Interim Results
February 27 2003 - 9:24AM
UK Regulatory
ANGLOVAAL MINING LIMITED
(Reg. No. 1933/004580/06)
(Incorporated in the Republic of South Africa)
("Avmin" or "the Company")
Interim Results for the period ended 31 December 2002
HIGHLIGHTS
* Good contributions from Assmang and Nkomati
* Avgold's Target mine production included for the full six months
* Chambishi's furnace now operating at full capacity
* Debt to equity ratio declines significantly due to stronger rand
* ETC sold by Avgold for R300 million in February 2003
FORWARD LOOKING STATEMENT
Certain statements included in this report constitute "forward looking
statements". Such statements involve known and unknown risks, uncertainties and
other factors that may cause the results, performances, objectives or
achievements of Anglovaal Mining Limited and its subsidiary or associated
companies to be materially different from future results, performances,
objectives or achievements expressed or implied by these forward looking
statements. Anglovaal Mining Limited is subject to the effect of changes in the
minerals and metals commodity prices, currency fluctuations and the risks
involved in mining operations.
Financial summary and statistics
Unaudited Audited
Half-year ended Year ended
31 December 30 June
2002 2001 2002
Rm Rm Rm
BALANCE SHEET
Total assets 8 990 8 332 8 786
Total interest bearing borrowings 2 669 2 883 2 696
Shareholders' equity 4 924 4 146 4 591
INCOME STATEMENT
Revenue 2 340 1 663 4 047
Earnings 118 (1 125) (866)
Headline earnings 105 31 204
Basic earnings per share (cents) 106 (1 017) (780)
Headline earnings per share (cents) 94 28 184
CASH FLOW STATEMENT
Cash generated from operations 198 160 619
Cash and cash equivalents 905 472 779
Cash generated from operations per share 177 145 558
(cents)
JSE SECURITIES EXCHANGE SOUTH AFRICA
PERFORMANCE
Ordinary shares
- high (cents) 4 225 4 280 4 280
- low (cents) 3 550 3 200 3 100
- period end (cents) 3 950 4 080 3 701
Volume of shares traded (thousands) 10 892 11 104 51 524
Number of ordinary shares in issue (thousands) 112 225 111 159 111 444
FINANCIAL STATISTICS Definition
Effective taxation rate 1 (per cent) 38 - -
Interest rate 2 (times) 3,88 3,38 5,34
Debt: equity ratio 3 0,36 0,58 0,42
Net asset value per share 4 (cents) 2 486 2 062 2 337
(cents)
Market capitalisation 5 (R million) 4 433 4 535 4 125
(R million)
Definitions
1. Effective taxation rate (per cent)
Taxation charge per income statement less Secondary Tax on Companies divided
by profit before taxation.
2. Interest cover (times)
Profit before exceptional items, finance costs and taxation divided by
finance costs.
3. Debt: equity ratio
Total debt divided by total equity. Total debt comprises long-term
borrowings, overdrafts and short-term borrowings less cash and cash
equivalents.
Total equity comprises total shareholders' interest.
4. Net asset value per share (cents)
Ordinary shareholders' interest in capital and reserves divided by number of
shares in issue.
5. Market capitalisation (R million)
Number of ordinary shares in issue multiplied by market value of shares at
reporting date.
COMMENTARY
GROUP RESULTS
Avmin's revenue and headline earnings increased at the rates of 41 per cent and
239 per cent to R2,34 billion (R1,66 billion) and R105 million (R31 million),
respectively, for the six months ended 31 December 2002 compared to the 2001
comparative period. Headline earnings per share were 94 cents (28 cents).
Assmang Limited (Assmang) and Nkomati nickel mine (Nkomati) continued to
perform satisfactorily. Increased contributions were received from Avgold
Limited (Avgold) and losses have been contained at Chambishi Metals plc
(Chambishi). A major determinant of the Group's financial performance was the
stengthening of the rand/US dollar exchange rate during the period under
review. This has adversely affected rand revenue of US dollar priced products
and generated exchange gains on borrowings denoted in US dollars.
