Wrap Text
ANGLOGOLD NEWS RELEASE
CORPORATE COMMUNICATIONS DEPARTMENT
1ST FLOOR, 11 DIAGONAL STREET
JOHANNESBURG 2001
TELEPHONE: (+27 11) 637-6379
FAX: (+27 11) 637 6399/6400
SKB/CCD/AG0119.00
10 FEBRUARY 2000
FOR RELEASE 07:00 SA TIME 10 FEBRUARY 2000
REPORT FOR THE YEAR AND QUARTER ENDED 31 DECEMBER 1999
HIGHLIGHTS
FOR THE YEAR:
* HEADLINE EARNINGS UP 30%
* CASH AND TOTAL COSTS DOWN 6%
* DIVIDENDS UP 29%
* 12% RETURN ON CAPITAL EMPLOYED
* 15% RETURN ON SHAREHOLDERS' EQUITY
FOR THE QUARTER:
* HEADLINE EARNINGS DOWN 6%
* CASH AND TOTAL COSTS UP 7%
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
RAND/METRIC DOLLAR/IMPERIAL
QUARTER QUARTER YEAR YEAR
ENDED ENDED ENDED ENDED
DEC. SEPT. DEC. DEC.
GOLD 1999 1999 1999 1998
PRODUCED - KG/OZ(000) 52 679 55 337 215 166 205 349
REVENUE - R/KG/$/OZ SOLD 62 735 61 754 61 830 58 830
CASH COSTS - R/KG/$/OZ PRODUCED 43 874 40 823 41 712 39 944
TOTAL PRODUCTION COSTS
- R/KG/$/OZ PRODUCED 50 201 46 714 47 842 46 060
OPERATING PROFIT
- R MILLION/$ MILLION 698 824 3 088 2 608
NET CAPITAL EXPENDITURE
- R MILLION/$ MILLION 366 327 1 254 556
ATTRIBUTABLE PROFIT
- R MILLION/$ MILLION 532 493 2 654 1 711
ATTRIBUTABLE EARNINGS
- CENTS PER SHARE 540 504 2 695 1 748
HEADLINE EARNINGS - CENTS PER SHARE 494 528 2 485 1 568
HEADLINE EARNINGS BEFORE
DEFERRED TAX ADJUSTMENT
- CENTS PER SHARE 494 528 2 018 1 568
DIVIDENDS - CENTS PER SHARE - - 2 000 1 550
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
QUARTER QUARTER YEAR YEAR
ENDED ENDED ENDED ENDED
DEC. SEPT. DEC. DEC.
GOLD 1999 1999 1999 1998
PRODUCED - KG/OZ(000) 1 693 1 779 6 918 6 602
REVENUE - R/KG/$/OZ SOLD 319 316 315 333
CASH COSTS - R/KG/$/OZ PRODUCED 223 209 212 225
TOTAL PRODUCTION COSTS
- R/KG/$/OZ PRODUCED 255 239 244 259
OPERATING PROFIT
- R MILLION/$ MILLION 114 135 505 470
NET CAPITAL EXPENDITURE
- R MILLION/$ MILLION 60 54 205 101
ATTRIBUTABLE PROFIT
- R MILLION/$ MILLION 87 81 434 318
ATTRIBUTABLE EARNINGS
- CENTS PER SHARE 88 83 441 324
HEADLINE EARNINGS - CENTS PER SHARE 81 87 407 283
HEADLINE EARNINGS BEFORE
DEFERRED TAX ADJUSTMENT
- CENTS PER SHARE 81 87 330 283
DIVIDENDS - CENTS PER SHARE - - 328 264
ANGLOGOLD LIMITED
REGISTRATION NO. 05/17354/06
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
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 THE COMPANY'S EXPLORATION
AND PRODUCTION PROJECTS, AND THE COMPANY'S LIQUIDITY AND CAPITAL RESOURCES AND
EXPENDITURE, CONTAIN CERTAIN FORWARD-LOOKING STATEMENTS REGARDING THE COMPANY'S
OPERATIONS, ECONOMIC PERFORMANCE AND FINANCIAL CONDITION. ALTHOUGH THE COMPANY
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.
LETTER FROM THE CHAIRMAN
AND THE CHIEF EXECUTIVE OFFICER
DEAR SHAREHOLDER
ANGLOGOLD FOURTH QUARTER AND 1999 ANNUAL RESULTS
ANGLOGOLD TODAY REPORTS A GOOD SET OF ANNUAL RESULTS, BUT A DISAPPOINTING
FOURTH QUARTER.
FOR THE 1999 FINANCIAL AND CALENDAR YEAR, HEADLINE EARNINGS (ADJUSTED FOR A
CHANGE IN THE TAX RATE) HAVE RISEN BY 30% TO R1.9 BILLION, GOLD PRODUCTION HAS
INCREASED BY 5%, WHILE BOTH CASH COSTS AND TOTAL COSTS HAVE COME DOWN BY 6%.
RETURN ON CAPITAL EMPLOYED AT 12% AND ON SHAREHOLDERS' EQUITY AT 15%
DEMONSTRATE THAT THIS COMPANY CAN EARN GOOD RETURNS FOR ITS SHAREHOLDERS EVEN
IN THE WEAKEST OF GOLD MARKETS. THE COMPANY IS PLEASED TO ANNOUNCE A FINAL
DIVIDEND OF R11, FOR A TOTAL DIVIDEND OF R20 FOR 1999, 29% UP ON 1998.
IN THIS FOURTH QUARTER, HEADLINE EARNINGS (BEFORE THE DEFERRED TAX RATE
ADJUSTMENT) DECLINED BY 6% TO R486 MILLION ($79.5 MILLION), GOLD PRODUCED BY
5%, WITH CASH COSTS INCREASING TO $223 (7% UP), AND TOTAL COSTS TO $255 (7% UP)
ON A RECEIVED GOLD PRICE OF $319, 1% HIGHER THAN THE PREVIOUS QUARTER.
THE REDUCED PRODUCTION WAS ANTICIPATED IN THE OPERATIONS IN THE AMERICAS, AND
IN MALI. THE SOUTH AFRICAN PRODUCTION DECLINE OF 4% QUARTER ON QUARTER IS
DISAPPOINTING AND IS THE FOCUS OF MANAGEMENT ATTENTION AT BOTH THE SOUTH AFRICA
DIVISION AND CORPORATE LEVEL. MORE DETAILED REASONS FOR THIS DECLINE ARE SET
OUT ELSEWHERE IN THIS REPORT.
LOOKING FORWARD, WITH THE ACQUISITION OF ACACIA, ANGLOGOLD NOW PRODUCES SOME
1.5 MILLION OUNCES FROM SURFACE AND SHALLOW MINING (APPROXIMATELY 20% OF TOTAL
PRODUCTION). THIS REPRESENTS A SIGNIFICANT CHANGE IN THE COMPANY'S OPERATIONAL
RISK PROFILE AND SIGNALS A POSITIVE DEVELOPMENT FOR ALL OF ANGLOGOLD'S
STAKEHOLDERS - INVESTORS, EMPLOYEES, COMMUNITIES AND GOVERNMENTS. THE COMPANY
WILL BE ENERGETICALLY EXPLORING FURTHER OPPORTUNITIES TO DIVERSIFY THE
GEOGRAPHICAL AND MINING MIX IN 2000.
