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ANGLOGOLD LIMITED
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
REGISTRATION NUMBER 05/17354/06
A STRONGER PRODUCTION QUARTER, BUT INCREASED COSTS DEPRESS EARNINGS
GROUP RESULTS FOR THE QUARTER
STEADY PERFORMANCE FOR THE GROUP'S OPERATIONS.
GOLD PRODUCTION INCREASES BY 2% TO 1.83 MILLION OUNCES (56,924 KILOGRAMS).
WAGE AND DIESEL INCREASES LEAD TO A 3% INCREASE IN TOTAL CASH COSTS TO R46,914
PER KILOGRAM.
OPERATING PROFIT IS MARGINALLY LOWER.
HEADLINE EARNINGS ARE DOWN 7% TO 399 CENTS PER SHARE, DUE LARGELY TO INCREASED
CORPORATE ACTIVITIES.
REGIONAL OPERATING RESULTS FOR THE QUARTER
SOUTH AFRICA
GOOD PERFORMANCES AT GREAT NOLIGWA, TAU LEKOA, TSHEPONG AND SAVUKA AND
PRODUCTION IMPROVEMENTS AT MOST OTHERS.
UNRESOLVED PROBLEMS AT ELANDSRAND AND BAMBANANI.
GOLD PRODUCTION IS UP 1% TO 43,000 KILOGRAMS DESPITE THE CLOSURE OF
MATJHABENG'S KUDU SHAFT AND RESULTANT LOSS OF 250 KILOGRAMS OF GOLD AND OTHER
OPERATING PROBLEMS.
VOLUME AND VALUE EFFICIENCIES ARE UP 5% AND 3% RESPECTIVELY.
TOTAL CASH COSTS ARE CONTAINED TO A 2.5% INCREASE, REFLECTING THE 9% ANNUAL
WAGE ADJUSTMENT AND INCREASES IN MINING ACTIVITY.
AFRICA
BOTH SADIOLA AND NAVACHAB REPORT IMPROVED PRODUCTION AND CREDITABLE COST
PERFORMANCES, DESPITE DIESEL PRICE INCREASES.
AT YATELA THE CEREMONIAL FIRST CONCRETE IS POURED BY THE MALI MINISTER OF MINES
ON 12 OCTOBER.
AT MORILA THE FIRST COMMISSIONING GOLD IS POURED ON 18 OCTOBER.
ASHANTI'S BANKERS GIVE APPROVAL TO THE GEITA DEAL AND FINALISATION OF THE
TRANSACTION SHOULD TAKE PLACE AT THE END OF NOVEMBER.
NORTH AMERICA
COST INCREASES FOR THE REGION ARE CONTAINED TO 2% DESPITE DIESEL INCREASE AND
GRADE PROBLEMS AT JERRITT CANYON.
DECREASED GRADE AT JERRITT CANYON LEADS TO A 9% REDUCTION IN GOLD PRODUCTION,
TO BE OFFSET IN THE LAST QUARTER AS THE CORTEZ ORE PURCHASE ARRANGEMENT COMES
ON STREAM.
AT CRIPPLE CREEK & VICTOR, PRODUCTION IS UP BY 3% AND COSTS DOWN BY 6%, AND
PHASE 3 OF THE LEACH PAD EXPANSION IS COMPLETED DURING THE QUARTER.
SOUTH AMERICA
ANOTHER GOOD QUARTER OVERALL.
DESPITE BAD WEATHER AT CERRO VANGUARDIA, GOLD PRODUCTION FROM THE REGION'S
OPERATIONS INCREASES BY 2%.
TOTAL CASH COSTS ARE PUSHED HIGHER BY WAGE INCREASES AT MORRO VELHO AND
WEATHER-INDUCED PRODUCTION PROBLEMS AT CERRO VANGUARDIA.
AUSTRALASIA
GOLD PRODUCTION AT SUNRISE DAM INCREASES BY 31% AND TOTAL COSTS DROP BY 31%.
PRODUCTION AT BODDINGTON IS REDUCED BECAUSE OF HEAVY RAINS EARLY IN THE QUARTER
PRODUCTION IMPROVES AT BOTH PINE CREEK AND TANAMI.
TECHNICAL APPRAISAL OF THE BODDINGTON EXPANSION PROJECT IS UNDER WAY, WITH
COMPLETION LIKELY AT YEAR-END. ANGLOGOLD IS POSITIVE ABOUT THE OUTCOME.
