| Wed 13 Aug 2003, 8:25 | | RESULTS FOR THE QUARTER ENDED 30 JUN 03 |
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AOD
ARMgold - RESULTS FOR THE QUARTER ENDED 30 JUNE 2003
AFRICAN RAINBOW MINERALS GOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/015869/06)
(Share code: AOD ISIN ZAE000039244)
("ARMgold" or "the Company")
www.armgold.com
RESULTS FOR THE QUARTER ENDED 30 JUNE 2003
HIGHLIGHTS - June 2003 Quarter
* Headline earnings increased by 19%, from 126 cps to 150 cps
* Cash operating income of R144,5 million
* Cash operating income margin of 21%
* Cash operating cost remained at approximately R68 000/kg
* Gold production increased by 4% or 299 kilograms
* ARMgold/Harmony merger process on track
EXECUTIVE CHAIRMAN"S REVIEW
"A solid quarter for ARMgold, with an increase in gold production negated by
the stronger Rand.
ARMgold has achieved its objectives and exceeded the predicted results
contained in its prospectus, thereby creating even more value for its
shareholders."
RESULTS FOR THE JUNE 2003 QUARTER
* Cash operating income decreased by 26%, due to the decrease of 8% in the
Rand gold price received.
* Cash operating costs increased by 4%, mainly due to voluntary shifts worked
at Freegold operations, as a result of the public holidays, and retrenchment
costs incurred at the Orkney operations.
* The increase in production, of 299 kilograms, resulted in the R/kg cash cost
remaining virtually unchanged.
* ARMgold achieved a fatality free quarter and has seen significant
improvements in all safety indices since the inception of the company.
REFLECTIONS ON THE LAST 18 MONTHS
* Gold production exceeded the 48 429 kilograms predicted in the prospectus by
2%, to 49 565 kilograms.
* Cash operating income margin was 40%, compared to the 41% as anticipated in
the prospectus. This was achieved notwithstanding the lower Rand gold price
received.
* Cash operating income amounted to R2 billion.
* Cash operating cost was approximately R60 000/kg.
* Headline earnings of 1 449 cps was achieved.
* Cash on hand amounted to R1,2 billion.
ARMGOLD/HARMONY MERGER
* The Competition Tribunal unconditionally approved the ARMgold/Harmony merger
on 16 July 2003. Subject to the approval by the shareholders on 1 September
2003, final court approval is scheduled for 9 September 2003, whereafter ARMgold
will be delisted on 23 September 2003.
* New Harmony will, inter alia:-
- become South Africa"s largest gold producer and the fifth largest globally,
producing approximately 4 million ounces per annum;
- be recognised as a role model for empowerment in the mining industry;
- remain a focused gold mining company;
- retain its focus on maintaining its successful track record, the upliftment of
its employees and of the people and communities that support the industry, which
is one of the fundamental pillars of the mining charter;
- continue with its best practices, structures and philosophies, as implemented
at Freegold during the past 18 months;
- continue with its culture of a flat management style; and
- remain a low cost gold producer which will, in turn, unlock further value and
wealth to its shareholders.
STRATEGIC INVESTMENT
Acquiring a 34,5% Stake in Avmin
- On 2 May 2003, ARMgold and Harmony announced details of their 50/50 Joint
Venture for the acquisition of a 34,5% stake in Avmin.
- Based on a value of R43,50 per share, an amount of R1,7 billion was paid in
cash.
- The rationale for the acquisition was that the newly merged Harmony will own
an effective strategic investment of 14,6% in Avgold, which operates the Target
gold mine in the Free State Province.
- On 15 July 2003, Harmony announced that it had acquired an additional 11,5%
stake in Avgold from Anglo American, thereby increasing its effective holding in
Avgold to 26,1%.
