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AVGOLD LIMITED - UNAUDITED RESULTS FOR THE QUARTER AND HALF-YEAR ENDED 31
DECEMBER 2003
Avgold Limited
(Incorporated in the Republic of South Africa)
Registration Number: 1990/007025/06
Share code AVG
ISIN ZAE 0000 12175
("Avgold" or "the Company")
UNAUDITED RESULTS FOR THE QUARTER AND HALF-YEAR ENDED 31 DECEMBER 2003
OVERVIEW
* STRONG RAND AFFECTS QUARTERLY RESULTS
- STRONG OPERATING CASH FLOW DESPITE THE RAND STRENGTH OF R67 MILLION
(Q1FY 2004: R81 MILLION)
- HEADLINE EARNINGS* DECREASE TO R8,2 MILLION (Q1FY 2004: R48,7 MILLION)
* NET DEBT ELIMINATED
* 192 441 OUNCES OF GOLD PRODUCED DURING THE HALF-YEAR ENDED 31 DECEMBER 2003
- TARGET GOLD PRODUCTION OBJECTIVES ACHIEVED
* CASH COSTS AVERAGE R43 461/KG FOR THE HALF-YEAR ENDED 31 DECEMBER 2003
* TARGET NORTH FEASIBILITY PROCEEDING UNDER JOINT AVGOLDAND HARMONY
PROJECT TEAM
*before unrealised non-hedge derivatives
Jan Steenkamp, managing director of Avgold commented:
"The strong rand has once again had a significant impact on our financial
results. Operationally, Target continues to perform well with gold sold up 32%
in the last half-year. We remain on track to achieve the planned production of
350 000 oz p.a. and continue to progress along the critical path. Despite the
strength of the rand, we continue to produce strong operating cash flows and now
have an ungeared balance sheet."
For further information please contact:
Avgold
Ebrahim Takolia
Tel: +27 11 634 0333
Fax: +27 11 634 0278
Mobile: +27 83 291 3384
Email: ebrahimt@avgold.co.za
Website: www.avgold.co.za
SAFETY AND HEALTH
The lost day injury frequency rate per million man hours worked in the December
2003 quarter decreased to 4,61.
Quarter ended Half-year ended
31 December 30 September 31 December 31 December
2003 2003 2003 2002
ETC n/a n/a n/a 8,16
TARGET 4,61 6,84 5,72 7,80
TOTAL 4,61 6,84 5,72 7,97
COMMENTARY
SALIENT FEATURES SALES AND COSTS
Quarter ended Year ended
Dec. Dec. Sept. June
2003 2002* 2003 2003*
Avgold total:
Revenue received
- Rand per kilogram 70 108 82 197 78 721 83 891
- US$ per ounce 323 296 328 305
Average spot price
- Rand per kilogram 85 028 101 570 86 556 97 266
- US$ per ounce 390 321 359 334
Cash cost
- Rand per kilogram 46 084 59 838 41 018 56 503
- US$ per ounce 211 189 171 193
Total gold sales
- kilograms 2 887 2 934 3 099 11 899
-ounces 92 815 94 332 99 626 382 561
Target:
Cash cost
- Rand per kilogram 46 084 57 948 41 018 51 327
- US$ per ounce 211 183 171 175
Total gold sales
- kilograms 2 887 2 150 3 099 9 155
- ounces 92 815 69 140 99 626 294 339
* Comparative figures for the December 2002 quarter include ETC. The year ended
30 June 2003 figures include ETC to 15 June 2003.
OVERVIEW
This report contains the financial and operational results for the quarter and
half-year ended 31 December 2003. A significant unrealised charge to the income
statement for the half-year ended 31 December 2003 of R184 million is recorded
for non-hedge derivatives due to the strengthening of the rand.
When Target was commissioned the planned production level for the mine was 350
000 ounces of gold per annum, or 87 500 ounces of gold a quarter. In the last
two quarters Target has exceeded the planned production levels and produced 192
441 ounces of gold during the half-year ended 31 December 2003.