SUMMARY OF GROUP RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 200
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
QUARTER NINE MONTHS
ENDED ENDED
SEPT JUNE SEPT SEPT
2000 2000 2000 1999
RAND/METRIC
PRODUCED - KG/OZ (000) 56,924 55,957 167,390 162,487
REVENUE - R/KG/$/OZ SOLD 67,460 66,192 65,901 61,489
TOTAL CASH COSTS - R/KG/$/OZ
PRODUCED 46,914 45,734 45,763 41,497
TOTAL PRODUCTION
COSTS - R/KG/$/OZ PRODUCED 53,967 52,726 52,601 47,556
OPERATING PROFIT - R/$M 814 821 2,383 2,389
NET CAPITAL EXPENDITURE -
R/$M 438 356 1,071 885
NET PROFIT- R/$M 394 424 1,247 2,122
NET EARNINGS - CENTS PER SHARE 369 397 1,167 2,169
HEADLINE EARNINGS - CENTS
PER SHARE 399 429 1,257 2,003
HEADLINE EARNINGS BEFORE
DEFERRED TAXATION RATE
CHANGE - CENTS PER SHARE 398 426 1,255 1,533
DIVIDENDS - CENTS PER SHARE 750 900
QUARTER NINE MONTHS
ENDED ENDED
SEPT JUNE SEPT SEPT
2000 2000 2000 1999
DOLLAR/IMPERIAL GOLD
PRODUCED - KG/OZ (000) 1,830 1,799 5,382 5,224
REVENUE - R/KG/$/OZ SOLD 300 300 305 313
TOTAL CASH COSTS - R/KG/$/OZ
PRODUCED 209 207 212 211
TOTAL PRODUCTION
COSTS - R/KG/$/OZ PRODUCED 240 239 244 242
OPERATING PROFIT - R/$M 115 119 352 392
NET CAPITAL EXPENDITURE - R/$M 63 52 158 145
NET PROFIT - R/$M 54 61 182 348
NET EARNINGS - CENTS PER SHARE 50 57 171 356
HEADLINE EARNINGS - CENTS
PER SHARE 55 62 184 328
HEADLINE EARNINGS BEFORE
DEFERRED TAXATION RATE
CHANGE - CENTS PER SHARE 55 62 184 251
DIVIDENDS - CENTS PER SHARE 110 149
ABRIDGED BALANCE SHEET
AT AT AT
30 SEPT 30 JUNE 30 SEPT
2000 2000 1999
RM RM RM
MINING ASSETS AND GOODWILL 20,850 19,289 15,591
CASH AND CASH EQUIVALENTS 1,154 2,110 2,828
OTHER NET ASSETS 4,024 3,994 3,144
26,028 25,393 21,563
SHAREHOLDERS' EQUITY 10,829 11,299 8,407
BORROWINGS 6,316 5,318 4,976
DEFERRED TAXATION 4,350 4,296 4,011
OTHER LONG-TERM LIABILITIES 4,533 4,480 4,169
26,028 25,393 21,563
ABRIDGED BALANCE SHEET
AT AT AT
30 SEPT 30 JUNE 30 SEPT
2000 2000 1999
$M $M $M
MINING ASSETS AND GOODWILL 2,882 2,839 2,595
CASH AND CASH EQUIVALENTS 160 311 471
OTHER NET ASSETS 554 587 524
3,596 3,737 3,590
SHAREHOLDERS' EQUITY 1,495 1,663 1,400
BORROWINGS 873 783 828
DEFERRED TAXATION 601 632 668
OTHER LONG-TERM LIABILITIES 627 659 694
3,596 3,737 3,590
NOTE: $ REFERS TO US DOLLARS, UNLESS OTHERWISE STATED.
NOTES
1. THE RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 2000, WHICH
ARE UNAUDITED, HAVE BEEN PREPARED USING ACCOUNTING POLICIES WHICH ARE IN
ACCORDANCE WITH THE STANDARDS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS
COMMITTEE AND THE SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS. WHERE
APPROPRIATE, COMPARATIVE FIGURES HAVE BEEN RESTATED.
2. DURING THE QUARTER 2,800 ORDINARY SHARES WERE ALLOTTED IN TERMS OF THE SHARE
INCENTIVE SCHEME, THEREBY INCREASING THE NUMBER OF ORDINARY SHARES IN ISSUE AT
30 SEPTEMBER 2000 TO 107,017,487.
3. IT WAS PREVIOUSLY REPORTED THAT ANGLOGOLD HAD ENTERED INTO A NON-BINDING
HEADS OF AGREEMENT FOR THE ACQUISITION OF A 50% JOINT VENTURE INTEREST IN THE
GEITA PROJECT IN TANZANIA FROM ASHANTI GOLDFIELDS COMPANY LIMITED (ASHANTI). ON
26 JUNE 2000 IT WAS ANNOUNCED THAT THE FORMAL AGREEMENT HAD BEEN SIGNED WITH
ASHANTI. THE TRANSACTION, WHICH IS SUBJECT TO REGULATORY AND GOVERNMENTAL
APPROVALS AS WELL AS ASHANTI SHAREHOLDERS' AND BANK CREDITOR RATIFICATIONS, WAS
TO HAVE BEEN COMPLETED BY 30 SEPTEMBER 2000, BUT IS NOW EXPECTED TO BE
FINALISED BY THE END OF NOVEMBER 2000.
