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LONMIN PLC
NEWS RELEASE
INTERIM STATEMENT - 31 MARCH 2000
FINANCIAL HIGHLIGHTS
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
PROFITS - CONTINUING OPERATIONS
GBP91M GBP50M *EBITDA - UP 79% $147M $82M
GBP81M GBP42M OPERATING PROFIT - UP 93% $131M $68M
GBP84M GBP37M PROFIT BEFORE TAX - UP 121% $135M $61M
27.6P 17.4P EARNINGS PER SHARE BEFORE
EXCEPTIONAL ITEMS - UP 59% 44.7C 28.1C
9.3P 7.5P **DIVIDENDS PER SHARE 14.0C 12.1C
CASH FLOW - CONTINUING OPERATIONS
33.8P 13.8P TRADING CASH FLOW PER SHARE 55.0C 22.6C
16.3P 3.8P FREE CASH FLOW PER SHARE 26.9C 5.7C
BALANCE SHEET
GBP496M GBP430M EQUITY INTERESTS $788M $698M
GBP104M GBP123M NET BORROWINGS $166M $199M
16% 21% ***GEARING 16% 21%
COMMENTING ON THE RESULTS, LONMIN'S CHIEF EXECUTIVE, NICHOLAS MORRELL SAID:
"LONMIN HAS MADE AN EXCELLENT START TO THE FINANCIAL YEAR. WE WILL ACCELERATE
OUR EXPANSION PLANS FOR PLATINUM PRODUCTION FROM 610,000 OUNCES A YEAR TO
750,000 OUNCES BY THE YEAR 2002, AND TO OVER 800,000 OUNCES BY 2007. WE ARE IN
A STRONG POSITION TO INVEST IN OUR OPERATIONS AND MAXIMISE SHAREHOLDER RETURN.
WE LOOK FORWARD TO THE FUTURE WITH CONFIDENCE."
NOTES ON HIGHLIGHTS
*EBITDA - EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION.
**THE INTERIM DIVIDEND WILL BE PAID TO SHAREHOLDERS ON 16 AUGUST 2000 TO
SHAREHOLDERS ON THE REGISTERS AT
21 JULY 2000.
***GEARING IS CALCULATED ON THE EQUITY AND MINORITY INTERESTS OF THE GROUP.
PRESS ENQUIRIES: ANTHONY CARDEW, CARDEW & CO - 020 7930 0777
THIS PRESS RELEASE IS AVAILABLE ON HTTP://WWW.LONMIN.COM
CHIEF EXECUTIVE'S STATEMENT
DEAR SHAREHOLDER,
LONMIN HAS MADE AN EXTREMELY ENCOURAGING START TO THE CURRENT FINANCIAL YEAR.
THE RESULTS FROM OUR CONTINUING MINING OPERATIONS IN PLATINUM ARE PARTICULARLY
STRONG, AND REFLECT THE BENEFITS OF INCREASED PRODUCTION AND OPERATIONAL
EFFICIENCY AS WELL AS THE RISE IN PRICE FOR ALL THE PLATINUM GROUP METALS
(PGM'S). THE SALE OF DUIKER, OUR COAL BUSINESS, AND THE SALE OF OUR HOTELS IN
THE BAHAMAS, WHICH WERE THE TWO REMAINING STRATEGIC DISPOSALS, HAVE NOW BEEN
COMPLETED. ALSO, AND IN ACCORDANCE WITH THE RELEVANT ACCOUNTING STANDARD,
LONMIN NOW ACCOUNTS FOR ITS INTEREST IN ASHANTI GOLDFIELDS AS AN INVESTMENT
RATHER THAN AS AN ASSOCIATE. THE FOCUS AND FUTURE OF LONMIN IS NOW ITS PGM'S
BUSINESS. WE RETAIN OUR INVESTMENT IN ASHANTI AND BELIEVE IT TO BE
FUNDAMENTALLY UNDERVALUED. WE ANTICIPATE A GRADUAL RECOVERY IN ITS VALUE, AS
THE DISPOSAL OF 50 PER CENT OF ITS INTEREST IN THE MINES AT GEITA EASES THE
PRESSURE ON ITS FINANCES AND THE PRODUCTION FROM THESE MINES COMMENCES.
UNDER THE CURRENT ECONOMIC CONDITIONS THE RESULTS AT INDEPENDENCE, OUR GOLD
OPERATIONS IN ZIMBABWE, ARE DEPRESSED BUT NOT MATERIAL TO THIS HALF YEAR, AND
WE CONTINUE TO BELIEVE THEM CAPABLE OF FURTHER PROFITABLE DEVELOPMENT, PROVIDED
THERE IS A RETURN TO A MORE STABLE ECONOMY. IN THE MEANTIME, ON YOUR BEHALF, I
SHOULD LIKE TO PAY TRIBUTE TO THE MANAGERS AND STAFF OF THE INDEPENDENCE MINES
FOR THEIR DEDICATION IN MAINTAINING PRODUCTION DURING THIS DIFFICULT PERIOD.
