AngloGold`s results for the fourth quarter of 2002 reflect a sound operating performance. As
predicted, production and profit levels at Morila declined compared to the third quarter, though
they remain impressive. Compared to the third quarter, the South African rand strengthened
by almost 8% against the US dollar. These factors combined to reduce headline earnings by
11% to $90 million. Gold production decreased by only 2% from the very high level of the
September quarter and, while dollar-denominated unit cash costs increased by 9% with the
strengthened rand, the South African operations kept local currency costs steady.
Production levels at both Morila and Geita continue to be affected by substantial (though
anticipated) decreases in grade this quarter. We expect grades and production to return to a
steady state in the next two quarters. Similarly, at Sunrise Dam in Australia, as mining moved
through lower grade areas of the pit during the fourth quarter, production was below the high
levels of the September quarter, but still above target. Drilling results at the operation indicate
sound performances for the future. Production at the Cripple Creek & Victor operation in
Colorado improved by 33% over the quarter as our efforts to overcome the recovery problems
in the leach pad began to bear fruit.
AngloGold's results for the year 2002 are impressive, reflecting the longer-term benefits of the
company's growth and risk diversification strategy. Although gold production declined with the
sale of the Free State mines in South Africa, cash costs were down year-on-year by 10% to
$161 per ounce and headline earnings increased by 29% on the 2001 performance, to
Looking ahead, the increase in reserves has resulted in longer mine lives rather than increased
production and we anticipate gold production for 2003 to be unchanged at around 6 million
ounces, increasing to 6.5 million ounces in 2006. Part of the increased reserve is due to the
rise in the gold price, which has the effect of making lower-grade areas profitable. This leads to
a lower average grade overall and, consequently, increased unit costs which are also affected
by the stronger rand. Total cash costs for 2003 are estimated to be $190 per ounce and total
production costs $229 per ounce, with capital expenditure forecast at $330 million.
There are two other noteworthy developments. First, we publish our annual reserve and
resource statement today and report a 22% increase in the company's ore reserve, to
72.3 million ounces. Included in this is a 30% increase in the South African ore reserve to
The company has reduced its hedging contracts by some 133 tonnes during the past year. In
the light of the continued strength of the gold price and of the steady improvement in
AngloGold's operating performance over the past two years, and consequently the reduced
need for the company to manage revenue through forward pricing, the Board has encouraged
the continuing management and restructuring of the hedge book.
We also announce today that AngloGold proposes to pay a final dividend for the year of R6.75
per share, unchanged in rand terms from the interim dividend, but 22% higher in dollar terms
at 78 US cents per share. This gives a total dividend for the year of R13.50 (R9.00 in 2001) and
a yield of 4.4%, calculated on a share price of R305 per share. This level of dividend is
consistent with AngloGold's established practice of paying out a high proportion of its earnings
to shareholders, once we have provided for our organic growth objectives.
OVERVIEW OF THE QUARTER AND THE YEAR
For the December quarter, AngloGold again
produced a solid set of results in the face of
predicted declining mining grades, specifically at
Morila, Geita and Sunrise Dam, and a stronger
South African currency, resulting in higher dollar
costs. Of the $19m reduction in operating profit,
$29m was on account of the lower grade and $14m
due to the strengthened rand. More than half of this
was offset by a higher received gold price ($13m)
and increased volumes ($10m). Costs were well-
contained on the South African operations at
R55,229/kg and on a cost per square metre basis
were 2% down at R2,664/m2. Overall, total cash
costs increased by 9% to $173/oz. Headline
earnings were 11% lower at $90m or 41 US cents
Gold production for the quarter decreased by 2% to
1.55Moz, as a result of the anticipated return to
lower grades at Morila in southern Mali, and at
Sunrise Dam in Australia, while production at Geita
in Tanzania was down, as expected, owing to the
second pit cutback. In South Africa, the effect of the
lower grade at Great Noligwa was to a large extent
offset by the excellent performance of the other
operations which were able to increase their volume
AngloGold had a very good year in 2002. Total cash
costs decreased by 10% to $161/oz, operating profit
increased by 21% to $638m and headline earnings
went up by 29% to $368m. Gold production dropped
by some 15% to 5.94Moz as a result of the sale of
AngloGold's assets in the Free State in South Africa.
