FOR THE QUARTER AND NINE MONTHS
ENDED 30 SEPTEMBER 2000
A stronger production quarter,
but increased costs depress
earnings
Group results for the quarter
• Steady performance for the group's operations.
• Gold production increases by 2% to 1.83 million
ounces (56,924 kilograms).• Wage and diesel increases lead to a 3% increase in
total cash costs to R46,914 per kilogram.• Operating profit is marginally lower.
• Headline earnings are down 7% to 399 cents per
share, due largely to increased corporate activities.Regional operating results for the quarter
• Good performances at Great Noligwa, Tau Lekoa,
Tshepong and Savuka and production
improvements at most others.
• Unresolved problems at Elandsrand and
Bambanani.• Gold production is up 1% to 43,000 kilograms
despite the closure of Matjhabeng's Kudu shaft and
resultant loss of 250 kilograms of gold and other
operating problems. • Volume and value efficiencies are up 5% and 3%
respectively. • Total cash costs are contained to a 2.5% increase,
reflecting the 9% annual wage adjustment and
increases in mining activity.• Both Sadiola and Navachab report improved
production and creditable cost performances,
despite diesel price increases.
• At Yatela the ceremonial first concrete is poured by
the Mali Minister of Mines on 12 October.
At Morila the first commissioning gold is poured on
18 October.
• Ashanti's bankers give approval to the Geita deal
and finalisation of the transaction should take place
at the end of November.
• Cost increases for the region are contained to 2%
despite diesel increase and grade problems at Jerritt
Canyon.
• Decreased grade at Jerritt Canyon leads to a 9%
reduction in gold production, to be offset in the last
quarter as the Cortez ore purchase arrangement
comes on stream.
• At Cripple Creek & Victor, production is up by 3%
and costs down by 6%, and Phase 3 of the leach
pad expansion is completed during the quarter.
• Another good quarter overall.
• Despite bad weather at Cerro Vanguardia, gold
production from the region's operations increases by
2%.
• Total cash costs are pushed higher by wage
increases at Morro Velho and weather-induced
production problems at Cerro Vanguardia.
• Gold production at Sunrise Dam increases by 31%
and total cash costs drop by 31%.
• Production at Boddington is reduced because of
heavy rains early in the quarter.
• Production improves at both Pine Creek and
• Technical appraisal of the Boddington expansion
project is under way, with completion likely at year-
end. AngloGold is positive about the outcome.
deferred taxation rate change
ANGLOGOLD LIMITED
Registration No. 05/17354/06
Incorporated in the Republic of South Africa
Certain forward-looking statements
Certain statements contained in this document, including without
limitation, those concerning the economic outlook for the gold mining
industry, expectations regarding gold prices and production, the
completion and commencement of commercial operations of certain of
AngloGold's exploration and production projects, and its liquidity and
capital resources and expenditure, contain certain forward-looking
statements regarding AngloGold's operations, economic performance and
financial condition. Although AngloGold believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been
correct. Accordingly, results could differ materially from those set out in
the forward-looking statements as a result of, among other factors,
changes in economic and market conditions, success of business and
operating initiatives, changes in the regulatory environment and other
government actions, fluctuations in gold prices and exchange rates, and
business and operational risk management.
Throughout this document, $ refers to US dollars, unless otherwise
stated.
Published by AngloGold's
Corporate Communications Department
PO Box 62117
Marshalltown
2107
South Africa
Telephone: +27 11 637 6147
Fax: +27 11 637 6399/6400
E-mail: investors@anglogold.com
The Gold Market
The spot gold price has stayed in the low $270s for most
of the last quarter. However, supply and demand
fundamentals are more positive for the price than they
have been for a long time.
From the supply point of view, cutbacks continue to
be made to exploration spending in gold mining. This
strongly suggests that, while current levels of new mine
production might be maintained, it is more probable that
they will decline. Central bank sales, although higher
this year than in recent years, are largely regulated by
last year's Washington Agreement. These official sales
seem now to be discounted in this market, with neither
the continuing British auctions nor the more
conventional Swiss sales having a major price effect.
In contrast, jewellery demand has continued, by
and large, to be strong, with off-take in most Asian
markets now back to levels prior to the 1998 financial
crisis in that part of the world.