AGAINST THE BACKGROUND OF STRONG DEMAND AND PRICES FOR PGM'S, HIGHER LEVELS OF
PRODUCTION, INCREASED EFFICIENCIES AND A BENEFICIAL EXCHANGE RATE, LONMIN'S
PROFITS, EARNINGS PER SHARE, AND CASH FLOW FROM CONTINUING OPERATIONS SHOW A
MARKED IMPROVEMENT ON THE PREVIOUS YEAR. WE ARE IN THE PROCESS OF MAKING
SUBSTANTIAL IMPROVEMENTS AND INVESTMENT IN OUR PGM'S MINING OPERATIONS WITH THE
INTENTION OF MAINTAINING THE PRODUCTION INCREASES AND CREATING FURTHER
OPERATIONAL EFFICIENCY. THE NEW REFINING AND SMELTING FUNCTIONS ARE
PROGRESSING WELL AND TWO MORE SHAFTS ARE PLANNED FOR THE MINING COMPLEX. OUR
BALANCE SHEET REFLECTS THE COMPANY'S STRONG TRADING, AND THE FUNDS GENERATED
FROM THE RECENT DISPOSALS WILL, FOR THE FIRST TIME IN RECENT HISTORY, RESULT IN
A SIGNIFICANT CASH BALANCE BY THE YEAR END.
FINANCIAL REVIEW
THE KEY EARNINGS FIGURES FROM CONTINUING OPERATIONS ALL SHOWED SUBSTANTIAL
GROWTH WHEN COMPARED TO THE PERFORMANCE IN 1999. FOR THE FIRST SIX MONTHS,
LONMIN RECORDED A 79 PER CENT INCREASE IN EARNINGS BEFORE INTEREST TAX AND
DEPRECIATION TO $147 MILLION, STRONG GROWTH IN PROFIT BEFORE TAX TO $135
MILLION, AN INCREASE OF 121 PER CENT, AND A RISE IN EARNINGS PER SHARE TO 49.8
CENTS, BEING AN INCREASE OF 77 PER CENT. THE GROWTH IN EARNINGS PER SHARE IS
LESS THAN THAT IN THE UNDERLYING PROFITABILITY BECAUSE OF AN INCREASE IN OUR
EFFECTIVE TAX RATE FROM 7 PER CENT IN 1999 TO 22 PER CENT IN 2000. THIS RISE
IS BECAUSE OF INCREASED TAX PAYABLE ON THE PROFITS FROM OUR PLATINUM OPERATIONS
AND THE RISE IN THE TAX PAYABLE IN SOUTH AFRICA ON THE HIGHER LEVEL OF
DIVIDENDS REMITTED TO THE UNITED KINGDOM. THERE IS ALSO A CORRESPONDING
INCREASE IN THE MINORITY SHARE OF THE PROFITS IN PLATINUM.
EQUALLY IMPORTANT IS THE VERY STRONG CASH FLOW PERFORMANCE, WITH TRADING CASH
FLOW PER SHARE FROM CONTINUING OPERATIONS OF 55.0 CENTS AGAINST 22.6 CENTS IN
1999 AND FREE CASH FLOW PER SHARE OF 26.9 CENTS MORE THAN FOUR TIMES THE
5.7 CENTS ACHIEVED LAST YEAR.
A SUMMARY OF THE CASH FLOW FROM CONTINUING OPERATIONS IS AS FOLLOWS:
6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH
2000 1999
RESTATED
$M $M
NET CASH INFLOW FROM OPERATIONS 103 53
NET INTEREST PAID (8) (10)
TAX PAID (7) (7)
TRADING CASH FLOW 88 36
CAPITAL EXPENDITURE:
PLATINUM (34) (17)
OTHER (2) (3)
MINORITY DIVIDENDS PAID (9) (7)
FREE CASH FLOW 43 9
ACQUISITIONS AND DISPOSALS 6 (23)
DIVIDEND FROM DISCONTINUED OPERATION 5
EQUITY DIVIDENDS PAID (20)
SHARES ISSUED 3 0
DECREASE/(INCREASE) IN 32 (9)
NET BORROWINGS
THE NET CASH INFLOW FROM CONTINUING OPERATIONS IN 2000 HAS ALMOST DOUBLED
COMPARED TO 1999. THE SIGNIFICANT INCREASE IN CAPITAL EXPENDITURE IN THE
PLATINUM OPERATIONS REFLECTS THE INVESTMENT IN THE NEW SMELTER COMPLEX AND THE
NEW CONCENTRATORS AT KAREE.