AVGOLD AND TARGET - Quarter ended 31 December 2003
The sustained strength of the rand against the US dollar during the quarter
significantly affected Avgold"s financial performance: revenue decreased 17 per
cent to R202,7 million (30 September 2003: R244,2 million) as Avgold"s hedge
book is fixed in US dollars. Headline earnings before unrealised non-hedge
derivatives decreased to R8,2 million (R40,6 million). The average rand/US
dollar exchange rate during the quarter was R6,79 compared to the previous
quarter"s R7,48. The average gold price achieved was lower at R70 108/kg (R78
721/kg).
Gold sold decreased to 2 887kg (3 099kg) as a result of the lower yield
achieved during the quarter of 10,78g/t (11,38g/t), while cash costs increased
to R46 084/kg (R41 018/kg) as a result of an inventory adjustment and lower
production.
Capital expenditure was R34,2 million (R15,8 million).
PRODUCTION
Target continues to benefit from the redesign and rescheduling of the massive
stopes. The mine is currently on track with the updated mining plan and
commitment to the plan in the last two quarters has increased flexibility.
Management remains committed to the critical path established to allow mining
of the massive stopes and to destress the blocks to the north.
AVGOLD Half-year ended 31 December 2003
The comparative results for the half-year ended 31 December 2002 include ETC.
The sale of ETC combined with the lower average rand/ US dollar exchange rate
of R7,13 (31 December 2002: R10,12) resulted in a decrease in revenue to
R446,9 million (R502,4 million).
Gold sold decreased marginally to 5 986kg (6 009kg), while yield increased
significantly to 11,08g/t (8,13g/t) as a result of higher gold grades being
achieved at Target. Cash costs decreased 25 per cent to R43 461/kg (R57 951/kg)
as a result of Target"s lower cost mining methods.
The increase in operating profit to R51,8 million (R49,6 million), despite the
lower revenue, reflects the efficiencies of the mechanised mining methods
employed at Target.
During the period certain ETC properties (retained following the sale of ETC)
were all sold for a consideration of R16,6 million, realising a surplus of R4,7
million. A taxation provision of R3,7 million has been made against this
transaction.
TARGET Half-year ended 31 December 2003
Target milled 540 088 tonnes of ore during the half-year compared to 576 410
tonnes during the previous half-year. Gold sold increased 32 per cent to 5
986kg (31 December 2002: 4 524kg) following the significant improvement in
yield to 11,08g/t (7,85g/t). Cash costs decreased 19 per cent to R43 461/kg
(R53 634/kg).
Capital expenditure increased marginally to R47,9 million (R46,5 million).
NORTHERN FREE STATE
Following the announcement on 13 November 2003 regarding Anglovaal Mining
Limited"s ("Avmin"s") proposed sale of its stake in Avgold to Harmony Gold
Mining Company Limited ("Harmony"), a joint team has been set
up to refine plans for the exploitation of the Northern Free State
resources.
HEDGING
As at 31 December 2003, Avgold"s hedge book represented 72 per cent of forecast
gold production to June 2006 and had a mark-to-market value of a negative R394
million. This was calculated at a gold price of US$414,82/oz and an exchange
rate of US$1,00:ZAR6,65.
This mark-to-market valuation is inclusive of a negative R286 million
pertaining to the rand/US$ forward exchange contracts utilised to convert the
rand gold hedges into dollar gold hedges. The fair value adjustment on these
FEC"s has been included in the income statement. The hedges are unmargined and
Avgold is maintaining its policy of not using derivative instruments for
speculative purposes.
Earnings are significantly distorted as a result and do not present an accurate
economic picture of the Company"s results during the reporting period.
Subsequent changes toexchange rates will result in adjustments to the
income statement thereby creating further variability in earnings.
The net hedge book at 31 December 2003, is as follows:
June June June
Period ending 2004 2005 2006
Dollar forward
sales contracts
Quantity sold kg 4 571 9 137 4 403
oz 146 962 293 762 141 545
US$/oz 314 316 323
TRANSLATION INTO US DOLLARS
To assist international investors, a translation of convenience into United
States dollars is provided for in the income statements, balance sheets and
cash flow statements. These translations are based on average rates of exchange
for income statement and cash flow statement items and those ruling at period
end for the balance sheet items.