THE PAST YEAR SAW AN INCREASE IN CAPITAL EXPENDITURE, MAINLY IN THE SOUTH
AFRICAN OPERATIONS. HERE, FOUR MAJOR PROJECTS, ALL OF WHICH HAVE RECENTLY BEEN
SUBJECTED TO RIGOROUS TECHNICAL AND FINANCIAL REVIEWS, ARE EXPECTED TO PRODUCE
25 MILLION OUNCES OF GOLD, AT A PROJECTED AVERAGE CASH COST OF $180 PER OUNCE
USING UPGRADED INFRASTRUCTURE AND MODERN TECHNOLOGY.
THE WASHINGTON AGREEMENT ON THE SELLING, LENDING AND LEASING OF GOLD HAS SEEN
THE PRICE RISE SHARPLY AND STABILISE AROUND $290. THE COMPANY CONTINUES TO
BELIEVE THAT PHYSICAL MARKET FUNDAMENTALS ARE POSITIVE, AND THAT FAVOURABLE
MARKET CONDITIONS WILL LEAD TO RENEWED INVESTOR INTEREST IN THE METAL. IN 2000
THE COMPANY WILL CONTINUE TO LOOK FOR INNOVATIVE WAYS TO EXPAND AND DEEPEN
THESE PHYSICAL MARKETS FOR OUR PRODUCT.
DURING 1999, THE COMPANY HAS INTENSIFIED ITS EFFORTS TO ACHIEVE MUCH SAFER
WORKING CONDITIONS AT ALL OPERATIONS, AND IN PARTICULAR AT THE SOUTH AFRICAN
OPERATIONS. THE BOARD AND MANAGEMENT REALISE THAT MUCH REMAINS TO BE DONE. IT
IS ENCOURAGING TO REPORT A 25% REDUCTION IN FATALITIES AND AN 11% REDUCTION IN
LOST TIME ACCIDENTS, WITH RATES REDUCING RESPECTIVELY BY 17% AND 5% IN EACH
CASE. THE BOARD HAS HIGH EXPECTATIONS OF CONTINUED IMPROVEMENT IN THESE SAFETY
MEASURES AT HOPEFULLY EVEN FASTER RATES.
NICKY OPPENHEIMER BOBBY GODSELL
CHAIRMAN CHIEF EXECUTIVE OFFICER
9 FEBRUARY 2000
GOLD MARKET
THE GOLD PRICE RALLIED IN REACTION TO THE ANNOUNCEMENT ON 26 SEPTEMBER 1999 BY
MEMBERS OF THE EUROPEAN CENTRAL BANK, SUPPORTED BY GREAT BRITAIN AND
SWITZERLAND, OF A CEILING OF 2 000 TONNES OF GOLD SALES BY THAT GROUP OVER THE
NEXT FIVE YEARS, AND NO INCREASES TO CURRENT LEVELS OF GOLD LENDING BY THE
GROUP. THE RALLY CARRIED THE PRICE UP TO A RECORDED HIGH OF $338 PER OUNCE
DURING THE FINAL QUARTER OF 1999. THIS PEAK WAS OVER $80 OR 30% ABOVE THE PRICE
AT WHICH THE METAL TRADED IN MID-SEPTEMBER. INEVITABLY, THE MARKET HAS
CORRECTED FOR THIS SHARP RISE, AND CLOSED THE QUARTER TRADING AT AROUND $290
PER OUNCE. A BRIEF RALLY ABOVE $300 EARLY IN FEBRUARY EMPHASISES THE FACT THAT
THERE IS UNDERLYING INVESTOR INTEREST IN THE METAL SINCE THE CHANGE IN
SENTIMENT DURING THE FINAL QUARTER OF 1999. THE AVERAGE SPOT PRICE OF $295 PER
OUNCE FOR THE FINAL QUARTER OF THE YEAR COMPARES FAVOURABLY WITH THE AVERAGE OF
$259 PER OUNCE FOR THE PREVIOUS QUARTER, AND $278 FOR THE YEAR AS A WHOLE.
THE ANNOUNCEMENT BY THE EUROPEAN CENTRAL BANK MEMBERS, COMING ON THE HEELS OF
ARRANGEMENTS ENTERED INTO BY THE INTERNATIONAL MONETARY FUND TO AVOID THE SALE
OF A PORTION OF ITS HOLDINGS INTO THE OPEN MARKET, HAS PROVIDED THE GOLD MARKET
WITH A MOST IMPORTANT REASSURANCE OF THE CONCERN FELT BY THE OFFICIAL SECTOR
OVER NEGATIVE SPECULATION IN THE GOLD MARKET OVER OFFICIAL SALES, AND OF THE
OFFICIAL SECTOR'S DESIRE TO ELIMINATE THAT DISTORTION FROM THE MARKET. TO A
CONSIDERABLE DEGREE, THIS REASSURANCE HAS BEEN EFFECTIVE IN ELIMINATING THE
KIND OF SCAREMONGERING WHICH SO AFFECTED THIS MARKET IN RECENT YEARS. NEW SALES
OF GOLD BY THE DUTCH CENTRAL BANK ANNOUNCED LATE IN 1999 HAVE BEEN ACCEPTED BY
THE MARKET AND ABSORBED WITHOUT NEGATIVE EFFECT AS BEING PART OF THE ANNOUNCED
CEILING ON SALES FROM THAT SECTOR.
THE SHARP RISE IN THE SPOT PRICE OF THE METAL HAD AN UNAVOIDABLY NEGATIVE
EFFECT ON PHYSICAL DEMAND FOR GOLD IN THE MAJOR DEVELOPING MARKETS FOR THE
METAL, PARTICULARLY IN INDIA AND THE MIDDLE EAST, WHERE DEMAND IS MOST PRICE
SENSITIVE. AS THE SPOT PRICE RETURNED TO $300 PER OUNCE, SO SALES OF BULLION
SCRAP FROM THE MIDDLE EAST DECLINED, AND BUYING INTEREST RETURNED; OVERALL, WE
EXPECT THAT FINAL DEMAND FIGURES FOR GOLD FOR 1999 WILL SHOW A CONTINUED
ENCOURAGING TREND.
THE VOLATILITY IN THE GOLD PRICE DURING THE FINAL QUARTER WAS INCREASED BY
UNCERTAINTY IN THE MARKET AS TO THE CREDIT POSITIONS OF CERTAIN GOLD MINING
COMPANIES WITH LARGE GOLD PRICE HEDGES IN PROPORTION TO THEIR ACTUAL PRODUCTION
OF GOLD, AND BY A DEGREE OF DISORDER IN THE GOLD LENDING MARKET. WHILE THE GOLD
LENDING MARKET HAS RETURNED TO STABILITY, THERE REMAINS CONCERN ABOUT THOSE
GOLD MINING COMPANIES WITH CREDIT DIFFICULTIES BROUGHT ABOUT BY THE NATURE OR
SIZE OF THEIR HEDGE POSITIONS. THE NATURE OF THESE DIFFICULTIES HAS PROVIDED
IMPORTANT LESSONS FOR PARTICIPANTS IN THE GOLD FORWARD MARKETS, AND HAVE CAUSED
MANY GOLD MINING COMPANIES TO CONSIDER THE NATURE AND APPROPRIATENESS OF THEIR
GOLD PRICE HEDGE POSITIONS.