OVERALL THE FREE CASH FLOW MORE THAN ADEQUATELY COVERS THE EQUITY DIVIDENDS
PAID. AS A RESULT THE OVERALL NET DEBT FIGURE AT THE HALF YEAR WAS $166
MILLION, $31 MILLION LOWER THAN IT WAS AT THE END OF THE LAST FINANCIAL YEAR,
RESULTING IN AN OVERALL GEARING RATIO OF 16 PER CENT. THE SUBSEQUENT RECEIPT
OF THE DISPOSAL PROCEEDS OF SOME $230 MILLION FROM THE SALES OF THE HOTEL AND
COAL INTERESTS HAS RESULTED IN A NET CASH POSITION FOR THE GROUP AS A WHOLE AS
AT TODAY'S DATE.
THE RESULTS FROM THE OPERATIONS WHICH HAVE NOW BEEN SOLD, DUIKER, THE BAHAMAS
HOTELS AND F.E.WRIGHT, HAVE BEEN SHOWN AS DISCONTINUED IN THE 2000 FIGURES AND
THE 1999 COMPARATIVES HAVE BEEN RESTATED TO REFLECT THE SIMILAR TREATMENT. IN
ADDITION, IN ACCORDANCE WITH THE RELEVANT ACCOUNTING STANDARD AS MENTIONED
ABOVE, THE GROUP'S INVESTMENT IN ASHANTI IS NO LONGER ACCOUNTED FOR AS AN
ASSOCIATE AND IN FUTURE ONLY DIVIDENDS RECEIVED WILL BE TREATED AS PART OF THE
CONTINUING OPERATIONS OF THE GROUP. THE 1999 FIGURES HAVE BEEN RESTATED TO
REFLECT THE ASHANTI NUMBERS WITHIN DISCONTINUED OPERATIONS.
PLATINUM GROUP METALS OPERATIONS
THE FIRST HALF OF THE CURRENT FINANCIAL YEAR HAS SEEN AN EXCELLENT PERFORMANCE
FROM THE PLATINUM OPERATIONS WITH AN OPERATING PROFIT OF $137 MILLION COMPARED
WITH THE $129 MILLION ACHIEVED FOR THE WHOLE OF THE PREVIOUS FINANCIAL YEAR.
THIS RESULTED FROM A COMBINATION OF SIGNIFICANT GROWTH IN TONS MILLED,
CONTINUED EMPHASIS ON COST CONTROL AND A MARKED IMPROVEMENT IN THE REALISED
DOLLAR PRICE FOR ALL OF THE PGM'S.
THE MINES' PRODUCTION DURING THE SIX MONTHS TO THE END OF MARCH 2000 WAS A
COMMENDABLE 4.8 MILLION TONS MILLED WHICH REPRESENTED A 10 PER CENT
GROWTH ON THE PREVIOUS YEAR AND WAS MADE POSSIBLE BY THE ORE STOCKPILES ON
SURFACE WHICH ENABLED MILLING TO CONTINUE THROUGHOUT THE EXTENDED HOLIDAY
PERIODS AT CHRISTMAS AND EASTER. DESPITE THESE INCREASES IN STATUTORY
HOLIDAYS, PLATINUM PRODUCTION AMOUNTED TO 306,007 OUNCES, SOME 9 PER CENT ABOVE
THE LEVEL ACHIEVED LAST YEAR.
COST CONTROL REMAINED TIGHT WITH THE CASH COST PER PGM OUNCE REFINED AT R1,465,
BEING AN INCREASE OF ONLY 5.4 PER CENT RELATIVE TO THAT ACHIEVED LAST YEAR.
THE PRICES REALISED FOR ALL PGM'S WERE WELL AHEAD OF LAST YEAR. THE
IMPROVEMENT IN PRICES COMBINED WITH THE INCREASE IN PRODUCTION RESULTED IN AN
OPERATING PROFIT OF $137 MILLION, AN INCREASE OF 140 PER CENT AGAINST THE $57
MILLION ACHIEVED LAST YEAR. ALTHOUGH MARKETS REMAIN VOLATILE, IN PART BECAUSE
OF THE UNCERTAINTY ATTACHING TO SUPPLIES FROM RUSSIA, THE OUTLOOK FOR PRICES IN
THE SECOND HALF OF THE YEAR REMAINS POSITIVE. DURING THE FIRST SIX MONTHS SOME
VERY LIMITED PRICE PROTECTION WAS UNDERTAKEN BY THE FORWARD SELLING OF PLATINUM
AND PALLADIUM. GIVEN THE CONTINUING STRENGTH OF PRICES FOR BOTH METALS, IT IS
NOT LONMIN'S INTENTION TO UNDERTAKE ANY FURTHER FORWARD SALES IN THE CURRENT
YEAR.
THE CONSTRUCTION OF THE ENHANCED SMELTER COMPLEX IS NOW WELL UNDERWAY WITH THE
DRYING PLANT ALREADY OPERATIONAL. COMPLETION IS EXPECTED TOWARDS THE MIDDLE OF
2001 AND THIS WILL COMPLETE THE SURFACE INFRASTRUCTURE NECESSARY TO PROCESS A
PRODUCTION LEVEL IN EXCESS OF 800,000 OUNCES OF PLATINUM. UTILISATION OF THE
EXISTING SMELTER FACILITIES WILL ALLOW LONPLATS TO ASSESS THE BENEFITS OF TOLL
REFINING.