Avgold's results showed an improvement as Target attained full production,
while ETC also performed well. Avgold benefited from an exchange gain on the
US$35 million of borrowings following the strengthening of the rand/US dollar
exchange rate. Avgold concluded an agreement to sell its ETC assets for R300
million to a consortium that includes a significant Black Economic Empowerment
component.
The Chambishi cobalt/copper operation in Zambia is now running at planned
production levels following the commissioning of the redesigned furnace. The
low cobalt price caused Chambishi to incur a loss during the period. There has
been an increase in the cobalt price in 2003.
Two Rivers Platinum (Proprietary) Limited (Two Rivers) signed a memorandum of
understanding with a Black Economic Empowerment consortium to acquire up to 25
per cent of Two Rivers. The consortium is to be managed by TISO Capital
(Proprietary) Limited, The Two Rivers and TISO consortium shareholders'
agreement will, when fully implemented, result in Avmin holding 41,3 per cent
of the venture, with Impala Platinum Holdings Limited (Implats) holding 33,7
per cent and the TISO consortium 25 per cent. Avmin and Implats will combine
their interests into a new holding structure managed by Avmin with 75 per cent
of the project's equity.
Total capital expenditure for the period amounted to R257 million, expended as
follows: precious metals -- R74 million; ferrous metals - R140 million; cobalt/
copper - R25 million; and nickel - R17 million.
The Group's debt-to-equity ratio showed a significant improvement, falling to
36 per cent (58 per cent), and similarly net borrowings (borrowings less
deposits and cash) declined 27 per cent to R1,8 billion (R2,4 billion) as a
result of the strengthening of the rand/US dollar exchange rate.
SAFETY
Three employees tragically lost their lives in two separate accidents at the
Black Rock and Beeshoek mines during December 2002. The Board very much regrets
these deaths and extends its condolences to the bereaved families and friends.
All operations showed a decrease in reportable incidents compared to the
previous quarter. Target achieved one million fatality free shifts in November
2002.
FERROUS METALS
Avmin's 50,3 per cent held manganese, chrome and iron ore producer, Assmang,
reported a 14 per cent increase in headline earnings to R138 million (R121
million). The increase in earnings was mainly attributable to increased sales
volumes for all products and higher prices received for manganese alloys in
both US dollar and rand terms.
Sales Volume
Six months to: 31 Dec 2002 31 Dec 2001 % Change
Manganese ore (tons)* 409 000 382 000 7,1
Iron ore (tons) 2 259 000 2 149 000 5,1
Ferro-manganese (tons) 96 900 85 400 13,5
Ferro-chrome (tons) 103 600 88 900 16,5
*excludes intra group sales
Capital expenditure to maintain and improve operations during the period under
review amounted to R140 million (R186 million) and was spent mainly on:
* The development of the Nchwaning III shaft complex: This project is scheduled
for completion by 31 December 2003. Problems associated, inter alia, with
ground conditions and the commissioning of the 2,2 km long decline conveyor
have caused the final estimated cost to completion to increase by R68 million
to R585 million. This complex will have a life in excess of 20 years and will
supply the total estimated sales requirement for high-grade manganese ore.
* The chrome division's new 54 MVA furnace and 350 000 tons per annum
pelletising plant. These have experienced some technical problems, which
delayed the attainment of sustained planned production levels. These problems
have been addressed and full production is expected to be reached during the
March 2003 quarter.
NICKEL
The Nkomati nickel mine, 75 per cent owned by Avmin, posted a lower profit
before taxation of R105 million (R109) mainly as a result of the firmer rand/US
dollar exchange rate. However, Nkomati's results reflect a good operating
performance. Total ore treated increased to 137 000 tons (135 000 tons),
producing 28 900 tons (23 700 tons) of concentrates with average grades of 10,2
per cent (9,3 per cent) for nickel and 6,5 per cent (6,8 per cent) for copper.
The grade of the nickel feed was above two per cent.
Sales achieved were higher at 2 620 tons (1 880 tons) of nickel, 1 670 tons (1
380 tons) of copper, 33 tons (26 tons) of cobalt and 19 040 ounces (16 940
ounces) of Platinum Group Metals (PGMs). Despite the rand's gains against the
US dollar the mine remains cost competitive with a nickel production cost, net
of by-product credits, of US$0,50/lb, while the average nickel price over the
period amounted to US$3,16/lb (US$2,40/lb).