SALIENT FEATURES
Unaudited
18 Months Quarter Quarter
Calendar Jan-02 ended ended
Line Year to Mar Jun %
No 2001 Jun-03 Consolidated 2003 2003 Variance Change
1 2 400 10 371 Tonnes milled ("000) 1 808 1 785 (23) (1)
Gold produced
2 16 292 49 565 - kg 7 667 7 966 299 4
3 524 1 594 - oz "000 247 256 9 4
Gold price received
4 72 546 99 785 - R/kg 93 717 86 550 (7 167) (8)
5 258 328 - US$/oz 357 354 (3) (1)
6 8,76 9,47 Exchange rate US$1=R 8,17 7,61 (0,56) (7)
Revenue
7 1 181,9 4 945,7 - R million 718,5 689,4 (29) (4)
8 134,9 522,3 - US$ million 88,0 90,6 3 3
Cash operating cost
9 873,2 2 981,5 - R million 522,1 544,9 (23) (4)
10 53 600 60 154 - R/kg 68 096 68 412 (316) (0)
11 364 287 - R/tonne 289 305 (16) (6)
12 99,7 314,9 - US$ million 63,9 71,6 (8) (12)
13 190 198 - US$/oz 259 280 (21) (8)
14 38 28 - US$/ton 32 36 (4) (13)
Cash operating income
15 308,7 1 964,2 - R million 196,4 144,5 (52) (26)
16 35,2 207,4 - US$ million 24,1 19,0 (5) (21)
Headline earnings
17 111,5 1 237,1 - R million 120,1 142,8 23 19
18 12,8 130,6 - US$ million 14,7 18,7 4 27
Earnings per share - cents
19 265 1 499 - Basic earnings 131 180 49 37
20 223 1 449 - Headline earnings 126 150 24 19
CHIEF EXECUTIVE OFFICER"S REVIEW
OPERATIONAL REVIEW
CONSOLIDATED
Comparisons on a quarter on quarter basis
Tonnage decreased marginally by 1%, from 1 808 000 tonnes to 1 785 000
tonnes. Recovery grade was higher at 4,46g/tonne compared to the 4,24g/tonne
the previous quarter. Accordingly, net gold recovery increased by 299 kilograms
to 7 966 kilograms.
Cash operating income decreased by 26%, from R196,4 million to R144,5
million, mainly due to:
- a lower Rand gold price received, from R93 717/kg to R86 550/kg, which was 8%
lower when compared to the previous quarter, resulting in a decrease in revenue
of 4%, or R55 million. This decrease was partially offset by a 4% increase in
gold produced, amounting to R26 million;
- cash operating costs increased by 4%, from R522,1 million to R544,9 million.
This was mainly due to the increase in underground production, voluntary shifts
worked at the Freegold operations as a result of the public holidays, and
retrenchment costs incurred at the Orkney operations.
Cash operating cost remained virtually unchanged at approximately R68 000/kg.
In spite of the decrease in cash operating income, income for the period
increased by 37%. This can mainly be attributed to the following:
- decrease in amortisation, due to the extended life of mines as a result of the
ore reserve review, June 2003;
- attributable income from an associate company, amounting to R21 million; and
- a decrease of R63 million in the tax provision, mainly due to the final
approval of the tax values of the Freegold Assets, which resulted in adjustments
to the mining and deferred tax charges.
At 30 June 2003 cash on hand amounted to R1,2 billion after;
- the payment of R340 million to AngloGold (in respect of taxation payable by
them as a result of the sale of Freegold);
- the payment of R850 million for the acquisition of a 17,5% stake in Avmin; and
- the six-monthly loan repayment of R90 million.
ORKNEY OPERATIONS
Tonnage increased by 5%, from 405 000 tonnes to 427 000 tonnes. Recovery grade
was higher at 7,03g/tonne compared to the 6,71g/tonne the previous quarter.
Accordingly, net gold recovery increased by 11%, from 2 718 kilograms to 3 005
kilograms.
Cash operating income decreased by 9%, from R60,5 million to R54,9 million,
mainly due to a decrease of R6 492/kg, to R86 687/kg, in the Rand gold price
received. This was partially offset by an increase of 287 kilograms produced.
