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Avgold Limited - Results For The Quarter And Nine Months Ended 31 March 2004
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")
RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 MARCH 2004
OVERVIEW
* Rand strength affects results
* Scheme documents posted to shareholders
* Target achieves milestone safety record
SAFETY AND HEALTH
Target achieved a milestone safety record of two million consecutive
fatality free shifts for surface operations and underground mining during
the quarter.
This landmark achievement for the mining industry followed a number of
recent safety records at Target, including:
* a Department of Minerals and Energy award for 3 000 consecutive fatality
free production shifts (2 February 2004);
* the Anglovaal Mining Group"s in-house Santa Barbara award for one
million fatality free shifts for surface and underground mining (23 March
2004);
* 1 500 000 fatality free underground operations (9 March 2004); and
* three years of fatality free operation (25 March 2004).
RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 MARCH 2004
This report contains the financial and operational results for the quarter
and nine months ended 31 March 2004. The results for the quarter and nine
months ended 31 March 2003 include ETC.
In terms of the rules of the generally accepted accounting statement on
financial instruments, AC133, a significant charge to the income statement
is recorded due to the strengthening of the rand.
QUARTER ENDED 31 MARCH 2004
The sustained strength of the rand against the US dollar significantly
affected Avgold"s financial performance: revenue decreased 35 per cent to
R132,7 million (31 December 2003: R202,7 million) as Avgold"s hedge book
is fixed in US dollars. A headline loss before unrealised non-hedge
derivatives of R18,7 million (earnings: R8,2 million) was recorded. This
drop in earnings is attributable to the realised gold price falling to R67
425/kg (R70 106/kg) and gold sold reducing to 1 966kg (2 887/kg).
Ore milled decreased nine per cent to 242 671 tonnes (267 697 tonnes)
predominantly as a result of the Christmas break, which shortened the
number of working days, and after an LHD vehicle was trapped in one of the
open stope drawpoints. The yield decreased from 10,78g/t to 8,10g/t
mainly due to some dilution from the MOS 1 and 2 stopes and backfill of
the MOS 4 stope seeping into the DOS 2 stope - with the result that the
mining of DOS 5, which contains higher grades, had to be deferred.
Operating costs at Target were lower in absolute terms this quarter.
However, cash costs increased to R50 934/kg (R46 084/kg) as a result of
the lower gold production.
Target achieved a cash operating profit R31,6 million (R67,3 million) for
the quarter.
Capital expenditure was R27,0 million (R34,3 million).
NINE MONTHS ENDED 31 MARCH 2004
The results for the period are not comparable owing to the inclusion of
ETC to March 2003. Ore milled at Target dropped five per cent to 782 759
tonnes (825 827 tonnes) while yields increased to 10,16g/t (8,61g/t) due
to increased waste separation. This resulted in gold sold at Target
increasing by 12 per cent to 7 951kg (7 107kg). During the period the
average rand/US dollar exchange rate strengthened by 26 per cent to
R7,03/US dollar, which negatively impacted the rand gold price achieved -
R72 801/kg was achieved during the current period as compared to R84
033/kg in 2003.
The year to date cash costs at Target have averaged R45 309/kg - a 12 per
cent improvement over the previous period. Target achieved a cash
operating profit of R214,8 million (R221,1 million).
Capital expenditure at Target was R74 million (R72 million).
NORTHERN FREE STATE
The Avgold and Harmony Gold Mining Company Limited ("Harmony") joint
project team have progressed well in refining plans for the optimal
exploitation of the Northern Free State resources. It is anticipated that
a feasibility study will be concluded by the end of 2004.
HEDGING
The hedge book at 31 March 2004 had a negative mark to market value of
R361 million which includes the negative mark to market of R309 million
attributable to the forward exchange contracts ("FEC"s) which were entered
into in June 2003 to effect a conversion of the Rand gold hedge book. This
was calculated at a gold price of $424.50/oz and an exchange rate of
US$1.00:ZAR6.36. The fair value adjustment on these FEC"s has been
included in the income statement.