The Nkomati expansion project's feasibility study has been concluded and
regulatory issues pertaining to environmental and mining authorisations are
being progressed. In addition to the current feasibility study, which envisages
nickel production to increase to some 16 000 tons, various alternatives are
being considered to ensure the optimal return on investment.
COBALT/COPPER
Chambishi, owned 90 per cent by Avmin, continued to address and resolve the
issues affecting production at the plant, resulting in the plant processing a
total of 76 900 tonnes (64 500 tonnes) of slag during the period. Cobalt
production increased 43 per cent to 2 200 tons during the period, of which 1
300 tons (300 tons) were for Chambishi's own account. Some 5 300 tons (6 400
tons) of copper were produced, of which 610 tons (240 tons) were from
Chambishi's own metal. The average cobalt price received during the period was
significantly lower than the previous period at US$6,22/lb (US$8,00 lb). The
lower realised cobalt price and the reduced output resulting from the
refurbishment of the furnace in August/September 2002 adversely impacted on
Chambishi's results. Chambishi reported an operating loss attributable to Avmin
of R61 million (R82 million loss).
Chambishi continues to discuss with the Government of the Republic of Zambia
(GRZ) the full implementation of the development agreement signed in 1998. The
GRZ has undertaken to implement the development agreement and apply equal
fiscal treatment and lower tariff arrangements to the mining industry.
Chambishi's continues to seek a partner to share risk at Chambishi. Any
transaction may effect the carrying value of the Chambishi.
PRECIOUS METALS
Avmin's 56 per cent held gold producer, Avgold, increased revenue to R502
million (R128 million) following Target's commissioning on 1 May 2002. The
results for the previous period excludes Target and therefore are not
comparable. Costs and expenses amounted to R453 million (R114 million).
Operating profit increased to R50 million (R14 million). Headline earnings
increased to R79 million (R15 million), largely as a result of an unrealised
exchange gain of R52 million on the US$35 million borrowing following the
strengthening of the rand. The gain helped to offset the effects of the rand
selling price, which reduced to R83 488/kg (R89 133/kg), or US$299/oz (US$306/
oz) as a result of the hedges put in place when the funding for Target was
arranged. Capital expenditure declined significantly to R58 million from R369
million.
The mark-to-market value of Avgold's hedge book as at 31 December 2002 was a
negative R485 million - significantly lower than 31 December 2001's negative R1
036 million - as a result of the strengthening of the rand/US dollar exchange
rate and delivery into the hedge book.
Ore milled at ETC declined to 162 700 tonnes (169 800 tonnes); gold sold
increased to 1 486 kg (1 438 kg) as a result of the grade improving to 9,13g/t
(8,47g/t). Cash costs increased to R71 097/kg (R68 140/kg), but declined in
dollar terms to US$218/oz (US$233/oz).
Ore milled at Target amounted to 576 400 tonnes, while gold sold was 4 524 kg.
The yield was 7,85g/t, while the cash cost was R53 634/kg, or US$165/oz.
Capital expenditure totalled R47 million (R346 million).
Target's Life of Mine plan was updated during the period, resulting in an
increased life of 18 years, compared to the previous 13 years.
Exploration work continued in the northern Free State in the Paradise area,
immediately north of the Target mine. Pre-feasibility work on a mine design
using the updated geological model and the latest mineral resource estimate is
underway and is expected to be presented to Avgold's Board by 30 June 2003.
A detailed feasibility study on Two Rivers has been completed. The study
suggests that the sinking of a decline shaft is the best option to access the
ore body and that mechanised mining would allow the mine to attain full
production within two years after the completion of the shaft. A concentrator
would be erected on site and the concentrates sold to Impala Refining Services.
Implats will undertake marketing of the PGMs while the marketing of the base
metals contained in the concentrate will be conducted by Avmin.