The following rand/US dollar exchange rates were used to prepare the financial
results:
Quarter ended ended
Dec. Dec. Sept. June
2003 2002 2003 2003
Average rate for the period 6,79 9,85 7,48 9,12
Spot rate at end of period 6,65 8,65 7,00 7,51
BORROWINGS
Net borrowings reduced significantly during the quarter to R3 million (R46
million) following continuing positive cash flows from Target.
PROSPECTS
We remain confident about achieving our production objective of 350 000 oz for
the year to 30 June 2004 and are committed to maintain the critical path and
optimise the orebody extraction. We are fully focused on achieving cost
efficiencies and will minimise our cash costs. Earnings will, however, continue
to be affected by future fluctuations in the Rand/US$ exchange rate.
DIVIDEND POLICY
The dividend policy will be reviewed pending the outcome of the Harmony offer
referred to below.
ACCOUNTING POLICIES
The accounting policies used are in accordance with South African Statements of
Generally Accepted Accounting Practice and are consistent with those applied in
the previous financial year.
SCHEME OF ARRANGEMENT
On 13 November 2003 an announcement was made wherein it was stated that Harmony
proposes to acquire Avmin"s 42 per cent shareholding in Avgold. Should the
transaction be successfully concluded, Harmony will hold in excess of 35 per
cent of the issued share capital of Avgold and will be required to extend a
mandatory offer to other shareholders. The mandatory offer will be effected
through a Scheme of Arrangement in terms of section 311 of the Companies Act,
1973.
The Avgold Board has appointed an independent committee made up of Messrs Nick
Segal (Chairman), Oliver Baring, David Brink and Bernard van Rooyen to consider
the proposed Harmony offer and make a recommendation to the Avgold Board.
Profiles of independent committee members:
Nick Segal (Chairman)
Mr Segal is the former director and dean of the UCT
Graduate School of Business. He is also a director of Kumba Resources Limited.
Mr Segal was President of the Chamber of Mines from 1996 - 1997. He served as
an executive director on the Anglovaal Limited ("Anglovaal") Board
between 1997 and 1998, prior to the unbundling of Anglovaal"s
industrial interests.
Oliver Baring
Mr Baring is the Group Executive Chairman of First Africa. Previously, he was
head of UBS Warburg"s International Mining Group and, prior to that, head of
that group"s mining equity sales team. Mr Baring joined Rowe & Pitman in 1970
and was a partner at the firm at the time of their merger with SG Warburg.
Prior to this he worked with the Anglo American Group.
David Brink
Mr Brink is the non-executive chairman of Unitrans Limited, the former
non-executive chairman of Murray & Roberts Holdings Limited and non-executive
deputy chairman of ABSA Group Limited. In addition he is a director of Sappi
Limited, Sanlam Limited, and BHP Billiton plc, BHP Billition Limited and
co-chairman of the Business Trust.
Bernard van Rooyen
Mr van Rooyen is the deputy chairman of Trans Hex Group Limited. He is also a
director of Mvelaphanda Resources Limited, Northam Platinum Limited and Gold
Fields Limited.
On behalf of the Board of Directors
Chairman
R P Menell
Managing Director
JC Steenkamp
Directors: R P Menell (Chairman), J C Steenkamp+ (Managing), M Arnold+,
J J Geldenhuys, ANLewis+,G SPotgieter+,A J Wilkens
Alternate director : G Briggs
+ Executive directors
Company secretary: S E Sather
Johannesburg
27 January 2004
INCOME STATEMENT Rand thousand
Unaudited
Quarter ended
Dec. Dec. Sept.