Equally, broad market circumstances are more
favourable for gold. United States equities markets
appear to have entered a bear phase with the `old'
economy enjoying investor support and the oil price
rising by more than 40% over the past six months. While
AngloGold has vigorously promoted gold jewellery and,
more recently, the development of new industrial
applications for gold, it will also continue to support and
advocate the metal's traditional monetary role,
particularly during times of political and economic
uncertainty.
Although it is logical to look to price improvement
in the medium term it is also clearly prudent to seek
profitability at current price levels in the short term.
AngloGold is therefore planning its business on current
prices.
Operating and Financial Performance
Overall, AngloGold's operations in all regions combined
to give a steady performance this quarter. The
operations in South and West Africa, in South America
and Australia all increased gold production. We are
particularly pleased to report strong performances at
Sunrise Dam in Western Australia, Sadiola in Mali and
Navachab in Namibia. Production from the North
American operations decreased but they continue to
forecast meeting gold production targets for the year,
with a significant increase in the ounces produced in the
fourth quarter. Costs, however, also increased,
particularly in the South African operations. This,
together with some inventory movements, produced
operating profits slightly down (1%) for the quarter.
Increased spending on exploration and on corporate
activities, together with lower income from associates,
saw headline earnings decline by 7%. In the context of
the 9% wage increase which became effective this
quarter in the South African operations, and which
affects some 54% of working costs, this represents a
respectable performance by the region as a whole.
However, further steps are needed at Bambanani,
Matjhabeng, Joel, Elandsrand and Deelkraal.
Headline earnings for the nine mo nths ended
September 2000 were down 37% to 1,257 cents per
share. This was largely due to the deferred taxation rate
change during the previous period. However, headline
earnings before the deferred taxation rate change were
18% lower.
The safety perfo rmance of the South African mines
is very encouraging, with the lost time injury rate,
expressed per one million man hours worked, at 9.6
being the lowest quarterly rate ever recorded by these
mines. Two mines, Moab Khotsong and Great Noligwa,
achieved the international best practice benchmark used
by AngloGold, which is the lost time accident rate in
underground mines in the Ontario province of Canada.
Currently, this is 6.5 lost time injuries per million man
hours worked.
Prospects
In the light of the weak gold price the company faces a
difficult fourth quarter, when, in South Africa, the
combination of the Christmas calendar and the
additional public holiday announced for this year's
municipal elections, reduce the quarter's working shifts.
The cost to our business goes beyond the shifts directly
lost, as a mid-week holiday often produces lower
production on either side of the break.
Many democracies around the world hold national
and local government elections without lost production.
Mining companies in South Africa have, since 1994,
shown their ability to work with the Independent
Electoral Commission to ensure that all of their
employees have the opportunity to vote conveniently
and expeditiously. If South Africa wants to compete in
world markets it will have to review the extent and
pattern of its public holidays and their effect on
productivity and produce a more internationally
competitive work calendar.
The AngloGold Board
We are very pleased to announce that Tony Trahar, the
CEO of Anglo American plc, has accepted our invitation
to join the AngloGold board. He replaces Anglo
American's Bill Nairn, who assumes the position of
alternate director and will continue to provide technical
and operational counsel to the board.
LETTER FROM THE CHAIRMAN AND
THE CHIEF EXECUTIVE OFFICER
Both mining volume and gold production efficiency
indicators continued to show improvement over the
quarter: area mined per employee rose by 5%
quarter-on-quarter and gold production, measured
in grams per employee, increased by 3%, despite
a 2% drop in recovered grade.
Continued strong performance at Great
Noligwa and Tau Lekoa, Tshepong and Savuka,
together with enhanced performances at TauTona
and Deelkraal, resulted in gold production
increasing by 1% to 42,914 kilograms (1.4 million
ounces). The Kudu shaft at Matjhabeng was
successfully closed at the end of the second
quarter.
Total cash costs of R48,778 per kilogram
($217 per ounce) for the quarter were contained to
a 2.5% increase over the previous quarter, despite
the impact of the annual wage adjustment of 9%
and greater production activity in stoping (3%) and
development (5%). Dollar-denominated total cash
costs increased by only 1%, as a result of a 1.7%
devaluation of the rand during the quarter.
We regret to report the death of 11
employees in work-related accidents during the
quarter. Nevertheless, the improving safety trend
reported for the second quarter has continued: the
number of lost time injuries in this quarter are
again the lowest on record, up by 22% on the
previous quarter. Both Moab Khotsong and Great
Noligwa again reported lost time injury frequency
rates below the Ontario benchmark.