PROSPECTS FOR THE FINANCIAL YEAR 2003
The stabilisation of the Chambishi operation and Target's contribution to
Avgold's earnings for the entire 2003 financial year are expected to improve
Avmin's headline earnings for the year as a whole compared to the 2002
financial year. The rand/US dollar exchange rate will remain a key determinant
in Avmin's financial performance for the year to 30 June 2003.
RESIGNATIONS OF DIRECTORS
Roy Oron and Nir Livnat resigned as non-executive directors on 24 October and 9
December 2002 respectively.
For and on behalf of the Board:
RP Menell DN Murray
Chairman Chief executive officer
Johannesburg
28 February 2003
Group balance sheet Unaudited Audited
Half-year ended Year ended
31 December 30 June
2002 2001 2002
Rm Rm Rm
ASSETS
Non-current assets 5 627 5 520 5 686
Tangible assets
Intangible assets 7 8 7
Deferred tax assets 38 39 38
Environmental rehabilitation trust funds 64 59 64
Investments 215 104 176
5 951 5 730 5 971
Current assets 1 148 867 976
Inventories 986 1 263 1 060
Trade and other receivables 905 472 779
Deposits and cash 3 039 2 602 2 815
Total assets 8 990 8 332 8 786
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 6 6 6
Share premium 69 59 62
Non-distributable reserves 184 85 110
Distributable reserves 2 531 2 142 2 401
Shareholders' interest in capital and reserves 2 790 2 292 2 579
Minority interest 2 134 1 854 2 012
Total shareholders's interest 4 924 4 146 4 591
Non-current liabilities
Long-term borrowings - interest bearing 1 367 1 478 1 181
Deferred tax liabilities 524 369 493
Long-term provisions 219 212 215
2 110 2 059 1 889
Current liabilities
Trade and other payables 523 591 637
Provisions 60 63 62
Taxation 68 68 45
Derivative instruments 3 - 47
Overdrafts and short-term borrowings 1 302 1 405 1 515
1 956 2 127 2 306
Total equity and liabilities 8 990 8 332 8 786
Group income statement Unaudited Audited
Half-year ended Increase/ Year ended
31 December (Decrease) 30 June
2002 2001 2002
Rm Rm % Rm
Revenue 2 340 1 663 41 4 047
Cost of sales 1 828 1 271 44 2 985
Gross profit 512 392 31 1 062
Other operating income 234 153 53 215
Other operating expenses 354 322 10 478
Profit from oeprations 392 223 76 799
Interest received 47 27 74 55
Finance costs 113 74 53 160
Profit before taxation and 326 176 85 694
exceptional items
Exceptional items 13 (1 157) (1 084)
Profit/(loss) before taxation 339 (981) 135 (390)
Taxation 128 134 (4) 313
Profit/(loss) after taxation 211 (1 115) 119 (703)
Minority interest 92 10 830 163
Earnings 118 (1 125) (866)
Headline earnings 105 31 239 204
Basic earnings per share 106 (1 017) (780)
(cents)
Headline earnings per share 94 28 184
(cents)
Full diluted earnings per 104 (1 002) (771)
share (cents)
Full diluted headline 93 28 182
earnings per share (cents)
Number of shares in issue at 112 225 111 159 111 444
end of period (thousands)
Weighted average number of 111 783 110 661 110 977
shares in issue (thousands)
Weighted average number of 113 303 112 246 112 367
shares used in calculating
fully diluted earnings per
share (thousands)
Group cash flow statement Unaudited Audited
Half-year ended Year ended
31 December 30 June
2002 2001 2002
Rm Rm Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers 2 399 1 651 3 823
Cash paid to suppliers and employees 2 201 1 491 3 204
Cash generated from operations 198 160 619
Interest received 46 25 55
Interest paid (113) (74) (160)
Dividends received 1 1 2
Dividends paid to minorities (12) (9) (23)
Taxation paid (78) (116) (197)
Net cash inflow/(outflow) from operating 42 (13) 296
activities
CASH FLOW FROM INVESTING ACTIVITIES
Additions to fixed assets to maintain (199) (144) (122)
operations
Additions to fixed assets to expand operations (58) (599) (1 101)
Proceeds on disposal of investments 13 713 1 013