OTHER OPERATIONS
TRADING CONDITIONS IN ZIMBABWE HAVE BEEN EXTREMELY DIFFICULT IN THE FIRST HALF
OF THE CURRENT FINANCIAL YEAR WITH THE MAINTENANCE OF AN UNREALISTIC EXCHANGE
RATE AND LOCAL INFLATION OF AROUND 70 PER CENT HAVING AN INEVITABLE EFFECT ON
TRADING MARGINS. OVERALL OUTPUT AT 97,600 OUNCES WAS A HIGHLY COMMENDABLE
INCREASE OF 3 PER CENT ON THE LEVEL ACHIEVED LAST YEAR. THE AVERAGE PRICE
REALISED OF $293 PER OUNCE WAS MARGINALLY AHEAD OF THE $290 PER OUNCE ACHIEVED
LAST YEAR BUT WITH THE REDUCTION IN THE MARGIN THE OVERALL PRE INTEREST RESULT
WAS AT A BREAKEVEN LEVEL COMPARED TO THE $10 MILLION PROFIT ACHIEVED LAST
YEAR. THE OUTLOOK OBVIOUSLY DEPENDS VERY MUCH ON POLITICAL FACTORS IN ZIMBABWE
WHICH ARE CLEARLY BEYOND OUR CONTROL.
DIVIDEND AND OUTLOOK
LONMIN'S TRANSFORMATION FROM CONGLOMERATE TO PGM'S MINING COMPANY HAS COINCIDED
FORTUITOUSLY WITH A ROBUST IMPROVEMENT IN THE OUTLOOK FOR PGM'S. AS ONE OF THE
WORLD'S MAJOR PRODUCERS OF PGM'S WITH A STRONG BALANCE SHEET, THE COMPANY IS
PARTICULARLY WELL PLACED TO TAKE ADVANTAGE OF THE FAVOURABLE MARKET CONDITIONS,
INCREASED PRODUCTION AND IMPROVED OPERATIONAL EFFICIENCIES TO PROVIDE GROWTH.
IN THE SHORT TERM, SUBSTANTIAL BENEFITS CAN BE ACHIEVED BY MAXIMISING
PRODUCTION OF PGM'S FROM THE SIGNIFICANT RESERVES WE OWN AND MANAGE. WE
ANTICIPATE EXPANDING THE RATE OF PLATINUM PRODUCTION TO A LEVEL OF 750,000
OUNCES OF PLATINUM BY 2002 AND TO OVER 800,000 OUNCES OF PLATINUM BY 2007.
THIS MAY SEEM CONSERVATIVE GIVEN THE CURRENT MARKET DYNAMICS, BUT TO ACHIEVE
THIS TARGET, WHILE RETAINING OUR HISTORICAL COST ADVANTAGE, REPRESENTS A
SIGNIFICANT CHALLENGE. ITS REALISATION WILL FURTHER STRENGTHEN THE FOUNDATION
OF THE COMPANY, AS WELL AS PROVIDE THE YARDSTICK FOR EXPANSION BEYOND ITS
IMMEDIATE BOUNDARIES AND PERHAPS ELSEWHERE IN THE WORLD. IN THIS CONTEXT WE
ARE WELL PLACED TO TAKE ADVANTAGE OF CORPORATE OPPORTUNITIES SHOULD A VALUE
ADDING TRANSACTION BE IDENTIFIED.
AS THESE RESULTS INDICATE, YOUR COMPANY IS IN EXCELLENT SHAPE, AND IN THE
CONTEXT OF THE CASH FLOW GENERATION AND RECOGNITION OF THE NEED TO PROVIDE
INVESTORS WITH A COMPETITIVE RETURN, WE ARE PROPOSING AN INTERIM DIVIDEND OF
14.0 CENTS, A 16 PER CENT INCREASE ON THE SAME TIME LAST YEAR WHICH, WHEN
TRANSLATED INTO STERLING REPRESENTS 9.3 PENCE, OR A 24 PER CENT INCREASE ON
LAST YEAR. PAYMENT OF THE DIVIDEND WILL BE BROUGHT FORWARD TO THE MIDDLE OF
AUGUST FROM THE TRADITIONAL DATE AT THE BEGINNING OF OCTOBER TO NORMALIZE THE
TIME PERIOD BETWEEN DECLARATION AND PAYMENT.