All production, efficiency and cost indicators at
Great Noligwa showed improvements in the third
quarter, with gold output increasing by 8% and
total cash costs reducing by more than 6%.
Kopanang was unable to sustain its excellent
second quarter results as gold production declined
and total cash costs rose in line with a drop in
recovered grade. At Tau Lekoa, excellent
performance was sustained with all production,
efficiency and cost indicators showing
improvement over the June quarter.
The special focus on miner al resource
management at Bambanani resulted in a 3%
improvement in gold production, although total
cash costs increased by some 6%. At Tshepong,
gold production rose by 5% through improved
mine and plant efficiencies. A 7% reduction in
gold output at Matjhabeng arises from the closure
of the Kudu shaft and the scaling back of
production prior to the closure of the Nyala and
Sable shafts at the end of this year. Mining
volumes have been increased by 11% at Joel to
counter the impact of declining grade. Gold
production is up by 5%.
Despite problems experienced in the decline
shaft at TauTona, gold production rose by 4%
over the previous quarter. At Savuka, the
operation maintained a steady improvement in
mining volume and gold output.
Mponeng increased gold production
marginally over the previous quarter. Poor
flexibility in grades above cut-off resulted in a
further drop in gold output and significantly higher
total cash costs at Elandsrand, despite an
increase in volumes mined. Deelkraal improved
gold production by 8%, resulting from better face
values and a release of lock-up tonnage.
Ergo's performance continued to meet
AngloGold's Africa Region continues to perform
above expectations. Gold production increased by
5% for the quarter and total cash costs were
largely unchanged, despite diesel fuel price
increases.
Sadiola (38% attributable) had another good
quarter. Mill throughput increased by 3% to a
quarterly record of 572,500 tons, and production
by 2% to a record 63,100 ounces. Total cash
costs at $108 per ounce were at a level similar to
the previous quarter. The mine had achieved a
record 322 days without a disabling injury, prior to
an injury during September.
Construction at the new Yatela mine is in
progress with all the construction and mining
contractors on site. Work is currently on schedule
and within original cost estimates. The
Niamboulama village, originally situated on the
edge of the Yatela pit, has been successfully
relocated in consultation with local authorities and
the villagers. The Minister of Mines of Mali, Mr
Aboubacary Coulibaly, laid the first ceremonial
concrete at the mine site on 12 October.
Construction of the Morila (40% attributable)
project in Mali is nearing completion.
Commissioning of the plant started on 5 October
and mining is ahead of schedule in the oxide
areas. The first commissioning gold was poured
on 18 October and the mine is expected to be in
full production by year-end.
The completion of the Geita transaction, in
which AngloGold will be acquiring from Ashanti a
50% interest in the Geita project, is expected to be
completed by the end of November, following the
approval of the deal by Ashanti's bankers. The
mine was officially opened by the President of
Tanzania, Mr Benjamin Mkapa, on 3 August.
Navachab had an excellent quarter with
production of 20,500 ounces and total cash costs
of $178 per ounce, improvements from last quarter
of 16% and 14% respectively. The improved
production was due to a combination of increased
mill throughput and an increase in recovered
grade.
Despite a 2% reduction in gold produced and a
marginal rise in total cash costs, due largely to
higher diesel fuel prices, the region recorded an
increase in operating profit.
At Jerritt Canyon (70% attributable), the third
quarter's production, at 52,400 ounces, was 8%
lower than the second quarter as a result of
decreased ore grades. The mill grade was 18%
lower than the second quarter. Tonnage
processed in the third quarter was approximately
14% higher than the second quarter. This,
however, did not make up for the unfavourable ore
grades as 28% more low-grade stockpile was
milled in the third quarter than in the second
quarter. Production ounces are expected to
increase in the last quarter as a result of the
processing of ore purchased from Cortez. The first
batch of 26,000 tonnes of purchased ore was
milled during the first week of October with no
significant process difficulties.
Total cash costs for the third quar ter were
$224 per ounce, 13% higher than the second
quarter, owing to higher than planned underground
mined tonnes and associated costs.
Production at Cripple Creek & Victor J.V.
(67% attributable, with a 100% interest in
production ounces, subject to contractual
obligations by the joint venture partners) was
65,400 ounces, 3% higher than the second
quarter. Total cash costs were $182 per ounce,
some 6% lower than the second quarter.
