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ANGLOGOLD LIMITED - REPORT TO SHAREHOLDERS FOR THE QUARTER AND SIX MONTHS ENDED
30 JUNE 2002
ANGLOGOLD LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Code: ANG
ISIN: ZAE0014601
REPORT TO SHAREHOLDERS
FOR THE QUARTER AND SIX MONTHS ENDED 30 JUNE 2002
ANOTHER SOUND QUARTER WITH SIGNIFICANT HEDGE BOOK REDUCTIONS
Group results for the quarter...
* Hedge book reduced by a further 2.4Moz (165% of quarter`s production)
to 10.5Moz.
* Operating profit up 10% to $162m.
* Headline earnings marginally down to $87m.
* Net profit up $8m to $79m.
* Received gold price up $18/oz to $305/oz.
* Stengthening rand impacts on total cash costs - up by 7% or $10/oz
to $161/oz.
* Gold production up 4% to 1.4Moz.
...and for the half year
* Operating profit up 31% to $309m compared with the same period in 2001.
* Headline earnings up 44% to $176m.
* Total cash costs down 17% to $156/oz due to weakened rand and changed
asset mix.
* Gold production down to 2.8Moz mainly due to the sale of the Free State
assets.
* Interim dividend of R13.50/share ($0.66/ADS) declared for first half
of 2002, an increase of 93% compared to the 2001 interim dividend.
Regional operating results for the quarter
SOUTH AFRICA
* Operating profit down 5% to R1.13bn ($108m).
* Total cash costs up 2% to R51,234/kg (up 12% to $152/oz).
* Gold production up by 386kg (13,000oz) to 26,422kg (850,000oz),
despite effect of seismic events at Great Noligwa.
* Seismicity contributes to 15 fatalities for the quarter.
EAST AND WEST AFRICA
* Mixed performance for the quarter with difficulties experienced at
Sadiolaand Yatela.
* Operating profit down 8% to $22m.
* Total cash costs up 13% to $144/oz.
* Gold production down 2% to 233,000oz (attributable).
NORTH AMERICA
* Better weather conditions contribute to improved performances.
* Operating profit up from loss-making position to break-even.
* Gold production up 20% to 114,000oz.
* Total cash costs down to $213/oz.
SOUTH AMERICA
* Operating profit marginally lower at $14m.
* Total cash costs up marginally to $129/oz.
* Gold production up 2% to 104,000oz.
* Consistent, commendable safety performances.
AUSTRALIA
* Exceedingly strong performance from Sunrise Dam with improvements at
Union Reefs.
* Operating profit up 188% to A$23m ($12m).
* Total cash costs down 11% to A$337/oz ($186/oz).
* Gold production up 16% to 135,000oz.
* Boddington plant on "care and maintenance".
Six Six
Quarter Quarter months months
ended ended ended ended
Jun Mar Jun Jun
2002 2002 2002 2001
Dollar/Imperial
Gold
Produced - - oz (000)/kg 1,426 1,377 2,803 3,482
Price received* - $/oz/R/kg sold 305 287 296 290
Total cash costs- $/oz/R/kg produced 161 151 156 189
Total production costs
- $/oz/R/kg produced 201 188 195 225
Operating profit - $/R million 124 118 242 234
Operating profit including realised
non-hedge derivatives - $/R million 162 147 309 236
Net profit - $/R million 79 71 150 106
Headline earning - $/R million 87 93 180 127
Headline earnings before unrealised
non-hedging derivatives - $/R million 87 89 176 122
Capital expenditure - $/R million 67 51 118 142
Net earnings (basic) - cents per share 71 64 135 99
Headline earnings - cents per share 79 84 163 119
Headline earnings before unrealised
non-hedging derivatives-cents per share 79 81 159 114
Dividends -cents per share 132 85
* Price received includes realised non-hedge derivatives
Six Six
Quarter Quarter months months
ended ended ended ended
Jun Mar Jun Jun
2002 2002 2002 2001
Rand/Metric
Gold
Produced - - oz (000)/kg 44,369 42,816 87,185 108,292
Price received* - $/oz/R/kg sold 102,498 106,181 104,305 73,915
Total cash costs
- $/oz/R/kg prod 54,177 56,033 55,085 48,061
Total production costs
- $/oz/R/kg prod 67,645 69,653 68,629 57,309
Operating profit - $/R million 1,304 1,359 2,663 1,859
Operating profit including realised
non-hedge derivatives - $/R million 1,687 1,696 3,383 1,878
Net profit - $/R million 828 810 1,638 846
Headline earnings - $/R million 903 1,070 1,973 1,013
Headline earnings before unrealised
non-hedging derivatives - $/R million 905 1,027 1,932 975
Capital expenditure - $/R million 709 588 1,297 1,124
Net earnings (basic) - cents per share 748 734 1,479 790
Headline earnings - cents per share 815 969 1,782 947
Headline earnings before unrealised
non-hedging derivatives
- cents per share 817 930 1,745 911
Dividends - cents per share 1,350 700
* Price received includes realised non-hedge derivatives
Certain forward-looking statements
Certain statements contained in this document, including, without limitation,
those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices and production, the completion and
commencement of commercial operations of certain of AngloGold`s exploration and
production projects, and its liquidity and capital resources and expenditure,
contain certain forward-looking statements regarding AngloGold`s operations,
economic performance and financial condition. Although AngloGold believes that
the expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been correct.
Accordingly, results could differ materially from those set out in the forward-
looking statements as a result of, among other factors, changes in economic and
market conditions, success of business and operating initiatives, changes in the
regulatory environment and other government actions, fluctuations in gold prices
and exchange rates, and business and operational risk management.
Annual report on Form 20-F
On 28 June 2002, AngloGold filed its annual report on Form 20-F for the year
ended 31 December 2001, in accordance with Securities and Exchange Commission
requirements, under Commission file number 0-29874. A printed copy of the
report is available on request from the Contacts as listed on the inside back
cover.
List of abbreviations
$ United States dollars
A$ Australian dollars
bn billion
capex capital expenditure
FIFR Fatal Injury Frequency Rate per million hours worked
g grams
g/t grams per tonne
kg kilograms
LOM Life of Mine
LTIFR Lost Time Injury Frequency Rate per million hours worked. AngloGold
utilises the strictest definition in reporting LTIFR in that it includes all
Disabling Injuries (where an individual is unable to return to his place of
regular work the next calendar day after the injury) and Restricted Work Cases
(where the individual may be at work, but unable to perform full or regular
duties on the next calendar day after the injury) within this definition.
m metre or million; depending on the context
m2 square metres
Mt million tonnes or tons
Mtpa million tonnes/tons per annum
Moz million ounces
oz ounces (troy)
R / rand South African rands
RIFR Reportable Injury Frequency Rate per million hours worked
t tons (short) or tonnes (metric)
tpa tonnes per annum
tpm tonnes per month
VCR Ventersdorp Contact Reef
Published by AngloGold
PO Box 62117
Marshalltown
2107
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6399/6400
E-mail: investors@anglogold.com
GROUP OPERATING RESULTS
Issued Capital: 111,117,369 ordinary shares of 50 cents each
2,000,000 A redeemable preference shares
778,896 B redeemable preference shares
All the preference shares are held by a wholly owned
subsidiary company
Weighted average: 110,739,209 ordinary shares in issue for the period
Statistics are shown in metric units and financial figures in
South African rand.
Quarter Quarter Six months Six months
ended ended ended ended
June March June June
2002 2002 2002 2001
GOLD
UNDERGROUND OPERATIONS
Tonnes milled - 000 - reef 3,372 3,088 6,460 9,091
- waste - - - 2
- total 3,372 3,088 6,460 9,093
Yield - g/t - reef 8.27 8.64 8.45 8.14
- waste - - - 1.00
- average 8.27 8.64 8.45 8.14
Gold produced - kg - reef 27,871 26,687 54,558 73,982
- waste - - - 2
- total 27,871 26,687 54,558 73,984
PRODUCTIVITY
g/employee - target 245 237 241 211
- actual 239 232 236 206
SURFACE AND DUMP RECLAMATION
Tonnes treated - 000 9,592 9,621 19,213 26,067
Yield - g/t 0.30 0.31 0.30 0.32
Gold produced - kg 2,839 3,021 5,860 8,441
OPEN-PIT OPERATIONS
Tonnes mined - 000 27,824 24,828 52,652 38,807
Stripping ratio * 3.33 3.21 3.27 1.86
Tonnes treated - 000 6,423 5,896 12,319 13,582
Yield - g/t 2.13 2.22 2.17 1.90
Gold produced - kg 13,659 13,108 26,767 25,867
TOTAL
Gold produced - kg 44,369 42,816 87,185 108,292
Gold sold - kg 44,271 42,630 86,901 108,004
Price received - R/kg sold** 102,498 106,181 104,305 73,915
Total cash costs
- R/kg produced 54,177 56,033 55,085 48,061
Total production
costs - R/kg produced 67,645 69,653 68,629 57,309
CAPITAL EXPENDITURE
- mining direct 602 514 1 116 929
- other 107 74 181 195
709 588 1 297 1 124
* Stripping ratio = (tonnes mined - tonnes treated) / tonnes treated
** Price received includes realised non-hedge derivative gains (losses)
GROUP OPERATING RESULTS
Issued Capital: 111,117,369 ordinary shares of 50 cents each
2,000,000 A redeemable preference shares
778,896 B redeemable preference shares
All the preference shares are held by a wholly owned
subsidiary company
Weighted average: 110,739,209 ordinary shares in issue for the period
Statistics are shown in imperial units and financial figures in US dollars.