Returns on capital and equity for the year were 15%
AngloGold has declared a final dividend of R6.75 per
share for 2002 which, in dollar terms, is equal to
78 US cents per ADS, assuming an exchange rate of
R8.6/$1. This gives a total dividend for the year of
R13.50, representing a yield of 4.4% calculated on a
share price of R305 per share (or $35 per ADS), the
closing price on the JSE Securities Exchange on
OPERATING RESULTS FOR THE QUARTER
At Great Noligwa, a 2% increase in volume mined
was offset by a 3% drop in grade to 10.4g/t. The
lower gold production, at 6,327kg (204,000oz), and
decreased income from by-products contributed to a
4% increase in total cash costs to R47,114/kg
($152/oz). Operating profit decreased by 11% to
R288m ($30m). Looking ahead to 2003, the grade is
expected to improve to around 11.5g/t, with
production exceeding the 27t (880,000oz) recorded
for 2002. After the tragic seismic-related fatal
accidents of the second quarter, the mine's safety
record substantially improved over the remainder of
the year to the extent that it achieved one million
fatality-free shifts in November.
At Kopanang, the increased volumes mined in
December, together with the higher grade
encountered, resulted in a 7% improvement in gold
production to 4,292kg (138,000oz). Total cash costs
decreased by 3% to R57,312/kg ($185/oz) while
operating profit fell by 14% to R120m ($13m),
mainly as a result of the lower rand gold price.
At Tau Lekoa, the year finished strongly with a 12%
improvement in gold production to 2,683kg
(86,000oz). Total cash costs were 7% lower at
R62,360/kg ($202/oz) while operating profit
increased by 7% to R60m ($7m).
Mponeng performed well, despite being unable to
match the exceptional results of the September
quarter. Volume mined increased by 2%, although
gold production declined by 7% to 3,936kg
(127,000oz) as a result of lower grade. Total cash
costs were held steady at R57,216/kg ($186/oz).
Operating profit at R66m ($7m) was down by 39%
due to the reduced gold production and lower rand
An 11% decrease in volume mined at Savuka,
together with the drop in grade in the Carbon Leader
section, contributed to the 16% decline in gold
production to 1,500kg (48,000oz). Total cash costs
increased by 11% to R98,863/kg ($320/oz). The
operating loss of R16m ($2m) was directly
attributable to the reduced mining rates in the
interest of safety. Eleven employees lost their lives
in accidents during the year. The recent extension
FINANCIAL AND OPERATING REVIEW
of the mine's life has allowed for the mine to be
redesigned in such a way as to better manage
seismicity, which will positively impact on workplace
safety, and consequently, production.
TauTona performed well, with mining volume
increasing by 9% and gold production steady at
5,227kg (168,000oz). Total cash costs decreased
marginally to R43,842/kg ($142/oz) while operating
profit fell by 6% to R254m ($27m), partly because of
the lower rand price received. The mine's safety
practices continue to yield positive results. There
has not been a rock-related fatal accident since
September 2001 and in January 2003, the mine
achieved one million fatality-free shifts for the
second time in its 40-year history.
At Ergo, good operational performance contributed
to the 6% increase in tonnes treated and the
consequent increase in gold production to 2,054kg
(66,000oz). Total cash costs fell by 4% to
R62,856/kg ($204/oz), with operating profit declining
by 40% to R24m ($3m), following a lower price
received and a decision to accelerate the provision
for environmental rehabilitation.
Compared with 2001, the annual Lost Time Injury
Frequency Rate (LTIFR) for the South African region
improved by 14% to 9.99 -- the best rate ever
recorded for this region.
At Geita (50% attributable), gold production
decreased by 26% to 61,000oz, due to an
anticipated 24% decline in recovered grade to
3.03g/t. As a consequence of the lower production,
total cash costs increased by 29% to $216/oz.