THE ANGLOGOLD NET OPEN HEDGE POSITION AS AT THE END OF 1999 SHOWN BELOW
REFLECTS A LOWER LEVEL OF HEDGING THAN THAT REPORTED AT THE END OF THE THIRD
QUARTER OF 1999. THE ADDITIONAL TABLE OF ALL OPEN POSITIONS AS AT 31 DECEMBER
1999 PROVIDES FOR THE FIRST TIME THE DETAILS OF BOTH FORWARD AND OPTION
CONTRACTS IN ANGLOGOLD, COMPARED WITH THE NET DELTA OF ALL OPEN POSITIONS
PREVIOUSLY REPORTED BY THE COMPANY. THE HEDGE POSITION FOR ACACIA HAS BEEN
INCLUDED. ALL GOLD LEASE RATES IN THIS OPEN POSITION WERE FIXED OVER THE
YEAR-END. GOING FORWARD, APPROXIMATELY HALF OF THE FORWARD POSITIONS HAVE GOLD
LEASE RATES FIXED THROUGH TO MATURITY; THE GOLD LEASE RATE IS FIXED IN ALL OPEN
OPTION POSITIONS.
NET DELTA OPEN HEDGE POSITION AS AT 31 DECEMBER 1999
AS AT 31 DECEMBER 1999, THE COMPANY 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 VALUES BASED ON A SPOT RAND/DOLLAR RATE OF
6.14 AVAILABLE ON 31 DECEMBER 1999.
KILO- FORWARD FORWARD OUNCES %
GRAMS PRICE PRICE SOLD POSITIONS
SOLD RAND PER US$ (000) IN US$
KG PER OZ
12 MONTHS ENDING
ANGLOGOLD 31 DECEMBER 2000 111 117 64 862 325 3 572 45
2001 84 895 72 636 342 2 729 59
2002 69 156 78 307 347 2 223 56
2003 39 433 83 183 346 1 268 77
2004 25 838 88 490 344 831 80
JANUARY 2005
- DECEMBER 2009 87 603 110 975 364 2 817 80
TOTAL 418 042 81 517 343 13 440 62
KILO- FORWARD FORWARD OUNCES
GRAMS PRICE PRICE SOLD
SOLD AU$ PER US$ PER (000)
OZ OZ
12 MONTHS ENDING
ACACIA 31 DECEMBER 2000 37 384 465 302 1 202
2001 7 103 620 403 228
2002 11 922 625 406 383
2003 8 877 575 374 285
2004 3 110 550 358 100
JANUARY 2005 - DECEMBER 2010 20 583 623 405 662
TOTAL 88 980 549 357 2 861
THE MARKED TO MARKET VALUE OF ALL HEDGE TRANSACTIONS MAKING UP THE HEDGE
POSITIONS IN THE ABOVE TABLE WAS R1 288 MILLION ($210 MILLION) AS AT 31
DECEMBER 1999. THE VALUE WAS BASED ON A GOLD PRICE OF $288.5 PER OUNCE,
EXCHANGE RATES OF R/US$6.14 AND US$/AU$0.65 AND THE PREVAILING MARKET INTEREST
RATES AND VOLATILITIES AT THE TIME.
AS AT 9 FEBRUARY 2000, THE MARKED TO MARKET VALUE OF THE HEDGE BOOK WAS R298
MILLION($47 MILLION) BASED ON A GOLD PRICE OF $296 PER OUNCE AND EXCHANGE RATES
OF R/$6.31 AND US$/AU$0.63 AND THE PREVAILING MARKET INTEREST RATES AND
VOLATILITIES AT THE TIME.
ANGLOGOLD HEDGE POSITION AS AT 31 DECEMBER 1999
YEAR 2000 2001 2002 2003
DOLLAR GOLD
FORWARD CONTRACTS
AMOUNT (KG) 81 423 51 747 38 933 26 255
US$ PER OZ $313 $327 $330 $337
PUT OPTIONS PURCHASED
AMOUNT (KG) 12 519 3 110 3 110 1 866
US$ PER OZ $294 $396 $407 $416
*DELTA (KG) 4 073 2 703 2 577 1 459
PUT OPTIONS SOLD
AMOUNT (KG) 13 997 - - -
US$ PER OZ $261 - - -
*DELTA (KG) 2 192 - - -
CALL OPTIONS PURCHASED
AMOUNT (KG) 45 955 1 555 - -
US$ PER OZ $326 $350 - -
*DELTA (KG) 8 033 497 - -
CALL OPTIONS SOLD
AMOUNT (KG) 41 055 7 487 11 885 10 463
US$ PER OZ $306 $362 $372 $371
*DELTA (KG) 17 246 1 935 3 720 3 994
RAND GOLD
FORWARD CONTRACTS
AMOUNT (KG) 21 834 24 036 20 086 6 289
RAND PER KG R71 340 R79 038 R84 198 R89 116
PUT OPTIONS PURCHASED
AMOUNT (KG) 2 177 1 244 - -
RAND PER KG R68 435 R75 554 - -
*DELTA (KG) 1 986 930 - -
CALL OPTIONS PURCHASED
AMOUNT (KG) 14 777 - - -
RAND PER KG R58 952 - - -
*DELTA (KG) 8 689 - - -
CALL OPTIONS SOLD
AMOUNT (KG) 20 837 18 214 14 357 4 519
RAND PER KG R68 386 R78 116 R87 002 R93 765
*DELTA (KG) 3 469 4 041 3 840 1 436
AU DOLLAR GOLD
FORWARD CONTRACTS
AMOUNT (KG) 38 413 7 285 12 597 9 953
AU$ PER OZ AU$466 AU$621 AU$625 AU$588
CALL OPTIONS PURCHASED
AMOUNT (KG) 10 575 4 121 6 687 6 998
AU$ PER OZ AU$591 AU$717 AU$728 AU$700
*DELTA (KG) 1 029 181 674 1 075
RAND DOLLAR (000)
FORWARD CONTRACTS
AMOUNT (US$) 215 210 12 255 16 284 -
ZAR PER US$ R6.67 R6.14 R6.48 -
PUT OPTIONS PURCHASED
AMOUNT (US$) 95 000 - - -
ZAR PER US$ R6.39 - - -
*DELTA (KG) 61 371 - - -
PUT OPTIONS SOLD
AMOUNT (US$) 90 000 - - -
ZAR PER US$ R6.18 - - -
*DELTA (KG)
CALL OPTIONS SOLD
AMOUNT (US$) 158 000 30 670 33 450 8 000
ZAR PER US$ R6.56 R6.57 R7.06 R6.94