Quarter Quarter Six months Six months
ended ended ended ended
June March June June
2002 2002 2002 2001
GOLD
UNDERGROUND OPERATIONS
Tons milled - 000 - reef 3,717 3,404 7,121 10,022
- waste - - - 2
- total 3,717 3,404 7,121 10,024
Yield - oz/t - reef 0.241 0.252 0.246 0.237
- waste - - - -
- average 0.241 0.252 0.246 0.237
Gold produced - oz 000 - reef 896 858 1,754 2,379
- waste - - - -
- total 896 858 1,754 2,379
PRODUCTIVITY
oz/employee - target 7.87 7.62 7.74 6.78
- actual 7.68 7.47 7.58 6.62
SURFACE AND DUMP RECLAMATION
Tons treated - 000 10,573 10,606 21,179 28,733
Yield - oz/t 0.009 0.009 0.009 0.009
Gold produced - oz 000 91 97 188 271
OPEN-PIT OPERATIONS
Tons mined - 000 30,671 27,368 58,039 42,777
Stripping ratio * 3.33 3.21 3.27 1.86
Tons treated - 000 7,080 6,499 13,579 14,972
Yield - oz/t 0.062 0.065 0.063 0.056
Gold produced - oz 000 439 422 861 832
TOTAL
Gold produced - oz 000 1,426 1,377 2,803 3,482
Gold sold - oz 000 1,423 1,371 2,794 3,472
Price received - $/oz sold ** 305 287 296 290
Total cash costs
- $/ounce produced 161 151 156 189
Total production costs
- $/ounce produced 201 188 195 225
Rand/US Dollar average
exchange rate 10.46 11.51 10.99 7.93
CAPITAL EXPENDITURE
- mining direct 57 45 102 117
- other 10 6 16 25
67 51 118 142
* Stripping ratio = (tons mined - tons treated) / tons treated
** Price received includes realised non-hedge derivative gains (losses)
GROUP INCOME STATEMENT
Quarter Quarter Six months Six months
ended ended ended ended
June March June June
SA Rand Million 2002 2002 2002 2001
Gold income 4,252 4,291 8,543 8,091
Cost of sales (2,948) (2,932) (5,880) (6,232)
Cash operating costs 2,359 2,377 4,736 5,116
Other cash costs 60 57 117 119
Total cash costs 2,419 2,434 4,853 5,235
Retrenchment costs 11 14 25 127
Rehabilitation and other
non-cash costs 11 15 26 22
Production costs 2,441 2,463 4,904 5,384
Amortisation of mining assets 598 577 1,175 884
Total production costs 3,039 3,040 6,079 6,268
Inventory change (91) (108) (199) (36)
Operating profit 1,304 1,359 2,663 1,859
Realised non-hedge
derivative gains 383 337 720 19
Operating profit including
realised non-hedge derivatives 1,687 1,696 3,383 1,878
Corporate administration
and other expenses (55) (51) (106) (89)
Market development costs (44) (44) (88) (63)
Research and development costs (4) (3) (7) (10)
Exploration costs (73) (70) (143) (101)
Interest receivable 111 93 204 82
Other net income (expense) 2 (14) (12) (15)
Finance costs (127) (133) (260) (333)
Unrealised non-hedge
derivative gains 5 72 77 62
Abnormal item - settlement
of legal claim (102) - (102) -
Profit before exceptional items 1,400 1,546 2,946 1,411
Amortisation of goodwill (72) (81) (153) (111)
Debt written-off - - - (21)
Impairment of mining assets - - - (3)
Loss on disposal of assets (5) (132) (137) (38)
Termination of retirement
benefit plans 2 - 2 -
Profit on ordinary activities
before taxation 1,325 1,333 2,658 1,238
Taxation (464) (491) (955) (363)
Normal and deferred taxation (504) (415) (919) (345)
Deferred tax on unrealised
non-hedge derivatives (7) (29) (36) (24)
Taxation on abnormal item 47 - 47 -
Taxation on exceptional items - (47) (47) 6
Profit on ordinary activities
after taxation 861 842 1,703 875
Minority interest (33) (32) (65) (29)
Net profit 828 810 1,638 846
Headline earnings
The net profit has been adjusted
by the following to arrive at
headline earnings:
Net profit 828 810 1,638 846
Amortisation of goodwill 72 81 153 111
Debt written-off - - - 21
Impairment of mining assets - - - 3
Loss on disposal of assets 5 132 137 38
Termination of retirement
benefit plans (2) - (2) -
Taxation on exceptional items - 47 47 (6)
Headline earnings 903 1,070 1,973 1,013
Unrealised non-hedge
derivative gains (5) (72) (77) (62)
Deferred tax on unrealised
non-hedge derivatives 7 29 36 24
Headline earnings before
unrealised non-hedge derivatives 905 1,027 1,932 975
Earnings per ordinary share - cents
- Basic 748 734 1,479 790
- Headline 815 969 1,782 947
- Headline before unrealised
non-hedge derivatives 817 930 1,745 911
Dividends declared
- Rm 1,500 751
- cents per share 1,350 700
GROUP INCOME STATEMENT
Quarter Quarter Six months Six months
ended ended ended ended
June March June June
US Dollar million 2002 2002 2002 2001
Gold income 406 373 779 1 020
Cost of sales ( 282) ( 255) ( 537) ( 786)
Cash operating costs 226 206 432 646
Other cash costs 6 5 11 15
Total cash costs 232 211 443 661
Retrenchment costs 1 1 2 16
Rehabilitation and
other non-cash costs 1 2 3 2
Production costs 234 214 448 679
Amortisation of mining assets 57 50 107 112
Total production costs 291 264 555 791
Inventory change ( 9) ( 9) ( 18) ( 5)
Operating profit 124 118 242 234
Realised non-hedge
derivative gains 38 29 67 2
Operating profit including
realised non-hedge derivatives 162 147 309 236
Corporate administration
and other expenses ( 6) ( 4) ( 10) ( 11)
Market development costs ( 4) ( 4) ( 8) ( 8)
Research and development costs ( 1) - ( 1) ( 1)
Exploration costs ( 7) ( 6) ( 13) ( 13)
Interest receivable 11 8 19 10
Other net income (expense) 1 ( 1) - ( 1)
Finance costs ( 12) ( 12) ( 24) ( 42)
Unrealised non-hedge
derivative gains 1 6 7 8
Abnormal item - settlement
of legal claim ( 10) - ( 10) -
Profit before exceptional items 135 134 269 178
Amortisation of goodwill ( 7) ( 7) ( 14) ( 14)
Debt written-off - - - ( 3)
Impairment of mining assets - - - -
Loss on disposal of assets ( 1) ( 11) ( 12) ( 5)
Termination of retirement
benefit plans - - - -
Profit on ordinary
activities before taxation 127 116 243 156
Taxation ( 44) ( 43) ( 87) ( 46)
Normal and deferred taxation ( 48) ( 37) ( 85) ( 44)
Deferred tax on unrealised
non-hedge derivatives ( 1) ( 2) ( 3) ( 3)
Taxation on abnormal item 5 - 5 -
Taxation on exceptional items - ( 4) ( 4) 1
Profit on ordinary activities
after taxation 83 73 156 110
Minority interest ( 4) ( 2) ( 6) ( 4)
Net profit 79 71 150 106
Headline earnings
The net profit has been adjusted
by the followingto arrive at
headline earnings:
Net profit 79 71 150 106
Amortisation of goodwill 7 7 14 14
Debt written-off - - - 3
Impairment of mining assets - - - -
Loss on disposal of assets 1 11 12 5
Termination of retirement
benefit plans - - - -
Taxation on exceptional items - 4 4 ( 1)
Headline earnings 87 93 180 127
Unrealised non-hedge
derivative gains ( 1) ( 6) ( 7) ( 8)
Deferred tax on unrealised
non-hedge derivatives 1 2 3 3
Headline earnings before
unrealised non-hedge derivatives 87 89 176 122
Earnings per ordinary share - cents
- Basic 71 64 135 99
- Headline 79 84 163 119
- Headline before unrealised
non-hedge derivatives 79 81 159 114
Dividends declared
- $m 146 91
- cents per share 132 85
GROUP BALANCE SHEET
June March June June March June
2002 2002 2001 2002 2002 2001
SA Rand million US Dollar million
ASSETS
Non-current assets
20,382 21,315 19,538 Mining assets 1,965 1,878 2,429
4,093 4,438 3,003 Goodwill 395 391 373
171 154 146 Investments in associates 17 13 18
178 141 59 Other investments 17 12 7
227 228 349 AngloGold Environmental 22 20 43
Rehabilitation Trust
492 507 218 Other non-current assets 47 45 27
25,543 26,783 23,313 2,463 2,359 2,897
Current assets
3,508 3,794 1,202 Cash and cash equivalents 338 334 149
2,801 2,717 1,137 Financial derivatives 270 239 141
2,575 4,502 1,314 Trade and other receivables* 248 397 163
1,975 1,924 1,586 Inventories 190 170 197
4 106 156 Current portion of - 9 19
other non-current assets
10,863 13,043 5,395 1,046 1,149 669
36,406 39,826 28,708 Total assets 3,509 3,508 3,566
EQUITY AND LIABILITIES
13,498 12,820 11,567 Shareholders` equity ** 1,300 1,130 1,433
317 335 240 Minority interests 31 29 30
13,815 13,155 11,807 1,331 1,159 1,463
Non-current liabilities
7,595 8,388 4,220 Borrowings 732 739 525
2,053 2,163 2,145 Provisions 198 191 267
2,919 2,571 4,015 Deferred taxation 282 226 499
12,567 13,122 10,380 1,212 1,156 1,291
Current liabilities
5,489 6,176 302 Financial derivatives 529 544 38
2,339 2,995 2,081 Trade and other payables 225 264 259
1,174 2,863 3,819 Current portion 113 252 475
of borrowings
1,022 1,515 319 Taxation 99 133 40
10,024 13,549 6,521 966 1,193 812
36,406 39,826 28,708 Total equity 3,509 3,508 3,566
and liabilities
* March quarter includes proceeds from the disposal of Free State assets
** Shareholders` equity is analysed in the Statement of Changes in
Shareholders` Equity on page 18.
GROUP CASH FLOW STATEMENT
Six Six
Quarter Quarter months Quarter Quarter months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
SA Rand million US Dollar million
Cash flows from
operating activities
1,399 2,087 3,486 Cash generated 129 175 304
from operations
95 89 184 Interest receivable 9 8 17
(35) (43) (78) Environmental contributions (3) (4) (7)
and expenditure
(109) (116) (225) Finance costs (11) (10) (21)
(815) (68) (883) Mining and normal (74) (6) (80)
taxation paid
- (1,223) (1,223) Dividends paid - (109) (109)
535 726 1,261 Net cash inflow from 50 54 104
operating activities
Cash flows from
investing activities
(709) (588) (1,297) Capital expenditure (67) (51) (118)
- 1 1 Proceeds from disposal - - -
of mining assets
1,554 - 1,554 Net proceeds from 141 - 141
disposal of mines
1,819 - 1,819 Proceeds 164 - 164
(265) - (265) Contractual obligations (23) - (23)
(88) (268) (356) Investments acquired (9) (23) (32)
2 1,825 1,827 Proceeds from sale - 158 158
of investments
(4) (43) (47) Loans advanced - (4) (4)
131 21 152 Repayment of loans advanced 12 2 14
886 948 1,834 Net cash inflow from 77 82 159
investing activities
Cash flows from
financing activities
16 68 84 Proceeds from issue 2 6 8
of share capital
(3) (110) (113) Share issue expenses (1) (10) (11)
1,522 4,461 5,983 Proceeds from borrowings 158 387 545
(3,109) (4,475) (7,584) Repayment of borrowings (301) (389) (690)
(1,574) (56) (1,630) Net cash outflow (142) (6) (148)
from financing activities
(153) 1,618 1,465 Net (decrease) increase in (15) 130 115
cash and cash equivalents
(133) (108) (241) Translation 19 13 32
3,794 2,284 2,284 Opening cash and 334 191 191
cash equivalents
3,508 3,794 3,508 Closing cash and 338 334 338
cash equivalents
Refer to page 18 for notes to the cash flow statement.