NICHOLAS MORRELL
6 JUNE 2000
PLATINUM OPERATING STATISTICS
MARCH MARCH
2000 1999
PRODUCTION
TONS MILLED ('000) 4,824 4,384
BUILT-UP HEAD GRADE (G/TON) 5.17 5.14
REFINED PRODUCTION
PLATINUM (OZ) 306,007 280.498
PALLADIUM (OZ) 134,420 130,689
RHODIUM (OZ) 36,177 38,454
TOTAL PGM'S (OZ) 565,385 531,607
COSTS
TOTAL CASH COST PER PLATINUM OZ REFINED:
CASH OPERATING COSTS ($) 427 421
OTHER METAL REVENUE ($) 452 308
NET CASH OPERATING COSTS ($) (25) 113
CASH COST PER TOTAL PGM OZ REFINED ($) 232 232
CASH COST PER TOTAL PGM OZ REFINED (RAND) 1,465 1,390
SALES
SALES PRICES ACHIEVED
PLATINUM ($) 454 347
PALLADIUM ($) 471 308
RHODIUM ($) 1,291 740
INDEPENDENT REVIEW REPORT BY KPMG AUDIT PLC TO LONMIN PLC
INTRODUCTION
WE HAVE BEEN INSTRUCTED BY THE COMPANY TO REVIEW THE FINANCIAL INFORMATION SET
OUT ON PAGES 7 TO 14 AND WE HAVE READ THE OTHER INFORMATION CONTAINED IN THE
INTERIM REPORT AND CONSIDERED WHETHER IT CONTAINS ANY APPARENT MISSTATEMENTS OR
MATERIAL INCONSISTENCIES WITH THE FINANCIAL INFORMATION.
DIRECTORS' RESPONSIBILITIES
THE INTERIM REPORT, INCLUDING THE FINANCIAL INFORMATION CONTAINED THEREIN, IS
THE RESPONSIBILITY OF, AND HAS BEEN APPROVED BY, THE DIRECTORS. THE LISTING
RULES OF THE FINANCIAL SERVICES AUTHORITY REQUIRE THAT THE ACCOUNTING POLICIES
AND PRESENTATION APPLIED TO THE INTERIM FIGURES SHOULD BE CONSISTENT WITH THOSE
APPLIED IN PREPARING THE PRECEDING ANNUAL ACCOUNTS EXCEPT WHERE THEY ARE TO BE
CHANGED IN THE NEXT ANNUAL ACCOUNTS IN WHICH CASE ANY CHANGES, AND THE REASONS
FOR THEM, ARE TO BE DISCLOSED.
REVIEW WORK PERFORMED
WE CONDUCTED OUR REVIEW IN ACCORDANCE WITH GUIDANCE CONTAINED IN BULLETIN
1999/4: "REVIEW OF INTERIM FINANCIAL INFORMATION", ISSUED BY THE AUDITING
PRACTICES BOARD. A REVIEW CONSISTS PRINCIPALLY OF MAKING ENQUIRIES OF GROUP
MANAGEMENT AND APPLYING ANALYTICAL PROCEDURES TO THE FINANCIAL INFORMATION AND
UNDERLYING FINANCIAL DATA AND BASED THEREON, ASSESSING WHETHER THE ACCOUNTING
POLICIES AND PRESENTATION HAVE BEEN CONSISTENTLY APPLIED UNLESS OTHERWISE
DISCLOSED. A REVIEW IS SUBSTANTIALLY LESS IN SCOPE THAN AN AUDIT PERFORMED IN
ACCORDANCE WITH AUDITING STANDARDS AND THEREFORE PROVIDES A LOWER LEVEL OF
ASSURANCE THAN AN AUDIT. ACCORDINGLY WE DO NOT EXPRESS AN AUDIT OPINION ON THE
FINANCIAL INFORMATION.
WE HAVE NOT CARRIED OUT A REVIEW IN ACCORDANCE WITH THE SUCH GUIDANCE IN
RESPECT OF THE SIX MONTHS ENDED 31 MARCH 1999 WHICH ARE INCLUDED AS THE
COMPARATIVE FINANCIAL INFORMATION ON PAGES 7 TO 14.
REVIEW CONCLUSION
ON THE BASIS OF OUR REVIEW WE ARE NOT AWARE OF ANY MATERIAL MODIFICATIONS THAT
SHOULD BE MADE TO THE FINANCIAL INFORMATION AS PRESENTED FOR THE SIX MONTHS
ENDED 31 MARCH 2000.