Overall, excellent production performances were achieved at all shafts.
Cash operating cost increased by 7%, or R13 million, from R193 million to
R206 million, mainly due to retrenchment costs and the increase in gold
production. R/kg cash operating costs decreased by 4% to R68 428/kg, or
R481/tonne.
- No. 1 Shaft:
- has reached the end of its life and will be closed by the end of the next
quarter,
- this shaft will be returned to AngloGold, in terms of an existing agreement
between the two companies.
- No. 2 Shaft:
- gold production for the quarter did not reduce by the expected 150 kilograms
per month (as reported during the previous quarter), but, instead, increased by
46 kilograms per month, or 138 kilograms for the quarter,
- it is, however, expected that the reduction in gold production, of 150
kilograms per month, will materialise in the near future.
WELKOM OPERATIONS
The turnaround strategy yielded 5% more tonnage and 3% more gold. Recovery
grade was 2% lower at 3,18g/tonne, compared to the 3,24g/tonne for the previous
quarter.
The lower Rand gold price received, of R85 731/kg, and the 3% increase in the
R/kg cash operating cost, from R103 971/kg to
R107 074/kg, resulted in a net loss of R10,5 million.
Improvements are in line with the turnaround strategy and progress of the
operations will be closely monitored to restore profitability during the next
two quarters.
FREEGOLD OPERATIONS (ATTRIBUTABLE)
Cash operating income decreased by 29%, or R41 million, from R141 million to
R100 million mainly due to;
- the lower Rand gold price received, which resulted in a decrease in revenue of
R34 million;
- the increase in cash operating cost of 3%, from R280 million to R287 million,
mainly due to voluntary shifts worked on public holidays during the quarter.
Gold production was in line with the previous quarter and 4 472 kilograms
were recorded. Underground tonnage increased by 5%, or 30 000 tonnes, to 611 000
tonnes. Underground recovery grade was lower at 6,70g/tonne compared to the
6,97g/tonne reported previously. Net underground gold recovery was higher at 4
092 kilograms.
Whilst underground working costs, in R/kg terms, increased by 3% to R64
343/kg, working costs, in R/tonne terms, were lower at R431/tonne.
Due to a higher cut-off grade of 0,65g/tonne, less surface tonnes were milled
(594 000 tonnes). This resulted in a decrease of
39 kilograms compared to the 420 kilograms recovered during the March 2003
quarter.
St. Helena Mine is busy with its restructuring programme to restore
profitability. It is expected that the effect of the restructuring will be
evident during the next quarter.
Freegold recorded its first fatality free quarter since the takeover by the
Joint Venture on 1 January 2002.
RE-ORGANISATION OF OPERATIONS
As an unhedged producer, ARMgold is directly exposed to the gold price, the
Rand/US dollar exchange rate and the resultant economic influences thereof.
However, its flat management structure and operating philosophy allows it to
adapt quickly to changes in the environment. The strengthening of the Rand and
depletion of ore reserves necessitated the restructuring of ARMgold"s
operations, which will in return; optimise returns in its existing and newly
acquired operations.
CAPITAL PROJECTS
Tshepong Sub 66 Decline Project:
- Work at the Sub 66 Decline Project is progressing well.
- The sinking of the decline commenced during the quarter and is on track for
completion by March 2004.
- An amount of R106,8 million has been committed with actual expenditure of
R22,2 million incurred to date.
Phakisa Project:
- Site establishment commenced during the quarter.
- Tenders for the main contract will close on 11 August 2003.
- Sinking will commence early November 2003.
Nyala Project:
- Restarting of operations is on schedule.
- Changes to the shaft are scheduled to commence in November 2003.
- Development of the shaft pillar has commenced.
ORE RESERVE STATEMENT AS AT 30 JUNE 2003
- Resource base increased by 219%, or 62Moz, compared to December 2002, due to
the a decrease in the cut-off grade, from approximately 450 cmg/tonne to 250
cmg/tonne and the inclusion of 11,5Moz attributed from Phakisa.
