/ 30 July 1999

AVGOLD POSTS STRONG RESULTS

GOLD mining group Avgold announced that its gold output rose 9% and its cash costs fell 7% in the final quarter of the year to June. Total revenue in the June quarter reflected an increase of nearly 7% from R270-million to R288-million compared with the previous quarter. This was attributed to gold sales increasing from 4,4 tons to 4,7 tons, despite a reduction of R2 051/kg in the gold price realised to R58 364/kg. Net earnings for the year improved to R9 million compared with a R74-million loss for the comparable financial year. Net cash flow generated from operating activities was R143-million, after retrenchment payments of R34 million and environmental trust fund contributions totalling R18 million, compared to the previous year’s cash outflow of R96-million.