Grade is expected to remain at this level for the first
quarter of 2003 before returning to an average of
approximately 4g/t for the rest of the year. The mine
had three fatal accidents during the year, all
transport related. This has led management to focus
particular attention on this aspect of mine safety and
to align contractors' safety standard with those of the
It was reported at the end of the September quarter
that the exceptionally high grades experienced
during that quarter at Morila (40% attributable) were
unlikely to be sustained beyond October 2002. As
was anticipated, recovered grade declined by 38% to
15.11g/t and production for the fourth quarter fell by
24% to 130,000oz. The decrease in production,
combined with higher costs due to a 22% increase in
tonnage throughput, resulted in total cash costs
rising by 59% to what remains a very creditable
$78/oz. Operating profit decreased by 19% to $25m,
largely as a result of the lower grades and
decreased production. The reduced grades will
probably continue to have an impact on the mine's
short-term performance, with grade likely to remain
lower than in the fourth quarter.
Navachab had another good quarter, with
production above target but 9% down on the
previous quarter at 21,000oz, mainly because of a
4% reduction in tonnage treated. Total cash costs
increased by 19% to $168/oz, as a result of
decreased production and the strengthening of the
Namibian dollar against the US dollar. Operating
profit declined by 25% to $3m.
Production at Sadiola (38% attributable) increased
by 20% to 48,000oz, largely as a result of the
treatment of a greater proportion of higher-grade
sulphide material over the lower-grade oxide
material. This change led to an increase in the
quantity of reagents used and, coupled with
increased mining volume, resulted in an 19% rise in
total cash costs to $204/oz. Operating profit was in
line with that of the previous quarter at $2m.
At Yatela (40% attributable), gold production
decreased by 3% to 29,000oz. Tonnes treated
increased by 20% quarter-on-quarter, but this was
largely offset by a larger-than-planned reduction in
recovered grade to 2.83g/t. Total cash costs
increased by 16% to $202/oz as a result of the
combination of the higher mining volume and lower
Production at Cripple Creek & Victor (67%
ownership with 100% interest in production) was
33% higher quarter-on-quarter at 76,000oz due to
improved solution grades and larger leach solution
volumes processed. Total cash costs were 3% lower
than those of the third quarter at $178/oz. During
the quarter, both crusher tonnage and leach solution
volumes reached design capacity levels. Operating
profit improved to $5m. On the safety front, the mine
completed its expansion programme without injury.
Jerritt Canyon's (70% attributable) production was
11% higher for the fourth quarter at 63,000oz. The
increase in production was due to additional tons
processed and improved recoveries. Total cash
costs at $221/oz were 18% lower, owing to lower
dewatering costs and decreased underground
mining costs. Operating profit increased to $1m
from a deficit of $2m in the third quarter, as a result
of the higher gold production.
At Cerro Vanguardia (92.5% attributable), gold
production was 29% higher at 66,000oz. The
production increase was largely owing to the greater
availability of the crusher plant and an enhanced
ore-mix treated, resulting from better management of
the higher clay content in the ore. Total cash costs
were 5% higher at $108/oz. Operating profit rose by
57% to $11m due to a 25% increase in the amount
of gold sold, the higher gold price received and lower
At Morro Velho, gold production was stable at
54,000oz. Total cash costs were 2% lower quarter-
on-quarter at $120/oz while operating profit
At Serra Grande (50% attributable) production
decreased by 8% to 22,000oz due to planned
reductions in both ore treated and recovered grade.
Total cash costs were 4% higher at $94/oz, while
operating profit was steady at $4m.
The South America region again had a good safety
performance this quarter, with its LTIFR below
AngloGold's Ontario Underground Metalliferous
Mines benchmark. Both the Serra Grande and
Cerro Vanguardia operations were audited by
NOSA. Serra Grande was awarded "5 star" rating
and Cerro Vanguardia maintained its "5 star" rating
and ISO14001 rating. Morro Velho is expected to be
audited by NOSA in February 2003.
Although mill throughputs at Sunrise Dam increased
slightly, scheduled mining moved to lower-grade
areas of the open pit, resulting in decreased grades
and a 14% decline in production to 90,000oz. With
the lower production, total cash costs increased by
10% to A$341/oz ($193/oz). Operating profit for the
quarter fell to A$7m ($4m), mainly because of the
impact of lower gold sales. AngloGold acquired an
adjacent mining lease from Placer Dome late in
2002. The lease covers the complete Sunrise pit
and its purchase will enable full optimisation of the
At Union Reefs, mining is now moving into its final
stages and has been directed towards the small,
dispersed resources that remain in the vicinity of the
plant. In addition, processing of low-grade stockpiles
has commenced. As a consequence, a fall in grade
resulted in slightly lower production (3%) of 28,000oz
and increased total cash costs (15%) of A$431/oz
($244/oz). Operating profit decreased to A$1m
($0.5m) from A$4m ($2m) in the previous quarter.