Proceeds on dilution of interest in - - 139
investments
in subsidiaries
Net cash outflow from investing activities (244) (30) (71)
CASH FLOW FROM FINANCING ACTIVITIES
Funding received from shareholders 7 3 6
Funding received from minority shareholders 8 248 264
Long-term borrowings raised 348 312 314
Long-term borrowings repaid (62) - (153)
Increase/(decrease) in short-term borrowings 27 (487) (316)
Net cash inflow from financing activities 328 76 115
Net increase in cash and cash equivalents 126 33 340
Cash and cash equivalents at beginning of 779 439 439
period
Cash and cash equivalents at end of period 905 472 779
Statement of changes in equity
Share Currency
capital trans- Reval-
and lation uation Retained
premium reserve surplus Other profit Total
Rm Rm Rm Rm Rm Rm
Half-year ended
31 December 2002
Balance at 30 June 2002 68 (42) 141 11 2 401 2 579
Currency translation - 32 - - - 32
reserve
Revaluation of listed - - 40 - - 40
investments
Earnings - - - - 118 118
Share options exercised 7 - - - - 7
Allocation to minority - (24) - - 14 (10)
shareholders
Mark to market of
currency derivative
contracts - - - 24 - 24
Other movements - - - 2 (2) -
Balance at 31 December 75 (34) 181 37 2 531 2 790
2002
Half-year ended
31 December 2001
Balance at 30 June 2001 62 6 638 35 3 267 4 008
Earnings - - - - (1 125) (1 125)
Currency translation - (24) - - - (24)
reserve
Revaluation and - - (570) - - (570)
disposal of listed
investments
Share options exercised 3 - - - - 3
Transfer to reserves - - 3 (3) - -
Balance at 31 December 65 (18) 71 32 2 142 2 292
2001
Year ended 30 June 2002
Balance at 30 June 2001 62 6 638 35 3 267 4 008
Earnings - - - - (866) (866)
Revaluation of listed - - 65 - - 65
investments
Disposal of listed - - (562) - - (562)
investments
Foreign entity - (48) - - - (48)
translations
Unrealised loss on - - - (26) - (26)
currency derivative
contracts
Share options exercised 6 - - - - 6
Other - - - 2 - 2
Balance at 30 June 2002 68 (42) 141 11 2 401 2 579
Notes to the financial statements for the half-year ended 31 December 2002
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The financial information for the half-year ended 31 December 2002 has been
prepared adopting the same accounting policies used in the most recent annual
financial statements which are in accordance with South African Statements of
Generally Accepted Accounting Practice and International Accounting Standards.
These condensed financial statements are prepared in accordance with AC 127 -
interim reporting, and are prepared on the historical cost basis as adjusted
for financial instruments and investment properties. These are accounted for on
the fair value or amortised cost basis.
Unaudited Audited
Half-year ended Year ended
31 December 30 June
2002 2001 2002
Rm Rm Rm
2. INVESTMENTS
Listed
Original cost 31 31 31
Revaluation surplus 178 68 138
Closing carrying amount 209 99 169
Unlisted - book value 6 5 7
Total carrying amount of investments 215 104 176
3. BORROWINGS
Long-term borrowings are made up as follows:
- Anglovaal Mining Limited 454 - -
- Assmang Limited - 4 1
- Avgold Limited 502 657 548
- Chambishi Metals plc 411 812 632
- Two Rivers Platinum (Proprietary) Limited - 5 -
1 367 1 478 1 181
Overdrafts and short-term borrowings are made
up as follows:
- Anglovaal Mining Limited 301 712 595
- Assmang Limited 656 424 577
- Anglovaal Air (Proprietary) Limited - 12 -
- Avgold Limited 120 3 126
- Chambishi Metals plc 1 302 1 405 1 515
Total Borrowings 2 669 2 883 2 696
Borrowings are reflected net of amounts utilised by companies from Group cash
resources.
No interest was capitalised for the half-year ended 31 December 2002 (2001: R53
million).
No interest was capitalised for the year ended 30 June 2002 (2001: R94
million).