2003 2002* 2003
Revenue 202 717 241 635 244 190
gold revenue 202 389 241 170 243 933
by-products 328 465 257
Costs and expenses 193 839 225 230 201 300
gold operating 132 486 176 053 127 360
amortisation 58 768 42 918 68 343
administration and general 2 585 6 259 5 597
Operating profit 8 878 16 405 42 890
Investment income 284 3 469 572
Finance cost 972 14 991 2 902
Foreign exchange gain/(loss) 62 573
Unrealised non-hedge derivatives (59 785) (123 730)
Income/(loss) before exceptional item (51 595) 67 456 (83 170)
Exceptional items 4 661
Income/(loss) before taxation (51 595) 67 456 (78 509)
Taxation 3 750
Net earnings/(loss) for the period (51 595) 67 456 (82 259)
Additional information
Net earnings for the period excluding
unrealised non-hedge derivatives 8 190 67 456 41 471
Headline earnings/(loss) (51 395) 67 456 (83 170)
Headline earnings before
unrealised non-hedge derivatives 8 190 67 456 40 560
Headline earnings/(loss)
per share (cents) (8) 10 (12)
Headline earnings per share before
unrealised non-hedge
derivatives (cents) 1 10 6
Earnings/(loss) per share (cents) (8) 10 (12)
Weighted number of shares in issue
(million) 679 674 677
Reconciliation of earnings and Headline
earnings
Net earnings/(loss) per income statement(51 595) 67 456 (82 259
Exceptional items: Profit on sale of
ETC mine (4 661)
Recoupments tax on sale of ETC mine 3 750
(51 595) 67 456 (83 170)
Unaudited Audited
Half-year ended Year ended
Dec. Dec. June
2003 2002* 2003*
Revenue 446 907 502 363 999 480
gold revenue 446 322 501 708 998 217
by-products 585 655 1 263
Costs and expenses 395 139 452 784 889 560
gold operating 259 846 348 663 673 344
amortisation 127 111 92 030 186 900
administration and general 8 182 12 091 29 316
Operating profit 51 768 49 579 109 920
Investment income 856 6 582 12 987
Finance cost 3 874 29 128 57 946
Foreign exchange gain/(loss) 52 075 66 745
Unrealised non-hedge derivatives (183 515) (102 715)
Income/(loss) before exceptional item (134 765) 79 108 28 991
Exceptional items 4 661 7 085
Income/(loss) before taxation (130 104) 79 108 36 076
Taxation 3 750 9 207
Net earnings/(loss) for the period (133 854) 79 108 26 869
Additional information
Net earnings for the period excluding
unrealised non-hedge derivatives 49 661 79 108 129 584
Headline earnings/(loss) (134 765) 79 108 25 385
Headline earnings before
unrealised non-hedge derivatives 48 750 79 108 128 100
Headline earnings/(loss)
per share (cents) (20) 12 4
Headline earnings per share before
unrealised non-hedge
derivatives (cents) 7 12 19
Earnings/(loss) per share (cents) (20) 12 4
Weighted number of shares in issue
(million) 678 674 674
Reconciliation of earnings and Headline
earnings
Net earnings/(loss) per income
statement ) (133 854) 79 108 26 869
Exceptional items: Profit on sale of
ETC mine (4 661) (7 085)
Recoupments tax on sale of ETC mine 3 750 5 601
(134 765) 79 108 25 385
BALANCE SHEET Rand thousand
Unaudited Audited
31 December 30 June
2003 2003*
ASSETS
Non-current assets 2 480 241 2 569 795
Property, plant and equipment 2 454 841 2 543 841
Investments 25 400 25 954
Current assets 94 205 84 382
Inventories 46 280 46 407
Trade and other receivables 47 003 37 214
Deposits and cash 922 761
Total assets 2 574 446 2 654 177
EQUITY AND LIABILITIES
Capital and reserves
Share capital 6 801 6 765
Share premium 2 236 766 2 219 900
Retained income/(accumulated loss) (90 027) 43 827
Total shareholders" equity 2 153 540 2 270 492
Non-current liabilities 324 770 144 639
Non-hedge derivatives 286 230 102 715
Long-term provisions 38 540 41 924
Current liabilities 96 136 239 046
Trade and other payables 92 549 104 126
Short-term borrowings 3 587 134 920
Total equity and liabilities 2 574 446 2 654 177
* Comparative figures for December 2002 include ETC. The year ended 30 June
2003 figures include ETC to 15 June 2003.