The mine recorded no lost time injuries during 2002.
At Sadiola in Mali, sulphide infill drilling continued.
Notable intersections at a 1g/t cut-off include 18m at
3.46g/t from 440m; 21m at 4.11g/t from 332m; 39m
at 2.99g/t from 430m; 43m at 7.95g/t from 436m;
15m at 4.09g/t from 365m; and 60m at 3.19g/t from
Satellite oxide exploration focused on the FE3 and
FE4 targets, some 7km south-east of the Sadiola pit.
Intersections include 34m at 2.67g/t from 46m; 48m
at 2.80g/t gold from 58m; and 46m at 2.99g/t from
At Yatela mineral resource modelling of the
Alamoutala deposit situated 13km south-east of the
pit, has increased the Mineral Resource by
170,000oz (69,000oz attributable). Pending the
current feasibility study, mining of the deposit is
scheduled to commence in July 2003.
Six diamond holes were completed in the Western
Fringe area of the Morila pit, and with the exception
of one of the holes, all intersected mineralisation
more than 200m west of the current ore envelope.
Results for five of the holes have been received,
yielding 52m at 2.06g/t from 243m; 63m at 2.11g/t
from 178m; 8m at 3.57g/t from 23m; 29m at 2.52g/t
from 275m; 15m at 1.08g/t from 47m; and 13m at
20.71g/t from 48m including 1m at 227.6g/t.
RAB (rotary airblast) drilling continued on three
greenfields prospects in southern Mali with assays
In Tanzania, infill drilling at Geita was completed at
the Star and Comet and Ridge 8 projects.
Significant intersections at Star and Comet include:
7m at 8.36g/t from 76m; 6m at 10.00g/t from 122m;
and 19m at 17.30g/t from 113m. Updating of the
mineral resource model generated an additional
2.48Mt at 2.97g/t for 240,000oz (120,000oz
Notable values at Ridge 8 include: 10m at 4.70g/t
from 191m; 21m at 3.60g/t from 67m; and 30m at
Drilling was completed in the area between Geita Hill
and Lone Cone. Results include: 19m at 4.70g/t
from 106m; 22m at 5.20g/t from 105m and 18m at
At Navachab in Namibia, drilling of the MC second
shoot north of the pit was completed. Intersections
include: 40m at 4.77g/t from 10m; 34m at 5.77g/t
from surface; 38m at 4.61g/t from 4m; and 28m at
4.65g/t from 6m. An extensive drilling programme is
planned during 2003 as part of the expansion
In North America extensive geophysical surveying
was completed at the Red Lake joint venture in
Canada during the quarter. Results are being
compiled from preliminary drilling for follow-up work
In Nevada, three Great Basin projects were drill-
tested with a further three targets to be drill-tested
Resource development drilling continued at both
Jerritt Canyon and Cripple Creek & Victor joint
ventures, in support of life of mine plans.
Mineralisation defined at Cripple Creek will require
further drilling in 2003.
In South America, high-grade gold intercepts in
both the oxide and sulphide mineralisation at
Corrego do Sitio in Brazil has extended
mineralisation in the open-pit zones. Best
intersections include 6.30m at 26.00g/t from 1m;
5.50m at 16.30g/t from 17m; 15.8m at 13.35g/t from
41m; 10.00m at 11.18g/t from 9m; and 4.15m at
32.68g/t from 91m. Ramp development to access
sulphide mineralisation at Corrego do Sitio is
progressing well. Drilling at the Lamego project has
extended mineralisation, which is considered to be
open along strike to the north-east.
At Cerro Vanguardia in Argentina, exploration
activities were focused on drilling extensions at the
Dany, Osvaldo Diez, Mangas and Jani veins.
In Peru three greenfields targets were drill-tested
with the La Rescatada project in southern Peru
warranting further drilling in 2003. Target generation
in Peru continues to provide numerous targets that
require follow up during 2003.