- Reserve base increased by 39%, or 3,3Moz, compared to December 2002, mainly
due to the inclusion of 2,3Moz attributed from Phakisa.
ATTRIBUTABLE MINERALS RESERVES AND RESOURCES*
31 December 30 June
As at 2002 2003
Gold price R/kg R95 000 R93 000
Exchange rate Average R/US$ R9,28 R8,50
Resource including projected (Moz) 28,3 90,3
Reserve base (Moz) 8,5 11,8
*(As audited by SRK)
BASIS OF ACCOUNTING
The unaudited results for the quarter and the 18 months 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 18 months period 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"s Secretary.
OPERATING RESULTS
Unaudited
ARMgold FREEGOLD TOTAL
Attri-
Orkney Welkom butable
Line Oper Oper Total Total to Conso-
No. ations ations Company Freegold ARMgold lidated
1 Ore milled - t"000 Jun-03 427 154 581 2 409 1 204 1 785
2 Mar-03 405 147 552 2 512 1 256 1 808
3 Jun vs Mar % Change 5 5 5 (4) (4) (1)
4 Yield - g/tonne Jun-03 7,03 3,18 6,01 3,71 3,71 4,46
5 Mar-03 6,71 3,24 5,79 3,56 3,56 4,24
6 Jun vs Mar % Change 5 (2) 4 4 4 5
7 Gold produced - kg Jun-03 3 005 490 3 494 8 944 4 472 7 966
8 Mar-03 2 718 477 3 195 8 945 4 472 7 667
9 Jun vs Mar % Change 11 3 9 0 0 4
10 Ounces produced
- oz"000 Jun-03 96 16 112 288 144 256
11 Mar-03 88 15 103 288 144 247
12 Jun vs Mar % Change 10 7 10 (0) (0) 4
13 Cash operating revenue
- R million Jun-03 260,4 42,0 302,4 774,1 387,0 689,4
14 Mar-03 253,3 44,4 297,7 841,6 420,8 718,5
15 Jun vs Mar % Change 3 (5) 2 (8) (8) (4)
16 Cash operating costs
- R million Jun-03 205,6 52,4 258,0 573,9 286,9 544,9
17 Mar-03 192,8 49,6 242,4 559,4 279,7 522,1
18 Jun vs Mar % Change (7) (6) (6) (3) (3) (4)
19 Cash operating income
- R million Jun-03 54,9 (10,5) 44,4 200,2 100,1 144,5
20 Mar-03 60,5 (5,2) 55,3 282,2 141,1 196,4
21 Jun vs Mar % Change (9) (102) (20) (29) (29) (26)
22 Cash operating costs
- R/kg Jun-03 68 428 107 074 73 844 64 166 64 166 68 412
23 Mar-03 70 924 103 971 75 858 62 536 62 536 68 096
24 Jun vs Mar % Change (4) (3) 3 (3) (3) 0
25 Cash operating costs
- US$/oz Jun-03 280 438 302 258 258 280
26 Mar-03 270 396 289 238 238 259
27 Jun vs Mar % Change (4) (11) (4) (10) (10) (8)
28 Cash operating costs
- R/tonne Jun-03 481 340 444 238 238 305
29 Mar-03 476 336 439 223 223 289
30 Jun vs Mar % Change (1) (1) (1) (7) (7) (6)
31 Capital - R million Jun-03 (2,6) 15,4 12,8 52,1 26,0 38,9
32 Mar-03 8,9 0,5 9,4 24,2 12,1 21,5
33 Jun vs Mar % Change 129 (2 980) (36) (115) (115) (77)
34 Exchange rate
-US$1 Jun-03 7,61 7,61 7,61 7,61 7,61 7,61
35 Mar-03 8,17 8,17 8,17 8,17 8,17 8,17
36 Jun vs Mar % Change (7) (7) (7) (7) (7) (7)
OPERATING RESULTS
Rand/Metric
Cal- 18 Months Quarter Quarter
endar Jan 2002 ended ended
Line Year to Consolidated Mar Jun
No. 2001 Jun 2003 for the period 2003 2003 %
Unaudited Unaudited Unaudited Unaudited Variance Change
Ore milled-tonnes"000
