Wrap Text
LONMIN Plc - INTERIM STATEMENT - 31 MARCH 2004
LONMIN Plc
(Incorporated in England)
(Registered in the Republic of South Africa under registration number
1969/000015/10)
ISIN code: GB0031192486
Share code: LON
ISIN code: LOLMI
("Lonmin")
NEWS RELEASE
INTERIM STATEMENT - 31 MARCH 2004
Financial Highlights - Continuing Operations 6 months to 6 months to
31 March 31 March
2004 2003
Profits
Turnover $444m $308m
(i) EBITDA $155m $171m
(ii) EBIT $128m $148m
Profit before taxation $117m $157m
Earnings per share 26.2c 30.5c
(iii) Underlying earnings per share 39.7c 46.8c
(iv) Interim dividend per share 30.0c 30.0c
Cash flow
Trading cash flow per share 72.9c 45.4c
Free cash flow per share (11.3)c 0.7c
Balance sheet
(v) Equity interests - restated $644m $672m
Net borrowings $277m $209m
(vi) Gearing 33% 24%
Commenting on the financial results, the Chief Executive, Brad Mills said:
"We had good production performance in the first half and are looking to be able
to match last year"s production levels for the full year. Costs came under
considerable pressure due to rand/dollar exchange rate movements and one-off
costs associated with the smelter re-start.
We continue to make good progress strategically with the completion of the sale
of our Ashanti stake in April and we have achieved a number of key milestones,
as announced yesterday, necessary for the closure of our Impala/Incwala
transaction. We now expect this transaction to close in the second half of our
financial year."
NOTES ON HIGHLIGHTS
(i) EBITDA is Group operating profit before interest, tax, depreciation and
amortisation.
(ii) EBIT is total operating profit.
(iii) Underlying earnings per share are calculated on attributable profit
excluding exceptional items and exchange adjustments on tax as disclosed in note
7 to the Interim Accounts.
(iv) The interim dividend will be paid on 13 August 2004 to shareholders on the
registers on 16 July 2004.
(v) Equity interests have been restated to show the investment in the Employee
Share Trust as a deduction from shareholders" funds.
(vi) Gearing is calculated on the equity and minority interests of the Group.
Press enquiries: Anthony Cardew/Olivia Gallimore, Cardew Chancery- +44 (0)20
7930 0777
This press release is available on the Company"s website http://www.lonmin.com
A live webcast of the satellite linked Interim Results presentation to analysts
in London and Johannesburg will be transmitted via the Company"s website from
09.30hrs BST today, 13 May 2004.
High resolution images are available for the media to view and download free of
charge from http://www.vismedia.co.uk
CHIEF EXECUTIVE"S STATEMENT
Introduction
The first six months of the 2004 financial year saw an acceleration of change at
Lonmin with substantial progress achieved toward our strategic objectives.
Key achievements were:
- Increased platinum production of 19.7% to 404,574 ounces.
- Increased total PGM production of 13.8% to 732,777 ounces.
- Completion of the arrangements for the sale of our stake in Ashanti to
AngloGold (this transaction closed in April 2004).
- Substantial progress in our BEE equity transaction with Impala and Incwala.
- Leadership transition occurred toward the end of the period with myself
assuming the role of Chief Executive from March 26th.
Financial results
Financial results were mixed compared to the first half of the 2003 financial
year. Attributable profit deteriorated by 14% to $37 million while net cash
flow from operations increased by 57.8% to $161 million.
Sales increased by 44% to $444 million on the strength of a 32.1% increase in
the price of platinum ($811/oz versus $614/oz). Unfortunately, costs in US
dollar terms increased by 78.8% ($372/PGM oz versus $208/PGM oz) on the strength
of the South African rand (up 26%) versus the US dollar and increased rand costs
up 31.5% to R2,423/PGM oz.
Approximately half of the rand cost increases were due to events that will not
be repeated in the second half of 2004. Such non-repeatable costs include those
associated with final repairs and start up of the new smelter and custom tolling
contracts for concentrate that we could not process during the period due to the
smelter repairs.
Platinum operations
Our core value in operations is safety. Unfortunately we experienced 4
fatalities during this period which was unchanged from the comparable period
last year. We have undertaken a complete review of our safety programmes and
introduced a new approach - "The Road to Zero" with the intent of eliminating
all fatalities and serious injuries.