CASH FLOW STATEMENT Rand thousand
Unaudited Audited
Half-year ended Year ended
Dec. Dec. June
2003 2002* 2003*
Cash generated from/(utilised by)
operations
Operating profit 51 768 49 579 109 920
Non-cash items and adjustments
Amortisation and depreciation 127 111 92 030 186 900
Provisions (2 908) (808) (5 546)
Profit on sale of property, plant
and equipment (1 519)
175 971 140 801 289 755
Net withdrawal from/(payments to)
environmental trust fund 3 925
Investment income 938 6 582 12 987
Finance charges (3 874) (29 128) (57 946)
173 035 118 255 248 721
Cash provided by/(reinvested in)
working capital
Inventories 127 (10 740) (18 351)
Trade and other payables (15 327) (34 457) (30 390)
Trade and other receivables (9 789) 1 043 13 578
Net cash generated from operating
activities 148 046 74 101 213 558
Cash utilised in investment
activities
Property, plant and equipment
acquired (50 050) 58 584 (124 364)
Investments acquired (2) (483)
Property, plant and equipment sold 16 598 1 777 3 558
Proceeds on sale of ETC mine 251 817
(33 454) (56 807) 130 528
Cash provided by financing activities
Net increase in shareholders" funding 16 902 7 910 13 551
Leased assets (691) (1 434)
Decrease in long-term loans (376 189)
(Decrease)/increase in overdrafts
and short-term borrowings (131 333) 3 776 (76 224)
(114 431) 10 995 (440 296)
Increase/(decrease) in cash balances 161 28 289 (96 210)
Cash and cash equivalents at
beginning of period 761 108 810 108 810
Translation adjustment (3 712) (11 839)
Cash and cash equivalents at end of
period 922 133 387 761
STATEMENT OF SHAREHOLDERS" EQUITY Rand thousand
Retained Unaudited Audited
Ordinary share income/ Half-year ended Year ended
capital and (Accumulated Dec. Dec. June
premium loss) 2003 2002* 2003*
Changes in
shareholders" equity
Balance at
beginning of period 2 226 665 43 827 2 270 492 2 230 072 2 230 072
Share options exercised 16 932 16 932 7 936 13 584
Derivative instruments (30) (30)
Expenses written off
against share premium - (26) (33)
Transfer to equity reserves - (3 301)
Net earnings/(loss)
for the period (133 854) (133 854) 79 108 26 869
Balance at end of period 2 243 567 (90 027) 2 153 540 2 313 789 2 270 492
* Comparative figures for December 2002 include ETC. The year ended 30 June
2003 figures include ETC to 15 June 2003.
INCOME STATEMENT US dollar thousand
Unaudited
Quarter ended
Dec. Dec. Sept.
2003 2002* 2003
Revenue 29 855 24 523 32 646
gold revenue 29 807 24 476 32 612
by-products 48 47 34
Costs and expenses 28 548 22 858 26 912
gold operating 19 512 17 867 17 027
amortisation 8 655 4 356 9 137
administration and general 381 635 748
Operating profit 1 307 1 665 5 734
Investment income 42 352 76
Finance cost 143 1 521 388
Foreign exchange gain/(loss) 6 350
Unrealised non-hedge derivatives (8 805) (16 541)
Income/(loss) before exceptional item (7 599) 6 846 (11 119)
Exceptional items 623
Income/(loss) before taxation (7 599) 6 846 (10 496)
Taxation 535
Net earnings/(loss) for the period (7 599) 6 846 (11 031)
Additional information
Net earnings for the period excluding
unrealised non-hedge derivatives 1 206 6 846 5 510
Headline/(loss) earnings (7 599) 6 846 (11 654)
Headline earnings before unrealised
non-hedge derivatives 1 206 6 846 4 887
Headline earnings/(loss) per share (cents) (1) 1 (2)
Headline earnings per share before
unrealised non-hedge
derivatives (cents) 1 1
Earnings/(loss) per share (cents) (1) 1 (2)
Weighted number of shares in issue (million) 679 674 677
Reconciliation of earnings and Headline
earnings
Net earnings/(loss) per income statement (7 599) 6 846 (11 031)
Exceptional items: Profit on sale of ETC
mine (623)
Recoupment tax on sale of ETC mine 535
(7 599) 6 846 (11 119)
Unaudited Audited
Half-year ended Year ended
Dec. Dec. June
2003 2002* 2003*
Revenue 62 680 49 362 109 592
gold revenue 62 598 49 567 109 454
by-products 82 65 138
Costs and expenses 55 420 44 734 97 539
gold operating 36 444 3 447 73 832
amortisation 17 828 9 092 20 493
administration and general 1 148 1 195 3 214
Operating profit 7 260 4 898 12 053
Investment income 120 650 1 424
Finance cost 543 2 878 6 354
Foreign exchange gain/(loss) 5 145 7 319
Unrealised non-hedge derivatives (25 738) (11 263)
Income/(loss) before exceptional item (18 901) 7 815 3 179
Exceptional items 623 777
Income/(loss) before taxation (18 278) 7 815 3 956
Taxation 535 1 010
Net earnings/(loss) for the period (18 813) 7 815 2 946
Additional information
Net earnings for the period excluding
unrealised non-hedge derivatives 6 925 7 815 14 209
Headline/(loss) earnings (19 437) 7 815 2 783
Headline earnings before unrealised
non-hedge derivatives 6 302 7 815 14 046
Headline earnings/(loss) per share (cents) (3) 1
Headline earnings per share before
unrealised non-hedge
derivatives (cents) 1 1 2
Earnings/(loss) per share (cents) (3) 1
Weighted number of shares in issue
(million) 678 674 674
Reconciliation of earnings and Headline
earnings
Net earnings/(loss) per income statement (18 813) 7 815 2 946
Exceptional items: Profit on sale of ETC
mine (623) (777)
Recoupment tax on sale of ETC mine 535 614
(18 901) 7 815 2 783
BALANCE SHEET US dollar thousand
Unaudited Audited
31 December 30 June
2003 2003*
ASSETS
Non-current assets 372 969 342 183
Property, plant and equipment 369 149 338 727
Investments 3 820 3 456
Current assets 14 166 11 236
Inventories 6 959 6 180
Trade and other receivables 7 068 4 955
Deposits and cash 139 101
Total assets 387 135 353 419
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1 023 901
Share premium 339 546 299 343
Retained income/(accumulated loss) (16 728) 2 085
Total shareholders" equity 323 841 302 329
Non-current liabilities 48 838 19 259
Non-hedge derivatives 43 042 13 677
Long-term provisions 5 796 5 582
Current liabilities 14 456 31 831
Trade and other payables 13 917 13 865
Short-term borrowings 539 17 966
Total equity and liabilities 387 135 353 419
* Comparative figures for December 2002 include ETC. The year ended 30 June
2003 figures include ETC to 15 June 2003.
CASH FLOW STATEMENT US dollar thousand
Unaudited Audited
Half-year ended Year ended
Dec. Dec. June
2003 2002* 2003*
Cash generated from/(utilised by)
operations
Operating profit 7 260 4 898 12 053
Non-cash items and adjustments:
Amortisation and depreciation 17 828 9 092 20 493
Provisions (408) (79) (608)
Profit on sale of property, plant and
equipment (167)
24 680 13 911 31 771
Net withdrawals from/(payments to)
environmental trust fund 430
Investment income 120 650 1 424
Finance charges (543) (2 878) (6 354)
24 257 11 683 27 271
Cash provided by/(reinvested in) working
capital
Inventories 18 (1 061) (2 012)
Trade and other payables (2 150) (3 404) (3 332)
Trade and other receivables (1 373) 103 1 489
Net cash generated from operating
activities 20 752 7 321 23 416
Cash utilised in investment activities
Property, plant and equipment acquired (7 020) (5 788) (13 636)
Investments acquired (53)
Property, plant and equipment sold 2 328 176 390
Proceeds on sale of ETC mine 27 612
(4 692) (5 612) 14 313
Cash provided by financing activities
Net increase in shareholders" funding 2 371 781 1 486
Leased assets (68) (157)
Decrease in long-term loans (41 249)
(Decrease)/increase in overdrafts and
short-term borrowings (18 420) 373 (8 358)
(16 049) 1 086 (48 278)
Increase/(decrease) in cash balances 11 2 795 (10 549)
Cash and cash equivalents at beginning of
period 101 10 616 10 616
Translation adjustment 27 2 009 34
Cash and cash equivalents at end of period 139 15 420 101
STATEMENT OF SHAREHOLDERS" EQUITY US dollar thousand
Retained Unaudited Audited
Ordinary share income/ Half-year ended Year ended
capital and (Accumulated Dec. Dec. June
premium loss) 2003 2002* 2003*
Changes in
shareholders" equity
Balance at
beginning of period 300 244 2 085 302 329 217 568 217 568
Share options
exercised 2 375 2 375 784 1 489
Derivative
instruments (4) (4)
Expenses written
off against
share premium (3) (4)
Transfer to
equity reserves 7 815
Net earnings/
(loss) for the period (18 813) (18 813) (382) 2 946
Translation adjustment 37 954 37 954 41 708 80 330
Balance at end of period 340 569 (16 728) 323 841 267 490 302 329
* Comparative figures for December 2002 include ETC. The year ended 30 June
2003 figures include ETC to 15 June 2003.
OPERATING RESULTS
AVGOLD TOTAL
Unaudited
Quarter ended
Dec. Dec. Sept.
2003 2002* 2003
Metric
Ore milled tonnes 267 697 376 623 272 391
Gold sold kg 2 887 2 934 3 099
Yield g/t 10,78 7,79 11,38
Cash cost R/kg 46 084 59 838 41 018
Non-cash cost R/kg 20 946 16 733 23 800
Total cost R/kg 67 030 76 571 64 818
Capital expenditure R000"s 34 255 37 977 15 792
Imperial
Ore milled tons 295 082 415 152 300 257
Gold sold oz 92 815 94 332 99 626
Yield oz/t 0,31 0,23 0,33
Cash cost US$/oz 211 189 171
Non-cash cost US$/oz 96 53 99
Total cost US$/oz 307 242 270
Capital expenditure US$000"s 5 045 3 854 2 111
TARGET TOTAL
Metric
Ore milled tonnes 267 697 293 516 272 391
Gold sold kg 2 887 2 150 3 099
Yield g/t 10,78 7,33 11,38
Cash cost R/kg 46 084 57 948 41 018
Non-cash cost R/kg 19 095 17 064 22 237
Total cost R/kg 65 179 75 012 63 255
Capital expenditure R000"s 33 165 30 849 14 735
Development results:
Advanced m 2 269 1 986 1 957
Reef development m 1 324 1 744 1 142
Sampled m 549 437 555
Channel width cm 380 455 433
Channel value g/t 5,69 8,33 4,33
cm.g/t 2 162 3 790 1 874
Imperial
Ore milled tons 295 082 323 543 300 257
Gold sold oz 92 815 69 140 99 626
Yield oz/t 0,31 0,21 0,33
Cash cost US$/oz 211 183 171
Non-cash cost US$/oz 88 54 92
Total cost US$/oz 299 237 263
Capital expenditure US$000"s 4 884 3 131 1 970
Unaudited
Half-year ended Year ended
Dec. Dec. June
2003 2002* 2003*
Metric
Ore milled tonnes 540 088 739 158 1 388 764
Gold sold kg 5 986 6 009 11 899
Yield g/t 11,08 8,13 8,57
Cash cost R/kg 43 461 57 951 56 503
Non-cash cost R/kg 22 424 17 269 18 150
Total cost R/kg 65 885 75 220 74 653
Capital expenditure R000"s 50 047 58 014 122 905
Imperial
Ore milled tons 595 339 814 774 1 530 835
Gold sold oz 192 441 193 205 382 561
Yield oz/t 0,32 0,24 0,25
Cash cost US$/oz 190 178 193
Non-cash cost US$/oz 98 53 62
Total cost US$/oz 288 231 255
Capital expenditure US$000"s 7 019 5 732 13 476
TARGET TOTAL
Metric
Ore milled tonnes 540 088 576 410 1 068 376
Gold sold kg 5 986 4 524 9 155
Yield g/t 11,08 7,85 8,57
Cash cost R/kg 43 461 53 634 51 327
Non-cash cost R/kg 20 722 17 603 17 900
Total cost R/kg 64 183 71 237 69 227
Capital expenditure R000"s 47 900 46 515 100 539
Development results:
Advanced m 4 226 3 909 7 431
Reef development m 2 466 2 889 5 308
Sampled m 1 104 1 110 1 866
Channel width cm 813 911 1 818
Channel value g/t 4,96 7,15 6,76
cm.g/t 4 036 6 517 12 298
Imperial
Ore milled tons 595 339 635 377 1 177 671
Gold sold oz 192 441 145 439 294 339
Yield oz/t 0,32 0,23 0,25
Cash cost US$/oz 190 165 175
Non-cash cost US$/oz 90 54 61
Total cost US$/oz 280 219 236
Capital expenditure US$000"s 6 718 4 596 11 024
* Comparative figures for December 2002 include ETC. The year ended 30 June
2003 figures include ETC to 15 June 2003.