1 2 400 6 839 - underground 1 134 1 192 58 5
2 0 3 532 - surface 674 593 (81) (12)
3 2 400 10 371 - total 1 808 1 785 (23) (1)
Yield - g/tonne
4 6,79 6,91 - underground 6,39 6,36 (0,03) (0)
5 0,00 0,66 - surface 0,62 0,64 0,02 3
6 6,79 4,78 - average 4,24 4,46 0,22 5
Gold produced - kg
7 16 292 47 233 - underground 7 246 7 585 339 5
8 0 2 332 - surface 421 381 (40) (10)
9 16 292 49 565 - total 7 667 7 966 299 4
10 72 546 99 785 Gold price - R/kg 93 717 86 550 (7167) (8)
11 8,76 9,47 Exchange rate - R//US$ 8,17 7,61 (0,56) (7)
Total cash operating costs
12 364 287 - R/tonne 289 305 (16) (6)
13 53 600 60 154 - R/kg 68 096 68 412 (316) (0)
Total production costs
14 55 924 64 284 - R/kg 73 054 71 774 1 280 2
Capital expenditure
15 40 172 - R million 22 39 (17) (77)
Productivity per employee
16 168 169 - g/TEC 156 165 9 6
17 4,4 4,3 - m2/TEC 4,4 4,6 0,2 5
18 25 35 - tonnes/TEC 37 37 0 0
FINANCIAL RESULTS
ABRIDGED INCOME STATEMENT
Rand
18 months
Calendar Jan 2002
Line Year to Consolidated
No. 2001 Jun 2003 for the period
Audited Reviewed
R million R million
1 1 181,9 4 945,7 Gold revenue
2 873,2 2 981,5 Cash operating costs
3 308,7 1 964,2 Cash operating income
4 0,0 1,1 Post retirement benefits
5 (2,6) 29,0 Rehabilitation costs
6 40,5 175,7 Amortisation and Depreciation
7 270,8 1 758,4 Operating income
8 26,5 60,3 Corporate expenditure
9 53,6 0,0 Tribute expenditure
10 190,7 1 698,1 Mining income
11 6,0 45,3 Other income
12 19,3 167,2 Net finance income
13 0,0 21,1 Income from associates
14 216,0 1 931,7 Income before taxation
15 83,5 651,9 Taxation
16 132,5 1 279,8 Income for the period
Adjustments:
17 0,0 42,7 - Profit on sale of mining assets
18 21,0 0,0 - Profit on long-term borrowings waived
19 111,5 1 237,1 Headline earnings
Earnings per share - cents
20 265 1 499 - Basic earnings
21 223 1 449 - Headline earnings
22 40 000 3,60 Dividends per share - cents
Calculated number of shares in issue
23 0,50 85,40 - Weighted average (million)
FINANCIAL RESULTS
ABRIDGED INCOME STATEMENT
Rand
Quarter Quarter
ended ended
Mar Jun
2003 2003
Line Consolidated Unaudited Unaudited Variance %
No. for the period R million R million R million Change
1 Gold revenue 718,5 689,4 (29) (4)
2 Cash operating costs 522,1 544,9 (23) (4)
3 Cash operating income 196,4 144,5 (52) (26)
4 Post retirement benefits 0,0 0,0 0 0
5 Rehabilitation costs 6,6 3,6 3 45
6 Amortisation and Depreciation 31,4 23,1 8 26
7 Operating income 158,4 117,8 (41) (26)
8 Corporate expenditure 14,1 8,2 6 42
9 Tribute expenditure 0,0 0,0 0 0
10 Mining income 144,3 109,6 (35) (24)
11 Other income 6,7 7,4 1 10
12 Net finance income 49,5 45,1 (4) (9)
13 Income from associates 0,0 21,1 21 100
14 Income before taxation 200,5 183,2 (17) (9)
15 Taxation 74,9 11,5 63 85
16 Income for the period 125,6 171,7 46,1 37
Adjustments:
17 - Profit on sale of mining assets 5,5 28,9 23 425