In Australia at Sunrise Dam, exploration during the
quarter concentrated on testing extensions of the
Dolly-Cosmo zone, yielding significant results from
Dolly including: 19m at 4.00g/t; 2m at 15.45g/t; and
24m at 5.58g/t. This drilling also intersected a new
lode to the east of Cosmo ("Hammerhead"), withresults including 11m at 36.58g/t and 8m at 5.30g/t.
A first-pass drilling programme testing extensions of
the Sunrise Shear zone intersected the structure up
to 300m north-west of the current underground
resource, with results including 4m at 8.49g/t and 7m
Step-out drilling continued west of Coyote, and
limited drilling was undertaken within the main
Coyote area for resource definition and confirmation
of geological interpretations. Best intercepts from
drilling within the main Coyote area included: 4m at
15.54g/t; 11m at 33.23g/t and 3m at 12.30g/t.
In South Africa, the Ventersdorp Contact Reef
(VCR) was intersected in two surface holes being
drilled to the west of the Tau Lekoa Mine. Assay
results are expected early in 2003. One surface
borehole is continuing to be drilled at Moab
extension to confirm predicted structure and grade.
The drilling has not yet reached its target.
All references to price received includes the realised non-hedge
derivative gains (losses).
All references to operating profits and headline earnings excludes
unrealised non-hedge derivative gains (losses).
Rounding of figures may result in computational discrepancies.
In the case of Joint Venture operations, all production and
financial results are attributable to AngloGold.
The price of gold finished the year strongly, touching a high of $354/oz in December.
The average spot price for the quarter of $323/oz is almost $10 higher than the price
for the previous quarter. Market volatility also increased with a price range of $45/oz
for the quarter. The US dollar moved in the other direction, downwards against other
currencies, including the rand. The local currency gained almost 20% against the
dollar during this quarter, finishing at an exchange rate of R8.55 to the dollar, off an
opening rate of R10.41. Both of these trends have been maintained into 2003.
The factors which drove the gold price during 2002 made a particularly strong impact
in the final quarter. These factors included US dollar weakness, international political
tension, equity market declines and a halt to the dismantling of producer hedging.
This last factor had the effect of both lowering gold producer selling in the spot
market, and introducing some buying in the market. During this past quarter, the
price was influenced most significantly by dollar weakness and escalating conflict
over Iraq. Over the past year, the spot price has responded almost perfectly to the
dollar's fall against the euro (see graph below), and this correlation was maintained in
the final quarter. The additional tension in the Middle East provided the lift to take
gold up further. All of the factors that have been positive for gold in 2002 remain
firmly in play, and there is good reason to expect higher gold prices in the year
Under the favourable price performance of
gold, the physical market continued to show
weakness throughout 2002. There has been a
decline in physical demand for gold in both
the jewellery and the investment sectors,
with exceptions in only a few countries.
Compounding this lower demand, scrap sales
and gold recycling have increased sharply in
the face of higher gold prices. The negative
impact of these factors in the physical market
has been mitigated to a degree by slightly
lower new mine production, and by the
reduction in supply occasioned by the run-
down in gold producer hedging referred to
above. As is the case in all periods of rising
gold prices and gold price volatility, the
physical market should revive once the price
returns to a stable trading range for a period of time. However, with further gold price
volatility expected in 2003, a resurgence of physical demand should not be expected
$/Euro rate and $ gold price indexed 2002
A critical factor in the strength of the gold market in 2002 has been the return of investor
and speculator interest in the metal. This interest has not translated particularly into
demand for physical gold, but can most certainly be seen in the derivative markets, and
particularly in the futures and options positions on the New York Comex and, from time
to time, on the Tokyo Comex. There is no doubt also a considerable over-the-counter
derivative trade in gold, although this is not easily measured. The importance of this gold
buying in the derivatives markets for the gold price can be seen from the graph below,
showing gold trading positions on New York Comex from the beginning of 2000, and the
US dollar spot price of gold. Buying in the derivatives markets is directly influenced by
the factors referred to above, and is directly responsible for moving the price of gold.
Compared with the previous
quarter, the net delta hedge
position reflects a reduction of
some 120,000oz, or 4t. This small
reduction was achieved in the face
of a sharply higher dollar gold
price which has the effect of
increasing the net delta of open
option positions in the hedge.