TRANSLATION INTO US DOLLARS
To assist international investors, a translation of convenience into
United States dollars is provided for in the income statements, balance
sheets and cash flow statements. These translations are based on average
rates of exchange for income statement and cash flow statement items and
those ruling at period end for the balance sheet items. The following
rand/US dollar exchange rates were used to prepare the financial results:
Quarter ended
Rand/US dollar exchange rates
Quarter ended Nine Months Ended
Mar 2004 Mar 2003 Dec 2003 Mar 2004 Mar 2003
End of Period 6,36 8,00 6,65 6,36 8,00
Average for Period 6,82 8,42 6,79 7,03 9,55
BORROWINGS
Net borrowings for the quarter were R9,8 million (R3 million).
PROSPECTS
Earnings will continue to be affected by future fluctuations in the
Rand/US$ exchange rate. The restructuring of the hedge book is currently
under consideration.
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.
SHARE EXCHANGE AGREEMENT
On 13 November 2003 an announcement was made wherein it was stated that
Harmony proposes to acquire Anglovaal Mining Limited"s (Avmin"s) 42 per
cent shareholding in Avgold. The agreement between Avmin and Harmony,
dated 16 February 2004, in terms of which Avmin exchanges its entire
shareholding in Avgold for 28 630 526 new Harmony shares, was ratified and
approved by Avmin"s shareholders at a general meeting on 15 April 2004.
The change of control will occur on the fifth business day after the date
on which all of the suspensive conditions set out in the agreement are
fulfilled and/or waived.
SCHEME OF ARRANGEMENT
Following the conclusion of the share exchange agreement referred to
above, Harmony will hold 53 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. Scheme documents were
posted to shareholders on 8 April 2004. The scheme meeting will be held
at 56 Main Street, Johannesburg on Monday, 3 May 2004 at 10:00.
DIRECTORATE
In terms of the share exchange agreement referred to above the board will
be reconstituted as required by Harmony.
On behalf of the Board of Directors
Chairman
R P Menell
Managing Director
J C Steenkamp
Directors: R P Menell (Chairman), J C Steenkamp + (Managing), M Arnold +,
J J Geldenhuys, A N Lewis +, G S Potgieter +, A J Wilkens
Alternate director: G Briggs
+ Executive directors
Company secretary: S E Sather
Johannesburg
28 April 2004
Income statement - Rand thousand
Unaudited
Quarter ended
March March December
2004 2003 2003
Revenue 132 712 278 020 202 717
- gold revenue 132 526 277 770 202 389
- by-products 186 250 328
Costs and expenses 151 597 230 785 193 839
- gold operating 100 300 174 636 132 486
- amortisation 45 796 48 291 58 768
- general and administration 5 501 7 858 2 585
Operating profit/(loss) (18 885) 47 235 8 878
Investment income 564 3 073 284
Finance cost 415 15 008 972
Foreign exchange gain 0 14 111 0
Unrealised non-hedge derivatives (22 558) 0 ( 59 785)
Income/(loss) before exceptional item (41 294) 49 411 ( 51 595)
Income/(loss) before taxation (41 294) 49 411 ( 51 595)
Taxation 0 8 207 0
Net earnings/(loss) for the period (41 294) 41 204 ( 51 595)
Net earnings/(loss) excluding
unrealised non-hedge ( 18 736) 41 204 8 190
derivatives
Headline earnings/(loss) (41 294) 41 204 (51 595)
Headline earnings/(loss) before
unrealised non-hedge
(18 736) 41 204 8 190
derivatives
Headline earnings/(loss) per share
(cents) (6) 6 (8)
Headline earnings/(loss) per share
before unrealised (3) 6 1
Non-hedge derivatives
Earnings/(loss) per share (cents) (6) 6 (8)
Weighted number of shares in issue
(million) 681 675 679
Reconciliation of earnings and headline