*DELTA (KG) 50 800 15 587 16 414 5 452
ANGLOGOLD HEDGE POSITION AS AT 31 DECEMBER 1999
2004 2005-2009 TOTAL
DOLLAR GOLD
FORWARD CONTRACTS
AMOUNT (KG) 17 649 66 765 282 772
US$ PER OZ $339 $351 $331
PUT OPTIONS PURCHASED
AMOUNT (KG) 1 866 - 22 472
US$ PER OZ $433 - $345
*DELTA (KG) 1 436 - 12 248
PUT OPTIONS SOLD
AMOUNT (KG) - - 13 997
US$ PER OZ - - $261
*DELTA (KG) - - 2 192
CALL OPTIONS PURCHASED
AMOUNT (KG) - - 47 511
US$ PER OZ - - $326
*DELTA (KG) - - 8 530
CALL OPTIONS SOLD
AMOUNT (KG) 3 303 5 182 79 375
US$ PER OZ $338 $349 $334
*DELTA (KG) 1 884 3 321 32 100
RAND GOLD
FORWARD CONTRACTS
AMOUNT (KG) 3 925 14 630 90 800
RAND PER KG R92 969 R137 310 R89 017
PUT OPTIONS PURCHASED
AMOUNT (KG) - - 3 421
RAND PER KG - - R71 024
*DELTA (KG) - - 2 916
CALL OPTIONS PURCHASED
AMOUNT (KG) - - 14 777
RAND PER KG - - R58 952
*DELTA (KG) - - 8 689
CALL OPTIONS SOLD
AMOUNT (KG) 4 994 64 795
RAND PER KG R93 602 R113 695 R81 237
*DELTA (KG) 1 044 2 887 16 717
AU DOLLAR GOLD
FORWARD CONTRACTS
AMOUNT (KG) 3 110 36 391 107 750
AU$ PER OZ AU$550 AU$650 AU$571
CALL OPTIONS PURCHASED
AMOUNT (KG) - 36 391 64 773
AU$ PER OZ - AU$686 AU$679
*DELTA (KG) - 15 799 18 758
RAND DOLLAR (000)
FORWARD CONTRACTS
AMOUNT (US$) - - 243 749
ZAR PER US$ - - R6.63
PUT OPTIONS PURCHASED
AMOUNT (US$) - - 95 000
ZAR PER US$ - - R6.39
*DELTA (KG) - - 61 371
PUT OPTIONS SOLD
AMOUNT (US$) - - 90 000
ZAR PER US$ - - R6.18
*DELTA (KG)
CALL OPTIONS SOLD
AMOUNT (US$) - - 230 120
ZAR PER US$ - - R6.65
*DELTA (KG) - - 88 254
*THE DELTA POSITION INDICATED ABOVE 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 31 DECEMBER 1999.
NOTES
1. THE AUDITED FINANCIAL RESULTS HAVE BEEN PREPARED IN ACCORDANCE WITH
INTERNATIONAL ACCOUNTING STANDARDS.
CERTAIN ITEMS FOR THE PREVIOUS QUARTER HAVE BEEN RESTATED FOR COMPARATIVE
PURPOSES. THE ATTRIBUTABLE PROFIT PREVIOUSLY REPORTED FOR THE SEPTEMBER QUARTER
REMAINS UNCHANGED.
2. WITH EFFECT FROM 7 FEBRUARY 2000, ANGLOGOLD ACQUIRED 100% OF THE ISSUED
SHARE CAPITAL OF ACACIA RESOURCES LIMITED (ACACIA), A GOLD COMPANY OPERATING IN
AUSTRALIA. THIS FOLLOWED THE CLOSE OF THE OFFER ON 24 DECEMBER 1999 AND THE
SUBSEQUENT COMPULSORY ACQUISITION OF THE SHARES HELD BY THOSE SHAREHOLDERS WHO
HAD NOT ACCEPTED THE OFFER.
THE RESULTS OF ACACIA TO 31 DECEMBER 1999 HAVE NOT BEEN CONSOLIDATED. HOWEVER,
THE GROUP BALANCE SHEET AS AT 31 DECEMBER 1999 INCLUDES THE ASSETS AND
LIABILITIES OF ACACIA.
3. DURING THE QUARTER, 8 659 379 ORDINARY SHARES WERE ALLOTTED TO ACACIA
SHAREHOLDERS AT A PRICE OF R298 PER SHARE AND 32 050 ORDINARY SHARES WERE
ALLOTTED IN TERMS OF THE SHARE INCENTIVE SCHEME, THEREBY INCREASING THE NUMBER
OF ORDINARY SHARES IN ISSUE AT 31 DECEMBER 1999 TO 106 614 678.
SINCE THE END OF THE QUARTER THERE WERE ALLOTMENTS OF 351 009 ORDINARY SHARES
AT A PRICE OF R298 PER SHARE TO COMPLETE THE ACQUISITION OF ACACIA AND 2 200
ORDINARY SHARES IN TERMS OF THE SHARE INCENTIVE SCHEME. THE NUMBER OF ORDINARY
SHARES IN ISSUE AT THE DATE OF THIS REPORT TOTALLED 106 967 887, WHICH INCLUDES
9 010 388 SHARES ISSUED FOR THE ACQUISITION OF ACACIA AND IN RESPECT OF WHICH
APPLICATION HAS BEEN MADE FOR A LISTING ON THE JOHANNESBURG STOCK EXCHANGE.
4. EARNINGS PER SHARE HAVE BEEN CALCULATED USING THE WEIGHTED AVERAGE NUMBER OF
ORDINARY SHARES IN ISSUE.
5. ORDERS PLACED AND OUTSTANDING ON CAPITAL CONTRACTS AS AT 31 DECEMBER 1999
TOTALLED R381.8 MILLION, EQUIVALENT TO US$62.0 MILLION AT THE RATE OF EXCHANGE
RULING ON THAT DATE.
6. YEAR 2000
ALL OPERATIONS OF THE COMPANY REPORTED A SMOOTH TRANSITION INTO THE YEAR 2000.
COSTS INCURRED TO END-DECEMBER 1999 TO ACHIEVE THIS STATUS, EXCLUSIVE OF
EXPENDITURE ON PLANNED UPGRADES, INTERNAL MANPOWER AND CERTAIN OUTSOURCING
CHARGES, AMOUNTED TO R15 MILLION.
7. DIVIDEND
THE DIRECTORS HAVE TODAY DECLARED FINAL DIVIDEND NO. 87 OF 1 100 (1998: 800)
SOUTH AFRICAN CENTS PER ORDINARY SHARE FOR THE YEAR ENDED 31 DECEMBER 1999.