Unaudited Audited
Half-year ended Year ended
31 December 30 June
2002 2001 2002
Rm Rm Rm
4. EXCEPTIONAL ITEMS
Surplus on disposal of Iscor Limited - 343 343
investments
Surplus on disposal of other investments 13 123 197
Exchange gain - Chambishi Metals plc - 400 400
Impairment of assets - (2 019) (2 019)
Provision for guarantees - (4) (5)
Exceptional items as per income statement 13 (1 157) (1 084)
Taxation - (55) (52)
Minority interest - 56 66
Net exceptional items 13 (1 156) (1 070)
5. HEADLINE EARNINGS
Earnings per income statement 118 (1 125) (866)
Impairment of assets - 1 619 1 619
Provisions for guarantees - 4 5
Surplus on disposal of investments (13) (466) (540)
105 32 218
Taxation - 55 52
Minority interest - (56) (66)
Headline earnings as per income statement 105 31 204
6. COMMITMENTS AND CONTINGENT LIABILITIES
Commitments in respect of capital expenditure:
Approved by directors
- contracted for 511 523 229
- not contracted for 371 512 588
Total commitments 882 1 035 817
Contingent liabilities
- Back-to-back guarantees 180 180 180
Total commitments and contingent liabilities 1 062 1 215 997
The Company has a contingent liability for tax relating to the Anglovaal
Limited loan stock redemption premium that the South African Revenue Service
disallowed in 1998. The potential liability for tax is R107 million at a tax
rate of 30 per cent plus interest. The matter is currently under appeal. A
back-to-back guarantee to Assore Limited (Assore) is in respect of guarantees
issued to bankers by Assore to secure a short-term export finance agreement
facility of R180 million (2001: R180 million). Short-term export finance loans
negotiated in terms of the above facility in the ordinary course of business at
31 December 2002 were R9 million (2001: R105 million)
Anglovaal Mining Limited has provided an irrevocable and unconditional
guarantee to Copperbelt Energy Corporation plc (CEC) and The Development Bank
of Southern Africa Limited (DBSA) for the due and punctual payment by Chambishi
Metals plc (Chambishi) of the capital charge component of the power supply
assets installed and owned by CEC for which financing was obtained by CEC from
DBSA. The total outstanding capital charge obligation at 31 December 2002
amounted to US$10,8 million (2001: US$11,5 million) and will reduce over 10
years ending June 2012 as capital charge payments are made by Chambishi.
A contingent liability exists, arising from an agreement with LTA Process
Engineering whereunder Avgold Limited is liable for the erection costs of a
tailing dam, should a dump reclamation project at the latter's ETC mining
complex be cancelled.
Corporate
Precious Cobalt/ Ferrous and
metals copper metals Nickel other Total
Rm Rm Rm Rm Rm Rm
7. SEGMENTAL
INFORMATION
Primary segmental
information
Half-year ended
31 December 2002
Revenue
External revenue 502 287 1 351 200 - 2 340
Cost of sales (439) (291) (993) (105) - (1 828)
Other operating 53 31 13 6 131 234
income
Other operating (11) (70) (112) (23) (138) (354)
expenses
Reallocated corporate - 1 20 1 (22) -
expenditure
Segment result 105 (42) 279 79 (29) 392
Income from 6 - 1 1 39 47
investments
Finance cost (29) (29) (42) - (13) (113)
Exceptional items - - - - 13 13
Taxation - - (80) (23) (25) (128)
Minority interest (35) 10 (68) - - (93)
Contribution to 47 (61) 90 57 (15) 118
earnings
Other information 3 028 1 150 3 318 266 901 8 663
Consolidated total
operating assets
Intangibles and 141 - 179 - 7 327
mineral rights
Consolidated total 3 169 1 150 3 497 266 908 8 990
assets
Consolidated total 823 885 1 258 68 1 033 4 067
liabilities
Capital expenditure 74 25 140 17 1 257
Depreciation 92 20 68 8 2 190