earnings
Earnings/(loss) per income statement (41,294) 41,204 (51,595)
Headline earnings (41,294) 41,204 (51,595)
Unaudited Audited
Nine months ended Year ended
March March June
2004 2003 2003
Revenue 579 618 780 383 999 480
- gold revenue 578 848 779 478 998 217
- by-products 770 905 1 263
Costs and expenses 546 735 683 569 889 560
- gold operating 360 146 524 769 673 344
- amortisation 172 907 140 322 186 900
- general and administration 13 682 18 478 29 316
Operating profit 32 883 96 814 109 920
Investment income 1 420 9 655 12 987
Finance cost 4 289 44 136 57 946
Foreign exchange gain/(loss) 0 66 186 66 745
Unrealised non-hedge derivatives (206 073) 0 (102 715)
Income/(loss) before exceptional item (176 059) 128 519 28 991
Profit on disposal of ETC mine 0 0 7 085
Profit on disposal of ETC houses 4 661 0 0
Income/(loss) before taxation (171 398) 128 519 36 076
Taxation 3 750 8 207 9 207
Net earnings/(loss) for the period (175 148) 120 312 26 869
Net earnings/(loss) excluding
unrealised non-hedge
30 925 120 312 129 584
derivatives
Headline earnings/(loss) (176 059) 120 312 25 385
Headline earningsbefore
unrealised non-hedge
30 014 120 312 128 100
derivatives
Headline earnings/(loss) per share
(cents) ( 26) 18 4
Headline earnings/(loss) per share
before unrealised
4 18 19
non-hedge derivatives
Earnings/(loss) per share (cents) (26) 18 4
Weighted number of shares in issue
(million) 678 674 674
Reconciliation of earnings and
headline earnings
Earnings/(loss) per income statement (175 148) 120,312 26,869
Exceptional item:
Profit on sale of ETC 0 0 (7,085)
Recoupments tax on sale of ETC 0 0 5,601
Profit on sale of ETC houses (4,661) 0 0
Recoupments tax on sale of houses 3,750 0 0
Headline earnings (176,059) 120,312 25,385
Balance sheet - Rand thousand
Unaudited Unaudited Audited
March March June
2004 2003 2003
ASSETS
Non-current assets
Fixed assets 2 436 011 2 831 692 2 543 841
Investments 25 209 48 349 25 954
Total fixed assets 2 461 220 2 880 041 2 569 795
Current assets
Inventories 47 454 47 202 46 407
Trade and other receivables 33 862 53 040 37 214
Derivative instruments 0 5 797 0
Deposits and cash 107 133 813 761
81 423 239 852 84 382
Total assets 2 542 643 3 119 893 2 654 177
EQUITY AND LIABILITIES
Capital and reserves
Share capital 6 813 6 755 6 765
Share premium 2 241 217 2 215 988 2 219 900
Reserves (131 321) 143 067 43 827
Total shareholders" equity 2 116 709 2 365 810 2 270 492
Non-current liabilities 347 328 425 186 144 639
Long-term loans 0 337 886 0
Deferred tax liability 0 5 550 0
Non-hedge derivatives 308 788 0 102 715
Long-term provisions 38 540 81 750 41 924
Current liabilities 78 606 328 897 239 046
Trade and other payables 68 679 122 184 104 126
Overdrafts and short-term
borrowings 9 927 206 713 134 920
Total equity and liabilities 2 542 643 3 119 893 2 654 177
Cash flow statement - Rand thousand
Unaudited
Quarter ended
March 2004 March 2003
Cash generated from/(utilised by) operations
Operating profit/(loss) (18 885) 47 235
Non-cash items and adjustments
Provisions 0 524
Amortisation and depreciation 45 796 48 291
26 911 96 050
Investment income 564 3 073
Finance charges (415) (15 008)
Taxation paid (11 956) 0
15 104 84 115
Cash provided by/(reinvested in) working capital
Inventories (1 174) 8 300
Payables and provisions (11 914) 641
Receivables 13 141 1 088
Net cash generated from operating activities 15 157 94 144
Cash utilised in investment activities
Fixed assets acquired (26 966) (32 583)
Investments sold/(acquired) 191 ( 478)
Fixed assets sold 0 713
(26 775) (32 348)
Cash provided by financing activities