18 - Profit on long-term
borrowings waived 0,0 0,0 0 0
19 Headline earnings 120,1 142,8 23 19
Earnings per share - cents
20 - Basic earnings 131 180 49 37
21 - Headline earnings 126 150 24 19
22 Dividends per share - cents 0 0 0 0
Calculated number of
shares in issue
23 - Weighted average (million) 95,50 95,50 0,00 0
OPERATING RESULTS
Dollar/Imperial
18 Months Quarter Quarter
Calendar Jan 2002 ended ended
Line Year to Consolidated Mar Jun
No. 2001 Jun 2003 for the period 2003 2003 %
Unaudited Unaudited Unaudited Unaudited Variance Change
Ore milled-tonnes"000
1 2 646 7 539 - underground 1 250 1 314 64 5
2 0,0 3 893 - surface 743 654 (89) (12)
3 2 646 11 432 - total 1 993 1 968 (25) (1)
Yield - oz/t
4 0,198 0,201 - underground 0,186 0,186 (0) 0
5 0,000 0,019 - surface 0,019 0,018 (0) 0
6 0,198 0,139 - average 0,124 0,130 0 5
Gold produced - oz"000
7 524 1 519 - underground 233 244 11 5
8 0,0 75 - surface 14 12 (2) (19)
9 524 1 594 - total 247 256 9 4
10 258 328 Gold price - US$/oz 357 354 (3) (1)
11 8,76 9,47 Exchange rate - R//US$ 8,17 7,61 (1) (7)
Total cash operating costs
12 38 28 - US$/ton 32 36 (4) (13)
13 190 198 - US$/oz 259 280 (21) (8)
Total production costs
14 199 211 - US$/oz 278 293 (15) (5)
Capital expenditure
15 4,5 18,2 - US$"million 2,6 5,1 (3) (96)
Productivity per employee
16 5,4 5,4 - oz/TEC 5,0 5,3 0 6
17 47,4 46,4 - ft2/TEC 47,6 49,8 2 5
18 27,6 39,0 - t/TEC 40,6 40,8 0 0
FINANCIAL RESULTS
ABRIDGED INCOME STATEMENT
Dollar
18 Months
Calendar Jan 2002
Line Year to
No. 2001 Jun 2003
Audited Reviewed Consolidated
US$ million US$ million for the period
1 134,9 522,3 Gold revenue
2 99,7 314,9 Cash operating costs
3 35,2 207,4 Cash operating income
4 0,0 0,1 Post retirement benefits
5 (0,3) 3,1 Rehabilitation costs
6 4,6 18,5 Amortisation and Depreciation
7 30,9 185,7 Operating income
8 3,0 6,4 Corporate expenditure
9 6,1 0,0 Tribute expenditure
10 21,8 179,3 Mining income
11 0,7 4,9 Other income
12 2,2 17,6 Net finance income
13 0,0 2,2 Income from associates
14 24,7 204,0 Income before taxation
15 9,5 68,9 Taxation
16 15,2 135,1 Income for the period
Adjustments:
17 0,0 4,5 - Profit on sale of mining assets
18 2,4 0,0 - Profit on long-term borrowings waived
19 12,8 130,6 Headline earnings
Earnings per share - US$ cents
20 30 158 - Basic earnings
21 25 153 - Headline earnings
22 3 333 0,32 Dividends per share - US$ cents
Calculated number of shares in issue
23 0,50 85,40 - Weighted average (million)
24 8,76 9,47 Exchange rate = N.Y. noon buying rates
ABRIDGED INCOME STATEMENT
Dollar
Quarter Quarter
Ended ended
Mar Jun
2003 2003
Line Consolidated Unaudited Unaudited Variance %
No for the period US$ million US$ million US$ million Change
1 Gold revenue 88,0 90,6 3 3
2 Cash operating costs 63,9 71,6 (8) (12)
3 Cash operating income 24,1 19,0 (5) (21)
4 Post retirement benefits 0,0 0,0 0 0