NOTES TO THE CASH FLOW STATEMENT
Six Six
Quarter Quarter months Quarter Quarter months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
SA Rand million US Dollar million
Cash generated
from operations
1,325 1,333 2,658 Profit on ordinary 127 116 243
activities before taxation
Adjusted for:
(104) (55) (159) Non-cash movements (10) (5) (15)
102 - 102 Abnormal item 10 - 10
598 577 1,175 Amortisation of mining assets 57 50 107
(111) (93) (204) Interest receivable (11) (8) (19)
(9) (3) (12) Other net (income) expense (1) - (1)
127 133 260 Finance costs 12 12 24
(108) (98) (206) Movement on non-hedge (11) (9) (20)
derivatives
72 81 153 Amortisation of goodwill 7 7 14
5 79 84 Loss on disposal of assets 1 7 8
(2) - (2) Termination of retirement - - -
benefit plans
(496) 133 (363) Movement in working capital (52) 5 (47)
1,399 2,087 3,486 129 175 304
Movement in working capital:
313 (343) (30) (Increase) decrease in trade 12 (39) (27)
and other receivables
(51) (48) (99) (Increase) decrease (21) (13) (34)
in inventories
(758) 524 (234) Increase (decrease) (43) 57 14
in trade and other payables
(496) 133 (363) (52) 5 (47)
STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY
Ordinary Non- Foreign Other Retained Total
share distri- currency compre- earnings
capital and butable trans- hensive
premium reserves lation income
US Dollar million
Balance at
31 Dec 2001 681 12 250 (88) 262 1,117
Movement on
other
comprehensive
income (100) - (100)
Net profit 150 150
Dividends paid (107) (107)
Ordinary
shares issued 127 127
Transfer
from
non-
distributable
reserves - - -
Translation 111 - (36) 38 113
Balance at
30 June 2002 919 12 214 (188) 343 1,300
SA Rand million
Balance at
31 Dec 2001 8,140 143 2,999 (1,057) 3,132 13,357
Movement on
other
comprehensive
income (890) (890)
Net profit 1,638 1,638
Dividends paid (1,223) (1,223)
Ordinary
shares issued 1,394 1,394
Transfer
from
non-
distributable
reserves (8) 8 -
Translation (778) - (778)
Balance at
30 June 2002 9,534 135 2,221 (1,947) 3,555 13,498
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
SA Rand / Metric Capital expenditure - Rm Capital expenditure - $m
SOUTH AFRICAN REGION 242 185 427 25 15 40
VAAL RIVER
Great Noligwa Mine 11 5 16 2 - 2
Kopanang Mine 24 13 37 2 1 3
Tau Lekoa Mine 3 1 4 - - -
Moab Khotsong 102 94 196 10 8 18
ERGO - - - - - -
WEST WITS
TauTona Mine 20 11 31 2 1 3
Savuka Mine 12 5 17 2 - 2
Mponeng Mine 70 56 126 7 5 12
EAST & WEST AFRICA REGION 64 63 127 6 5 11
Navachab 1 4 5 - - -
Sadiola -Attributable 38% 16 29 45 1 3 4
Morila - Attributable 40% 9 3 12 1 - 1
Geita - Attributable 50% 30 16 46 3 1 4
Yatela -Attributable 40% 8 11 19 1 1 2
NORTH AMERICAN REGION 257 255 512 25 22 47
Cripple
Creek & Victor J.V. 238 226 464 23 20 43
Jerritt Canyon J.V.
- Attributable 70% 18 30 48 1 3 4
Exploration 1 (1) - 1 (1) -
SOUTH AMERICAN REGION 96 57 153 9 5 14
Morro Velho 56 34 90 5 3 8
Serra Grande
- Attributable 50% 13 10 23 1 1 2
Cerro Vanguardia
- Attributable 46.25% 5 1 6 1 - 1
Minorities
and exploration 22 12 34 2 1 3
AUSTRALIAN REGION 42 28 70 3 3 6
Sunrise Dam 27 19 46 2 2 4
Boddington
- Attributable 33.33% (1) 1 - - - -
Tanami - Attributable 40% - - - - - -
Union Reefs - - - - - -
Brocks Creek - - - - - -
Exploration 16 8 24 1 1 2
Other 8 - 8 (1) 1 -
ANGLOGOLD GROUP TOTAL 709 588 1,297 67 51 118
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
SA Rand / Metric Yield - g/t Gold produced - kg
SOUTH AFRICA REGION * 8.33 8.80 8.56 26,422 26,036 52,458
VAAL RIVER
Great Noligwa Mine 11.29 11.65 11.46 7,280 7,245 14,525
Kopanang Mine 7.11 7.35 7.23 3,842 3,715 7,557
Tau Lekoa Mine 4.25 4.65 4.43 2,379 2,226 4,605
Surface Operations 0.57 0.56 0.57 816 798 1,614
ERGO 0.24 0.27 0.26 1,997 2,223 4,220
WEST WITS
TauTona Mine 11.32 12.03 11.68 4,574 4,960 9,534
Savuka Mine 8.09 7.84 7.98 2,219 1,830 4,049
Mponeng Mine 8.10 8.40 8.24 3,290 3,039 6,329
Surface Operations - - - 25 - 25
EAST & WEST
AFRICA REGION 3.35 3.66 3.50 6,961 7,044 14,005
Navachab 1.71 2.08 1.88 620 671 1,291
Sadiola
- Attributable 38% 2.85 3.45 3.14 1,393 1,546 2,939
Morila
- Attributable 40% 5.92 6.31 6.11 1,865 1,850 3,715
Geita
- Attributable 50% 3.83 3.60 3.72 2,376 2,159 4,535
Yatela
- Attributable 40% 2.44 3.11 2.76 707 818 1,525
NORTH AMERICA REGION 1.22 1.18 1.20 3,553 2,942 6,495
Cripple
Creek & Victor J.V. 0.56 0.58 0.57 1,504 1,331 2,835
Jerritt Canyon J.V.
- Attributable 70% 8.61 8.57 8.59 2,049 1,611 3,660
SOUTH AMERICA REGION 7.58 7.68 7.63 3,242 3,179 6,421
Morro Velho 6.88 6.48 6.68 1,570 1,435 3,005
Serra Grande
- Attributable 50% 8.03 7.74 7.89 743 727 1,470
Cerro Vanguardia
- Attributable 46.25% 8.67 10.33 9.47 929 1,017 1,946
AUSTRALIA REGION 2.73 2.35 2.54 4,191 3,615 7,806
Sunrise Dam 3.75 3.07 3.40 3,189 2,638 5,827
Boddington
- Attributable 33.33% - - - (1) 43 42
Tanami
- Attributable 40% - - - - - -
Union Reefs 1.46 1.38 1.42 1,003 934 1,937
ANGLOGOLD GROUP 44,369 42,816 87,185
* Yield excludes surface operations.
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
SA Rand / Metric Productivity per employee - g Gold sold - kg
SOUTH AFRICA REGION 26,342 26,005 52,347
VAAL RIVER
Great Noligwa Mine 258 262 260 7,228 7,240 14,468
Kopanang Mine 169 164 167 3,814 3,712 7,526
Tau Lekoa Mine 171 162 167 2,361 2,225 4,586
Surface Operations 445 488 465 810 798 1,608
ERGO 581 636 609 1,998 2,223 4,221
WEST WITS
TauTona Mine 268 284 276 4,584 4,949 9,533
Savuka Mine 154 131 143 2,224 1,826 4,050
Mponeng Mine 190 184 187 3,298 3,032 6,330
Surface Operations - - - 25 - 25
EAST & WEST
AFRICA REGION 6,779 6,917 13,696
Navachab 597 653 625 620 671 1,291
Sadiola
- Attributable 38% 2,746 2,812 2,780 1,317 1,454 2,771
Morila
- Attributable 40% 2,484 2,842 2,650 1,826 1,850 3,676
Geita
- Attributable 50% 1,428 1,437 1,433 2,376 2,159 4,535
Yatela
- Attributable 40% 1,220 1,608 1,401 640 783 1,423
NORTH AMERICA REGION 3,553 2,942 6,495
Cripple
Creek & Victor J.V. 1,572 1,421 1,497 1,504 1,331 2,835
Jerritt Canyon J.V.
- Attributable 70% 2,359 1,875 2,119 2,049 1,611 3,660
SOUTH AMERICA REGION 3,289 3,158 6,447
Morro Velho 458 382 418 1,576 1,395 2,971
Serra Grande
- Attributable 50% 949 929 939 765 728 1,493
Cerro Vanguardia
-Attributable 46.25% 1,668 1,905 1,784 948 1,035 1,983
AUSTRALIA REGION 4,308 3,608 7,916
Sunrise Dam 3,417 2,748 3,078 3,298 2,620 5,918
Boddington
- Attributable 33.33% - 403 214 10 53 63
Tanami
- Attributable 40% - - - - - -
Union Reefs 2,085 1,761 1,915 1,000 935 1,935
ANGLOGOLD GROUP 44,271 42,630 86,901
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
SA Rand / Metric Total cash costs- R/kg Total production costs- R/kg
SOUTH AFRICA REGION 51,234 50,471 50,855 57,567 56,640 57,107
VAAL RIVER
Great Noligwa Mine 38,158 37,007 37,584 41,291 40,474 40,883
Kopanang Mine 52,552 50,121 51,357 58,135 56,387 57,276
Tau Lekoa Mine 64,149 63,346 63,761 75,568 75,136 75,359
Surface Operations 42,706 41,114 41,919 45,704 44,031 44,877
ERGO 60,268 58,904 59,550 67,045 64,963 65,948
WEST WITS
TauTona Mine 45,499 44,662 45,064 49,032 47,863 48,424
Savuka Mine 69,422 77,211 72,942 73,208 80,699 76,593
Mponeng Mine 61,937 63,200 62,543 78,767 78,968 78,863
Surface Operations 6,231 - 7,057 6,231 - 7,057
EAST & WEST
AFRICA REGION 48,413 47,001 47,687 67,328 67,806 67,553
Navachab 55,127 42,934 48,790 59,276 46,727 52,753
Sadiola
- Attributable 38% 48,836 49,523 49,197 74,372 74,601 74,493
Morila
- Attributable 40% 36,209 36,992 36,599 62,239 66,345 64,284
Geita
- Attributable 50% 56,681 57,593 57,115 71,809 74,433 73,058
Yatela
- Attributable 40% 59,690 52,986 56,094 72,073 70,309 71,127
NORTH AMERICA REGION 71,804 94,122 81,914 111,091 133,867 121,408
Cripple
Creek & Victor J.V. 64,835 73,681 68,990 112,898 117,112 114,877
Jerritt Canyon J.V.