Net increase in shareholders" funding 4 463 1 719
Leased assets 0 (363)
Decrease in long-term loans 0 (48 269)
Increase/(decrease) in overdrafts and short-term
borrowings 6 340 (5 904)
10 803 (52 817)
Increase/(decrease) in cash balances (815) 8 979
Cash and cash equivalents at beginning of period 922 133 387
Translation adjustment 0 (8 553)
Cash and cash equivalents at end of period 107 133 813
Unaudited Audited
Nine months ended Year ended
March 2004 March 2003 June 2003
Cash generated from/(utilised by)
operations
Operating profit/(loss) 32 883 96 814 109 920
Non-cash items and adjustments
Provisions (2 908) (283) (5 546)
Profit/(loss) on sale of
assets/investments 0 0 ( 1 519)
Amortisation and depreciation 172 907 140 322 186 900
202 882 236 853 289 755
Payments to environmental trust
fund 0 0 3 925
Investment income 1 502 9 655 12 987
Finance charges (4 289) (44 136) ( 57 946)
Taxation paid (11 956) 0 0
188 139 202 372 248 721
Cash provided by/(reinvested in)
working capital
Inventories (1 047) (2 441) (18 351)
Payables and provisions (27 241) (33 816) (30 390)
Receivables 3 352 2 131 13 578
Net cash generated from operating
activities 163 203 168 246 213 558
Cash utilised in investment
activities
Fixed assets acquired (77 016) (91 168) (124 364)
Investments sold/(acquired) 189 (478) ( 483)
Fixed assets sold 16 598 2 490 3 558
Business sold 0 0 251 817
(60 229) (89 156) 130 528
Cash provided by financing
activities
Net increase in shareholders"
funding 21 365 9 629 13 551
Leased assets 0 (1 054) (1 434)
Decrease in long-term loans 0 (48 269) (376 189)
Increase/(decrease) in overdrafts
and short-term borrowings (124 993) (2 128) (76 224)
(103 628) (41 822) (440 296)
Increase/(decrease) in cash
balances (654) 37 268 (96 210)
Cash and cash equivalents at
beginning of period 761 108 810 108 810
Translation adjustment 0 (12 265) (11 839)
Cash and cash equivalents at end
of period 107 133 813 761
Statement of shareholders" equity - Rand thousand
Ordinary share Retained income/
capital and (accumulated
premium loss)
Changes in shareholders" equity
Balance at beginning of period 2 226 665 43 827
Share options exercised 21 408
Expenses written off against share premium (43)
Transfers to equity reserves 0
Net (loss)/earnings for the period 0 (175 148)
Balance at end of the period 2 248 030 (131 321)
Unaudited Audited
Nine months ended Year ended
March 2004 March 2003 June 2003
Changes in shareholders" equity
Balance at beginning of period 2 270 492 2 230 072 2 230 072
Share options exercised 21 408 7 936 13 584
Expenses written off against share
premium (43) (26) (33)
Transfers to equity reserves 0 (3 301) 0
Net (loss)/earnings for the period (175 148) 120 312 26 869
Balance at end of the period 2 116 709 2 354 993 2 270 492
Statement of shareholders" equity - US dollar thousand
Ordinary share Retained income/
capital and (accumulated
premium loss)
Changes in shareholders" equity
Balance at beginning of period 300 244 2 085
Share options exercised 3 045
Expenses written off against share premium (6)
Transfers to equity reserves
Net (loss)/earnings for the period 0 (24 956)
Translation adjustment 52 404
Balance at end of the period 355 687 (22 871)
Unaudited Audited
Nine months ended Year ended
March 2004 March 2003 June 2003
Changes in shareholders" equity
Balance at beginning of period 302 329 217 568 217 568
Share options exercised 3 045 831 1 489
Expenses written off against share
premium (6) (3) (4)
Transfers to equity reserves 0 (413) 0
Net (loss)/earnings for the period (24 956) 12 431 2 946
Translation adjustment 52 404 41 708 80 330
