/ 31 January 2002

Anglogold headline earnings up to R924-million

Johannesburg | Thursday

Anglogold headline earnings were up by 16% to $88-million (R924-million) for the quarter ended 31 December, the company announced on Thursday.

Addressing reporters in Johannesburg, company chairman and chief executive Bobby Godsell said although gold production was down four percent to 1,7-million ounces for the quarter, well contained costs and a higher gold price had lifted Anglogold’s operating profit by 13% to $153-million (R1,6-billion).

Godsell also announced that total cash costs were down from $176 per ounce to $159 per ounce.

”This good performance has yielded returns on net capital employed and shareholders’ equity for the quarter of 16% and 20% respectively, putting the company well on track to meet its own ambitious return targets,” Godsell said.

Headline earnings for the year were up 13% to $286-million (R2 536-million), despite gold production being reduced by four percent, largely due to the sale of Elandsrand and Deelkraal mines.

Cash costs were down 16% for the year to $178 per ounce, while operating profit was up 12% to $522-million (R4 617-million).

Anglogold announced a final dividend of R11, giving a total dividend for the year of R18 and a dividend yield of 4,7% at R468 per share. This converts to a dividend of 48 US cents, at an exchange rate of R11,495 to the dollar.

”Anglogold produced strong earnings in the first three quarters of 2001, creating a tough baseline for quarter four. Nearly half of this company’s earnings now come from outside South Africa and are therefore unaffected by the rand dollar exchange rate,” Godsell said. – Sapa