5 Rehabilitation costs 0,8 0,5 0 38
6 Amortisation and Depreciation 3,9 3,1 1 21
7 Operating income 19,4 15,4 (4) (21)
8 Corporate expenditure 1,7 1,1 1 35
9 Tribute expenditure 0,0 0,0 0 0
10 Mining income 17,7 14,3 (3) (19)
11 Other income 0,8 1,0 0 25
12 Net finance income 6,1 5,9 0 (3)
13 Income from associates 0,0 2,8 3 100
14 Income before taxation 24,6 24,0 (1) (2)
15 Taxation 9,2 1,5 8 84
16 Income for the period 15,4 22,5 7 46
Adjustments:
17 - Profit on sale of mining
assets 0,7 3,8 3 443
18 - Profit on long-term
borrowings waived 0,0 0,0 0 0
19 Headline earnings 14,7 18,7 4 27
Earnings per share - US$ cents
20 - Basic earnings 16 24 8 50
21 - Headline earnings 15 20 5 33
22 Dividends per share - US$ cents 0,0 0,0 0,0 0
Calculated number of shares in issue
23 - Weighted average (million) 95,50 95,50 0,00 0
24 Exchange rate = N.Y.
noon buying rates 8,17 7,61 (1) (7)
ABRIDGED BALANCE SHEET
Rand
Line CONSOLIDATED 31 Dec 2001 31 Dec 2002 31 Mar 03 30 Jun 03
No. as at Audited Audited Unaudited Reviewed
R million R million R million R million
ASSETS
1 Non-current assets 85,9 1 604,4 1 570,6 2 768,3
2 Current assets 206,7 2 299,9 2 575,6 1 396,6
3 Cash and cash equivalents 117,6 2 137,9 2 397,4 1 157,8
4 Other 89,1 162,0 178,2 238,8
5 TOTAL ASSETS 292,6 3 904,3 4 146,2 4 164,9
EQUITY AND LIABILITIES
Capital and Reserves
6 Ordinary share capital and
share premium 0,1 1 132,6 1 132,6 1 132,6
7 Retained earnings 8,6 991,2 1 116,7 1 288,3
8 Shareholders" equity 8,7 2 123,8 2 249,3 2 420,9
9 Non-current liabilities 41,5 747,2 777,7 998,3
10 Long-term borrowings 0,0 505,4 529,3 460,6
11 Deferred taxation 0,0 0,0 0,0 324,8
12 Provision for post-retirement
liability 0,0 1,1 1,1 1,1
13 Rehabilitation and closure
cost obligation 41,5 240,7 247,3 211,8
14 Current liabilities 242,4 1 033,3 1 119,2 745,7
15 TOTAL EQUITY AND LIABILITIES 292,6 3 904,3 4 146,2 4 164,9
ABRIDGED BALANCE SHEET
Dollar
Line CONSOLIDATED 31 Dec 2001 31 Dec 2002 31 Mar 03 30 Jun 03
No. as at Audited Audited Unaudited Reviewed
US$ million US$ million US$ million US$ million
ASSETS
1 Non-current assets 7,1 186,8 198,8 368,6
2 Current assets 17,2 267,7 326,0 186,0
3 Cash and cash equivalents 9,8 248,9 303,5 154,2
4 Other 7,4 18,8 22,5 31,8
5 TOTAL ASSETS 24,3 454,5 524,8 554,6
EQUITY & LIABILITIES
Capital and Reserves
6 Ordinary share capital and
share premium 0,0 111,5 111,5 111,5
7 Retained earnings 11,7 107,6 123,0 145,5
8 Foreign currency translation
reserve (10,9) 28,1 50,2 65,3
9 Shareholders" equity 0,8 247,2 284,7 322,3
10 Non-current liabilities 3,5 86,9 98,4 132,9
11 Long-term borrowings 0,0 58,8 67,0 61,3
12 Deferred taxation 0,0 0,0 0,0 43,3
13 Provision for post-retirement
liability 0,0 0,1 0,1 0,1
14 Rehabilitation and closure
cost obligation 3,5 28,0 31,3 28,2
15 Current liabilities 20,0 120,4 141,7 99,4