- Attributable 70% 75,078 108,780 89,908 107,928 145,478 124,451
SOUTH AMERICA REGION 43,351 46,313 44,818 68,562 73,383 70,949
Morro Velho 46,922 53,887 50,249 68,311 78,812 73,327
Serra Grande
- Attributable 50% 36,456 40,248 38,332 55,348 61,904 58,591
Cerro Vanguardia
-Attributable 46.25% 36,641 34,557 35,552 71,469 66,730 68,994
AUSTRALIA REGION 62,458 72,674 67,189 80,891 92,875 86,441
Sunrise Dam 56,392 66,094 60,785 73,485 84,073 78,279
Boddington
-Attributable 33.33% - 52,041 60,372 - 93,763 102,863
Tanami
- Attributable 40% - - - - - -
Union Reefs 74,285 83,441 78,699 91,966 105,235 98,362
ANGLOGOLD GROUP 54,177 56,033 55,085 67,645 69,653 68,629
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
SA Rand / Metric Operating profit - Rm Operating profit non-hedge-Rm*
SOUTH AFRICA REGION
VAAL RIVER
Great Noligwa Mine 348 359 707 433 444 877
Kopanang Mine 117 126 243 161 170 331
Tau Lekoa Mine 28 37 65 56 63 119
Surface Operations 35 37 72 46 46 92
ERGO 44 56 100 67 82 149
WEST WITS
TauTona Mine 183 215 398 234 273 507
Savuka Mine 34 19 53 62 40 102
Mponeng Mine 36 38 74 74 74 148
Surface Operations 2 - 2 2 - 2
EAST & WEST AFRICA REGION
Navachab 28 38 66 28 38 66
Sadiola
- Attributable 38% 38 47 85 36 49 85
Morila
- Attributable 40% 71 74 145 71 74 145
Geita
- Attributable 50% 59 67 126 60 70 130
Yatela
- Attributable 40% 20 30 50 20 30 50
NORTH AMERICA REGION
Cripple
Creek & Victor J.V. (7) 11 4 2 11 13
Jerritt Canyon J.V.
- Attributable 70% (7) (25) (32) 5 (25) (20)
SOUTH AMERICA REGION
Morro Velho 64 69 133 71 74 145
Serra Grande
- Attributable 50% 41 45 86 44 48 92
Cerro Vanguardia
- Attributable 46.25% 40 55 95 39 59 98
AUSTRALIA REGION
Sunrise Dam 93 47 140 131 58 189
Boddington
- Attributable 33.33% 1 - 1 1 - 1
Tanami
- Attributable 40% (1) (2) (3) (1) (2) (3)
Union Reefs (2) (3) (5) 11 1 12
Other 39 19 58 34 19 53
ANGLOGOLD GROUP TOTAL 1,304 1,359 2,663 1,687 1,696 3,383
* Operating profit including realised
non-hedge derivative gains (losses)
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
US Dollar / Imperial Yield - oz/t Gold produced - oz 000
SOUTH AFRICA REGION* 0.243 0.257 0.250 850 837 1,687
VAAL RIVER
Great Noligwa Mine 0.329 0.340 0.334 234 233 467
Kopanang Mine 0.207 0.214 0.211 124 119 243
Tau Lekoa Mine 0.124 0.136 0.129 76 72 148
Surface Operations 0.017 0.016 0.017 26 26 52
ERGO 0.007 0.008 0.008 65 71 136
WEST WITS
TauTona Mine 0.330 0.351 0.341 148 159 307
Savuka Mine 0.236 0.229 0.233 71 59 130
Mponeng Mine 0.236 0.245 0.240 105 98 203
Surface Operations - - - 1 - 1
EAST & WEST
AFRICA REGION 0.098 0.107 0.102 223 227 450
Navachab 0.050 0.061 0.055 20 22 42
Sadiola
- Attributable 38% 0.083 0.101 0.091 44 50 94
Morila
- Attributable 40% 0.173 0.184 0.178 60 59 119
Geita
- Attributable 50% 0.112 0.105 0.109 77 69 146
Yatela
- Attributable 40% 0.071 0.091 0.081 22 27 49
NORTH AMERICA REGION 0.035 0.034 0.035 114 95 209
Cripple
Creek & Victor J.V. 0.016 0.017 0.017 48 43 91
Jerritt Canyon J.V.
- Attributable 70% 0.251 0.250 0.251 66 52 118
SOUTH AMERICA REGION 0.221 0.224 0.223 104 102 206
Morro Velho 0.201 0.189 0.195 51 46 97
Serra Grande
- Attributable 50% 0.234 0.226 0.230 24 23 47
Cerro Vanguardia
-Attributable 46.25% 0.253 0.301 0.276 29 33 62
AUSTRALIA REGION 0.080 0.069 0.074 135 116 251
Sunrise Dam 0.109 0.089 0.099 102 85 187
Boddington
-Attributable 33.33% - - - 1 1 2
Tanami
- Attributable 40% - - - - - -
Union Reefs 0.043 0.040 0.041 32 30 62
ANGLOGOLD GROUP 1,426 1,377 2,803
* Yield excludes surface operations.
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
US Dollar/Imperial Productivity per employee - oz Gold sold - oz 000
SOUTH AFRICA REGION 847 836 1,683
VAAL RIVER
Great Noligwa Mine 8.30 8.42 8.36 232 233 465
Kopanang Mine 5.43 5.28 5.36 123 119 242
Tau Lekoa Mine 5.49 5.22 5.36 75 72 147
Surface Operations 14.32 15.69 14.96 26 26 52
ERGO 18.68 20.46 19.58 65 71 136
WEST WITS
TauTona Mine 8.63 9.12 8.88 147 159 306
Savuka Mine 4.95 4.22 4.59 71 59 130
Mponeng Mine 6.11 5.91 6.01 107 97 204
Surface Operations - - - 1 - 1
EAST & WEST
AFRICA REGION 218 222 440
Navachab 19.20 20.98 20.09 19 22 41
Sadiola
- Attributable 38% 88.30 90.40 89.39 42 47 89
Morila
- Attributable 40% 79.85 91.36 85.20 59 59 118
Geita
- Attributable 50% 45.92 46.21 46.06 77 69 146
Yatela
- Attributable 40% 39.21 51.69 45.04 21 25 46
NORTH AMERICA REGION 114 95 209
Cripple
Creek & Victor J.V. 50.55 45.69 48.14 48 43 91
Jerritt Canyon J.V.
- Attributable 70% 75.85 60.29 68.12 66 52 118
SOUTH AMERICA REGION 106 102 208
Morro Velho 14.73 12.27 13.44 51 45 96
Serra Grande
- Attributable 50% 30.52 29.87 30.20 24 24 48
Cerro Vanguardia
-Attributable 46.25% 53.63 61.24 57.35 31 33 64
AUSTRALIA REGION 138 116 254
Sunrise Dam 109.87 88.35 98.96 106 84 190
Boddington
- Attributable 33.33% - 12.94 6.89 - 2 2
Tanami
- Attributable 40% - - - - - -
Union Reefs 67.04 56.63 61.58 32 30 62
ANGLOGOLD GROUP 1,423 1,371 2,794
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
US Dollar / Imperial Total cash costs - $/oz Total production costs - $/oz
SOUTH AFRICA REGION 152 136 144 171 153 162
VAAL RIVER
Great Noligwa Mine 113 100 107 123 109 116
Kopanang Mine 156 135 146 173 152 163
Tau Lekoa Mine 191 171 181 225 203 214
Surface Operations 127 111 119 136 119 127
ERGO 179 159 169 199 175 187
WEST WITS
TauTona Mine 135 121 128 146 129 137
Savuka Mine 207 209 208 218 218 218
Mponeng Mine 184 171 178 234 213 224
Surface Operations 18 - 21 18 - 21
EAST & WEST
AFRICA REGION 144 127 135 200 183 192
Navachab 164 116 139 177 126 150
Sadiola
- Attributable 38% 145 134 139 221 202 211
Morila
- Attributable 40% 108 100 104 185 179 182
Geita
- Attributable 50% 168 156 162 213 201 207
Yatela
- Attributable 40% 178 143 159 214 190 201
NORTH AMERICA REGION 213 254 232 330 362 345
Cripple
Creek & Victor J.V. 193 199 196 336 317 327
Jerritt Canyon J.V.
- Attributable 70% 223 294 254 321 393 353
SOUTH AMERICA REGION 129 125 127 204 198 201
Morro Velho 139 146 142 203 213 208
Serra Grande
- Attributable 50% 108 109 109 164 167 166
Cerro Vanguardia
- Attributable 46.25% 109 93 101 212 180 196
AUSTRALIA REGION 186 196 191 241 251 246
Sunrise Dam 168 179 173 219 227 223
Boddington
- Attributable 33.33% - 140 164 - 252 278
Tanami
- Attributable 40% - - - - - -
Union Reefs 222 225 223 274 284 279
ANGLOGOLD GROUP 161 151 156 201 188 195
KEY OPERATING RESULTS
PER REGION
Quarter Quarter Six months Quarter Quarter Six months
ended ended ended ended ended ended
June March June June March June
2002 2002 2002 2002 2002 2002
US Dollar / Imperial Operating profit-$m Operating profit non-hedge-$m*
SOUTH AFRICA REGION
VAAL RIVER
Great Noligwa Mine 34 31 65 42 38 80
Kopanang Mine 11 11 22 15 15 30
Tau Lekoa Mine 4 3 7 6 5 11
Surface Operations 4 3 7 4 4 8
ERGO 4 5 9 7 7 14
WEST WITS
TauTona Mine 18 19 37 22 24 46
Savuka Mine 3 2 5 5 4 9
Mponeng Mine 4 3 7 7 6 13
Surface Operations - - - - - -
EAST & WEST AFRICA REGION
Navachab 3 3 6 3 3 6
Sadiola
- Attributable 38% 4 4 8 4 4 8
Morila
- Attributable 40% 7 6 13 7 6 13
Geita
- Attributable 50% 6 6 12 6 6 12
Yatela
- Attributable 40% 2 3 5 2 3 5
NORTH AMERICA REGION
Cripple
Creek & Victor J.V. (1) 1 - - 1 1
Jerritt Canyon J.V.
