.02 30.09.02 31.12.02 31.12.01
R R R R
METRIC
Production costs 488 495 456 431
Other expenses and non-cash costs 124 49 70 78
Total costs 612 544 526 509
Per ounce/kilogram produced
Production costs 68,901 72,525 67,152 54,894
Other expenses and non-cash costs 17,572 7,178 10,360 9,957
Total costs 86,473 79,703 77,512 64,851
Gold price received (spot)
Per ton/tonne milled 768 691 708 611
Per ounce/kilogram declared 100,447 107,063 105,372 78,063
Capital commitment at end of
period (US$ million)/(R million) 214 216 214 95
Conversion rates used:
US$ 1 = Rands
Average rate for period 9.6567 10.3943 10.4808 8.6425
Rate at period end 8.6910 10.5130 8.6910 11.9700
DEVELOPMENT RESULTS
Metric Imperial
Quarter ended Year to date Quarter ended Year to date
31.12.2002 30.09.2002 31.12.2002 31.12.2002 30.09.2002 31.12.2002
Advance on (metres) (metres) (metres) (feet) (feet) (feet)
reef and
country rock
Total metres 1,083 1,348 4,664 3,553 4,423 15,303
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
Telephone: +27 (11) 688-5000
Fax: +27 (11) 834-9195
Office of South African Transfer Secretaries:
Computershare Investor Services Limited
PO Box 1053, Johannesburg, 2000
Office of UK Transfer Secretaries:
Capita Registrars Balfour House,
390/398 High Road, Ilford, Essex,
IG1 1NQ
Investor Relations:
George Poole
Telephone: +27 (11) 688-5000
Fax: +27 (11) 836-3757
email: gpoole@jci.co.za or
Leanda Visagie
Telephone: +27 (11) 688-5000
Fax: +27 (11) 834-5086
email: lvisagie@jci.co.za
Date: 13/02/2003 05:52:01 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
