- Gold production improves by 3% to 1.8 million ounces (Q1: 1.75 million ounces)
- Total cash costs are reduced by 5% to US$207/oz (Q1: US$219/oz)
- Operating profit increases by 10% in rand terms to R821 million (Q1: R749 million)
- Headline earnings are slightly reduced by 0.4% to R458 million (Q1: R460 million)
Half Year Results
- Operating profit virtually unchanged at R1,570 million
- Attributable profit down 48% due to the inclusion of abnormal items in the previous period
- Interim dividend payment of R7.50 per share, a 6% yield on a share price of R269 per share
On the company’s performance, Bobby Godsell, Chief Executive Officer, commented:
"The second quarter reflect good operating results; we are particularly pleased with the improved performance in the South African operations. On the safety front, we are encouraged that the South African mines recorded their lowest-ever rate of lost time injuries and their best performance in regard to fatalities. This is clear evidence of what can be achieved, and we hope this will encourage management and employees to sustained and increased efforts in this area.
“During the first half of the year 2000, AngloGold has laid some important foundations for the company’s future growth. The acquisition of significant stakes in the Morila and Geita mines in Mali and Tanzania, as well as the commencement of the Yatela project in Mali will see the African Region becoming the company’s second largest source of earnings after South Africa.
“In market development, we have further demonstrated our commitment to extracting value from our product beyond the current limits of mining. We announced our e-commerce joint venture, GoldAvenue, and the acquisition of a 25% stake in South Africa’s largest gold jewellery manufacturer, OroAfrica. We remain convinced that, in today’s gold market, the future of the industry rests with the energy and determination of companies to innovate and to invest in and lead their industry in this way.”
On the gold market, Kelvin Williams, Executive Director: Marketing, said:
“Notwithstanding the early weakness in the gold price, the quarter gave clear signals of underlying support levels for the gold in the market. The market has consistently held up against the pressures of short selling at around $270 per ounce and has consistently managed to regroup above $280 per ounce. This support level underlines the importance of healthy and reliable physical demand for the metal. The positive impact of this support has been clear for some time, although market turmoil last year perhaps concealed the full value of physical demand for some months in 1999.”