- Attributable 70% (1) (2) (3) - (2) (2)
SOUTH AMERICA REGION
Morro Velho 6 6 12 7 6 13
Serra Grande
- Attributable 50% 4 4 8 4 4 8
Cerro Vanguardia
- Attributable 46.25% 4 5 9 4 5 9
AUSTRALIA REGION
Sunrise Dam 9 4 13 13 5 18
Boddington
- Attributable 33.33% - - - - - -
Tanami
- Attributable 40% - - - - - -
Union Reefs (1) - (1) 1 - 1
Other - 1 1 3 3 6
ANGLOGOLD GROUP TOTAL 124 118 242 162 147 309
* Operating profit including realised non-hedge derivative gains (losses)
LETTER FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Dear Shareholder,
AngloGold`s second quarter has again seen a significant reduction in the
company`s hedge book, which came down a further 2.4 million ounces, following
the 1.7 million ounce reduction we reported in the first quarter this year.
The quarter also saw continued strong operational performance, with operating
profit up 10% to $162 million, net profit up 11% to $79 million and headline
earnings marginally lower at 79 US cents per share.
The reduction in the hedge has produced a received price which is $7 lower
than the average spot price for the quarter. The hedge has been reduced in the
light of the more positive medium- and long-term prospects for the gold price,
as well as the improved margins and lower cost base of AngloGold`s production.
During the quarter the South African Parliament passed the new Minerals and
Petroleum Resources Development law. In essence, mineral rights will now be
leased from the State rather than owned outright and will require a commitment
to black economic empowerment and social development. Your company supports
both of these broad policy objectives although they must be achieved in a
responsible way. The recently published Department of Minerals and Energy (DME)
document outlining its initial position is unrealistic and unhelpful. In a
joint statement issued today, the DME confirmed that the document does not
represent official government policy. We are hopeful that dialogue between the
industry and government will soon yield a mutually acceptable outcome and
achieve the level of certainty that is required to ensure confidence and
stability in the market.
The strategy of AngloGold is to create shareholder wealth through the mining
and marketing of gold. Return on capital for this quarter was 15%, and return
on equity 20%. The company plans to grow its earnings through the discovery,
development and acquisition of low cost, high margin ounces. Today we reported
the acquisition of an additional 130,000 ounces per annum by doubling our stake
in the Cerro Vanguardia mine in Argentina, which reported total cash costs for
the first six months of 2002 at $101 per ounce. AngloGold brought this mine
into production and has operated it successfully since 1999. The mine has
continued to produce profits and externalisable earnings despite Argentina`s
current economic problems, and we are confident it will continue to do so
throughout its planned life, which is until at least 2012.
The Board has declared an interim dividend of R13.50 per share
($0.66 per ADS), which represents an increase of 93% on the interim
dividend of 2001.
In the context of highly volatile world markets we are convinced that
AngloGold will continue to generate solid earnings, and earn competitive returns
for its shareholders.
RUSSELL EDEY BOBBY GODSELL
Chairman Chief Executive Officer
30 July 2002
FINANCIAL AND OPERATING REVIEW
OVERVIEW
The quarter`s results are characterised by a significant reduction in the
company`s open hedge book position, a gold price which has further strengthened
and the company`s sound operating and financial performance. A 4% increase in
gold production to 1.4Moz, was particularly pleasing in the light of the
cumulative impact of a number of seismic events at Great Noligwa, AngloGold`s
largest South African producer.
AngloGold`s good operational performance, its positive view of the gold market
and its willingness to manage its hedge book to take account of changing market
circumstances have again resulted in a significant reduction in its open hedge
position. At the end of the second quarter, the hedge book had been reduced by
a further 2.4Moz (165% of the quarter`s production) to 10.5Moz. This
substantial reduction was achieved while containing the decrease in the gold
price received for the quarter to some $7 below the average spot price.
AngloGold`s results for the June quarter reflect a solid financial and
operating performance with operating profit up 10% to $162m. The received gold
price increased by $18/oz on last quarter to $305/oz. This was partially offset
by a $10/oz or 7% increase in total cash costs to $161/oz, due to the
strengthening of the rand.
Headline earnings decreased marginally to $87m, primarily due to an abnormal
item relating to the $10m settlement of a legal claim and to higher taxation.
The higher taxation resulted from the end of the tax holiday at Sadiola and a
one-off adjustment in the previous quarter.
Net profit increased from $71m to $79m. This large increase is explained by
the inclusion in the previous quarter of an exceptional loss on the disposal of
the Free State assets in South Africa.
Operating profit for the first half of 2002 increased by 31% to $309m compared
with the first six months of 2001. Headline earnings went up by 44% to $176m
despite a 20% reduction in gold production to 2.8Moz, mainly as a result of the
sale of AngloGold`s Free State assets. Total cash costs decreased by 17% from
$189/oz to $156/oz, as a result of the rand weakening against the dollar and the
change in AngloGold`s asset mix.
AngloGold has declared an interim dividend for the first half of 2002 of
R13.50/share ($0.66/ADS)1, which represents an increase of 93% on the interim
dividend of 2001 and an annualised dividend yield of 6.6% based on AngloGold`s
closing share price on the JSE of R408 on 29 July 2002.
SOUTH AFRICA
Overall performance
The operating profit from the South African mines at R1.13bn ($108m),
was 5% lower than that of the previous quarter.
Total cash costs for the region rose by only 2% to R51,234/kg (up 12% in
dollar terms to $152/oz, due to the revaluation of the South African currency
over the quarter) despite a 12% increase in volume mined and relatively
unchanged grades. Gold production increased by 386kg (13,000oz) quarter-on-
quarter. The Kopanang and Tau Lekoa operations at Vaal River this quarter
reported reduced revenue from uranium and acid by-products, a trend that is
likely to continue in the future.
Productivity indices, expressed in grams of gold produced per employee,
remained at 222g/employee, while square metres mined per employee improved by
10% to 4.58m2/ employee.
Two tragic seismic events, which caused multiple fatalities at Great Noligwa,
contributed to a total of 15 mine deaths during the quarter. Three of these
were caused by falls of ground, nine through seismicity, two as a result of
trucks and tramming and one was caused through the use of machinery. The LTIFR
for the year to date compared with the same period last year, decreased from
12.26 to 10.41.
Mine performance
Operating profit at Great Noligwa decreased by 3% to R433m ($42m).
Total cash costs increased by 3% over the previous quarter to R38,158/kg
($113/oz) due to increased expenditure on improvements to shaft infrastructure.
Volume mined rose by 5% on the previous quarter and, although grades dropped by
3% to 11.29g/t, the mine achieved a 35kg increase in gold production, despite
the cumulative effect of a number of damaging seismic events during the quarter.
Although the effect of these events is likely to be felt on the performance of
Great Noligwa in the third quarter, the necessary remedial action has been taken
to address the cause of the problems.
At Kopanang, operating profit decreased by 5% to R161m ($15m) while total cash
costs rose by 5% to R52,552/kg ($156/oz) due to lower by-product contributions.
Volume mined was 17% higher, following a slow start in the first quarter. Gold
produced was 3% up at 3,842kg (124,000 oz), but yield was slightly down at
7.11g/t.
Operating profit at Tau Lekoa fell by 11% to R56m ($6m) and total cash costs
increased marginally to R64,149/kg ($191/oz) as a result of lower
by-product contributions. The 14% increase in volume mined was partially offset
by a lower head grade (down 9%), with gold production 7% higher than that of the
previous quarter at 2,379kg (76,000oz).
At TauTona, operating profit fell by 14% to R234m ($22m) while total cash
costs increased by 2% to R45,499/kg ($135/oz). Volume mined rose by 1% but this
was offset by a reduced yield (down 6%) due to mining in lower grade areas.
Gold production decreased by 8% to 4,574kg (148,000oz).
Operating profit at Savuka increased by 55% to R62m ($5m). Total cash costs
were down by 10% to R69,422/kg ($207/oz). Volume mined increased by 23% as a
result of improvements in the rate of face advance. The higher grade in the
Carbon Leader Reef resulted in a 3% improvement in yield and an increase of 21%
in gold produced to 2,219kg (71,000oz).
At Mponeng, operating profit was stable at R74m ($7m). Total cash costs were
reduced by 2% to R61,937/kg ($184/oz) despite increased expenditure from the
equipping of recently holed raise lines. Volume mined increased by 13%,
although grades declined by 4%, and gold production rose by 8% to 3,290kg
(105,000oz).
At Ergo, operating profit fell by 18% to R67m ($7m) and gold production
decreased by 10% to 1,997kg (65,000oz) following a drop in grade.
Total cash costs increased by 2% to R60,268/kg ($179/oz).
EAST AND WEST AFRICA
Overall performance
The East and West Africa region had a mixed quarter with good performances at
Geita and Morila offset by difficulties experienced at Sadiola and Yatela.
Operating profit for the region decreased by 8% to $22m and total cash costs
increased by 13% to $144/oz. Overall gold production was down 2% on the
previous quarter at 223,000 attributable ounces but remained above target.
Regrettably, during the quarter two fatalities occurred - one at Geita and one
at Morila. There were ten lost time injuries during the quarter.
Mine performance
Operating profit at Sadiola (38% attributable) decreased by 24% on the last
quarter and total cash costs increased by 8% to $145/oz. Although tonnage
throughput went up by 9%, the low availability of high-grade material and
continued problems with the treatment of the sulphide ore resulted in a 17% drop
in the average recovered grade for the quarter to 2.85g/t. Consequently, gold
production, at 44,000 attributable ounces, was 10% lower than that of the
previous quarter. The final instalment on the project finance loans for the
development of Sadiola was paid this quarter; the total repayments for the five-
year period of the facility amounted to $288m.
