| Wed 26 Feb 2003, 9:15 | | Anglogold Limited - News Release |
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Anglogold Limited - News Release
Anglogold Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1944/017354/06)
ISIN Number: ZAE000043485 52E50865BDF5EFDC00AED1A2657FDD37
JSE Share Code: ANG SJL/CAD/AGO349.03
NYSE Ticker: AU
CORPORATE AFFAIRS DEPARTMENT
16th Floor, 11 Diagonal Street,
Johannesburg 2001, South Africa
Tel: (+27 11) 637-6385 or Fax: (+27 11) 637-6399/6400
ANGLOGOLD SPEAKS ABOUT ITS ORGANIC GROWTH PROJECTS
AngloGold has targeted growing return on capital from 13% in 2001 to 16% in 2006
and US$ earnings per share by 5% over the same period on an annualised basis,
under current assumptions, AngloGold`s Finance Director, Jonathan Best, said
today. He was addressing the BMO Nesbitt Burns Metals and Mining Conference in
Tampa, Florida.
"These are commercial objectives, not production or ore reserve metrics," he
commented. "However, as all producers have assets that will all eventually be
depleted, objectives like these can only be met by replacing or growing
producing assets." In the context of world gold production becoming ex growth,
the focus would be on companies that could grow in such an environment. "The
ultimate winners will be those companies that have low-cost, long-life assets,"
he said.
Speaking at the same conference, Dave Hodgson, the company`s Chief Operating
Officer, reviewed the company`s existing organic growth projects in South Africa
and the United States, which would add around 13 million ounces to AngloGold`s
life-of-mine production profile. In addition to these ventures, a further 11
expansion projects at the company`s existing operations in South Africa, South
America and Australia were expected to add a further 18 million ounces to
AngloGold`s production over the life of these operations, subject to a formal,
capital approval process, at a capital cost of some $740 million. He commented
that AngloGold had revised downwards its forecast capital expenditure for 2003
to an estimated $307 million.
The company had a number of organic growth initiatives which, he said, had
"tangible potential". These had the capacity to bring an additional 14 million
ounces to the production profile over the lives of the operations at a capital
cost of some $600 million. Together, these new organic growth projects could add
32 million ounces to production over the life of the operations at a total
estimated capital cost of $1.3 billion.
This organic growth was expected to result in AngloGold`s annual production
growing from its current level of 6 million ounces to 6.5 million ounces in
2006. Target unit cash costs in 2006 are around $182 per ounce in 2006 money
terms or $170 per ounce in real (2003) terms.
The full presentation, which includes the assumptions used and risks involved in
forecasting future production and cost performance, is available on AngloGold`s
website at www.anglogold.com. In addition, for a discussion of risks that could
have an impact the company`s future performance, see AngloGold`s Annual Report
on Form 20F for the year ended 31 December 2001, filed with the SEC on 28 June,
2002.
Queries:
www.anglogold.com
South Africa Tel: Mobile: E-mail:
Steve Lenahan +27 11 637 6248 +27 83 308 2200 slenahan@anglogold.com
Alan Fine +27 11 637 6383 +27 83 250 0757 afine@anglogold.com
Shelagh Blackman +27 11 637 6379 +27 83 308 2471 skblackman@anglogold.com
Europe & Asia
Tomasz Nadrowski +1 212 750 7999 +1 917 9124 641 tnadrowski@anglogold.com
USA
Charles Carter (Toll free) 800 417 9255 cecarter@anglogold.com
+1 212 750 7999
Australia
Andrea Maxey +61 8 9425 4604 +61 438 001 393 amaxey@anglogold.com.au
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 on the Form 20-F for the year
ended 31 December 2001 which was filed with the Securities and Exchange
Commission on 28 June 2002.
26 February 2003
Date: 26/02/2003 07:49:00 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