Half-year ended 31
December 2001
Revenue
External revenue 128 232 1 162 141 1 663
Cost of sales (109) (233) (850) (79) - (1 271)
Other operating - - 26 28 99 153
income
Other operating (7) (52) (106) (10) (147) (322)
expenses
Reallocated corporate - (10) 23 3 (16) -
expenditure
Segment result 12 (63) 255 83 (64) 223
Income from - - 1 1 25 27
investments
Finance cost - (19) (43) - (12) (74)
Exceptional items
- Chambishi Metals - (1 619) - - - (1 619)
plc
- Other - - - - 462 462
Taxation - 1 (68) (27) (40) (134)
Minority interest (6) 56 (60) - - (10)
Contribution to 6 (1 644) 85 57 371 (1 125)
earnings
Contribution to 6 (82) 85 57 (35) 31
headline earnings
Other information
Consolidated total 2 992 1 226 2 652 243 890 8 003
operating assets
Depreciation
Intangibles and 141 - 184 - 4 329
mineral rights
Consolidated total 937 1 236 1 000 68 945 4 186
liabilities
Capital expenditure 369 274 186 14 - 843
Depreciation 14 34 51 7 2 108
US$ REPORTING
For the benefit of international investors, the group's balance sheet, income
statement, the cash flow statement and statement of changes in equity,
presented in South African rand and set out on pages 7 to 10, have been
translated into United States dollars and are presented on pages 15 to 18. The
balance sheet is translated at the rate of exchange ruling at at the close of
business on the last day of the periods and the income statement and cash flow
statement are translated at the average exchange rates for the periods
reported. These schedules do not form part of the financial statements.
Half-year ended Year ended
31 December 30 June
Exchange rates used: 2002 2001 2002
R/US$ R/US$ R/US$
Balance sheets R8,65 R11,50 R10,25
Income and cash flow statements R10,10 R9,29 R10,15
US$ GROUP BALANCE SHEET US$m US$m US$m
ASSETS
Non-current assets
Tangible assets 651 480 555
Intangible assets - - 1
Deferred tax assets 4 3 4
Environmental rehabilitation trust funds 8 5 6
Investments 25 9 17
688 497 583
Current assets
Inventories 133 75 95
Trade and other receivables 114 110 103
Deposits and cash 105 41 76
352 226 274
Total assets 1 040 723 857
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 1 1 1
Share premium 8 5 6
Non-distributable reserves 21 7 10
Distributable reserves 293 186 235
Shareholders' interest in capital and reserves 323 199 252
Minority interest 247 161 196
Total shareholders' interest 579 360 448
Non-current liabilities
Long-term borrowings - interest bearing 158 129 115
Deferred tax liabilities 61 32 48
Long-term provisions 25 18 21
244 179 184
Current liabilities
Trade and other payables 60 51 62
Provisions 7 5 6
Taxation 8 6 4
Derivative instruments - - 5
Overdrafts and short-term borrowings 151 122 148
226 184 225
Total equity and liabilities 1 040 723 857
US$ GROUP INCOME STATEMENT
Half-year ended Year ended
31 December 30 June
2002 2001 2002
US$m US$m US$m
Revenue 232 179 399
Cost of sales 181 137 294
Gross profit 51 42 105
Other operating income 23 16 21
Other operating expenses 35 35 47
Profit from operationgs 39 23 79
Interest received 5 3 5
Finance costs 11 8 16
Profit before taxation and exceptional items 33 18 68
Exceptional items 1 (125) (107)
Profit/(loss) before taxation 34 (107) (39)
Taxation 13 14 31
Profit/(loss) after taxation 21 (121) (70)
Minority interest 9 1 16
Earnings 12 (122) (86)
Headline earnings 11 4 20
US$
Basic earings per share (cents) 11 (110) (77)
Headline earnings per share (cents) 10 4 18
Fully diluted earnings per share (cents) 11 (109) (76)
Fully diluted headline earnings per share 10 4 18
(cents)
Number of shares in issue at end 112 225 111 159 111 444
of period (thousands)