At Yatela (40% attributable), operating profit decreased by 24% to $2m. Total
cash costs increased by 24% to $178/oz as a result of lower production and
higher maintenance costs arising from work performed on the mineral sizer. A
22% decline in the average recovered grade resulted in gold production of 22,000
attributable ounces being 14% down on an exceptional first quarter. It is
expected that the operation will be on target for the year.
At Morila (40% attributable), operating profit increased by 6% to $7m and
total cash costs, at $108/oz, rose by 8%. Gold production improved by 1% to
60,000 attributable ounces for the quarter. Going forward, the interception of
higher grades of ore earlier than anticipated indicates a favourable trend in
the reserves.
Operating profit at Geita (50% attributable) at $6m decreased by 2%. Total
cash costs, at $168/oz, went up by 8% mainly due to increased mining volumes
from the Kukuluma pit, resulting in greater haulage distances to the Geita plant
during the quarter. A rise of 6% in the average recovered grade of 3.83g/t for
the quarter enabled the mine to increase gold production by 10% to 77,000
attributable ounces.
At Navachab, operating profit decreased by 12% to $3m. Total cash costs
increased by 41% to $164/oz, mainly due to higher mining costs, the
strengthening of the Namibian dollar and reduced gold production. Gold
production decreased by 8% to 20,000oz for the quarter. Due to the recent
improvement in the spot gold price, a feasibility study was completed at
Navachab for a pushback in the eastern pit. This study explored the possibility
of increasing production by some 375,000oz and extending the mine life by five
years to 2012. The project will be presented to the AngloGold Board of
directors during the second half of 2002.
NORTH AMERICA
Overall performance
The performance of the North America region improved in the second quarter
with better weather conditions and productivity improvements at Jerritt Canyon
and higher solution grades at Cripple Creek & Victor (CC&V). Operating profit
increased quarter-on-quarter from a loss of $1m to break even due to a 20% rise
in gold production to 114,000oz and cost-cutting efforts for the quarter
resulting in lower total cash costs of $213/oz.
The $195m CC&V expansion project is progressing on schedule with a significant
portion of the leach pad addition being completed. Expectations are that the
majority of the project`s construction work will be completed during the third
quarter of this year. It is anticipated that average LOM cash costs are
expected to be reduced from $227/oz to $176/oz.
Mine performance
Operating profit at Cripple Creek & Victor (67% ownership with 100% interest
in production) decreased from $1m in the first quarter to break even in the
second quarter as a result of increased non-cash costs arising from accelerated
depreciation of the existing crushing circuit. Total cash costs were 3% lower
than those of the first quarter at $193/oz. Construction continues on schedule
for the commissioning of the new crushing facility early in the third quarter.
Production at this facility was 12% higher for the quarter at 48,000oz due to
improved solution grades.
Jerritt Canyon`s (70% attributable) operating profit increased from a loss of
$2m in the first quarter to break even in the second quarter. Total cash costs
at $223/oz were 24% lower than those of the first quarter due to increased
production and improved productivity resulting from the reorganisation of labour
in the underground mines. Production was 27% higher at 66,000 attributable
ounces. Improved weather conditions in the second quarter, lead to an increase
in production which resulted in higher mill throughput.
SOUTH AMERICA
Overall performance
The region`s attributable operating profit was marginally down at $14m. Total
cash costs for the quarter were 3% up at $129/oz as a result of lower silver by-
product credits at both Morro Velho and Cerro Vanguardia. Gold production was
2% higher than in the previous quarter at 104,000oz.
The South America region again had a good safety performance this quarter,
with its LTIFR below the Ontario benchmark. Cerro Vanguardia`s operations were
audited by international NOSA and NQA auditors and awarded a Five Star rating as
well as an environmental ISO 14001 certification, making it the first NOSA-
affiliated mine in the world to achieve this status. The Morro Velho and Serra
Grande operations both have safety indicators above the Ontario benchmark.
Mine performance
At Morro Velho, operating profit rose by 17% to $7m. Total cash costs were 5%
lower at $139/oz. Gold production was 11% higher than the previous quarter at
51,000oz, due to higher tonnage and grade as well as improved gold recovery from
the circuit used during the roaster and acid plant shutdown in April.
At Cerro Vanguardia (46.25% attributable), operating profit decreased by 20%
to $4m due to the lower volume of gold sold (down 6%) and higher total cash
costs (up 17% to $109/oz). The devaluation of the peso further worsened the
mine`s unit cost performance. Gold production was 12% lower than the previous
quarter at 29,000 attributable ounces, mainly due to the impact of adverse
weather conditions.
At Serra Grande (50% attributable), operating profit was maintained at $4m.
Total cash costs were $108/oz. Gold production was 4% higher than the previous
quarter at 24,000 attributable ounces as a result of higher grade.
AUSTRALIA
Overall performance
Operating profit increased by 188% or A$15m ($8m) to A$23m ($12m) as a result
of higher sales and stronger prices. Overall, total cash costs decreased by 11%
to A$337/oz ($186/oz).
Production for the June quarter of 135,000oz was 16% higher than the March
quarter with an exceedingly strong performance at Sunrise Dam and improvements
at Union Reefs. There was a small reduction in the amount of gold recovered from
the clean-up of the Boddington plant which ceased operations in December 2001.
The region continued its good safety performance with only two minor lost time
injuries and two restricted work cases during the quarter.
Mine performance
Operating profit at Sunrise Dam rose by 130% to A$23m ($13m) from A$10m ($5m)
in the previous quarter. Production increased by 20% to 102,000oz. Plant
throughput was maintained at an annualised rate of close to 3.4Mtpa and
recovered grades improved to 3.75g/t as mining progressed into high-grade areas.
As a consequence, total cash costs fell by 12% to A$304/oz ($168/oz).
At Union Reefs, operating profit increased to A$2m ($1m) in the June quarter
after a break-even result in March. Regaining access to the main Crosscourse
pit after the wet season allowed grades to improve and lifted gold production
for the June quarter to 32,000oz, 7% higher than that of the previous quarter.
Total cash costs fell by 8% to A$401/oz ($222/oz) as a result of the higher
production.
Minor quantities of gold were recovered from the Boddington plant as clean-up
activities were completed. The plant is now on "care and maintenance" pending a
decision on the Expansion Project.
Implementation of the mine rehabilitation plan at Tanami is continuing.
EXPLORATION
In West Africa, exploration at Yatela and Sadiola in Mali continued to define
further oxide resources and generate new targets.
In East Africa at the Geita mine in Tanzania, exploration drilling continues
to upgrade the Mineral Resource. Exploration drilling during the first six
months of this year has resulted in an increase in the Mineral Resource by
0.76Moz to a total of 15Moz comprising:
* Measured 41.83Mt at 3.55g/t for 4.77Moz;
* Indicated 54.56Mt at 4.37g/t for 7.67Moz; and
* Inferred 19.33Mt at 4.11g/t for 2.56Moz
The increase comes primarily from the Nyankanga pit area.
At Nyankanga, mineralisation remains open along strike towards the east and
west with drill intersections including 26m at 4.06g/t and 14m at 14.90g/t. At
Geita Hill West, encouraging results continue with intercepts of 16m at 19.2g/t
and 43m at 6.4g/t. Based on the exploration success at Geita to date, the
programme has been expanded to include further drilling at Nyankanga East and
West, Geita Hill and north-east extensions and Lone Cone - Copcot.
In North America, focus continued on Mineral Resource definition at Cripple
Creek & Victor and Jerritt Canyon. No further results were obtained from Red
Lake in Canada.
In South America at Cerro Vanguardia, drilling identified further open-pit
mineralisation in new veins and in strike extensions at several of the existing
pits.
In the Iron Quadrangle of Brazil, drilling at C"rrego do S!tio has located a
series of new high-grade zones, with grades of 7 to 35g/t over widths of 1 to
18m, with potential to significantly increase the Mineral Resource. At the
Lamego project near the Cuiab mine, drilling continued to define extensions to
known mineralisation, confirming a sulphide Mineral Resource estimate
comprising:
* Measured 0.42Mt at 6.8g/t for 0.09Moz;
* Indicated 0.69Mt at 7.15g/t for 0.16Moz; and
* Inferred 2.64Mt at 5.79g/t for 0.49Moz
At Mina Serra Grande, deep drilling has defined the down dip mineralisation in
the Mina III orebody as well as extensions in the shallower Mina Nova orebody.
Greenfield exploration in Peru saw second phase drilling under way in southern
Peru.
In Australia, drill testing of the Western Shear Zone at Sunrise Dam
intersected continuous high-grade mineralisation immediately outside the south-
western margin of the current design open-pit shell. Intersections included 12m
at 22.1g/t, 4m at 72.6g/t, 11m at 30.6g/t and 24m at 12.7g/t. Step-out
drilling of the Sunrise Shear underground zone to the north-west of the Sunrise
Dam open pit intersected 21m at 17.7g/t.
Infill diamond drilling at Coyote in the Tanami region intersected encouraging
mineralisation in the Sylvestor lode in the north of the prospect area, with one
hole intersecting 8m at 4.2g/t and 9m at 4.7g/t.
Note:
All reference to operating profit and price received includes the realised non
hedge derivative gains (losses).
All reference to headline earnings excludes unrealised non-hedge derivative
gains (losses).
Rounding of figures may result in computational discrepancies.
GOLD MARKET
The second quarter saw growing US dollar weakness, and growing gold strength.
The gold price reached $330/oz during the quarter, and the average price of $312
was 7.5% better than the average for the previous quarter. The gold price rise
mirrored the major correction under way in the dollar. The US currency closed
the quarter at $0.99 to the euro, or 12% weaker than its opening exchange rate
of $0.87; there is no doubt that the state of the dollar encouraged buying in
gold for most of the quarter, and renewed dollar weakness in July has again
triggered a stronger gold price; this is reflected in the graph below.
The 10% strengthening of the rand against the dollar during the quarter also
reflected US currency weakness. The South African price of gold was helped by
the improvement in the dollar gold price, but suffered from the stronger rand,
with the average price of R104,800/kg down by 2% on the average local price for
the first quarter of 2002.