Production results were solid as noted above. The smelter was successfully
restarted in January with steadily rising production.
Our capital growth projects are all on track to achieve our objective of 1
million ounces of Pt/year by 2008. The Pandora JV licence was received at the
end of April and we are reviewing with our partners on how best to proceed with
this project.
Markets
The fundamental demand for our PGM metals was and remains very strong. We saw
significant speculation entering the market during the period which resulted in
the price of platinum being driven to a new 23-year high of $924 per ounce in
March.
We see continued expansion of PGM use in automobile catalysts, diesel truck
catalysts, electronics and fuel cells and we expect this trend to continue and
possibly accelerate. China has introduced requirements for autocatalyst
emission controls which will underpin future PGM demand growth. Jewellery
demand softened during the period as the price of platinum reached new highs.
Outlook and dividend
We expect trading conditions to remain strong for the balance of the year and we
expect our operations will continue to meet our production growth targets while
improving both our safety and cost performance.
We anticipate that we will be able to finalise our black empowerment transaction
in the second half of the year and we will continue to concentrate fully on
growing the business.
Given the Group"s strong underlying cash flow performance and our favourable
outlook, the Board has declared an interim dividend of 30 cents per share.
I would like to take this opportunity to thank all of our employees for their
tireless efforts to achieve these quality results and I look forward, as the new
Chief Executive, to working with all of the staff to build a great mining
company.
Bradford A Mills
Chief Executive
12 May 2004
FINANCIAL REVIEW
Basis of preparation
The interim report presented has been prepared on the same basis and using the
same accounting policies as those which were used in preparing the financial
statements for the year ended 30 September 2003 with the exception of accounting
for employee share ownership plans (ESOPs) which has required a presentational
restatement as disclosed in note 1 to the Interim Accounts.
Profits
A comparison of the 2004 interim operating profit with the prior period is set
out below:
$m
Operating profit for the six months to 31 March 2003 148
Increase in sales volumes 21
Increase in sales prices 70
Exchange (62)
Smelting and refining costs (13)
Stock adjustment (13)
Inflation and other items (23)
Operating profit for the six months to 31 March 2004 128
The average price realised for the basket of metals sold was 23% higher than the
prior period which, coupled with an increase in sales volumes, contributed to an
increase of 44% in turnover to $444 million. Costs were higher than the prior
period due to a combination of the increased production and higher smelting
costs. The strength of the South African rand against the US dollar has
impacted on costs in dollar terms as can be seen above with the average exchange
rate appreciating some 26% on the prior period. The resulting operating profit
of $128 million was 14% lower than the prior period. Net interest payable and
similar items amounted to $11 million compared with $13 million for the prior
period. Lower exchange losses arose because most of the net borrowings were
held in US dollars for the 2004 interim period but interest and finance costs
were higher primarily due to the amortisation of expenses on bank facilities.
Profit before tax for the 2004 period amounted to $117 million compared with
$157 million for the six months to 31 March 2003.
The 2004 interim tax charge was $65 million (March 2003 - $95 million) and
included exchange losses of $30 million (March 2003 - $49 million). An
exceptional tax credit has been included in the tax charge in respect of South
African tax over-provided in 2003 on the disposal of the Brakspruit mineral
rights. The effective tax rate, excluding the effects of exchange and
exceptional items, was 33% compared with 32% in the corresponding period.
Attributable profit was $37 million for the 2004 interim period compared with
$43 million in 2003 and earnings per share in 2004 were 26.2 cents compared with
30.5 cents for the prior period. Underlying earnings per share, being earnings
excluding exchange on tax balances and exceptional items amounted to 39.7 cents
(March 2003 - 46.8 cents).
Balance sheet
Equity interests were $644 million at 31 March 2004, compared with $645 million
(restated for ESOP accounting) at 30 September 2003. The movements during the
six months mainly reflected the profits earned of $37 million offset by the 2004
interim dividend declared of $42 million.
Net borrowings amounted to $277 million compared with $209 million at 31 March
2003. The main component within net borrowings was the convertible bonds of
$216 million. Gearing was 43% on equity interests and 33% on equity and
minority interests (31 March 2003 - 31% on equity interests and 24% on equity
and minority interests).