KPMG AUDIT PLC
CHARTERED ACCOUNTANTS
LONDON
6 JUNE 2000
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
308 267 TURNOVER 499 441
189 128 - CONTINUING OPERATIONS 306 211
119 139 - DISCONTINUED OPERATIONS 193 230
102 77 EBITDA* 165 126
91 50 - CONTINUING OPERATIONS 147 82
11 27 - DISCONTINUED OPERATIONS 18 44
(17) (21) DEPRECIATION (28) (33)
85 56 OPERATING PROFIT 137 93
81 42 - CONTINUING OPERATIONS 131 68
4 14 - DISCONTINUED OPERATIONS 6 25
(1) 13 SHARE OF ASSOCIATES'
OPERATING PROFIT (1) (21)
(5) PROFIT ON SALE OF
FIXED ASSETS
1 GROUP - CONTINUING OPERATIONS 8
PROFIT/(LOSS) ON SALE OR
TERMINATION OF OPERATIONS
GROUP - DISCONTINUED OPERATIONS (8)
1 SHARE OF ASSOCIATE 2
(3) (9) NET INTEREST PAYABLE
AND SIMILAR ITEMS (5) (15)
81 61 PROFIT BEFORE TAXATION 131 101
84 37 - CONTINUING OPERATIONS 135 61
(3) 24 - DISCONTINUED OPERATIONS 4 40
(18) (4) TAXATION (29) (7)
63 57 PROFIT AFTER TAXATION 102 94
(18) (12) MINORITY INTERESTS (29) (19)
45 45 PROFIT FOR THE PERIOD 73 75
49 27 - CONTINUING OPERATIONS 79 45
(4) 18 - DISCONTINUED OPERATIONS (6) 30
(15) (12) INTERIM DIVIDEND (22) (19)
30 33 RETAINED PROFIT FOR THE
PERIOD 51 56
EARNINGS PER SHARE BEFORE
EXCEPTIONALS - CONTINUING
27.6 17.4P OPERATIONS 44.7 28.1C
30.8 17.4P EARNINGS PER SHARE
- CONTINUING OPERATIONS 49.8 28.1C
28.1 28.5P EARNINGS PER SHARE 45.5 46.8C
26.0 26.5P FULLY DILUTED EARNINGS
PER SHARE 42.2 43.5C
9.3 7.5P DIVIDENDS PER SHARE 14.0 12.1C
* EBITDA IS EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION.
THE 1999 PROFIT AND LOSS ACCOUNT HAS BEEN RESTATED TO SHOW THE RESULTS OF THE
BAHAMAS HOTELS, FE WRIGHT, DUIKER MINING AND ASHANTI AS DISCONTINUED OPERATIONS
CONSOLIDATED BALANCE SHEET
AS AT AS AT AS AT AS AT AS AT AS AT
31 MARCH 30 SEPT 31 MARCH 31 MARCH 30 SEPT 31 MARCH
2000 1999 1999 2000 1999 1999
RESTATED RESTATED
GBPM GBPM GBPM $M $M $M
FIXED ASSETS
664 639 606 TANGIBLE ASSETS 1,055 1,049 982
INVESTMENTS:
27 146 133 ASSOCIATES 43 240 215
131 6 13 OTHER INVESTMENTS 209 11 21
158 152 146 252 251 236
822 791 752 1,307 1,300 1,218
CURRENT ASSETS
37 38 41 STOCKS 59 63 66
82 68 84 DEBTORS 130 111 137
17 17 13 INVESTMENTS 28 27 20
89 67 73 CASH AT BANK AND
IN HAND 141 110 119
225 190 211 358 311 342
(176) (164) (155) CREDITORS: AMOUNTS
FALLING DUE
WITHIN ONE YEAR (280) (267) (251)
49 26 56 NET CURRENT ASSETS 78 44 91
871 817 808 TOTAL ASSETS LESS
CURRENT LIABILITIES 1,385 1,344 1,309
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
(106) (106) (106) CONVERTIBLE DEBT (169) (175) (172)
(62) (70) (80) OTHER (98) (114) (129)
(168) (176) (186) (267) (289) (301)
(35) (41) (44) PROVISIONS FOR
LIABILITIES AND
CHARGES (56) (67) (71)
668 600 578 1,062 988 937
CAPITAL AND RESERVES
160 160 159 CALLED UP SHARE CAPITAL 254 262 258
336 285 271 RESERVES 534 471 440
496 445 430 EQUITY INTERESTS 788 733 698
172 155 148 MINORITY EQUITY INTERESTS 274 255 239
668 600 578 1,062 988 937
THE 31 MARCH 1999 BALANCE SHEET HAS BEEN RESTATED FOR FRS 12 PROVISIONS,
CONTINGENT LIABILITIES AND CONTINGENT ASSETS. THE EFFECT OF THIS RESTATEMENT
IN RELATION TO REHABILITATION COSTS HAS BEEN TO INCREASE FIXED ASSETS BY $10
MILLION (GBP6 MILLION), CURRENT ASSET INVESTMENTS BY $19 MILLION (GBP12
MILLION) AND PROVISIONS BY $29 MILLION (GBP18 MILLION).