During the first quarter, a number of elements encouraged investor interest in
gold, including economic uncertainty in developed economies, equity market
weakness, US monetary policy issues and US dollar weakness, and international
tension in the Middle East and the Indian sub-continent. In the second quarter,
however, gold benefited most from the fall in the US dollar, with some
encouragement from time to time from the problems of the equity markets (and
particularly from disclosures by major American companies of past
misrepresentations of financial results, which have damaged investor confidence
in equity investment).
The gold price rose for most of the second quarter almost perfectly in
response to the progressive slide of the US dollar (particularly against the
euro), and to successive items of bad news from leading equity markets. Buying
on the New York Comex was the most important source of investor and speculator
interest in the metal during this period, and net long positions on that
exchange increased steadily during April and May, to reach a peak net long
position at the beginning of June equal to just over 310t. The graph below
reflects the move in both the net open interest on the New York Comex over the
past 19 months, and the spot price of gold.
The balance of interest in gold was again materially assisted by gold
producers continuing to run down open hedge positions. This process has the
effect of both delivering new production off the spot market and adding a
certain amount of producer buying to investor demand. This has increased the
positive impact on the price of incremental investor buying.
During the last few weeks of the quarter, the gold price stalled and did not
respond either to continued dollar weakness or to recurrent bad news from equity
markets. There was a measure of profit-taking on Comex which saw open interest
on the exchange decline during June, and the spot price of gold fall to just
above $310/oz. There was a brief rally in the price to $325/oz in July, but for
the moment, the gold price has fallen further, and has moved clearly away from
direct linkage to the currency and equity markets.
Notwithstanding weaker prices in June and July, we believe that the favourable
market circumstances for gold remain firmly in place, and should continue to
support the price of gold going forward.
The impact of the rising price of gold on physical offtake in major markets
continues to be negative, and there are indications that physical demand in
India for the quarter will have fallen once again. Offtake has also slipped in
other areas. However, seasonal factors should assist physical gold demand
during the third quarter and for the balance of the year, and the performance of
gold offtake for the balance of this year will be an important indicator of how
the physical market is dealing with higher and more volatile gold prices.
Currency market activity dominated the quarter. From its strongest point this
year of $0.8560 to the euro in February, the US dollar had lost fully 19% in six
months against the euro to trade at $1.02 in July.
However, after the 40% appreciation of the US dollar between 1995 and 2001, it
seems likely that this correction is not yet complete. Whilst today`s
circumstances are different from those of 1985 - 1990, when the US dollar lost
50% in value against major currencies, it is nevertheless likely that the dollar
has to devalue further against other major currencies before equilibrium is
reached.
In this respect, the dollar will not be helped by circumstances in the US
today. With the US current account deficit heading to record levels of close to
$500bn for 2002, foreign demand for US dollar assets is falling. After the
investment boom of the 1990s, foreign investors already own substantial parts of
US investment markets, but the recent performance of the equity markets, the
numerous scandals affecting major US corporations and the secular downturn in
the dollar have all made foreign investors unlikely to invest in the USA and to
finance the US deficit further for the moment.
The open hedge position for AngloGold as at 30 June shows a further reduction
in the hedge by some 73t or 2.37Moz. Going forward, the company will continue
to manage actively the remaining forward contracts in the hedge in order to give
the company increased exposure to the firmer spot price of gold.
GOLD MARKET
NET DELTA OPEN HEDGE POSITION AS AT 30 JUNE 2002
As at 30 June 2002, the group had outstanding, the following net forward-
pricing commitments against future production. A portion of these sales
consists of US dollar-priced contracts which have been converted to rand prices
at an average annual forward rand value based on spot rand/dollar rate of 10.25
available on 30 June 2002.
Rand Gold Dollar Gold
kg`s kg`s
sold R per kg sold $ per oz
12 months
ending 31 Dec
2002 562 67,727 7,353 276
2003 21,296 87,053 27,354 325
2004 15,774 102,113 24,629 315
2005 14,142 125,395 32,093 322
2006 9,620 124,987 25,908 327
Jan 2007 - Dec
2011 16,851 160,304 88,599 354
78,245 117,320 205,936 334
AUS Dollar Total Total
Gold kg`s oz`s
kg`s sold A$ per oz sold sold
12 months
ending 31 Dec
2002 2,757 739 10,672 343,102
2003 12,146 523 60,796 1,954,629
2004 5,443 537 45,846 1,473,994
2005 5,121 650 51,356 1,651,123
2006 5,851 606 41,379 1,330,381
Jan 2007 - Dec
2011 11,993 527 117,443 3,775,837
43,311 566 327,492 10,529,066
The marked-to-market value of all hedge transactions making up the hedge
positions in the above table following all restructuring was a negative R4.38bn
(negative $422.81m) as at 30 June 2002. The value was based on a gold price of
$312.25 per ounce, exchange rates of R/$10.25 and A$/$0.561 and the prevailing
market interest rates and volatilities at the time.
As at 29 July 2002, the marked-to-market value of the hedge book was a
negative R3.109bn (negative $294.5m) based on a gold price of $302.50/oz and
exchange rates of R/$10.25 and A$/$0.534 and the prevailing market interest
rates and volatilities at the time.
Note to AngloGold Hedge Position as at 30 June 2002
*The delta position indicated hereafter reflects the nominal amount of the
option multiplied by the mathematical probability of the option being exercised.
This is calculated using the Black and Scholes option formula with the ruling
market prices, interest rates and volatilities as at 30 June 2002.
ANGLOGOLD HEDGE POSITION
AS AT 30 JUNE 2002
Year 2002 2003 2004 2005
DOLLAR GOLD
Forward
Contracts Amount (kg) 5,466 22,016 23,663 22,147
$ per oz $259 $315 $312 $321
Put Options
Purchased Amount (kg) 686 5,808 796 757
$ per oz $283 $352 $291 $291
*Delta (kg) 62 3,974 194 167
Put Options Sold
Amount (kg) 14,930 12,752 6,221
$ per oz $311 $307 $311
*Delta (kg) 7,109 4,795 2,254
Call Options Purchased
Amount (kg) 4,258 4,555 572
$ per oz $349 $351 $360
*Delta (kg) 743 1,280 188
Call Options Sold
Amount (kg) 17,191 16,653 6,538 15,825
$ per oz $317 $331 $334 $323
*Delta (kg) 9,677 7,439 3,214 9,779
RAND GOLD
Forward Contracts
Amount (kg) 17,359 12,476 11,255
Rand per kg R84,309 R98,762 R123,852
Put Options Purchased Amount (kg) 1,094 1,875 1,875 1,875
Rand per kg R93,603 R93,603 R93,603 R93,603
*Delta (kg) 115 150 75 40
Put Options Sold Amount (kg) 1,866
Rand per kg R108,204
*Delta (kg) 873
Call Options Purchased Amount (kg) 4,732
Rand per kg R83,652
*Delta (kg) 4,707
Call Options Sold Amount (kg) 6,176 4,687 4,688 4,687
Rand per kg R85,534 R99,370 R115,285 R131,945
*Delta (kg) 6,027 3,787 3,223 2,847
AUS DOLLAR (A$) GOLD
Forward Contracts Amount (kg) 5,288 12,286 5,443 6,221
A$ per oz A$670 A$525 A$537 A$663
Call Options Purchased Amount (kg) 6,532 3,888 3,110
A$ per oz A$722 A$701 A$724
*Delta (kg) 614 758 1,100
Call Options Sold Amount (kg) 2,488 3,110
A$ per oz A$590 A$700
*Delta (kg) 619 618
Put Options Sold Amount (kg) 5,288
A$ per oz A$564
*Delta (kg) 2,536
RAND DOLLAR (000)
Forward Contracts Amount ($)
Rand / $
Put Options Purchased Amount ($) 20,000
Rand per $ R 8.06
*Delta ($) 0
Put Options Sold Amount ($)
Rand per $
*Delta ($)
Call Options Purchased Amount ($) 4,000 8,000
Rand per $ R 6.60 R 6.94
*Delta ($) 4,000 7,992
Call Options Sold Amount ($) 24,000 8,000
Rand per $ R 8.89 R 6.94
*Delta ($) 24,000 7,992
AUS DOLLAR (000)
Forward Contracts Amount ($) 27,414 29,428 15,970
$ per A$ A$0.62 A$0.59 A$0.64
Year 2006 2007-2011 Total
DOLLAR GOLD
Forward
Contracts Amount (kg) 16,792 43,831 133,915
$ per oz $326 $349 $326
Put Options
Purchased Amount (kg) 563 728 9,338
$ per oz $291 $292 $328
*Delta (kg) 113 133 4,643
Put Options Sold
Amount (kg) 33,903
$ per oz $310
*Delta (kg) 14,158
Call Options Purchased
Amount (kg) 9,385
$ per oz $350
*Delta (kg) 2,211
Call Options Sold
Amount (kg) 14,213 67,147 137,567
$ per oz $329 $358 $342
*Delta (kg) 9,003 44,635 83,747
RAND GOLD
Forward Contracts
Amount (kg) 6,335 8,274 55,699
Rand per kg R121,174 R117,021 R104,589
Put Options Purchased Amount (kg) 1,875 8,594
Rand per kg R93,603 R93,603
*Delta (kg) 26 406
Put Options Sold Amount (kg) 1,866
Rand per kg R108,204
*Delta (kg) 873
Call Options Purchased Amount (kg) 4,732
Rand per kg R83,652
*Delta (kg) 4,707
Call Options Sold Amount (kg) 4,688 14,930 39,856
Rand per kg R132,648 R202,056 R145,309
*Delta (kg) 3,259 8,577 27,720
AUS DOLLAR (A$) GOLD
Forward Contracts Amount (kg) 9,331 22,395 60,964
A$ per oz A$631 A$604 A$598
Call Options Purchased Amount (kg) 6,221 15,863 35,614
A$ per oz A$673 A$692 A$698
*Delta (kg) 3,480 10,402 16,354
Call Options Sold Amount (kg) 5,598
A$ per oz A$651
*Delta (kg) 1,237
Put Options Sold Amount (kg) 5,288
A$ per oz A$564
*Delta (kg) 2,536
RAND DOLLAR (000)
Forward Contracts Amount ($)
Rand / $
Put Options Purchased Amount ($) 20,000
Rand per $ R 8.06
*Delta ($) 0
Put Options Sold Amount ($)
Rand per $
*Delta ($)
Call Options Purchased Amount ($) 12,000
Rand per $ R 6.83
*Delta ($) 11,992
Call Options Sold Amount ($) 32,000
Rand per $ R 8.40
*Delta ($) 31,992
AUS DOLLAR (000)
Forward Contracts Amount ($) 72,812
$ per A$ A$0.61
NOTES
The results included herein for the quarter and six months ended 30 June 2002,
which are unaudited, have been prepared using the accounting policies which are
in accordance with the standards issued by the International Accounting
Standards Board and the South African Institute of Chartered Accountants. Where
appropriate, comparative figures have been restated.