4. EARNINGS PER SHARE HAVE BEEN CALCULATED USING THE WEIGHTED AVERAGE NUMBER OF
ORDINARY SHARES IN ISSUE. THE AVERAGE NUMBER OF ORDINARY SHARES IN ISSUE AT 30
SEPTEMBER 2000 WAS 106,860,638.
5. ORDERS PLACED AND OUTSTANDING ON CAPITAL CONTRACTS AS AT
30 SEPTEMBER 2000 TOTALLED R746.5 MILLION (30 JUNE 2000: R836.6 MILLION),
EQUIVALENT TO $103.2 MILLION (30 JUNE 2000: $126.9 MILLION) AT THE RATE OF
EXCHANGE RULING ON THAT DATE. THE FIGURES FOR ORDERS PLACED AND OUTSTANDING ON
CAPITAL CONTRACTS PUBLISHED AT 30 JUNE 2000 HAVE BEEN RESTATED, AND ARE
REFLECTED AS COMPARATIVES.
6. DIVIDEND
INTERIM DIVIDEND NO. 88 OF 750 SOUTH AFRICAN CENTS PER ORDINARY SHARE WAS PAID
TO REGISTERED SHAREHOLDERS ON 22 SEPTEMBER 2000. A DIVIDEND WAS PAID TO
HOLDERS OF AMERICAN DEPOSITARY RECEIPTS (ADRS) ON 11 OCTOBER 2000 AT A RATE OF
51.06 US CENTS PER AMERICAN DEPOSITARY SHARE (ADS). EACH ADS REPRESENTS
ONE-HALF OF AN ORDINARY SHARE.
ANGLOGOLD HAS LEARNT THAT CERTAIN SHAREHOLDERS RECEIVED PAYMENT OF DIVIDEND NO.
88 LATER THAN THE PAYMENT DATES AS ANNOUNCED ON 26 JULY 2000. THE DIVIDEND
PAYMENT WAS LATER THAN ANTICIPATED AS A RESULT OF DELAYS IN PROCESSING THE
TRANSFER OF FUNDS. ANGLOGOLD IS IN DISCUSSION WITH ALL PARTIES INVOLVED TO
ENSURE AN IMPROVED PAYMENT PROCESS IN FUTURE. THE COMPANY REGRETS THE
INCONVENIENCE CAUSED TO SHAREHOLDERS WHO HAVE EXPERIENCED DELAYED PAYMENT OF
THE DIVIDEND.
7. 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 BELOW.
BY ORDER OF THE BOARD
N F OPPENHEIMER, CHAIRMAN
R M GODSELL, CHIEF EXECUTIVE OFFICER
26 OCTOBER 2000
CONTACTS
IN SOUTH AFRICA:
STEVE LENAHAN (INVESTOR RELATIONS)
11 DIAGONAL STREET
JOHANNESBURG 2001
(PO BOX 62117, MARSHALLTOWN 2107)
TELEPHONE: +27 11 637 6248
FAX: +27 11 637 6107
E-MAIL: SLENAHAN@ANGLOGOLD.COM
JAMES DUNCAN (MEDIA)
11 DIAGONAL STREET
JOHANNESBURG 2001
(PO BOX 62117, MARSHALLTOWN 2107)
TELEPHONE: +27 11 637 6147
FAX: +27 11 637 6399/6400
E-MAIL: JDUNCAN@ANGLOGOLD.COM
IN THE UNITED KINGDOM:
ALEX BUCK
2ND FLOOR
100 PALL MALL
ST JAMES'S
LONDON SW1Y 5HP
ENGLAND
TELEPHONE: +44 20 7664 8712
FAX: +44 20 7664 8711
E-MAIL: ABUCK@ANGLOGOLD.COM
IN AUSTRALIA:
ANDREA MAXEY
LEVEL 11
60 CITY ROAD
SOUTHBANK, VICTORIA 3006
TELEPHONE: +61 3 9684 4920
FAX: +61 3 9684 4951
E-MAIL: AMAXEY@ANGLOGOLD.COM.AU
IN THE UNITED STATES OF AMERICA:
CHARLES CARTER
509 MADISON AVENUE
SUITE 1914
NEW YORK, NY 10022
TELEPHONE: (800) 417 9255
(TOLL-FREE IN NORTH AMERICA) OR
+1 212 750 7999
FAX: +1 212 750 5626
E-MAIL: CCARTER@ANGLOGOLD.COM
GENERAL E-MAIL ENQUIRIES SHOULD BE DIRECTED TO: INVESTORS@ANGLOGOLD.COM
INTERNET ADDRESS: HTTP://WWW.ANGLOGOLD.COM
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