CONSOLIDATED CASH FLOW STATEMENT
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
NET CASH INFLOW FROM
OPERATING ACTIVITIES
63 31 - CONTINUING ACTIVITIES 103 53
4 26 - DISCONTINUED ACTIVITIES 7 39
67 57 110 92
(10) (11) NET INTEREST PAID (17) (18)
(6) (6) DIVIDENDS PAID TO MINORITIES (9) (10)
(16) (17) RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE (26) (28)
(5) (7) TAXATION (8) (11)
(29) (17) CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT (47) (27)
4 (34) ACQUISITIONS AND DISPOSALS 6 (56)
(12) EQUITY DIVIDENDS PAID (20)
9 (18) NET CASH INFLOW/(OUTFLOW)
BEFORE FINANCING 15 (30)
18 (8) - CONTINUING ACTIVITIES 29 (9)
(9) (10) - DISCONTINUED ACTIVITIES (14) (21)
(2) (25) FINANCING (4) (40)
7 (43) INCREASE/(DECREASE) IN CASH
IN THE PERIOD 11 (70)
13 (23) - CONTINUING ACTIVITIES 21 (37)
(6) (20) - DISCONTINUED ACTIVITIES (10) (33)
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
81 42 OPERATING PROFIT FROM
CONTINUING ACTIVITIES 131 68
10 9 DEPRECIATION CHARGE 16 13
(28) (21) INCREAE IN WORKING CAPITAL (45) (28)
1 OTHER ITEMS 1
63 31 NET CASH INFLOW IN RESPECT
OF CONTINUING ACTIVITIES 103 53
4 26 NET CASH INFLOW IN RESPECT
OF DISCONTINUED ACTIVITIES 7 39
67 57 NET CASH INFLOW FROM
OPERATING ACTIVITIES 110 92
STATEMENT OF TOTAL CONSOLIDATED RECOGNISED GAINS AND LOSSES
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
46 34 PROFIT/(LOSS) FOR THE PERIOD
- GROUP 74 57
(1) 11 - ASSOCIATES (1) 18
(4) DILUTION OF GROUP'S
IN ASHANTI (6)
9 GROUP SHARE OF EQUITY ISSUED BY
ASHANTI 14
17 13 EXCHANGE ADJUSTMENTS - GROUP
1 6 - ASSOCIATES
63 69 TOTAL RECOGNISED GAINS
RELATING TO THE PERIOD 73 83
THE EQUIVALENT STERLING FIGURES INCLUDE THE TRANSLATION ADJUSTMENT FROM US
DOLLARS TO STERLING ON THE OPENING EQUITY FIGURE AT 1 OCTOBER 1999.
RECONCILIATION OF MOVEMENT IN EQUITY INTERESTS
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
46 34 PROFIT/(LOSS) FOR THE
PERIOD - GROUP 74 57
(1) 11 - ASSOCIATES (1) 18
(15) (12) DIVIDEND (22) (19)
30 33 RETAINED PROFIT FOR THE PERIOD 51 56
18 24 OTHER RECOGNISED GAINS RELATING
TO THE PERIOD 8
2 1 SHARES ISSUED 3 2
1 (5) OTHER ITEMS 1 (9)
51 53 NET INCREASE IN EQUITY
INTERESTS IN THE PERIOD 55 57
445 377 EQUITY INTERESTS AT 1 OCTOBER 733 641
496 430 EQUITY INTERESTS AT 31 MARCH 788 698
NOTES TO THE HALF YEAR ACCOUNTS
1 TURNOVER
TURNOVER IS ANALYSED BY ACTIVITY AND GEOGRAPHICAL AREA BELOW:
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
171 112 PLATINUM 278 184
18 16 GOLD 28 27
189 128 CONTINUING OPERATIONS 306 211
119 139 DISCONTINUED OPERATIONS 193 230
308 267 499 441
2 EBITDA BY ACTIVITY AND GEOGRAPHICAL AREA
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) IS
ANALYSED BY ACTIVITY AND GEOGRAPHICAL AREA BELOW:
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
94 43 PLATINUM 151 70
1 6 GOLD 2 11
4 OTHER 6
(4) (3) CENTRAL COSTS (6) (5)
91 50 CONTINUING OPERATIONS 147 82
11 27 DISCONTINUED OPERATIONS 18 44
102 77 165 126
91 41 SOUTH AFRICA 146 66
1 6 ZIMBABWE 2 11
3 2 THE AMERICAS 5 4
4 EUROPE 6
(4) (3) CENTRAL COSTS (6) (5)
91 50 CONTINUEING OPERATIONS 147 82
11 27 DISCONTINUED OPERATIONS 18 44
102 77 165 126
NOTES TO THE HALF YEAR ACCOUNTS
3 OPERATING PROFIT BY ACTIVITY AND GEOGRAPHICAL AREA
