PETMIN - CONSOLIDATED INTERIM REPORT

PETRA MINING LIMITED
(REG NO. 72/01062/06)
("PETMIN")

CONSOLIDATED INTERIM REPORT FOR THE SIX MONTHS ENDED 31 AUGUST 1998
GROUP INCOME STATEMENT

   AUDITED                                       UNAUDITED

   YEAR ENDED                                    6 MONTHS ENDED

   28/2/98                                       31/8/98       31/8/97
   R'000                                         R'000        R'000

   47 958      TURNOVER                          28 295       26 833

   3 921       OPERATING INCOME                  1 428        1 796

   (2 490)     INTEREST PAID                     (723)        (236)

   1 431       PROFIT BEFORE TAXATION            705          1 560

   60 156      ABNORMAL ITEM (NOTE 2)            73 975       66 000

   (360)       TAXATION                          -            -

   61 227      PROFIT AFTER TAXATION             74 680       67 560

   (2 881)     DIVIDEND RECOMMENDED (NOTE 5)     -            -

   58 346      NET INCOME AFTER DIVIDENDS        74 680       67 560
               TRANSFER FROM NON-DISTRIBUTABLE

   3 237       RESERVES                          -            -

   61 583      RETAINED INCOME FOR THE PERIOD    74 680       67 560
               ACCUMULATED PROFIT AT THE

   3 951       BEGINNING OF THE YEAR             65 534       3 951
               RETAINED INCOME AT THE END OF

   65 534      THE PERIOD                        140 214      71 511
               WEIGHTED NUMBER OF SHARES

   28 812 560  IN ISSUE                        28 812 560   13 238 855
   212,5       EARNINGS PER SHARE (IN CENTS)     259,2        510,3
               HEADLINE EARNINGS PER SHARE

   3,7         (IN CENTS)                        2,4          11,8
GROUP BALANCE SHEET

   AUDITED                                       UNAUDITED

   28/2/98                                       31/8/98      31/8/97

   R'000                                         R'000        R'000
            CAPITAL EMPLOYED

   7 203    SHARE CAPITAL                        7 203        7 203

   37 859   SHARE PREMIUM                        37 859       37 859

   6 000    NON-DISTRIBUTABLE RESERVES           6 000        8 208

   65 534   DISTRIBUTABLE RESERVES               140 214      71 511

   116 596  TOTAL SHAREHOLDERS' FUNDS            191 276      124 781

   800      LONG-TERM LIABILITY                  800          18 499

   117 396                                       192 076      143 280
            EMPLOYMENT OF CAPITAL

   53 772   FIXED ASSETS                         72 140       41 670
            MOLOPE "N" ORDINARY SHARES

   69 000   (NOTES 1 & 3)                        132 975      69 000
            CASH RECEIVABLE-

   -        MOLOPE INVESTMENTS (PTY)LTD.         -            33 720

   2 050    UNQUOTED SHARE INVESTMENTS           -            3 489

   (7 426)  NET CURRENT LIABILITIES              (13 039)    (4 599)

   117 396                                       192 076     143 280
            NET ASSET VALUE PER SHARE

   426      (IN CENTS) (NOTE 2)                  664         433
COMMENTS
1. GOLD MINING

NIGEL GOLD MINING COMPANY (PROPRIETARY) LIMITED ("NIGEL") (A WHOLLY OWNED
SUBSIDIARY OF PETMIN) IS INVOLVED IN THE OPERATION OF A FULL-SCALE GOLD MINE.
NIGEL IS IN A DEVELOPMENT PHASE AND ALL COSTS UNTIL 30 JUNE 1998 RELATING TO
THE DEVELOPMENT AND EVALUATION OF THE MINERAL RESOURCES AND EXPENDITURE ON THE
EXTENSION OF THE PRODUCTION FACILITIES HAVE BEEN CAPITALIZED.