Cash flow
The following table summarises the cash flows during the period:
March 2004 March 2003
$m $m
Net cash inflow from operating activities 161 102
Interest and finance costs (9) (4)
Tax (49) (34)
Trading cash flow 103 64
Capital (85) (75)
expenditure - purchases
- sales - 25
Minority dividends (34) (13)
Free cash flow (16) 1
Financial investments, acquisitions and disposals (6) 13
Shares issued 4 -
Equity dividends paid (59) (59)
Cash outflow (77) (45)
Opening net borrowings (197) (155)
Exchange (3) (9)
Closing net borrowings (277) (209)
Trading cash flow per share 72.9c 45.4c
Free cash flow per share (11.3)c 0.7c
Net cash inflow from operating activities was $161 million, a 58% increase on
the corresponding period of $102 million. The increase arose primarily from a
markedly lower outflow of working capital than in the corresponding period last
year. After interest and finance costs of $9 million and tax paid of $49
million, trading cash flow amounted to $103 million compared with $64 million in
the corresponding period. Trading cash flow per share was 72.9 cents (March
2003 - 45.4 cents).
Capital expenditure of $85 million showed an increase of 13% on the prior
period. This increase included the effect of the marked appreciation in the
South African rand during the period; actual rand expenditure decreased by 13%.
After minority dividends paid of $34 million, free cash flow was $(16) million
and free cash flow per share was (11.3) cents (March 2003 - 0.7 cents). Equity
dividends paid amounted to $59 million and the cash outflow for the period was
$77 million. Net borrowings amounted to $277 million at 31 March 2004.
Dividend
The Board has declared an interim dividend of 30.0 cents per share for 2004
(March 2003 - 30.0 cents per share). This represents a cover of 0.9 times on
earnings (March 2003 - 1.0 times). On an underlying earnings basis, this
represents a cover of 1.3 times compared with 1.6 times in 2003.
John Robinson
Executive Director Finance
12 May 2004
STATISTICS
March March
2004 2003
Tons milled (excluding slag)
- underground (000) 5,646 5,610
- opencast (000) 1,582 1,254
- total (000) 7,228 6,864
Tons mined
- underground (000) 5,617 5,555
- opencast (000) 1,158 1,252
- total (000) 6,775 6,807
Noble metals in matte (kg) 26,161 23,328
Refined production of (1)
- platinum (oz) 404,574 337,880
- palladium (oz) 177,093 153,411
- rhodium (oz) 46,893 51,271
- ruthenium (oz) 81,029 78,930
- iridium (oz) 13,413 15,477
- gold (oz) 9,775 6,886
- total PGM"s + gold (oz) 732,777 643,855
Capital expenditure (R millions) 567 652
($ millions) 85 75
Sales (1)
- platinum (oz) 414,230 347,391
- palladium (oz) 182,530 162,711
- rhodium (oz) 59,272 49,167
- ruthenium (oz) 108,614 110,328
- iridium (oz) 22,175 22,290
- gold (oz) 10,008 7,451
- total PGM"s + gold (oz) 796,829 699,338
Average price received per ounce
- platinum (R) 5,358 5,376
($) 811 614
- palladium (R) 1,485 2,249
($) 227 254
- rhodium (R) 3,488 5,297
($) 531 601
Basket price of metals (UG2 ore) ($/kg) 16,387 13,425
Cash cost per refined ounce of platinum (R) 4,422 3,537
($) 679 399
Cash cost per refined ounce of platinum (R) 2,648 1,153
net of other metal revenue ($) 410 130
Cash cost per refined ounce of PGM (R) 2,441 1,856
(including royalties) ($) 375 209
Cash cost per refined ounce of PGM
(excluding royalties)
- underground (R) 2,555 1,825
($) 392 206
- opencast (R) 1,934 1,976
($) 297 223
- total (R) 2,423 1,843
($) 372 208
Average exchange rates
- Sterling (GBP/$) 0.56 0.63
- SA rand (R/$) 6.51 8.79
- Zimbabwe dollar (2) (Z$/$) - 1,000
Closing exchange rates
- Sterling (GBP/$) 0.55 0.64
- SA rand (R/$) 6.31 8.00
- Zimbabwe dollar (2) (Z$/$) - 1,000
Notes:
(1) The statistics include refined production of metals sold in concentrate form
and slag sales of:
Platinum - 1,697oz (2003 - 9,650oz)
Palladium - 848 oz (2003 - 4,490oz)
Rhodium - 233 oz (2003 - 1,481oz)
(2) The Zimbabwe dollar 2003 exchange rate was applicable for the month of
October 2002 only up to the date of disposal of the gold mining interests.