16 TOTAL EQUITY AND LIABILITIES 24,3 454,5 524,8 554,6
STATEMENT OF CHANGES IN EQUITY
Rand
Line CONSOLIDATED 31 Dec 01 31 Dec 02 31 Mar 03 30 Jun 03
No. as at Audited Audited Unaudited Reviewed
R"000 R"000 R"000 R"000
Share capital
Ordinary shares
1 Balance at beginning of the period 50 50 96 96
2 Ordinary shares issued during
the period 0 46 0 0
3 Balance at end of the period 50 96 96 96
Share premium
4 Balance at beginning of the period 0 0 1 132 454 1 132 454
5 Share premium raised on issue
of shares 0 1 209 973 0 0
6 Expenses written-off against
share premium 0 (77 519) 0 0
7 Balance at end of the period 0 1 132 454 1 132 454 1 132 454
Retained earnings
8 Balance at beginning of the
period 76 142 8 613 991 179 1 116 732
9 Net earnings for the period 132 471 982 584 125 553 171 629
10 Dividends paid during
the period (200 000) 0 0
11 Capitalisation shares issued 0 (18) 0
12 Balance at end of the period 8 613 991 179 1 116 732 1 288 361
STATEMENT OF CHANGES IN EQUITY
Dollar
Line CONSOLIDATED 31 Dec 01 31 Dec 02 31 Mar 03 30 Jun 03
No. as at Audited Audited Unaudited Reviewed
US$"000 US$"000 US$"000 US$"000
Share capital
Ordinary shares
1 Balance at beginning of
the period 10 10 14 14
2 Ordinary shares issued during
the period 0 4 0 0
3 Balance at end of the period 10 14 14 14
Share premium
4 Balance at beginning of the period 0 0 111 526 111 526
5 Share premium raised on issue
of shares 0 119 141 0 0
6 Expenses written-off against
share premium 0 (7 615) 0 0
7 Balance at end of the period 0 111 526 111 526 111 526
Retained earnings
8 Balance at beginning of
the period 13 196 11 651 107 591 122 968
9 Net earnings for the period 15 122 95 942 15 377 22 550
10 Dividends paid during
the period (16 667) 0 0 0
11 Capitalisation shares issued 0 (2) 0 0
12 Balance at end of the period 11 651 107 591 122 968 145 518
Foreign currency translation reserve
13 Balance at beginning
of the period (3 140) (10 939) 28 097 50 211
14 Exchange differences for
the current period (7 799) 39 036 22 114 15 089
15 Balance at end of the period (10 939) 28 097 50 211 65 300
ABRIDGED CASH FLOW
Rand
12 months 18 Months Quarter Quarter
Jan 2001 Jan 2002 ended ended
Line CONSOLIDATED to to March Jun
No. for the period Dec 2001 Jun 2003 2003 2003
Audited Reviewed Unaudited Unaudited
R million R million R million R million
1 Net cash flows from operating
activities 5,3 1 998,3 315,4 64,9
2 Net cash flow from investing
activities (38,2) (2 099,2) (29,0) (905,6)
3 Net cash flow from financing
activities 0,0 1 141,1 (26,9) (398,9)
4 Net movement in cash and cash
equivalents (32,9) 1 040,2 259,5 (1 239,6)
5 Cash and cash equivalents at the
beginning of the year 150,5 117,6 2 137,9 2 397,4
6 Cash and cash equivalents at
the end of the year 117,6 11 157,8 2 397,4 1 157,8
Date: 13/08/2003 08:00:49 AM Produced by the JSE SENS Department