Notwithstanding this, the overall
cover in the book continues to
decrease. As an illustration,
without changes to the hedge
book during the fourth quarter of
2002, the hedge book of 324t net
short as reported to shareholders
at 30 September 2002 valued at
31 December 2002 would have risen to 344t. Likewise, the negative marked-to-market
value at 30 September of ($441m) would have risen, unmanaged, to ($674m). Instead,
the actual delta of 319.7t (10.3Moz) gives some measure of the underlying reduction and
restructuring in the overall book. Noting the continued strength of the gold price and of
the reduced need for the company to manage revenue through forward pricing, the
Board, at its meeting on 30 January 2003, encouraged the continuing management of
NY Comex: Futures and options Jan 2000 Jan 2003
As at 31 December 2002, the group had outstanding, the following forward-pricing commitments against future production. The
total net delta tonnage of the hedge on this date was 10.28Moz or 319.7t (at 30 September 2002: 10.40Moz or 323.6t).
The marked-to-market value of all hedge transactions making up the hedge positions was a negative R3.81bn (negative $446.6m)
as at 31 December 2002 (at 30 September 2002: negative R4.65bn negative $442.3m). These values were based on a gold
price of $345.50 per ounce, exchange rates of R/$8.53 and A$/$0.56 and the prevailing market interest rates and volatilities at the
As at 29 January 2003, the marked-to-market value of the hedge book was a negative $591.3m (negative R5.085bn) based on a
gold price of $363/oz and exchange rates of R/$8.6 and A$/$0.588 and the prevailing market interest rates and volatilities at the
These marked-to-market valuations are in no way predictive of the future value of the hedge position nor of future impact on the
revenue of the company. The mark-to market represents the current profit/loss value of the hedge book at market prices and rates
R98,532 R119,730 R108,426 R114,915
R100,140 R115,284 R131,944 R132,647 R173,119
HEDGE POSITION AT 31 DECEMBER 2002
Overall, ore reserves have increased by 22% from 59.4Moz to 72.3Moz and mineral
resources by 2% from 281.7Moz to 287.6Moz during the 12 months ended
31 December 2002. (These figures exclude the Free State assets which were
declared effectively sold on 1 January 2002)
Mineral resources were calculated at $400/oz, at an exchange rate of R10.5=$1
Ore reserves were calculated at $325/oz, at an exchange rate of R10.5=$1
The ore reserve depletion for 2002 (that is, the reduction in the ore reserves due to
mining) was 6.5Moz. Reserve additions excluding depletion were 19.6Moz (excluding
the Free State), a 33% increase on the 2001 stated reserve.
These ore reserves are relatively insensitive to changes in gold price and exchange rates
of up to 10%, positive or negative.
Some of the significant increases in ore reserves include:
Mponeng increase by 4.6Moz mainly due to the inclusion of the Mponeng CL and
Moab Khotsong increase by 4.3Moz due to the inclusion of the Phase 2 project
which aims to exploit the Vaal reef below 101 level
TauTona increase by 0.8Moz due to the inclusion of the CL below 120 level, the
area East of the Bank Dyke on 116 level and the VCR area "A"
Savuka and Tau Lekoa increase by 1.2Moz and 0.7Moz respectively owing to
changes in mine design leading to additional life at both operations
Geita increase by 0.8Moz due to the redesign of the Nyankanga, Geita Hill and
Lone Cone pits as well as the inclusion of the Chipaka, Area 3W and Roberts pits
Cerro Vanguardia increase of 1.1Moz mainly as a result of AngloGold's increase in
(The above figures are the year-on-year difference in reserve including the effect of depletion)
Reserves and Resources as at 31 December 2002
MINERAL RESOURCE AND ORE RESERVE COMPARISON 2001 vs 2002
Gold Content (Attributable)
* The Free State assets were declared sold as at 1 January 2002. Reserves of 9.0Moz
and resources of 65.1Moz for the Free State operations were included in the AngloGold
reserves and resources statement as at 31 December 2001.
Competent persons, designated in terms of the JORC and SAMREC codes and taking
corporate responsibility for the reporting of AngloGold's Mineral Resources are:
VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MAusIMM,
MF O'Brien, MSc (Engineering), BSc (Hons) (Geology), Pr.Sci.Nat., MAusIMM,
Designated competent persons taking corporate responsibility for the reporting of Ore
BW Guenther, BSc (Mining Engineering), MAusIMM, 22 years' experience
DL Worrall, ACSM, MAusIMM, 22 years' experience
J van Zyl Visser, BSc (Mineral Resource Management), PLATO, 16 years' experience
The competent persons are employed by AngloGold Limited and have consented to the
inclusion of the Mineral Resources and Ore Reserves information outlined above.