Phase 3 of the leach pad expansion was
completed during the third quarter. The project
was finished under budget and ahead of schedule.
Work continued on the Great Basin
Prospectivity Study which is expected to be
completed by the end of the year.
Gold production at the South American operations
Morro Velho, Serra Grande (50% attributable)
and Cerro Vanguardia (46.25% attributable)
was 2% higher than the previous quarter at
107,000 ounces. This is attributable to increased
volumes of ore production at Morro Velho and
better grades at Morro Velho and Serra Grande.
These improvements compensate for reduced
production at Cerro Vanguardia, which was
affected by bad weather conditions in July and
September.
Total cash costs for the quarter were 3.6%
higher than the previous quarter at $137 per
ounce, chiefly because of higher maintenance
costs and wage increases at Morro Velho in
August and the lower production at Cerro
Vanguardia. Capital expenditure was some $1.8
million lower than the previous quarter owing to the
phasing of equipment replacement. Recoupments
of $4.4 million relate to the sale of mineral rights
and other assets in Argentina.
At Cerro Vanguardia, the improving safety
trend noted in the first and second quarters
continues and Serra Grande remains below the
Ontario benchmark, although Morro Velho has yet
to achieve this target.
The exploration programme at the Corrego do
Sitio project in Brazil continues, with encouraging
results.
The September quarter built on the improvements
registered in the previous quarter, with a further
increase in production to 142,000 ounces (16%
higher than the previous quarter).
Sunrise Dam recorded an outstanding
quarter with production rising to 64,300 ounces,
which is 31% up on the previous quarter. The
production increase was largely driven by an
improvement in the mill head grade. The
production levels were accompanied by a
significant fall in total cash costs to $149 (A$262)
per ounce (31% below the previous quarter). The
cut-back of the pit and the expansion of the
processing plant are proceeding on schedule.
Production from Pine Creek operations
increased by 7% to 45,000 ounces. Total cash
costs, however, rose by 13% to $273 (A$478) per
ounce. Production at Union Reefs improved
markedly to 33,500 ounces (14% higher than the
previous quarter). The new mining contract has
been awarded and the contractor was moving
equipment on to site towards the end of the
quarter, preparatory to the start of mining in
October. Production at Brocks Creek fell to 11,500
ounces (down 11% from the previous quarter) as
the processing of residual stockpiles neared
completion. Gold operations will cease during the
next quarter and the only ongoing activity will be
site rehabilitation.
At Boddington (33.3% attributable),
production of 18,500 ounces was 6% lower than
the previous quarter. Heavy rains early in the
quarter restricted mining in the remaining, mainly
clay, pits and adversely affected mill throughputs
and head grades at various times during the
month. Total cash costs of $211 (A$367) per
ounce were, however, still 7% below the previous
quarter. Revisions to the mine design for the
expansion project, to incorporate the latest
geotechnical data, slightly delayed completion of
the feasibility study. Technical appraisal of the
final study documentation was in progress at the
end of the month.
As the impact of the weather during the first
half of the year diminished, production from the
Tanami mine (40% attributable) increased by 18%
in the third quarter to 14,200 ounces. However,
the need to rearrange mining schedules and
rebuild ore stockpiles pushed total cash costs up
to $298 (A$520) per ounce (12% higher than the
previous quarter).
Relatively high levels of exploration activity
were maintained during the quarter. Drilling below
the current Sunrise Dam open pit continues to
intersect significant mineralisation. Further drilling
at Coyote prospect in the Tanami region has given
good intercepts in several zones over a one-
kilometre strike length.
The gold market was quiet for much of the third
quarter, and the price drifted lower. The average
spot price of $276 per ounce compares with the
average for the second quarter of $280 per ounce.
Support for the price from physical demand around
levels of $270 per ounce was evident again in the
quarter; the price closed the quarter at $274 per
ounce at the low end of its recent trading range.
Once again, there was significantly more
action in the currency markets, driven by the
strength of the US dollar. The rand weakened
against the US currency for the third successive
quarter, for an average exchange rate of R7.00 to
the dollar for the period under review. Since the
end of the quarter, further selling of the rand has
taken the currency to an historic low of R7.73 to
the dollar. The Australian dollar also touched
historic lows against the US dollar during this
period. For the moment, the cycle of US dollar
strength remains intact, although some
commentators have begun to speculate about the
unusual dominance of the dollar in world markets
today. For gold production outside of the United
States, US dollar strength has meant a further
windfall in local gold prices. In South Africa, the
average price for the quarter of R62,176 per
kilogram was up slightly on the second quarter, but
since the end of the third quarter, we have seen
historic record rand prices for gold of over R67,000
per kilogram.