PAYMENT DETAILS ARE AS FOLLOWS:
TO REGISTERED HOLDERS OF ORDINARY SHARES
SOUTH AFRICAN AND
UNITED KINGDOM AUSTRALIAN
SHARE REGISTERS SHARE REGISTER
2000 2000
EX-DIVIDEND DATE MONDAY, 28 FEBRUARY MONDAY, 21 FEBRUARY
LAST DAY TO REGISTER FOR DIVIDEND
AND FOR CHANGE OF ADDRESS OR
DIVIDEND INSTRUCTION FRIDAY, 25 FEBRUARY NOT APPLICABLE
RECORD DATE FRIDAY, 25 FEBRUARY FRIDAY, 25 FEBRUARY
REGISTERS CLOSED FROM SATURDAY, 26 FEBRUARY NOT APPLICABLE
TO (INCLUSIVE) SATURDAY, 4 MARCH NOT APPLICABLE
CURRENCY CONVERSION DATE MONDAY, 28 FEBRUARY MONDAY, 28 FEBRUARY
FOR UK POUNDS FOR AUSTRALIAN DOLLARS
DIVIDEND WARRANTS POSTED THURSDAY, 30 MARCH THURSDAY, 30 MARCH
PAYMENT DATE OF DIVIDEND FRIDAY, 31 MARCH FRIDAY, 31 MARCH
TO HOLDERS OF AMERICAN DEPOSITARY SHARES
(EACH AMERICAN DEPOSITARY SHARE REPRESENTS ONE-HALF OF AN ORDINARY SHARE)
2000
EX-DIVIDEND ON NEW YORK STOCK EXCHANGE WEDNESDAY, 23 FEBRUARY
RECORD DATE FRIDAY, 25 FEBRUARY
APPROXIMATE DATE FOR CURRENCY CONVERSION INTO
US DOLLARS FRIDAY, 31 MARCH
APPROXIMATE PAYMENT DATE OF DIVIDEND MONDAY, 10 APRIL
FOR ILLUSTRATIVE PURPOSES, THE DIVIDEND PAYABLE ON AN AMERICAN DEPOSITARY SHARE
WAS EQUIVALENT TO 87.08 (1998: 63.85) US CENTS AT THE RATE OF EXCHANGE RULING
ON TUESDAY, 8 FEBRUARY 2000.
8. ADDITIONAL INFORMATION, WHICH IS NOT MATERIAL, IS TO BE DISCLOSED TO THE
AUSTRALIAN STOCK EXCHANGE (ASX) IN TERMS OF THE ASX'S LISTING RULES. THIS
INFORMATION WILL BE AVAILABLE ON THE INTERNET AND IN PRINTED FORMAT FROM THE
INVESTOR RELATIONS CONTACTS, WHOSE DETAILS, ALONG WITH THE COMPANY'S WEBSITE
ADDRESS, APPEAR AT THE END OF THIS DOCUMENT.
BY ORDER OF THE BOARD
N F OPPENHEIMER R M GODSELL
CHAIRMAN CHIEF EXECUTIVE OFFICER
9 FEBRUARY 2000
GROUP BALANCE SHEET
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
DECEMBER SEPTEMBER DECEMBER
1998 1999 1999
US DOLLAR MILLION
ASSETS
NON-CURRENT ASSETS
1 974.0 2 457.3 2 890.9 MINING ASSETS
(14.4) 138.0 217.6 GOODWILL
129.0 10.9 8.9 INVESTMENTS
37.2 43.3 44.5 ANGLOGOLD ENVIRONMENTAL TRUST
69.9 59.4 53.9 LONG-TERM LOANS - UNSECURED
2 195.7 2 708.9 3 215.8
CURRENT ASSETS
120.2 167.3 188.6 INVENTORIES
148.0 191.2 228.7 TRADE AND OTHER RECEIVABLES
22.0 21.2 21.3 CURRENT PORTION OF LOANS ADVANCED
254.6 470.8 494.1 CASH AND CASH EQUIVALENTS
544.8 850.5 932.7
2 740.5 3 559.4 4 148.5 TOTAL ASSETS
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
895.7 878.91 271.7 SHARE CAPITAL AND PREMIUM
29.4 26.0 29.5 NON-DISTRIBUTABLE RESERVE
238.7 486.2 356.5 RETAINED EARNINGS
1 163.8 1 391.11 657.7 SHAREHOLDERS' EQUITY
0.1 26.3 26.5 MINORITY INTERESTS
1 163.9 1 417.4 1 684.2
NON-CURRENT LIABILITIES
126.7 704.5 672.5 BORROWINGS
15.7 15.8 18.7 DEBENTURES
229.9 296.3 338.4 OTHER LONG-TERM LIABILITIES
733.1 667.6 710.9 DEFERRED TAXATION
1 105.4 1 684.2 1 740.5
CURRENT LIABILITIES
236.0 281.0 332.6 TRADE AND OTHER PAYABLES
41.5 107.9 137.1 CURRENT PORTION OF BORROWINGS
60.6 68.9 62.7 TAXATION
133.1 - 191.4 DIVIDENDS
471.2 457.8 723.8
2 740.5 3 559.4 4 148.5 TOTAL EQUITY AND LIABILITIES
GROUP BALANCE SHEET
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
DECEMBER SEPTEMBER DECEMBER
1998 1999 1999
SA RAND MILLION
ASSETS
NON-CURRENT ASSETS
MINING ASSETS 17 792.3 14 762.0 11 609.4
GOODWILL 1 339.2 829.0 (84.7)
INVESTMENTS 54.7 65.6 758.6
ANGLOGOLD ENVIRONMENTAL TRUST 273.7 260.0 218.8
LONG-TERM LOANS - UNSECURED 331.7 357.0 411.1
19 791.6 16 273.6 12 913.2
CURRENT ASSETS
INVENTORIES 1 160.9 1 005.1 707.2
TRADE AND OTHER RECEIVABLES 1 407.3 1 148.9 870.3
CURRENT PORTION OF LOANS ADVANCED 131.0 127.1 129.3
CASH AND CASH EQUIVALENTS 3 041.1 2 828.3 1 497.2
5 740.3 5 109.4 3 204.0
TOTAL ASSETS 25 531.9 21 383.0 16 117.2
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
SHARE CAPITAL AND PREMIUM 7 827.0 5 279.8 5 267.5
NON-DISTRIBUTABLE RESERVE 181.6 156.3 172.7
RETAINED EARNINGS 2 194.0 2 921.1 1 404.2
SHAREHOLDERS' EQUITY 10 202.6 8 357.2 6 844.4
MINORITY INTERESTS 163.1 158.0 0.9
10 365.7 8 515.2 6 845.3
NON-CURRENT LIABILITIES
BORROWINGS 4 138.8 4 232.6 745.1
DEBENTURES 114.9 95.1 92.2
OTHER LONG-TERM LIABILITIES 2 082.9 1 779.7 1 352.0
DEFERRED TAXATION 4 375.4 4 010.5 4 311.6
10 712.0 10 117.9 6 500.9
CURRENT LIABILITIES
TRADE AND OTHER PAYABLES 2 046.5 1 687.8 1 387.8
CURRENT PORTION OF BORROWINGS 843.7 648.0 244.0
TAXATION 385.9 414.1 356.4
DIVIDENDS 1 178.1 - 782.8
4 454.2 2 749.9 2 771.0
TOTAL EQUITY AND LIABILITIES 25 531.9 21 383.0 16 117.2
GROUP CASH FLOW STATEMENT
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
YEAR YEAR QUARTER
ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER
1998 1999 1999
US DOLLAR MILLION
CASH FLOWS FROM OPERATING ACTIVITIES
571.2 581.2 216.3 CASH GENERATED FROM OPERATIONS
4.4 4.4 0.9 GROWTH IN ENVIRONMENTAL TRUST
44.6 71.4 24.8 INTEREST RECEIVED
(17.1) (55.5) (18.0) INTEREST PAID
7.2 6.2 0.4 DIVIDENDS RECEIVED
(255.9) (272.3) - DIVIDENDS PAID
(111.2) (100.1) (17.3) MINING AND NORMAL TAXATION PAID
243.2 235.3 207.1 NET CASH INFLOW FROM OPERATING
ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
(173.5) (206.1) (61.1) PURCHASE OF MINING ASSETS
72.9 2.5 2.5 PROCEEDS FROM SALE OF MINING ASSETS
(4.4) (2.1) (0.8) INVESTMENTS ACQUIRED
- (464.4) 5.4 NET ACQUISITION OF SUBSIDIARIES
6.7 219.1 3.6 PROCEEDS FROM SALE OF INVESTMENTS
(98.3) (451.0) (50.4) NET CASH OUTFLOW FROM INVESTING
ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
0.5 6.1 3.7 PROCEEDS FROM ISSUE OF SHARE CAPITAL
(20.5) (3.4) (3.0) FORMATION AND SHARE ISSUE EXPENSES
1.6 511.6 3.1 PROCEEDS FROM BORROWINGS
(33.4) (37.8) (8.2) REPAYMENT OF BORROWINGS
4.7 15.9 0.4 REPAYMENT ON LOANS ADVANCED
(47.1) 492.4 (4.0) NET CASH INFLOW / (OUTFLOW) FROM
FINANCING ACTIVITIES
97.8 276.7 152.7 NET INCREASE IN CASH AND CASH
EQUIVALENTS
(82.3) (37.2) (129.4) TRANSLATION ADJUSTMENT
239.1 254.6 470.8 OPENING CASH AND CASH EQUIVALENTS
254.6 494.1 494.1 CLOSING CASH AND CASH EQUIVALENTS
NOTE TO THE CASH FLOW STATEMENT
CASH GENERATED FROM OPERATIONS
444.2 442.5 97.1 PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION
ADJUSTED FOR:
148.1 196.3 49.9 AMORTISATION OF MINING ASSETS
16.2 (48.1) 70.7 NON-CASH MOVEMENTS
9.1 (4.2) (4.2) (PROFIT) / LOSS ON SALE OF MINING ASSETS
(50.8) (7.1) - INCOME FROM ASSOCIATES
(4.4) (4.4) (0.9) GROWTH IN ENVIRONMENTAL TRUST
(44.6) (71.4) (24.8) INTEREST RECEIVED
(2.4) (0.7) (0.4) DIVIDENDS RECEIVED
17.1 55.5 18.0 INTEREST PAID
38.7 22.8 10.9 MOVEMENT IN WORKING CAPITAL
571.2 581.2 216.3
THE FOLLOWING ANALYSES THE MOVEMENT IN
45.6 4.4 (5.8) (INCREASE) / DECREASE IN INVENTORIES
1.3 (7.5) (2.9) (INCREASE) / DECREASE IN TRADE AND OTHER
RECEIVABLES
(8.2) 25.9 19.6 INCREASE / (DECREASE) IN TRADE AND OTHER
38.7 22.8 10.9 PAYABLES
GROUP CASH FLOW STATEMENT
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
QUARTER YEAR YEAR
ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER
1999 1999 1998
SA RAND MILLION
CASH FLOWS FROM OPERATING ACTIVITIES
CASH GENERATED FROM OPERATIONS 1 324.3 3 550.5 3 178.4
GROWTH IN ENVIRONMENTAL TRUST 5.5 26.3 27.3
INTEREST RECEIVED 151.8 436.6 246.4
INTEREST PAID (110.0) (339.4) (94.4)
DIVIDENDS RECEIVED 2.5 37.7 39.7
DIVIDENDS PAID - (1 663.6) (1 414.3)
MINING AND NORMAL TAXATION PAID (106.2) (611.3) (614.7)
NET CASH INFLOW FROM OPERATING ACTIVITIES 1 267.9 1 436.8 1 368.4
CASH FLOWS FROM INVESTING ACTIVITIES
PURCHASE OF MINING ASSETS (374.1) (1 259.0) (958.8)
PROCEEDS FROM SALE OF MINING ASSETS 15.1 15.1 402.8
INVESTMENTS ACQUIRED (4.8) (12.7) (24.6)
NET ACQUISITION OF SUBSIDIARIES 32.9 (2 837.6) -
PROCEEDS FROM SALE OF INVESTMENTS 21.9 1 338.4 36.8
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (309.0) (2 755.8) (543.8)
CASH FLOWS FROM FINANCING ACTIVITIES
PROCEEDS FROM ISSUE OF SHARE CAPITAL 22.5 37.1 2.9
FORMATION AND SHARE ISSUE EXPENSES (18.3) (20.8) (113.5)
PROCEEDS FROM BORROWINGS 18.7 3 125.8 8.8
REPAYMENT OF BORROWINGS (50.4) (230.7) (184.4)
REPAYMENT ON LOANS ADVANCED 2.6 97.2 25.9
NET CASH INFLOW / (OUTFLOW) FROM (24.9) 3 008.6 (260.3)
FINANCING ACTIVITIES
NET INCREASE IN CASH AND CASH EQUIVALENTS 934.0 1 689.6 564.3
TRANSLATION ADJUSTMENT (721.2) (145.7) (231.6)
OPENING CASH AND CASH EQUIVALENTS 2 828.3 1 497.2 1 164.5
CLOSING CASH AND CASH EQUIVALENTS 3 041.1 3 041.1 1 497.2
NOTE TO THE CASH FLOW STATEMENT
CASH GENERATED FROM OPERATIONS
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION 594.5 2 703.1 2 404.0
ADJUSTED FOR:
AMORTISATION OF MINING ASSETS 305.6 1 199.3 814.6
NON-CASH MOVEMENTS 433.2 (294.1) 98.7
(PROFIT) / LOSS ON SALE OF MINING ASSETS (25.6) (25.6) 107.3
INCOME FROM ASSOCIATES - (43.2) (267.5)
GROWTH IN ENVIRONMENTAL TRUST (5.5) (26.3) (27.3)
INTEREST RECEIVED (151.8) (436.6) (246.4)
DIVIDENDS RECEIVED (2.5) (4.8) (13.4)
INTEREST PAID 110.0 339.4 94.4
MOVEMENT IN WORKING CAPITAL 66.4 139.3 214.0
1 324.3 3 550.5 3 178.4
THE FOLLOWING ANALYSES THE MOVEMENT IN
(INCREASE) / DECREASE IN INVENTORIES (35.7) 26.7 252.0
(INCREASE) / DECREASE IN TRADE AND OTHER (17.7) (45.9) 7.1
RECEIVABLES
INCREASE / (DECREASE) IN TRADE AND OTHER 119.8 158.5 (45.1)
PAYABLES 66.4 139.3 214.0
GROUP OPERATING RESULTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
STATISTICS ARE SHOWN IN METRIC UNITS AND FINANCIAL FIGURES IN SOUTH AFRICAN
RAND.
ISSUED CAPITAL: 106 614 678 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
QUARTER QUARTER YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER SEPTEMBER DECEMBER DECEMBER
1999 1999 1999 1998
GOLD
UNDERGROUND OPERATIONS
TONNES MILLED - 000 - REEF 5 111 5 247 21 055 22 155
- WASTE 182 155 649 241
- TOTAL 5 293 5 402 21 704 22 396
YIELD - G/T - REEF 8.29 8.46 8.31 8.16
- WASTE 0.65 0.83 0.81 0.88
- AVERAGE 8.03 8.24 8.09 8.08
GOLD PRODUCED - KG - REEF 42 370 44 371 174 994 180 831
- WASTE 119 128 527 212
- TOTAL 42 489 44 499 175 521 181 043
PRODUCTIVITY
G/EMPLOYEE - TARGET 224 225 222 174
- ACTUAL 207 220 210 184
SURFACE AND DUMP RECLAMATION
TONNES TREATED - 000 13 151 13 451 54 354 57 511
YIELD - G/T 0.31 0.31 0.30 0.30
GOLD PRODUCED - KG 4 119 4 113 16 165 17 025
OPEN-PIT OPERATIONS
TONNES MINED - 000 11 198 12 399 47 880 7 527
STRIPPING RATIO - T(MINED-TREATED)
/T TREATED 2.55 2.30 2.51 1.63
TONNES TREATED - 000 3 151 3 756 13 630 2 863
YIELD - G/T 1.93 1.79 1.72 2.54
GOLD PRODUCED - KG 6 071 6 725 23 480 7 281
TOTAL
GOLD PRODUCED - KG 52 679 55 337 215 166 205 349
REVENUE - R/KG SOLD
- (EXCLUDING ACCELERATED HEDGE) 62 305 61 589 61 577 57 168
- (INCLUDING ACCELERATED HEDGE) 62 735 61 754 61 830 58 830
CASH COSTS - R/KG PRODUCED 43 874 40 823 41 712 39 944
TOTAL PRODUCTION COSTS
- R/KG PRODUCED 50 201 46 714 47 842 46 060
GROUP OPERATING RESULTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
STATISTICS ARE SHOWN IN IMPERIAL UNITS AND FINANCIAL FIGURES IN US DOLLARS.
ISSUED CAPITAL: 106 614 678 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
QUARTER QUARTER YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER SEPTEMBER DECEMBER DECEMBER
1999 1999 1999 1998
GOLD
UNDERGROUND OPERATIONS
TONS MILLED - 000 - REEF 5 634 5 784 23 209 24 422
- WASTE 201 171 715 265
- TOTAL 5 835 5 955 23 924 24 687
YIELD - OZ/T - REEF 0.242 0.247 0.242 0.238
- WASTE 0.019 0.024 0.024 0.026
- AVERAGE 0.234 0.240 0.236 0.236
GOLD PRODUCED - OZ 000 - REEF 1 362 1 426 5 626 5 814
- WASTE 4 4 17 7
- TOTAL 1 366 1 430 5 643 5 821
PRODUCTIVITY
OZ/EMPLOYEE - TARGET 7.20 7.24 7.14 5.59
- ACTUAL 6.66 7.07 6.75 5.92
SURFACE AND DUMP RECLAMATION
TONS TREATED - 000 14 497 14 828 59 915 63 395
YIELD - OZ/T 0.009 0.009 0.009 0.009
GOLD PRODUCED - OZ 000 132 133 520 547
OPEN-PIT OPERATIONS
TONS MINED - 000 12 344 13 667 52 779 8 297
STRIPPING RATIO - T(MINED-TREATED)
/T TREATED 2.55 2.30 2.51 1.63
TONS TREATED - 000 3 474 4 140 15 024 3 156
YIELD - OZ/T 0.056 0.052 0.050 0.074
GOLD PRODUCED - OZ 000 195 216 755 234
TOTAL
GOLD PRODUCED - OZ 000 1 693 1 779 6 918 6 602
REVENUE - $/OZ SOLD
- (EXCLUDING ACCELERATED HEDGE) 316 315 313 323
- (INCLUDING ACCELERATED HEDGE) 319 316 315 333
CASH COSTS - $/OUNCE PRODUCED 223 209 212 225
TOTAL PRODUCTION COSTS
- $/OUNCE PRODUCED 255 239 244 259
RAND/US DOLLAR AVERAGE EXCHANGE
RATE 6.13 6.09 6.11 5.53
GROUP FINANCIAL RESULTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
SA RAND MILLION QUARTER QUARTER YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER SEPTEMBER DECEMBER DECEMBER
1999 1999 1999 1998
TURNOVER 3 381.3 3 558.0 13 755.5 12 615.8
GOLD REVENUE 3 341.6 3 460.1 13 473.1 12 312.0
NORMAL 3 319.0 3 450.9 13 418.8 11 964.0
ACCELERATED HEDGE 22.6 9.2 54.3 348.0
COST OF SALES 2 643.2 2 636.3 10 385.6 9 703.3
CASH COSTS 2 314.3 2 282.9 9 027.4 8 202.4
RETRENCHMENT COSTS 25.9 9.1 57.7 348.0
REHABILITATION AND OTHER NON CASH
COSTS 23.5 42.0 112.1 107.0
PRODUCTION COSTS 2 363.7 2 334.0 9 197.2 8 657.4
AMORTISATION OF MINING ASSETS 305.6 301.1 1 199.3 814.6
TOTAL PRODUCTION COSTS 2 669.3 2 635.1 10 396.5 9 472.0
INVENTORY CHANGE (26.1) 1.2 (10.9) 231.3
OPERATING PROFIT 698.4 823.8 3 087.5 2 608.7
CORPORATE ADMINISTRATION AND OTHER
EXPENSES 33.5 43.1 161.4 271.8
MARKET DEVELOPMENT COSTS 22.8 22.6 90.6 55.2
RESEARCH AND DEVELOPMENT 12.9 11.3 42.7 27.1
EXPLORATION COSTS 110.1 62.2 286.8 203.5
PROFIT FROM OPERATIONS 519.1 684.6 2 506.0 2 051.1
INTEREST PAID 110.0 98.6 339.4 94.4
INTEREST RECEIVABLE 151.8 97.6 436.6 246.4
INCOME FROM ASSOCIATES - - 43.2 267.5
GROWTH IN ENVIRONMENTAL TRUST 5.5 11.0 26.3 27.3
DIVIDENDS RECEIVED 2.5 0.4 4.8 13.4
PROFIT (LOSS) ON SALE OF MINING
ASSETS 25.6 - 25.6 (107.3)
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION 594.5 695.0 2 703.1 2 404.0
TAXATION 96.6 172.7 227.7 693.5
NORMAL TAXATION 89.9 173.8 649.8 885.5
DEFERRED TAXATION- CURRENT 6.7 (1.1) 37.8 (192.0)
- RATE CHANGE - - ( 459.9) -
PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION 497.9 522.3 2 475.4 1 710.5
PROFIT ON SALE OF ASSOCIATE - - 543.2 -
GOODWILL WRITTEN OFF (45.2) 23.5 335.8 -
MINORITY INTEREST 11.3 5.5 28.9 -
PROFIT ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS 531.8 493.3 2 653.9 1 710.5
ATTRIBUTABLE EARNINGS - CENTS PER
SHARE 540 504 2 695 1 748
HEADLINE EARNINGS* - RM 486.6 516.8 2 446.5 1 533.8
- CENTS PER SHARE 494 528 2 485 1 568
HEADLINE EARNINGS BEFORE DEFERRED TAX
RATE ADJUSTMENT - RM 486.6 516.8 1 986.6 1 533.8
- CENTS PER SHARE 494 528 2 018 1 568
DIVIDENDS - RM 2 058.9 1 515.3
- CENTS PER SHARE 2 000 1 550
CAPITAL EXPENDITURE
- MINING DIRECT 361.9 303.1 1 162.9 894.2
- OTHER 3.7 23.4 90.6 64.6
- RECOUPMENTS - - - ( 402.8)
NET CAPITAL EXPENDITURE 365.6 326.5 1 253.5 556.0
* HEADLINE EARNINGS IS BASED ON EARNINGS BEFORE THE PROFIT REALISED ON SALE
OF ASSOCIATE AND GOODWILL WRITTEN OFF.