Balance at end of the period 332 816 272 123 302 329
Income statement - US dollar thousand
Unaudited
Quarter ended
March March December
2004 2003 2003
Revenue 19,459 33,019 29,855
- gold revenue 19,432 32,989 29,807
- by-products 27 30 48
Costs and expenses 22,228 27,409 28,548
- gold operating 14,707 20,741 19,512
- amortisation 6,715 5,735 8,655
- general and administration 806 933 381
Operating profit/(loss) (2,769) 5,610 1,307
Investment income 83 365 42
Finance cost 61 1,783 143
Foreign exchange gain/(loss) 0 1,676 0
Unrealised non-hedge derivatives (3,308) 0 (8,805)
Income/(loss) before exceptional items * ( 6,055) 5 868 (7, 599)
Profit on disposal of ETC mine 0 0 0
Profit on disposal of ETC houses 0 0 0
Income/(loss) before taxation (6,055) 5,868 (7,599)
Taxation 0 1,026 0
Net earnings/(loss) for the period (6,055) 4,842 (7,599)
Net earnings/(loss) excluding unrealised
non-hedge derivatives (2,747) 4,842 1,206
Headline earnings/(loss) (6,055) 4,842 (7,599)
Headline earnings/(loss) before
unrealised non-hedge derivatives ( 2 747) 4 842 1 206
Headline earnings/(loss) per share (cents) (1) 1 (1)
Headline earnings/(loss) per share before
unrealised non-hedge derivatives (0) 1 0
Earnings/(loss) per share (cents) (1) 1 (1)
Weighted number of shares in issue
(million) 681 675 679
Reconciliation of earnings and headline
earnings
Earnings/(loss) per income statement (6,055) 4,842 (7,599)
Headline earnings (6,055) 4,842 (7,599)
Unaudited Audited
Nine months ended Year ended
March March June
2004 2003 2003
Revenue 82,449 81,716 109,592
- gold revenue 82,340 81,621 109,454
- by-products 109 95 138
Costs and expenses 77,772 71,578 97,539
- gold operating 51,230 54,950 73,832
- amortisation 24,596 14,693 20,493
- general and administration 1,946 1,935 3,214
Operating profit 4,677 10,138 12,053
Investment income 202 1,011 1,424
Finance cost 610 4,622 6,354
Foreign exchange gain 0 6,930 7,319
Unrealised non-hedge derivatives (29,313) 0 (11,263)
Income/(loss) before exceptional items * ( 25 044) 13 457 3 179
Profit on disposal of ETC mine 0 0 777
Profit on disposal of ETC houses 623 0 0
Income/(loss) before taxation (24,421) 13,457 3,956
Taxation 535 1,026 1,010
Net earnings/(loss) for the period (24,956) 12,431 2,946
Net earningsexcluding unrealised
non-hedge derivatives 4,357 12,431 14,209
Headline earnings/(loss) (25,579) 12,431 2,783
Headline earnings/(loss) before
unrealised non-hedge derivatives 3 734 12 431 14 046
Headline earnings/(loss) per share (cents) (4) 2 0
Headline earningsper share before
unrealised non-hedge derivatives 1 2 2
Earnings/(loss) per share (cents) (4) 2 0
Weighted number of shares in issue
(million) 678 674 674
Reconciliation of earnings and headline
earnings
Earnings/(loss) per income statement (24,956) 12,431 2,946
Exceptional item: Profit on sale of ETC 0 0 (777)
Recoupments tax on sale of ETC 0 0 614
Profit on sale of ETC houses (623) 0 0
Recoupments tax on sale of houses 535 0 0
Headline earnings (25,044) 12,431 2,783
Balance sheet - US dollar thousand
Unaudited Unaudited Audited
March March June
2004 2003 2003
ASSETS
Non-current assets
Fixed assets 383,021 353,961 338,727
Investments 3,964 6,044 3,456
Total fixed assets 386,985 360,005 342,183
Current assets
Inventories 7,461 5,900 6,180
Trade and other receivables 5,324 6,630 4,955
Deposits and cash 17 16,727 101
12,802 29,982 11,236
Total assets 399,787 389,987 353,419
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1,071 845 901
Share premium 354,616 282,586 299,343
Reserves (22,871) 12,295 2,085
Total shareholders" equity 332,816 295,726 302,329
Non-current liabilities 54,612 53,149 19,259