Weighted average number of shares 111 783 110 661 110 977
in issue (thousands)
Weighted average number of shares 111 783 110 661 110 977
used in calculating fully diluted
earnings per share (thousands)
US$ GROUP CASH FLOW STATEMENT
Half-year ended Year ended
31 December 30 June
2002 2001 2002
US$m US$m US$m
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers 238 178 377
Cash paid to suppliers and employees 217 160 318
Cash generated from operations 21 18 59
Translation adjustment 16 (59) (11)
Interest received 5 3 5
Dividends paid to minorities (1) (1) (2)
Taxation paid (8) (12) (19)
Net cash inflow/(outflow) from operating 22 (59) 16
activities
CASH FLOW FROM INVESTING ACTIVITIES
Additions to fixed assets to maintain (20) (16) (12)
operations
Additions to fixed assets to expand operations (6) (64) (108)
Proceeds on disposal of investments 1 117 100
Proceeds on dilution of interest in - - 14
investments
in subsidiaries
Net cash outflow from investing activities (25) 37 (6)
CASH FLOW FROM FINANCING ACTIVITIES
Funding received from shareholders 1 - 1
Funding received from minority shareholders - 27 26
Long-term borrowings raised 34 34 31
Long-term borrowings repaid (6) - (15)
Increase/(decrease) in short-term borrowings 3 (52) (31)
Net cash inflow from financing activities 32 9 12
Net increase/(decrease) in cash and cash 29 (13) 22
equivalents
Cash and cash equivalents at beginning of 76 54 54
period
Cash and cash equivalents at end of period 105 41 76
US$ Statement of changes in equity
Share Currency
capital trans- Reva-
and lation luation Retained
premium reserve surplus Other profit Total
Rm Rm Rm Rm Rm Rm
Half-year ended
31 December 2002
Balance at 30 June 7 (4) 14 - 235 252
2002
Currency translation 1 6 2 - 44 53
reserve
Revaluation of listed - - 5 - - 5
investments
Earnings - - - - 12 12
Share options 1 - - - - 1
exercised
Allocated from - (3) - 1 2 -
minority shareholders
Balance at 31 9 (1) 21 1 293 323
December 2002
Half-year ended 31
December 2001
Balance at 30 June 8 1 80 3 405 497
2001
Foreign currency (2) - (25) - (97) (124)
translation reserve
Earnings - - - - (122) (122)
Revaluation and - - (52) - - (52)
disposal of listed
investments
Balance at 31 6 1 3 3 186 199
December 2001
Year ended 30 June
2002
Balance at 30 June 8 1 80 3 405 497
2001
Currency translation (1) - (18) - (85) (104)
reserve
Earnings - - - - (85) (85)
Revaluation of listed - - 6 - - 6
investments
Disposal of listed - - (54) - - (54)
investments
Unrealised loss on
currency derivative
contracts - - - (3) - (5)
Other - (5) - - - (5)
Balance at 30 June 7 (4) 14 - 235 252
2002
Directors:
Executive:
RP Menell (Chairman)
DN Murray (Chief executive officer)
Non-executive:
DD Barber
PM Baum
BE Davison
B Frank
DE Jowell
KW Maxwell
JR McAlpine
BM Menell
Dr MZ Nkosi
WA Nairn (Alternated to BE Davison)
Group company secretary:
RH Phillips
Share codes:
JSE Securities Exchange
South Afirca: AIN ISIN000017141
London Stock Exchange: AGM
Registered office:
Anglovaal Mining Limited
56 Main Street
Johannesburg 2001
South Africa
Transfer secretaries:
Computershare Investor Services Limited
70 Marshall Street
Johannesburg, 2001
South Africa
Transfer secretaries' postal address:
PO Box 1053
Johannesburg, 2000
South Afirca
Telephone (+27 11) 370-5000
Telefax (+27 11) 370-5271/2
London secretaries:
St James's Corporate Services Limited
6 St James's Place
London SW1A1NP
United Kingdom
Telephone (020) 7499-3916
Telefax (020) 7491-1989
United Kingdom share registrars:
Capita Registrars
Balfour House
390/398 High Road
llford, Essex IGI 1NQ
United Kingdom
For further information, please contact:
Ebrahim Takolia on
(+27 11) 634-0333 or
e-mail ebrahimt@avmin.co.za
END