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CORPORATE COMMUNICATIONS DEPARTMENT
12TH FLOOR, 55 MARSHALL STREET,
JOHANNESBURG 2001
TELEPHONE: (+27 11) 637-6379
FAX (+27 11) 637 6399/6400
SB/CCD/AG029/98
TUESDAY, 20 OCTOBER 1998
ANGLOGOLD
RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 1998
ANGLOGOLD HAS ANNOUNCED ITS FINANCIAL RESULTS FOR THE QUARTER ENDED 30
SEPTEMBER 1998, IN SUMMARY, THESE ARE:
- OPERATING PROFIT UP 25 PER CENT TO R897 MILLION (INTERNATIONAL ACCOUNTING
STANDARDS: US$107 MILLION)
- AVAILABLE PROFIT UP 18 PER CENT TO R493 MILLION (IAS:US$38 MILLION)
- EARNINGS PER SHARE UP 18 PER CENT TO 504 CENTS (IAS: US 39 CENTS)
- CASH COSTS DOWN 12 PER CENT TO US$211 PER OUNCE, LARGELY BECAUSE OF WEAKER
RAND/DOLLAR EXCHANGE RATE
- GOLD PRODUCTION MAINTAINED TO JUNE QUARTER AT 53,2 METRIC TONS (1.7 MILLION
OUNCES)
- AVERAGE PRICE RECEIVED PER KILOGRAM UP 7 PER CENT TO R61 071 (IAS: US$306 PER
OUNCE)
OPERATIONAL REVIEW
. QUARTER TO QUARTER TO %
. 30 SEPT 1998 30 JUNE 1998 CHANGE
TOTAL GOLD PRODUCED (KG) 53 164 53 176 -0,02
CASH COSTS ($/OUNCE PRODUCED) 211 239 -11,7
UNDERGROUND OPERATIONS
GOLD PRODUCED (KG) 47 417 47 350 +0,14
AREA MINED (000M2) 1 143 1 079 +5,9
TONS MILLED - REEF (000) 5 893 5 699 +3,4
REEF YIELD (G/T) 7,99 8,23 -2,9
SURFACE AND DUMP RECLAMATION
GOLD PRODUCED (KG) 3 979 4 099 -2,9
TONS TREATED (000) 14 644 14 119 +3,7
YIELD (G/T) 0,27 0,29 -6,9
OPEN CUT OPERATIONS
GOLD PRODUCED (KG) 1 768 1 727 +2,4
TONS MINED (000) 1 848 2 045 -9,6
TONS TREATED (000) 703 711 -1,1
YIELD (G/T) 2,51 2,43 +3,3
COMMENTING ON THE RESULTS, ANGLOGOLD CEO BOBBY GODSELL SAID: "GIVEN THE CURRENT
UNCERTAIN GOLD MARKETS, PRODUCERS CAN ONLY CREATE WEALTH FOR THEIR SHAREHOLDERS
THROUGH THE COST-EFFECTIVE PRODUCTION OF GOLD. PARTICULARLY IN VIEW OF THE
PROSPECT OF A STRENGTHENING RAND, ANGLOGOLD'S SOUTH AFRICAN OPERATIONS WILL
HAVE TO STEP UP THEIR PERFORMANCE IN THE LAST QUARTER OF THE YEAR.
"AS PART OF THE DRIVE TO IMPROVE PRODUCTIVITY. VERY CLEAR OBJECTIVES HAVE BEEN
SET TO ELIMINATE ALL UNSKILLED JOBS AND TO PROVIDE THE COMPANY'S 85 000
EMPLOYEES WITH THE TRAINING TO MAKE THEM EFFECTIVE MEMBERS OF MULTI-SKILLED,
SELF-DIRECTED WORK TEAMS."
REGARDING MINORCO, HE REPORTED THAT ANGLOGOLD HAD SUBMITTED ITS TENDER FOR THE
GOLD ASSETS AND EXPECTED TO HEAR THE OUTCOME SHORTLY.
TURNING TO THE DOLLAR GOLD PRICE, HE OBSERVED: "THE SIGNIFICANT INSTABILITY IN
GLOBAL MARKETS HAS SEEN A MODEST IMPROVEMENT WITH TRADING IN THE $295 TO $300
RANGE FOR MUCH OF THE QUARTER. A CONSOLIDATION FIRMLY ABOVE $300 MIGHT SUGGEST
A NEW TREND IN THE PRICE. ALTHOUGH THE PAPER MARKET TRADES 50 TO 100 TIMES THE
AMOUNT OF PHYSICAL GOLD PRODUCED AND CONSUMED EACH YEAR, JEWELLERY CONSUMPTION,
ESPECIALLY IN ASIA, HAS PROVIDED A FLOOR FOR THE PRICE OVER TIME.
"FOR TOO LONG GOLD PRODUCERS, (APART FROM THOSE WHO HAVE BACKED THE ENDEAVOURS
OF THE WORLD GOLD COUNCIL) HAVE DONE LITTLE OR NOTHING TO PROMOTE THEIR
PRODUCT. ANGLOGOLD IS STRONGLY SUPPORTIVE OF THE EFFORTS UNDER WAY TO RENEW AND
STRENGTHEN A WORLD GOLD ORGANISATION. FURTHERMORE, A WIDE RANGE OF MARKET
DEVELOPMENT PROJECTS ARE UNDER CONSIDERATION BY MANAGEMENT WITH THE HOPE OF
SOME IMPORTANT NEW ACTIVITIES IN THIS AREA IN 1999."
WWW.ANGLOGOLD.COM
QUERIES:
JAMES DUNCAN
(+44) 171 404 5959
(+27 82 892 8052 (M)
SHELAGH BLACKMAN
(+2711) 637-6379 (W)
(+27) 83 308 2471 (M)
ANGLOGOLD IS LISTED ON THE JOHANNESBURG, NEW YORK, LONDON, PARIS AND BRUSSELS
STOCK EXCHANGES.
THE COMPANY HAS A MARKET CAPITALISATION OF R29,1 BILLION (US$5.1 BILLION) - AS
AT 16 OCTOBER 1998.
THE FULL ANGLOGOLD QUARTERLY RESULTS ARE AVAILABLE FROM THE JOHANNESBURG, NEW
YORK AND LONDON STOCK EXCHANGES.
ENDS
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