1. During the quarter, 60,100 ordinary shares were allotted in terms of the
AngloGold Share Incentive Scheme.
2. Orders placed and outstanding on capital contracts as at 30 June 2002
totalled R990m (31 March 2002: R1,072m), equivalent to $95m (31 March 2002:
$94m) at the rate of exchange ruling on that date.
3. Although AngloGold holds a 66.7% interest in Cripple Creek & Victor Gold
Mining Company Limited, it is currently entitled to receive 100% of the cash
flow from the operation until a loan, extended to the joint venture by AngloGold
North America Inc., is repaid.
4. Acquisition of Perez Companc`s entire equity interests in
Cerro Vanguardia S.A.
Agreement was reached with Perez Companc International ("Perez Companc") to
acquire its entire 46.25% equity interests in Cerro Vanguardia S.A. ("CVSA"),
for a cash consideration of $90m, which was paid from AngloGold`s existing but
undrawn debt facilities.
Perez Companc and AngloGold each owned a 46.25% equity interest in CVSA.
CVSA owns the exclusive right to exploit the Cerro Vanguardia Mine, which is
located in Patagonia in the Santa Cruz Province of Argentina. AngloGold
acquired its interest in CVSA from Minorco in 1999 and participated in the
competion of the development and the commissioning of the Cerro Vanguardia Mine,
as well as its operation since that time, and is confident of the existing and
upside potential of this asset. This transaction, which is immediately
accretive to AngloGold`s earnings and cash flow, will reduce AngloGold`s cash
and total operating costs per ounce and further diversify its production,
reserve and resource base, in geographical, operational and orebody terms.
Rationale for the transaction and overview of Cerro Vanguardia Mine:
For the year ended 31 December 2001, AngloGold`s 46.25% interest in CVSA
produced:
* Attributable operating profit including realised non-hedge derivatives of
$15m.
* Attributable earnings before interest, tax, depreciation and amortisation
("EBITDA") of $24m.
* Attributable gold production of 136,000oz of gold at a total cash cost of
$133/oz.
At 31 December 2001
* Total ore reserves of the mine were 2.4Moz.
* Total ore resources were 3.6Moz.
For the six months ended 30 June 2002
* Attributable operating profit including realised non-hedge derivatives was
$9m.
* Attributable EBITDA was $14m.
* Attributable gold production was 62,000oz at a total cash cost of $101/oz.
Cerro Vanguardia`s
* Current plant throughput is 900,000tpa. However, it is planned to
increase this to 1m tpa from 2004 at relatively minimal capital cost.
* Existing reserve base is sufficient to support a life of mine to 2012.
* Exploratory drilling has confirmed additional resources of 400,000oz of
gold.
5. At the annual general meeting of shareholders held on 30 April 2002, all the
ordinary and special resolutions, as specified in the notice of meeting dated 14
March 2002, were passed by the requisite majority of shareholders.
6. Dividend
The directors have today declared Interim Dividend No. 92 of 1,350 (Interim
Dividend No. 90: 700) South African cents per ordinary share for the six months
ended 30 June 2002. In compliance with the requirements of STRATE, the
electronic settlement system and custody system used by the JSE Securities
Exchange South Africa, the company has determined the following salient dates
for the payment of the dividend:
To holders of ordinary shares and to holders of CHESS depositary interests
(CDIs): Each CDI represents one-tenth of an ordinary share.
2002
Currency conversion date for UK pounds and
Australian dollars Thursday 8 August
Last date to trade ordinary shares cum dividend Friday 16 August
Last date to register transfer of certificated
securities cum dividend in the United Kingdom
and Australia Friday 16 August
Ordinary shares trade ex dividend Monday 19 August
Record date Friday 23 August
Payment date Friday 30 August
On the payment date, dividends due to holders of certificated securities on
the South African share register will either be electronically transferred to
shareholders` bank accounts or, in the absence of suitable mandates, dividend
cheques will be posted to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited to
shareholders` bank accounts which are linked to their safe custody accounts with
the relevant CSDP or broker.
To comply with the further requirements of STRATE, between Friday, 16 August
2002 and Friday, 23 August 2002, both days inclusive, no transfers between the
South African and United Kingdom share registers and between the South African
and Australian share registers will be permitted and no ordinary shares
pertaining to the South African share register may be dematerialised or
rematerialised.
To holders of American Depositary Shares. Each American Depositary Share
(ADS) represents one-half of an ordinary share.
2002
Ex dividend on New York Stock Exchange Wednesday 21 August
Record date Friday 23 August
Approximate date for currency conversion Friday 30 August
Approximate payment date of dividend Thursday 12 September
For illustrative purposes, the dividend payable on an ADS was equivalent to 66
US cents at the rate of exchange ruling on Monday, 29 July 2002. This compares
with the interim dividend of 38.21 US cents per ADS paid on 9 October 2001.
7. This report contains a summary of the results of AngloGold`s operations.
A detailed report appears on the Internet and is obtainable in printed format
from the investor relations contacts, whose details, along with the website
address, appear at the end of this report.
By order of the Board
R P EDEY R M GODSELL
Chairman Chief Executive Officer
30 July 2002
DIRECTORATE AND ADMINISTRATION
DIRECTORS
Executive
R M Godsell (Chief Executive Officer)
J G Best
D L Hodgson
K H Williams
Non-Executive
R P Edey* (Chairman)
T J Motlatsi (Deputy Chairman)
F B Arisman#
Mrs E le R Bradley
C B Brayshaw
Dr V K Fung#
A W Lea (Alternate: P G Whitcutt)
W A Nairn (Alternate: A H Calver*)
J Ogilvie Thompson (Alternate: D D Barber)
N F Oppenheimer
A J Trahar
* British # American
OFFICES
Registered and Corporate
Managing Secretary
Ms Y Z Simelane
Company Secretary
C R Bull
11 Diagonal Street
Johannesburg 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13 & 14
St Martins Tower
44 St Georges Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4604
Fax: +61 8 9425 4662
UNITED KINGDOM SECRETARIES
St James`s Corporate Services Limited
6 St James`s Place
London SW1A 1NP
England
Telephone: +44 20 7499 3916
Fax: +44 20 7491 1989
SHARE REGISTRARS
South Africa
Computershare Investor Services Limited
2nd Floor, Edura, 41 Fox Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 945 within South Africa
Telephone: +27 11 722 2287 outside South Africa
Fax: 0861 100 951 within South Africa
Fax: +27 11 722 2288 outside South Africa
United Kingdom
Computershare Investor Services PLC
PO Box 82
The Pavilions,
Bridgwater Road
Bristol BS99 7NH
England
Telephone: +44 870 702 0001
Fax: +44 870 703 6119
Australia
(Previously Melbourne office)
Computershare Investor Services Pty Limited
Level 12, 45 St George`s Terrace
Perth 6000, Western Australia
(GPO Box D182
Perth 6840, Western Australia)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 70 10 (in Australia)
Fax: +61 8 9323 2033
ADR DEPOSITARY
The Bank of New York
101 Barclay Street
22nd Floor
New York, NY 10286
United States of America
Telephone: +1 212 885 3503/2248
Fax: +1 212 571 3050/3052
AUTHORISED REPRESENTATIVE
United States of America
Puglisi & Associates
850 Library Avenue, Suite 204
PO Box 885
Newark, Delaware 19715
United States of America
Telephone: +1 302 738 6680
Fax: +1 302 738 7210
CONTACTS
South Africa
Steve Lenahan
Telephone: +27 11 637 6248
Fax: +27 11 637 6247
E-mail: slenahan@anglogold.com
Peta Baldwin
Telephone: +27 11 637 6647
Fax: +27 11 637 6399
E-mail: pbaldwin@anglogold.com
11 Diagonal Street
Johannesburg 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Europe
Tomasz Nadrowski
Telephone: +41 22 718 3312
Fax: +41 22 718 3334
E-mail: tnadrowski@anglogold.com
67, rue du Rhone
4th Floor
1207 Geneva
Switzerland
Alex Buck
Telephone: +44 20 7664 8712/3
Fax: +44 20 7664 8711
E-mail: abuck@anglogold.com
2nd Floor
100 Pall Mall
London SW1Y 5HP
England
United States of America
Charles Carter
Telephone: (800) 417 9255 (toll free in USA and Canada) or +1 212 750 7999
Fax: +1 212 750 5626
E-mail: ccarter@anglogold.com
509 Madison Avenue
Suite 1914
New York, NY 10022
United States of America
Andrea Maxey
Telephone: + 61 8 9425 4604
Fax: + 61 8 9425 4662
E-mail: amaxey@anglogold.com.au
Level 13 & 14
St Martins Tower
44 St Georges Terrace
Perth WA 6000
(PO Box Z5046, Perth WA6831)
Australia
General E-mail enquiries
investors@anglogold.com
AngloGold website
http://www.anglogold.com
Share Transactions Totally Electronic ("STRATE")
Dealings and settlements on the JSE Securities Exchange South Africa ("JSE")
are now exclusively in electronic form through the STRATE system such that share
certificates are no longer good for delivery on that exchange. Shareholders
resident in South Africa who currently retain their share certificates and who
may wish to deal on the JSE are advised to dematerialise their shares.
AngloGold operates an issuer-sponsored nominee programme, administered by
Computershare Custodial Services Limited, which will hold and administer the
shares at no cost to the shareholder. A document entitled STRATE, which
explains more fully the background and objectives of STRATE, the implications of
holding dematerialised shares and the procedure to dematerialise shares may be
accessed from our website http://www.anglogold.com
Global BuyDIRECTSM
The Bank of New York maintains a direct share purchase and dividend reinvestment
plan for AngloGold.
For additional information, please visit The Bank of New York`s website at
www.globalbuydirect.com or call Shareholder Relations at 1-888-BNY-ADRS or write
to:
The Bank of New York
Shareholder Relations Department -
Global BuyDIRECTSM
Church Street Station
PO Box 11258
New York, NY 10286-1258
United States of America
1 See note 6 on page 11.
Date: 31/07/2002 08:01:11 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
Sharenet Sites 