Independent Review Report by KPMG Audit Plc to Lonmin Plc
Introduction
We have been engaged by the Company to review the financial information set out
on pages 8 to 15 and we have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the Company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the Company
for our review work, for this report, or for the conclusions we have reached.
Directors" responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the interim report in accordance with the Listing
Rules which require that the accounting policies and presentation applied to the
interim figures should be consistent with those applied in preparing the
preceding annual accounts except where they are to be changed in the next annual
accounts in which case any changes, and the reasons for them, are to be
disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4: Review of interim financial information issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making
enquiries of Group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially less
in scope than an audit performed in accordance with Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2004.
KPMG Audit Plc
Chartered Accountants
London
12 May 2004
Consolidated Profit and Loss Account
6 months to 6 months to
31 March 31 March
2004 2003
$m $m
Turnover 444 308
Net operating costs (289) (137)
EBITDA (2) 155 171
Depreciation (26) (22)
Group operating profit 129 149
Share of associate"s operating loss (1) (1)
Total operating profit 128 148
Profit on sale of fixed assets - 24
Loss on sale or termination of operations - (2)
Profit before net interest payable and similar 128 170
items (11) (13)
Net interest payable and similar items
Profit before taxation 117 157
Taxation (3) (65) (95)
Profit after taxation 52 62
Equity minority interest (15) (19)
Profit for the period 37 43
Interim dividend (42) (42)
Retained (loss)/profit for the period (5) 1
26.2c 30.5c
Earnings per share
Diluted earnings per share 25.6c 30.4c
Interim dividend per share 30.0c 30.0c
Financial ratios
Tax rate (4) 33% 32%
Net debt to EBITDA (5) 0.8 times 0.5 times
Notes:
(1) The results for both periods relate to continuing operations.
(2) EBITDA is Group operating profit before interest, tax, depreciation and
amortisation.
(3) The taxation charge includes exchange losses of $30 million (March 2003 -
$49 million) as disclosed in note 5 to the Interim Accounts.
(4) The tax rate has been calculated excluding exchange and exceptional items
as disclosed in note 5 to the Interim Accounts.
(5) EBITDAs used in this calculation are for the 12 month periods to March 2004
and 2003.
Consolidated Balance Sheet
As at As at As at
31 March 30 Sept 31 March
2004 2003 2003
Restated Restated
$m $m $m
Fixed assets
Tangible assets 1,042 983 920
Investments: 288 289 290
Associate
Other investments
3 4 4
285 285 286
Total fixed assets 1,330 1,272 1,210
Current assets
Stocks 128 100 106
Debtors 132 159 112
Investments 3 3 2
Cash and short-term deposits 68 66 6
Total current assets 331 328 226
Creditors:amounts falling due within one year (281) (249) (176)
Current loans and overdrafts (129) (46) (64)
Other (152) (203) (112)
Net current assets 50 79 50
Total assets less current liabilities 1,380 1,351 1,260
Creditors:amounts falling due after more than
one year (212) 215) (154)
Convertible debt (212) (211) -
Other - (4) (154)
Provisions for liabilities and charges0 (326) (277) (221)
842 859 885
Capital and reserves
Called up share capital 141 141 141
Reserves 503 504 531
Equity shareholders" funds 644 645 672
Equity minority interest 198 214 213
842 859 885
Net borrowings 277 197 209
Note:
Equity shareholders" funds have been restated to show the investment in the
Employee Share Trust as a deduction (see note 1 to the Interim Accounts on page
12).