Supplementary information containing a detailed breakdown of the Mineral Resources and Ore
Reserves, together with plans of the South African operations, will be provided in the annual report
section of the AngloGold website (www.anglogold.com) and will be available in March 2003.
Following the release of the annual report in March, the supplementary information will also be
available from the AngloGold offices at the addresses given on the back cover of this report.
Rehabilitation and other non-cash costs
Amortisation of mining assets
Corporate administration and other expenses
Other net (expense) income
Abnormal item - settlement of claim
Profit before exceptional items
Impairment of mining assets
Loss on disposal of assets
Impairment reversal of investments
Termination of retirement benefit plans
Profit on ordinary activities before taxation
Deferred tax on unrealised non-hedge derivatives
Taxation on abnormal item
Taxation on exceptional items
Profit on ordinary activities after taxation
The net profit has been adjusted by the following
to arrive at headline earnings:
Impairment of mining assets
Loss on disposal of assets
Impairment reversal of investments
Termination of retirement benefit plans
Taxation on exceptional items
Unrealised non-hedge derivatives
Deferred tax on unrealised non-hedge derivatives
Earnings per ordinary share - cents
- Headline before unrealised non-hedge derivatives
The results have been reviewed by the auditors and are prepared in accordance with International Accounting Standards.
* Operating profit excluding unrealised non-hedge derivatives
Headline earnings before unrealised non-hedge derivatives
Rehabilitation and other non-cash costs
Amortisation of mining assets
Corporate administration and other expenses
Other net (expense) income
Abnormal item - settlement of claim
Profit before exceptional items
Impairment of mining assets
Loss on disposal of assets
Impairment reversal of investments
Termination of retirement benefit plans
Profit on ordinary activities before taxation
Deferred tax on unrealised non-hedge derivatives
Taxation on abnormal item
Taxation on exceptional items
Profit on ordinary activities after taxation
The net profit has been adjusted by the following
to arrive at headline earnings:
Impairment of mining assets
Loss on disposal of assets
Impairment reversal of investments
Termination of retirement benefit plans
Taxation on exceptional items
Unrealised non-hedge derivatives
Deferred tax on unrealised non-hedge derivatives
Earnings per ordinary share - cents
- Headline before unrealised non-hedge derivatives
The results have been reviewed by the auditors and are prepared in accordance with International Accounting Standards.
* Operating profit excluding unrealised non-hedge derivatives
Headline earnings before unrealised non-hedge derivatives
GROUP CASH FLOW STATEMENT
Cash flows from operating activities
Cash generated from operations
Environmental contributions and
Dividends received from associates
Mining and normal taxation paid
Net cash inflow from operating
Cash flows from investing activities
Proceeds from disposal of mining
Net proceeds from disposal of mines
Proceeds from sale of investments
Acquisition of subsidiary
Repayment of loans advanced
Net cash outflow from investing
Cash flows from financing activities
Proceeds from issue of share capital
Net cash outflow from financing
Net increase in cash and cash
Opening cash and cash equivalents
Closing cash and cash equivalents
The results have been reviewed by the auditors and are prepared in accordance with International Accounting Standards.
NOTES TO THE CASH FLOW STATEMENT
Cash generated from operations
Profit on ordinary activities before taxation
Amortisation of mining assets
Other net income (expense)
Movement on non-hedge derivatives
Impairment of mining assets
Impairment reversal of investments
Loss on disposal of assets
Termination of retirement benefit plans
Movement in working capital
Movement in working capital:
(Increase) decrease in trade and other receivables
(Increase) decrease in inventories
Increase (decrease) in trade and other payables
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Balance at 31 December 2001
Movements on other comprehensive income
Transfer from non-distributable reserves
Balance at 31 December 2002
Balance at 31 December 2001
Movements on other comprehensive income
Transfer from non-distributable reserves
Balance at 31 December 2002
The results have been reviewed by the auditors and are prepared in accordance with International Accounting Standards.