OPERATING PROFIT, INCLUDING SHARE OF ASSOCIATES' OPERATING PROFIT IS ANALYSED
BY ACTIVITY AND GEOGRAPHICAL AREA BELOW:
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
85 35 PLATINUM 137 57
6 GOLD 10
4 OTHER 6
(4) (3) CENTRAL COSTS (6) (5)
81 42 CONTINUING OPERATIONS 131 68
3 27 DISCONTINUED OPERATIONS 5 46
84 69 136 114
82 33 SOUTH AFRICA 132 53
6 ZIMBABWE 10
3 2 THE AMERICAS 5 4
4 EUROPE 6
(4) (3) CENTRAL COSTS (6) (5)
81 42 CONTINUING OPERATIONS 131 68
3 27 DISCONTINUED OPERATIONS 5 46
84 69 136 114
4 PROFIT BEFORE TAXATION BY ACTIVITY AND GEOGRAPHICAL AREA
PROFIT BEFORE TAXATION IS ANALYSED BY ACTIVITY AND GEOGRAPHICAL AREA BELOW:
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
83 32 PLATINUM 134 52
(1) 5 GOLD (2) 9
4 OTHER 6
(4) (3) CENTRAL COSTS (6) (5)
1 (1) CENTRAL INTEREST AND
SIMILAR ITEMS 1 (1)
79 37 CONTINUING OPERATIONS 127 61
2 23 DISCONTINUED OPERATIONS 4 38
81 60 131 101
80 30 SOUTH AFRICA 129 48
(1) 5 ZIMBABWE (2) 9
3 2 THE AMERICAS 5 4
4 EUROPE 6
(4) (3) CENTRAL COSTS (6) (5)
1 (1) CENTRAL INTEREST AND
SIMILAR ITEMS 1 (1)
79 37 CONTINUING OPERATIONS 127 61
2 23 DISCONTINUED OPERATIONS 4 38
81 60 131 99
1 EXCEPTIONAL ITEMS 2
81 61 PROFIT BEFORE TAXATION 131 101
NOTES TO THE HALF YEAR ACCOUNTS
5 NET INTEREST PAYABLE AND SIMILAR ITEMS
NET INTEREST PAYABLE AND SIMILAR ITEMS IS ANALYSED AS FOLLOWS:
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
11 11 NET INTEREST PAYABLE 17 18
(8) (5) EXCHANGE DIFFERENCES ON
NET DEBT (12) (8)
3 SHARE OF ASSOCIATES'
NET INTEREST PAYABLE 5
3 9 5 15
6 TAXATION
BECAUSE OF THE INCIDENCE OF ACCELERATED TAX ALLOWANCES, THE TAX CHARGE PROVIDED
AT THE HALF YEAR CAN ONLY BE ESTIMATED.
7 EARNINGS PER SHARE
THE CALCULATION OF EARNINGS PER SHARE IS BASED ON A WEIGHTED AVERAGE OF
159,902,136 SHARES IN ISSUE FOR THE SIX MONTHS TO 31 MARCH 2000 (159,131,415
SHARES IN ISSUE FOR THE SIX MONTHS TO 31 MARCH 1999).
THE CALCULATION OF DILUTED EARNINGS PER SHARE IS BASED ON THE WEIGHTED AVERAGE
NUMBER OF SHARES IN ISSUE ADJUSTED BY THE DILUTIVE OUTSTANDING SHARE OPTIONS
AND THE CONVERTIBLE BONDS.
8 EXCEPTIONAL ITEMS
6 MONTHS TO 6 MONTHS TO 6 MONTHS TO 6 MONTHS TO
31 MARCH 31 MARCH 31 MARCH 31 MARCH
2000 1999 2000 1999
RESTATED RESTATED
GBPM GBPM $M $M
(5) PROFIT ON SALE OF FIXED ASSETS 8
SALE OR TERMINATION OF OPERATIONS
- PROVISION FOR THE LOSS ON
SALE OF THE
(5) BAHAMAS HOTELS (8)
1 - SHARE OF EXCEPTIONAL PROFITS
OF ASHANTI 1
1 1
9 EXCHANGE RATES
THE PRINCIPAL US DOLLAR EXCHANGE RATES USED ARE AS FOLLOWS:
31 MARCH 2000 6 MONTHS TO
31 MARCH 2000 31 MARCH 1999
AVERAGE RATES:
BRITISH POUND 0.62 0.61
SOUTH AFRICA RAND 6.22 5.95
ZIMBABWE DOLLAR 38.26 37.73
CLOSING RATES:
BRITISH POUND 0.63 0.62
SOUTH AFRICA RAND 6.49 6.24
ZIMBABWE DOLLAR 38.19 38.20
NOTES TO THE HALF YEAR ACCOUNTS
10 STATUTORY DISCLOSURE
THE BALANCE SHEET AT 30 SEPTEMBER 1999 IS TAKEN FROM BUT DOES NOT CONSTITUTE
THE COMPANY'S STATUTORY ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 1999.
ACCOUNTS FOR THAT YEAR HAVE BEEN DELIVERED TO THE REGISTRAR OF COMPANIES. THE
AUDITORS MADE AN UNQUALIFIED REPORT THEREON AND SUCH REPORT DID NOT CONTAIN A
STATEMENT UNDER SECTION 237(2) OR (3) OF THE COMPANIES ACT 1985.
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