THE PRIOR YEAR HAS BEEN ADJUSTED FOR THE EXCEPTIONAL EARNINGS IN ASSOCIATE
AND DISPOSAL OF MINING SHAFTS
GROUP FINANCIAL RESULTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
US DOLLAR MILLION QUARTER QUARTER YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER SEPTEMBER DECEMBER DECEMBER
1999 1999 1999 1998
TURNOVER 551.9 584.7 2 251.5 2 295.9
GOLD REVENUE 545.5 568.6 2 205.2 2 240.6
NORMAL 541.8 563.4 2 196.3 2 172.4
ACCELERATED HEDGE 3.7 5.2 8.9 68.2
COST OF SALES 431.4 433.2 1 699.9 1 771.0
CASH COSTS 377.8 375.1 1 477.5 1 495.0
RETRENCHMENT COSTS 4.2 1.5 9.4 68.2
REHABILITATION AND OTHER NON CASH
COSTS 3.8 6.9 18.5 17.1
PRODUCTION COSTS 385.8 383.5 1 505.4 1 580.3
AMORTISATION OF MINING ASSETS 49.9 49.5 196.3 148.1
TOTAL PRODUCTION COSTS 435.7 433.0 1 701.7 1 728.4
INVENTORY CHANGE (4.3) 0.2 (1.8) 42.6
OPERATING PROFIT 114.1 135.4 505.3 469.6
CORPORATE ADMINISTRATION AND OTHER
EXPENSES 5.5 7.1 26.4 49.9
MARKET DEVELOPMENT COSTS 3.7 3.7 14.8 10.0
RESEARCH AND DEVELOPMENT 2.1 1.9 7.0 4.7
EXPLORATION COSTS 18.0 10.2 46.9 36.8
PROFIT FROM OPERATIONS 84.8 112.5 410.2 368.2
INTEREST PAID 18.0 16.2 55.5 17.1
INTEREST RECEIVABLE 24.8 16.0 71.4 44.6
INCOME FROM ASSOCIATES - - 7.1 50.8
GROWTH IN ENVIRONMENTAL TRUST 0.9 1.8 4.4 4.4
DIVIDENDS RECEIVED 0.4 0.1 0.7 2.4
PROFIT (LOSS) ON SALE OF MINING
ASSETS 4.2 - 4.2 (9.1)
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION 97.1 114.2 442.5 444.2
TAXATION 15.8 28.4 37.2 126.7
NORMAL TAXATION 14.7 28.6 106.4 159.0
DEFERRED TAXATION- CURRENT 1.1 (0.2) 6.2 (32.3)
- RATE CHANGE - - (75.4) -
PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION 81.3 85.8 405.3 317.5
PROFIT ON SALE OF ASSOCIATE - - 88.7 -
GOODWILL WRITTEN OFF (7.4) 3.9 55.1 -
MINORITY INTEREST 1.8 0.9 4.7 -
PROFIT ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS 86.9 81.0 434.2 317.5
ATTRIBUTABLE EARNINGS - CENTS PER
SHARE 88 83 441 324
HEADLINE EARNINGS* - $M 79.5 84.9 400.6 276.9
- CENTS PER SHARE 81 87 407 283
HEADLINE EARNINGS BEFORE DEFERRED TAX
RATE ADJUSTMENT - $M 79.5 84.9 325.2 276.9
- CENTS PER SHARE 81 87 330 283
DIVIDENDS - $M - - 337.4 257.7
- CENTS PER SHARE - - 328 264
CAPITAL EXPENDITURE
- MINING DIRECT 59.1 49.9 190.4 162.4
- OTHER 1.1 3.8 14.8 11.5
- RECOUPMENTS - - - (73.2)
NET CAPITAL EXPENDITURE 60.2 53.7 205.2 100.7
* HEADLINE EARNINGS IS BASED ON EARNINGS BEFORE THE PROFIT REALISED ON SALE
OF ASSOCIATE AND GOODWILL WRITTEN OFF.
THE PRIOR YEAR HAS BEEN ADJUSTED FOR THE EXCEPTIONAL EARNINGS IN ASSOCIATE
AND DISPOSAL OF MINING SHAFTS.
QUERIES:
IN SOUTH AFRICA:
STEVE LENAHAN
TELEPHONE: +27 11 637 6248
FAX: +27 11 637 6107
MOBILE : +27 83 308 2200
JAMES DUNCAN
TELEPHONE: +27 11 637 6147
FAX: +27 11 637 6399/6400
MOBILE : +27 82 892 8052
IN THE UNITED KINGDOM:
ALEX BUCK
TELEPHONE: +44 171 849 5630
FAX: +44 171 849 6137
MOBILE : +44 793 274 0452
IN THE UNITED STATES OF AMERICA:
CHARLES CARTER
TELEPHONE: 800 417 9255
FAX: +1 917 368 8077
IN AUSTRALIA:
ANDREA MAXEY
TELEPHONE: +9 613 9684 4920
FAX: +9 613 9684 4951
FOR THE FULL REPORT ON THE QUARTER VISIT THE ANGLOGOLD WEBSITE:
WWW.ANGLOGOLD.COM
Sharenet Sites 