The physical markets for gold remain largely
in balance. Countries which support the
Washington Agreement have shown every sign of
adhering to that agreement, but countries and
institutions that are not signatories have felt free to
sell gold from their reserves. The market has had
to absorb opportunistic sales of gold from a
number of official sellers outside of the
Washington Agreement during the past nine
months and total official sales of the metal for this
year look likely to be higher than in 1999. To
balance this, physical demand has been good,
although uneven in some important markets. It is
encouraging that gold producers appear to be
more aware of the need for the marketing of gold,
and it must be hoped that this awareness will
translate to more widespread support for gold
promotion by gold producers than has been the
case in the past.
The paper market for gold remains thin, with
limited interest; this has contributed to a narrow
price range for the metal. This price range is likely
to prevail into the future until some major
dislocating event in other financial markets occurs
to move investor interest back to gold. A setback
in equity markets, or in the value of the US dollar
could lead to more favourable interest in gold.
The lower spot price of gold and the limited
price range have made it necessary for the
company to increase further the levels of hedge
cover for new projects in Mali and Tanzania, and
for existing capital projects in South Africa. This
cover is consistent with the company's policy of
actively managing revenue risk in the short to
medium term, and with the company's commitment
to paying appropriate returns to shareholders on
capital invested in the company. Hedge cover
remains concentrated primarily in the two years
immediately ahead, with relatively low levels of
cover in place for the company in the period
thereafter.
NET DELTA OPEN HEDGE POSITION AS AT 30 SEPTEMBER 2000
As at 30 September 2000, the group had outstanding the following net forward pricing commitments
against future production. A portion of these sales consists of US dollar-priced contracts which have been
converted to rand prices at average annual forward rand values based on a spot rand/dollar rate of 7.19
available on 30 September 2000.
Forward price Forward price
January 2005 December 2010
The marked to market value of all hedge transactions making up the hedge positions in the above table
was R578.1 million ($80.4 million) as at 30 September 2000. The value was based on a gold price of $274.05
per ounce, exchange rates of R/$7.19 and $/A$ 0.5423 and the prevailing market interest rates and volatilities
at the time.
As at 26 October 2000, the marked to market value of the hedge book was R667.1 million ($87.0 million)
based on a gold price of $267.10 per ounce and exchange rates of R/$7.67 and $/A$.5188 and the prevailing
market interest rates and volatilities at the time.
Note to AngloGold Hedge Position as at 30 September 2000
*The delta position indicated hereafter reflects the nominal amount of the option multiplied by the mathematical probability of the option
being exercised. This is calculated using the Black and Scholes option formula with the ruling market prices, interest rates and volatilities
as at 30 September 2000.
1. The results included herein for the quarter and nine months ended 30 September 2000, which are
unaudited, have been prepared using accounting policies which are in accordance with the standards
issued by the International Accounting Standards Committee and the South African Institute of Chartered
Accountants. Where appropriate, comparative figures have been restated.
2. During the quarter, 2,800 ordinary shares were allotted in terms of the Share Incentive Scheme, thereby
increasing the number of ordinary shares in issue at 30 September 2000 to 107,017,487.
3. It was previously reported that AngloGold had entered into a non-binding heads of agreement for the
acquisition of a 50% joint venture interest in the Geita project in Tanzania from Ashanti Goldfields
Company Limited (Ashanti). On 26 June 2000 it was announced that the formal agreement had been
signed with Ashanti. The transaction, which is subject to regulatory and governmental approvals as well
as Ashanti shareholders' and bank creditor ratifications, was to have been completed by
30 September 2000, but is now expected to be finalised by the end of November 2000.
4. Earnings per share have been calculated using the weighted average number of ordinary shares in issue.
The average number of ordinary shares in issue at 30 September 2000 was 106,860,638.
5. Orders placed and outstanding on capital contracts as at 30 September 2000 totalled R746.5 million
(30 June 2000: R836.6 million), equivalent to $103.2 million (30 June 2000: $126.9 million) at the rate of
exchange ruling on that date. The figures for orders placed and outstanding on capital contracts
published at 30 June 2000 have been restated, and are reflected as comparatives.