THE TOTAL GOLD SOLD FOR THE PERIOD WAS 476 KILOGRAMS (PERIOD 1 JULY 1998 TO 31
AUGUST 1998: 176 KILOGRAMS) (PERIOD ENDING 31 AUGUST 1997:483 KILOGRAMS).
ACQUISITION OF REDUCTION AND GOLD EXTRACTION PLANT

AS ANNOUNCED IN THE PRESS ON 9 SEPTEMBER 1998, NIGEL HAS WITH EFFECT FROM 1
OCTOBER 1998 PURCHASED THE REDUCTION AND GOLD EXTRACTION BUSINESS COMPRISING
CIRCUITS 1 AND 2 ("BUSINESS") FROM REFRACTORY GOLD (PROPRIETARY) LIMITED
("REFGOLD"). THE NET PURCHASE CONSIDERATION PAYABLE TO REFGOLD FOR THE BUSINESS
WAS THE SUM OF R 16 150 000 PLUS THE COST PRICE OF THE STOCK. THE PURCHASE
CONSIDERATION WAS PAID IN CASH TO REFGOLD. THE TRANSACTION IS INCLUDED IN THE
31 AUGUST 1998 INTERIM REPORT. THE PURCHASE OF THE REDUCTION AND GOLD

EXTRACTION PLANT GIVES NIGEL THE OPPORTUNITY TO TREAT ITS OWN GOLD PRODUCTION
AND TO FORWARD SELL A PORTION OF ITS FUTURE PRODUCTION THEREBY ACHIEVING A
STABLE GOLD PRICE. A FORWARD PRICING COMMITMENT HAS BEEN CONCLUDED AND 6
MILLION MOLOPE "N" ORDINARY SHARES HAVE BEEN CEDED AS SECURITY FOR THE FORWARD
PRICING COMMITMENT.
2. OVER ACHIEVEMENT OF THE PROFIT WARRANTIES

AS FURTHER ANNOUNCED IN THE PRESS ON 9 SEPTEMBER 1998, PETREX (PROPRIETARY)
LIMITED (A WHOLLY OWNED SUBSIDIARY OF PETMIN) RECEIVED AN ADDITIONAL 13 216 144
MOLOPE "N" ORDINARY SHARES AS CONSIDERATION FOR THE EXCEEDED PROFITS IN TERMS
OF THE DISPOSAL AGREEMENTS. THE INCREASE OF 53% IN NET ASSET VALUE IS LARGELY
AS A RESULT OF THE ADDITIONAL CONSIDERATION RECEIVED.

THE ABNORMAL ITEM REPRESENTS THE ADDITIONAL MOLOPE "N" ORDINARY SHARES RECEIVED
AS CONSIDERATION.
3. INVESTMENTS

THE UNDERLYING INVESTMENTS AND ASSETS OF PETMIN PRIMARILY CONSISTS OF 28 093
263 MOLOPE "N" ORDINARY SHARES AND 100% OF THE ISSUED SHARE CAPITAL OF NIGEL.
4. YEAR 2000 COMPLIANCE

THE COMPANY IS AWARE OF THE IMPLICATIONS OF THE YEAR 2000 ISSUES AND HAS TAKEN
STEPS TO ENSURE COMPLIANCE OF ALL COMPUTERIZED SYSTEMS AND APPLICATIONS DURING
THE FIRST HALF OF 1999. THE ASSOCIATED COSTS ARE NOT LIKELY TO BE MATERIAL.
5. DIVIDEND

THE NET DIVIDEND OF 10 CENTS PER SHARE DECLARED ON 28 FEBRUARY 1998 WAS PAID ON
24 JULY 1998.
FOR AND ON BEHALF OF THE BOARD
PJ NEL
PF DU PREEZ
19 NOVEMBER 1998
DIRECTORS:

PJ NEL (NON-EXECUTIVE CHAIRMAN), PF DU PREEZ (MANAGING DIRECTOR), JA STRIJDOM,
HVW CHAPMAN, JC DU PREEZ, GJH COMBRINCK
REGISTERED OFFICE:

28 VISAGIE STREET, GUARANTEE HOUSE, 5TH FLOOR, PRETORIA.
PO BOX 9446, PRETORIA, 0001
TRANSFER SECRETARIES:
MERCANTILE REGISTRARS
94 PRESIDENT STREET, 7TH FLOOR. JOHANNESBURG.
PO BOX 1053, JOHANNESBURG, 2000
AUDITORS:
PRICEWATERHOUSECOOPERS
GOBIE STREET, NEWLANDS.
PO BOX 35296, MENLOPARK, 0102