Long-term loan 0 42,236 0
Deferred tax liability 0 694 0
Non-hedge derivatives 48,552 0 13,677
Long-term provisions 6 060 10,219 5,582
Current liabilities 12,359 41,112 31,831
Trade and other payables 10,798 15,273 13,865
Overdrafts and short-term borrowings 1,561 25,839 17,966
Total equity and liabilities 399 787 389 987 353 419
Cash flow statement - US dollar thousand
Unaudited Unaudited Audited
Nine months Nine months Year
ended ended ended
March 2004 March 2003 June 2003
Cash generated from/(utilised by)
operations
Operating profit 4,677 10,138 12,053
Non-cash items and adjustments
Provisions (414) (30) (608)
Profit/(loss) on sale of
assets/investments 0 0 (167)
Amortisation and depreciation 24,596 14,693 20,493
28,859 24,801 31,771
Payments to environmental trust
fund 0 0 430
Investment income 214 1,011 1,424
Finance charges (610) (4,622) (6,354)
Taxation paid (1,701) 0 0
26,762 21,190 27,271
Cash provided by/(reinvested in)
working capital
Inventories (149) (256) (2,012)
Payables and provisions (3,875) (3,541) (3,332)
Receivables 477 224 1,489
Net cash generated from operating
activities 23,215 17,617 23,416
Cash utilised in investment
activities
Fixed assets acquired (10,955) (9,547) (13,636)
Investments sold/(acquired) 27 (50) (53)
Fixed assets sold 2,361 261 390
Business sold 0 0 27,612
(8,567) (9,336) 14,313
Cash provided by financing
activities
Net increase in shareholders"
funding 3,039 1,008 1,486
Leased assets 0 (110) (157)
Decrease in long-term loans 0 (5,054) (41,249)
Increase/(decrease) in overdrafts
and short-term borrowings (17,780) (223) (8,358)
(14,741) (4,379) (48,278)
Increase/(decrease) in cash
balances (93) 3,902 (10,549)
Cash and cash equivalents at
beginning of period 101 10,616 10,616
Translation adjustment 9 2,209 34
Cash and cash equivalents at end
of period 17 16,727 101
Operating results
AVGOLD TOTAL
Unaudited
Quarter ended
March March December
2004 2003 2003
Metric
Ore milled tonnes 242 671 328 795 267 697
Gold sold kg 1 966 3 267 2 887
Yield g/t 8,10 9,93 10,78
Cash cost R/kg 50 934 53 386 46 084
Non- cash cost R/kg 26 093 17 189 20 946
Total cost R/kg 77 027 70 575 67 030
Capital expenditure R 000"s 26 966 31 870 34 255
Imperial
Ore milled tons 267 496 362 431 295 082
Gold sold oz 63 194 105 021 92 815
Yield oz/t 0,24 0,29 0,31
Cash cost US$/oz 232 197 211
Non- cash cost US$/oz 119 63 96
Total cost US$/oz 351 260 307
Capital expenditure US$ 000"s 3 954 3 785 5 045
Unaudited Audited
Nine months ended Year ended
March March June
2004 2003 2003
Metric
Ore milled 782 759 1 067 953 1 388 764
Gold sold 7 951 9 276 11 899
Yield 10,16 8,69 8,57
Cash cost 45 309 56 502 56 503
Non- cash cost 23 332 17 094 18 150
Total cost 68 641 73 596 74 653
Capital expenditure 77 014 89 885 122 905
Imperial
Ore milled 862 835 1 177 205 1 530 835
Gold sold 255 635 298 226 382 561
Yield 0,30 0,25 0,25
Cash cost 200 184 193
Non- cash cost 103 56 62
Total cost 303 240 255
Capital expenditure 10 955 9 412 13 476
TARGET
Quarter ended
March December
2004 2003 2003
Metric
Ore milled tonnes 242 671 249 417 267 697
Gold sold kg 1 966 2 583 2 887
Yield g/t 8,10 10,36 10,78
Cash cost R/kg 50 934 47 723 46 084
Non- cash cost R/kg 23 815 16 342 19 095
Total cost R/kg 74 749 64 065 65 179
Capital expenditure R 000"s 26 229 25 657 33 165
Development results:
Advanced m 2 005 1 809 2 269
Reef development m 1 514 1 374 1 324
Sampled m 402 513 549
Channel width cm 385 428 380
Channel value g/t 7,98 9,79 5,69
cm.g/t 3 074 4 191 2 162
Ore milled tons 267 496 274 932 295 082
Gold sold oz 63 194 83 045 92 815
Yield oz/t 0,24 0,30 0,31
Cash cost US$/oz 232 176 211
Non- cash cost US$/oz 109 60 88
341 237 299
Capital expenditure US$ 000"s 3 846 3 047 4 884
Nine months ended Year ended
March March June
2004 2003 2003
Metric
Ore milled 782 759 825 827 1 068 376
Gold sold 7 951 7 107 9 155
Yield 10,16 8,61 8,57
Cash cost 45 309 51 692 51 327
Non- cash cost 21 487 16 953 17 900
Total cost 66 796 68 645 69 227
Capital expenditure 74 129 72 171 100 539
Development results :
Advanced 6 231 5 718 7 431
Reef development 3 980 4 263 5 308
Sampled 1 506 1 623 1 866
Channel width 1 198 1 339 1 818
Channel value 5,93 8,00 6,76
7 110 10 708 12 298
Ore milled 862 835 910 309 1 177 671
Gold sold 255 635 228 484 294 339
Yield 0,30 0,25 0,25
Cash cost 200 168 175
Non- cash cost 95 55 61
295 224 236
Capital expenditure 10 545 7 557 11 024
AVGOLD TOTAL
Unaudited
Quarter ended
March March December
2004 2003 2003
March March December
Rand thousand 2004 2003 2003
Gold operating costs per income
statement 100,300 174,636 132,486
Add: Profit on sale of assets 0 0 881
Less: Revenue from by-products (186) (250) (328)
Cash costs 100,114 174,386 133,039
Add:
- Amortisation and depreciation 45,796 48,291 58,768
- General and administration 5,501 7,858 2,585
Less: Profit on sale of assets 0 0 881
Non-cash costs 51,297 56,149 60,472
Total cost 151,411 230,535 193,511
Gold sold kg 1,966 3,267 2,887
Production cost:
Cash cost R/kg 50,934 53,386 46,084
Non-cash cost R/kg 26,093 17,189 20,946
Total operating cost R/kg 77,027 70,575 67,030
Gold price realised R/kg 67,425 85,036 70,108
US$ thousand
Operating costs per income
statement 14,707 20,741 19,512
Add: Profit on sale of assets 0 0 129
Less: Revenue from by-products (27) (30) (48)
Cash costs 14,680 20,711 19,593
Add:
- Amortisation and depreciation 6,715 5,735 8,655
- General and administration 806 933 380
Less: Profit on sale of assets 0 0 129
Non-cash costs 7,521 6,669 8,906
Total cost 22,201 27,380 28,499
Gold sold oz 63,194 105,021 92,815
Production cost:
Cash cost US$/oz 232 197 211
Non-cash cost US$/oz 119 63 96
Total operating cost US$/oz 351 261 307
Gold price realised US$/oz 312 310 323
Unaudited Audited
Nine months ended Year ended
March March June
Rand thousand 2004 2003 2003
Gold operating costs per income
statement 360,146 524,769 673,344
Add: Profit on sale of assets 881 0
Less: Revenue from by-products (770) (905) (1,263)
Cash costs 360,257 523,864 672,081
Add:
- Amortisation and depreciation 172,907 140,322 186,900
- General and administration 13,682 18,478 29,316
Less: Profit on sale of assets 881 0 0
Non-cash costs 185,708 158,800 216,216
Total cost 545,965 682,664 888,297
Gold sold 7,951 9,276 11,899
Production cost:
Cash cost 45,309 56,502 56,503
Non-cash cost 23,332 17,094 18,150
Total operating cost 68,641 73,596 74,653
Gold price realised 72,801 84,033 83,891
US$ thousand
Operating costs per income statement 51,230 54,950 73,832
Add: Profit on sale of assets 125 0 0
Less: Revenue from by-products (109) (95) (138)
Cash costs 51,246 54,855 73,693
Add:
- Amortisation and depreciation 24,596 14,693 20,493
- General and administration 1,946 1,935 3,215
Less: Profit on sale of assets 125 0 0
Non-cash costs 26,417 16,628 23,708
Total cost 77,663 71,483 97,401
Gold sold 255,635 298,225 382,560
Production cost:
Cash cost 200 184 193
Non-cash cost 103 56 62
Total operating cost 303 240 255
Gold price realised 322 303 305
For more information contact:
Jan Steenkamp
Managing Director
Ebrahim Takolia
Investor Relations
Tel: + 27 11 634 0333
Mobile: +27 83 291 3384
Date: 28/04/2004 07:00:16 AM Produced by the JSE SENS Department
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