Interim Dividend No. 88 of 750 South African cents per ordinary share was paid to registered
shareholders on 22 September 2000. A dividend was paid to holders of American Depositary Receipts
(ADR) on 11 October 2000 at a rate of 51.06 US cents per American Depositary Share (ADS). Each ADS
represents one-half of an ordinary share.
AngloGold has learnt that certain shareholders received payment of Dividend No. 88 later than the
payment dates as announced on 26 July 2000. The dividend payment was later than anticipated as a
result of delays in processing the transfer of funds. AngloGold is in discussion with all parties involved to
ensure an improved payment process in future. The company regrets the inconvenience caused to
shareholders who have experienced delayed payment of the dividend.
107,017,487 ordinary shares of 50 cents each
2,000,000 A redeemable preference shares
778,896 B redeemable preference shares
All the preference shares are held by a wholly owned subsidiary company
Statistics are shown in metric units and financial figures in South African rand.
GOLD
UNDERGROUND OPERATIONS
Tonnes milled
SURFACE AND DUMP RECLAMATION
Tonnes treated
OPEN-PIT OPERATIONS
Tonnes mined
- t(mined-treated)
/t treated
- (excluding accelerated hedge)
- (including accelerated hedge)
107,017,487 ordinary shares of 50 cents each
2,000,000 A redeemable preference shares
778,896 B redeemable preference shares
All the preference shares are held by a wholly owned subsidiary company
Statistics are shown in imperial units and financial figures in US dollars.
UNDERGROUND OPERATIONS
Tons milled
SURFACE AND DUMP RECLAMATION
Tons treated
OPEN-PIT OPERATIONS
Tons mined
- t(mined-treated)
/t treated
- (excluding accelerated hedge)
- (including accelerated hedge)
Rand/US Dollar average exchange rate
Rehabilitation and other non-cash costs
Amortisation of mining assets
Corporate administration and other expenses
Exchange gain on transactions other than sales
Marketing development costs
Unwinding of decommissioning obligation
Growth in AngloGold Environmental Rehabilitation Trust
Profit on ordinary activities before taxation
Profit on ordinary activities after taxation
Profit on sale of associate
Headline earnings
The net profit has been adjusted by the following
to arrive at headline earnings:
Net profit
Less: Profit on sale of associate
Add: Amortisation of goodwill
Add : Deferred taxation rate change
Headline earnings before deferred taxation rate change
Earnings per ordinary share - cents
- Net earnings - Headline before deferred taxation rate change
"The results have been prepared in accordance with International Accounting Standards."
Quarter Quarter Nine months Nine months
September June September September
US Dollar million 2000 2000 2000 1999
Cash operating costs 379.7
Rehabilitation and other non-cash costs 1.9
Amortisation of mining assets 54.2
Total production costs 444.9
Corporate administration and other expenses 6.5
Exchange gain on transactions other than sales 0.2
Marketing development costs 3.7
Research and development 1.8
Profit from operations 92.7
Unwinding of decommissioning obligation 0.1
Growth in AngloGold Environmental Rehabilitation Trust 0.7
Income from associates (0.8)
Profit on sale of assets 3.1
Profit on ordinary activities before taxation 86.7
Profit on ordinary activities after taxation 60.8
Profit on sale of associate -
Amortisation of goodwil l 4.6
Headline earnings
The net profit has been adjusted by the following
to arrive at headline earnings:
Net profit 53.9
Less: Profit on sale of associate -
Add: Amortisation of goodwill 4.6
Add : Deferred taxation rate change (0.1)
Headline earnings before deferred taxation rate change 58.4
Earnings per ordinary share - cents
- Net earnings 50 - Headline before deferred taxation rate change 55
"The results have been prepared in accordance with International Accounting Standards."
Investments in associates
AngloGold Environmental Rehabilitation Trust
Long-term loans - unsecured
Trade and other receivables
Current portion of loans advanced
Cash and cash equivalents
Share capital and premium
Non-distributable reserve
Current portion of borrowings
Total equity and liabilities
"The results have been prepared in accordance with International Accounting Standards."