Consolidated Cash Flow Statement
6 months to 6 months to
31 March 31 March
2004 2003
$m $m
Net cash inflow from operating activities 161 102
Returns on investment and servicing of finance (43) (17)
Net interest paid (6) (4)
Finance expenses (3) -
Dividends paid to minority (34) (13)
Taxation (49) (34)
Capital expenditure and financial investment (85) (51)
Acquisitions and disposals (6) 14
Equity dividends paid (59) (59)
Net cash outflow before financing (81) (45)
Financing 3 20
Short-term loans (1) -
Long-term loans - 20
Issue of share capital 4 -
Decrease in cash in the period (78) (25)
Reconciliation of Group operating profit to net
cash inflow from operating activities:
Group operating profit 129 149
Depreciation charge 26 22
Increase in working capital (3) (71)
Other items 9 2
Net cash inflow from operating activities 161 102
Note:
The cash flows for both periods relate to continuing operations.
Statement of Total Consolidated Recognised Gains and Losses
6 months to 6 months to
31 March 31 March
2004 2003
$m $m
Profit/(loss) for the period - Group 38 44
- Associate (1) (1)
Total consolidated recognised gains and losses
relating to the period 37 43
Prior year adjustment for ESOP accounting (note 1) (3)
Total consolidated recognised gains and losses since
last Annual Report 34
Reconciliation of Movement in Equity Shareholders" Funds
6 months 6 months to
to 31 March
31 March 2003
2004 Restated
$m $m
Total consolidated recognised gains and losses
relating to the period 37 43
Dividend (42) (42)
Retained (loss)/profit for the period (5) 1
Shares issued on the exercise of share options 4 -
Net (decrease)/increase in equity shareholders" funds
in the period (1) 1
Equity shareholders" funds at 1 October - restated
for ESOP accounting (note 1) 645 671
Equity shareholders" funds at 31 March 644 672
Notes to the Interim Accounts
1. Basis of preparation
The interim accounts have been prepared on the same basis and using the same
accounting policies as those used to prepare the financial statements of the
Lonmin Group for the year ended 30 September 2003 with the exception of
the implementation of the provisions of Urgent Issues Task Force (UITF) Abstract
38 - Accounting for Employee Share Ownership Plan (ESOP) Trusts.
UITF Abstract 38 changes the presentation of an entity"s own shares held in an
ESOP trust by requiring them to be deducted in arriving at shareholders" funds
instead of showing them as an asset. Accordingly, the prior periods" balance
sheets have been restated to show shares held in the Lonmin ESOP of $3 million
as at 30 September 2003 and $4 million as at 31 March 2003 as a deduction from
shareholders" funds instead of as a fixed asset investment.
2. Segmental analysis
By business origin:
6 months to 31 March 2004
Total Profit Net
before Profit
Turnover EBITDA operating operating
$m $m profit exceptionals before
$m $m assets
tax $m
$m
Platinum 444 166 141 134 134 869
Gold - - - - - 277
Exploration - (2) (3) (3) (3) 3
Other - (1) (1) (1) (1) -
Corporate - (8) (9) (13) (13) 12
444 155 128 117 117 1,161
South
Africa 444 158 133 126 126 866
Ghana - - - - - 277
Other - 5 4 4 4 6
Corporate - (8) (9) (13) (13) 12
444 155 128 117 117 1,161
2. Segmental analysis - continued
6 months to 31 March 2003
Total Profit Profit Net
operating before before operating
Turnover EBITDA profit exceptionals tax assets
$m $m $m $m $m $m
Platinum 304 180 158 146 170 855
Gold 4 1 1 1 (1) 277
Exploration - (4) (5) (5) (5) 5
Other - 1 1 1 1 -
Corporate - (7) (7) (8) (8) (1)
308 171 148 135 157 1,136
South
Africa 304 174 152 140 164 852
Zimbabwe 4 1 1 1 (1) -
Ghana - - - - - 277
Other - 3 2 2 2 8
Corporate - (7) (7) (8) (8) (1)
308 171 148 135 157 1,136
Net operating assets exclude net borrowings of $277 million at 31 March 2004 (31
March 2003 - $209 million) and the interim dividend proposed of $42 million at
31 March 2004 (31 March 2003 - $42 million).
3. Net interest and similar items
6 months to 6 months to
31 March 2004 31 March 2003
$m $m
Net financing cost payable 8 4
Exchange differences on net borrowings 3 9
Net interest payable and similar items 11 13
4. Exceptional items
6 months to 6 months to
31 March 2004 31 March 2003
$m $m
Profit on sale of fixed assets:
- Sale of Brakspruit mineral rights - 24
Sale or termination of operations:
- Loss on sale of gold mining interests - (2)
Exceptional items before taxation and minority
interest - 22
Taxation 4 (3)
Minority interest - (6)
Net exceptional profit 4 13
The exceptional tax credit in the 6 months to 31 March 2004 is an adjustment
representing the closing US dollar value of South African tax over-provided in
2003 on the disposal of the Brakspruit mineral rights.
Lonmin Plc
5. Taxation
6 months to 6 months to
31 March 2004 31 March 2003
$m $m
United Kingdom:
Corporation tax at 30% (March 2003 - 30%) 12 -
Double tax relief (12) -
Overseas: - -
Current taxation
25 33
Excluding tax on local currency exchange
profits
Tax on local currency exchange profits
Tax on exceptional items
Tax on dividends remitted
Exchange on current taxation
Deferred taxation
Origination and reversal of timing differences
Exchange on deferred taxation
Prior year items
Exceptional
Other
18 29
- (2)
- 3
5 -
2 3
47 62
19 14
28 48
(7) -
(4) -
(3) -
Tax charge 65 95
Tax charge excluding exceptional items and
exchange 39 43
Effective tax rate excluding exceptional items
and exchange 33% 32%
6. Dividend
An interim dividend of 30.0 cents per share (30.0 cents per share for the six
months to 31 March 2003) will be paid on 13 August 2004 to shareholders on the
registers at the close of business on 16 July 2004.
7. Earnings per share
The calculation of earnings per share is based on a weighted average number of
141,242,151 ordinary shares in issue for the six months to 31 March 2004
(140,984,432 ordinary shares in issue for the six months to 31 March 2003).
Diluted earnings per share are based on the weighted average number of ordinary
shares in issue adjusted by dilutive outstanding share options and shares
issuable on conversion of the convertible bonds during the period as follows:
6 months to 31 March 2004 6 months to 31 March 2003
Profit Number of Per Profit Number of Per
for shares share for shares share
the amount the amount
period cents period cents
$m $m
Basic EPS 37 141,242,151 26.2 43 140,984,432 30.5
Share option
schemes - 618,316 (0.1) - 344,251 (0.1)
Convertible
bonds 2 10,576,993 (0.5) - - -
Diluted EPS 39 152,437,460 25.6 43 141,328,683 30.4
Underlying earnings per share are based on the profit for the period adjusted to
exclude exceptional items and exchange on tax balances as follows:
6 months to 31 March 2004 6 months to 31 March 2003
Profit Number of Per Profit Number of Per
for shares share for shares share
the amount the amount
period cents period cents
$m $m
Basic EPS 37 141,242,151 26.2 43 140,984,432 30.5
Exceptional
items before
taxation and
minority
interest - - - (22) - (15.6)
Taxation on
exceptional
items (4) - (2.8) 3 - 2.1
Exchange on tax
balances 30 - 21.3 49 - 34.8
Minority
interest (7) - (5.0) (7) - (5.0)
Underlying EPS 56 141,242,151 39.7 66 140,984,432 46.8
8. Post balance sheet event
On 26 April 2004 the merger of AngloGold Limited (AngloGold) and Ashanti
Goldfields Company Limited (Ashanti) became effective. On 26 April 2004 Lonmin
received 10,440,000 AngloGold Ashanti shares based on the merger terms of 0.29
AngloGold shares for each Ashanti share held, with a market value at the
previous mid-market close of $347 million. The book value of the Ashanti
shares, shown within fixed asset investments, was $200 million as at 31 March
2004 and prior to the merger becoming effective. Also included within fixed
asset investments at 31 March 2004 and prior to the merger becoming effective
were $75 million of mandatorily exchangeable notes (MENs) subscribed for in
2002. These MENs were repaid in full with interest on 27 April 2004.
9. Statutory disclosure
The balance sheet at 30 September 2003 is taken from, but does not constitute,
the Company"s statutory accounts for the year ended 30 September 2003. Accounts
for that year have been delivered to the Registrar of Companies. The
Auditors made an unqualified report thereon and such report did not contain a
statement under section 237(2) or (3) of the Companies Act 1985.
Date: 13/05/2004 08:00:31 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
Sharenet Sites 