PRODUCTION COST RECONCILIATION
AVGOLD TOTAL - Rand thousand
Unaudited
Quarter ended
Dec. Dec. Sept.
2003 2002* 2003
Gold operating costs per income statement 132 486 176 053 127 360
Profit on sale of assets 881
Less: Revenue from by-products (328) (465) (257)
Cash costs 133 039 175 588 127 103
Add:
- Amortisation and depreciation 58 768 42 918 68 343
- Administration and general 2 585 6 259 5 597
- Profit on sale of assets (881)
Non-cash costs 60 472 49 177 73 940
Total cost 193 511 224 765 201 043
Gold sold kg 2 887 2 934 3 099
Production cost:
Cash cost R/kg 46 084 59 838 41 018
Non-cash cost R/kg 20 946 16 733 23 800
Total operating cost R/kg 67 030 76 571 64 818
Gold price realised R/kg 70 108 82 197 78 721
Unaudited
Half-year ended Year ended
Dec. Dec. June
2003 2002* 2003*
Gold operating costs per income statement 259 846 348 663 673 344
Profit on sale of assets 881
Less: Revenue from by-products (585) (655) (1 263)
Cash costs 260 142 348 008 672 081
Add:
- Amortisation and depreciation 127 111 92 030 186 900
- Administration and general 8 182 12 091 29 316
- Profit on sale of assets (881)
Non-cash costs 134 412 104 121 216 216
Total cost 394 554 452 129 888 297
Gold sold kg 5 986 6 009 11 899
Production cost:
Cash cost R/kg 43 461 57 951 56 503
Non-cash cost R/kg 22 424 17 269 18 150
Total operating cost R/kg 65 885 75 220 74 653
Gold price realised R/kg 74 566 83 488 83 891
* Comparative figures for December 2002 include ETC. The year ended 30 June
2003 figures include ETC to 15 June 2003.
AVGOLD TOTAL US dollar thousand
Unaudited
Quarter ended
Dec. Dec. Sept.
2003 2002* 2003
Gold operating costs per income statement 19 512 17 867 17 027
Profit on sale of assets 129
Less: Revenue from by-products (48) (47) (34)
Cash costs 19 593 17 820 16 992
Add:
- Amortisation and depreciation 8 655 4 356 9 137
- Administration and general 380 635 748
- Profit on sale of assets (129)
Non-cash costs 8 906 4 991 9 885
Total cost 28 499 22 811 26 877
Gold sold oz 92 815 94 332 99 626
Production cost:
Cash cost US$/oz 211 189 171
Non-cash cost US$/oz 96 53 99
Total operating cost US$/oz 307 242 270
Gold price realised US$/oz 323 296 328
Unaudited
Half-year ended Year ended
Dec. Dec. June
2003 2002* 2003*
Gold operating costs per income statement 36 444 34 447 73 832
Profit on sale of assets 124
Less: Revenue from by-products (82) (65) (139)
Cash costs 36 486 34 382 73 693
Add:
- Amortisation and depreciation 17 828 9 092 20 493
- Administration and general 1 147 1 195 3 215
- Profit on sale of assets (124)
Non-cash costs 18 851 10 287 23 708
Total cost 55 337 44 669 97 401
Gold sold oz 192 442 193 205 382 560
Production cost:
Cash cost US$/oz 190 178 193
Non-cash cost US$/oz 98 53 62
Total operating cost US$/oz 288 231 255
Gold price realised US$/oz 325 299 305
* Comparative figures for December 2002 include ETC. The year ended 30 June
2003 figures include ETC to 15 June 2003.
CONTACT DETAILS
EBRAHIM TAKOLIA
Direct line: (+27 11) 634-0333
Fax: (+27 11) 634-0278
Mobile: 083 291 3384
e-mail: ebrahimt@avgold.co.za
AVGOLD LIMITED
www.avgold.co.za
Date: 27/01/2004 08:00:28 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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