GROUP CASH FLOW STATEMENT
Cash flows from operating activities
Cash generated from operations
Growth in AngloGold Environmental Rehabilitation Trust
Dividends received from associates
Mining and normal taxation paid
Net cash (outflow) / inflow from operating activities
Cash flows from investing activities
Recoupments from sale of assets
Acquisition of subsidiaries
Proceeds from sale of investments
Repayment of loans advanced
Net cash outflow from investing activities
Cash flows from financing activities
Proceeds from issue of share capital
Net cash inflow from financing activities
Net (decrease) / increase in cash and cash equivalents
Opening cash and cash equivalents
Closing cash and cash equivalents
Note to the Cash Flow Statement
Cash generated from operations
Profit on ordinary activities before taxation
Amortisation of mining assets
Unwinding of decommissioning obligation
Growth in AngloGold Environmental Rehabilitation Trust
Movement in working capital
The following analyses the movement in working capital:
(Increase) decrease in inventories
Increase in trade and other receivables
Decrease (increase) in trade and other payables
"The results have been prepared in accordance with International Accounting Standards."
Quarter Quarter Nine months Quarter Quarter Nine months
ended ended ended ended ended ended
September June September September June September
2000 2000 2000 2000 2000 2000
SA Rand / Metric Total cash costs - R/kg Total production costs - R/kg
Great Noligwa Mine 30,157 32,208 32,304 32,210 33,997 34,400
Kopanang Mine 53,339 45,962 48,106 57,180 48,964 51,569
Tau Lekoa Mine 47,375 48,467 48,285 53,306 50,896 54,361
Surface Operations 42,906
Surface Operations 42,180
Surface Operations 43,509
Sadiola - Attributable 38% 24,232
Cripple Creek & Victor J.V. 40,969
Jerritt Canyon J.V. - Attributable 70% 50,473
Serra Grande - Attributable 50% 24,244
Cerro Vanguardia - Attributable 46.25% 33,937
Boddington - Attributable 33.33% 47,349
Tanami - Attributable 40% 66,966
Quarter Quarter Nine months Quarter Quarter Nine months
ended ended ended ended ended ended
September June September September June September
2000 2000 2000 2000 2000 2000
SA Rand / Metric Productivity per employee - g Operating profit - Rm
Sadiola - Attributable 38% 2,062
Cripple Creek & Victor J.V. 2,547
Jerritt Canyon J.V. - Attributable 70% 1,775
Serra Grande - Attributable 50% 990
Cerro Vanguardia - Attributable 46.25% 1,771
Boddington - Attributable 33.33% 1,605
Tanami - Attributable 40% 1,480
Quarter Quarter Nine months Quarter Quarter Nine months
ended ended ended ended ended ended
September June September September June September
2000 2000 2000 2000 2000 2000
US Dollar / Imperial Total cash costs - $/oz Total production costs - $/oz
Sadiola - Attributable 38% 108
Cripple Creek & Victor J.V. 182
Jerritt Canyon J.V. - Attributable 70% 224
Serra Grande - Attributable 50% 108
Cerro Vanguardia - Attributable 46.25% 151
Boddington - Attributable 33.33% 211
Tanami - Attributable 40% 298
Quarter Quarter Nine months Quarter Quarter Nine months
ended ended ended ended ended ended
September June September September June September
2000 2000 2000 2000 2000 2000
US Dollar / Imperial Productivity per employee - oz Operating profit - $m
Sadiola - Attributable 38% 66.31
Cripple Creek & Victor J.V. 81.89
Jerritt Canyon J.V. - Attributable 70% 57.06
Serra Grande - Attributable 50% 31.83
Cerro Vanguardia - Attributable 46.25% 56.95
Boddington - Attributable 33.33% 51.59
Tanami - Attributable 40% 47.57
Quarter Quarter Nine months Quarter Quarter Nine months
ended ended ended ended ended ended
September June September September June September
2000 2000 2000 2000 2000 2000
KOPANANG MINE Rand / Metric Dollar / Imperial
Milled - 000 - tonnes / - tons - reef 536
Yield - g/t / - oz/t - reef 6.46
Gold produced - kg / - oz 000 - reef 3,463
Revenue - R/kg / - $/oz - sold 65,612
Total cash costs - R / - $ - ton milled 344
- R/kg / - $/oz - produced 53,339
per employee - g / - oz - target 178
FINANCIAL RESULTS ( MILLION)
Gold normal revenue 226.9
Accelerated hedge revenue 0.3
Cash operating costs 183.7
Rehabilitation and other non-cash costs -
Amortisation of mining assets 13.0
Net capital expenditure 7.3
Form 40-F:
