Notes to the group financial statements (Page 1)

Notes to the group financial statements
for the year 1998
Figures in million unless otherwise stated


1997	1998			1998	1997

US Dollars				SA Rand

		1.	Revenue
2 527.8	2 116.4		Gold ? normal	11 654,9	11 602,0
65.7	68.2		Gold ? accelerated hedge	348,0	309,7
55.8	51.0		Uranium oxide and sulphuric acid	279,7	262,9

2 649.3	2 235.6			12 282,6	12 174,6


		2.	Cost of sales
			Gold
2 045.1	1 499.1		Cash costs	8 224,4	9 388,4
65.7	68.2		Retrenchments	348,0	309,7
23.0	26.1		Rehabilitation and other non-cash costs	142,6	108,4

2 133.8	1 593.4		Production costs	8 715,0	9 806,5
(36.5)	31.5		Inventory change	171,9	(171,9)

2 097.3	1 624.9			8 886,9	9 634,6

			Uranium oxide and sulphuric acid
23.8	25.5		Production and selling costs	139,0	109,0
14.1	7.6		Inventory change	41,7	69,7

37.9	33.1			180,7	178,7

2 135.2	1 658.0		Total cost of sales	9 067,6	9 813,3


		3.	Income from associates
167.8	154.8		Gold revenue	856,3	774,5
104.6	97.4		Cost of sales	539,0	482,7

63.2	57.4		Profit from operations	317,3	291,8
39.3	17.1		Other operating expenses	96,6	179,4

23.9	40.3		Profit on ordinary activities before taxation	220,7	112,4


		4.	Profit on ordinary activities before taxation	-
	-		Includes:	-
8.7	2.4		Dividends received ? unlisted investments	13,4	40,8
0.7	0.9		Auditors' remuneration	4,8	2,9
0.5	0.7		Audit fees	3,7	2,1
0.2	0.2		Other services	1,1	0,8
4.2	2.9		Grants for educational and community development	15,7	19,3
7.2	17.1		Interest paid	94,4	33,8
1.6	12.3		Borrowings	68,3	8,1
5.6	4.8		Other loans	26,1	25,7


1997	1998			1998	1997

US Dollars				SA Rand

		4.	Profit on ordinary activities before taxation (continued)
1 146.3	847.5		Total employees costs	4 652,9	5 261,4
1 000.2	720.6		Salaries and wages	3 982,5	4 583,0
72.7	52.3		Contribution to retirement benefits	287,1	333,5
7.7	6.4		Contributions to post-retirement medical benefits	35,3	35,2
65.7	68.2		Retrenchment payments	348,0	309,7
			The average monthly number of employees including contractors during the year was made up as follows:	93 316	134 273
			Surface	18 462	27 099
			Underground	74 854	107 174

		5.	Directors' emoluments
1.0	1.1		Executive directors	5,8	4,5
0.1	?		Fees	0,2	0,5
0.9	0.9		Salaries, benefits and other emoluments	4,7	4,0
?	0.2		Bonuses	0,9	?
			Non-executive directors
?	0.1		Fees	0,7	0,2

1.0	1.2		Total directors emoluments	6,5	4,7


		6.	Mining and normal taxation
			Income from gold mining is taxable at a tax rate determined by the following formula:
			Y=51 ? 255/x
			where y is the percentage tax rate and x is the ratio of taxable income from mining to total revenue from mining, expressed as a percentage. Such taxable income is determined after the deduction of mining capital expenditure.
			Lease taxation
			Lease taxation is payable in respect of profits arising from areas in which the state has granted the right to mine at a rate determined by the following formula:
			Y=12,5 ? 75/x
			where y is the percentage rate of lease taxation payable (after the deduction of a 5% capital allowance in terms of the lease) and x is the ratio of taxable profit to mining revenue expressed as a percentage. Taxable profit is determined after the deduction of mining capital expenditure. The basic amount determined is subject to a surcharge of 1,25%.
			Income other than mining income is taxable at a rate of 42%.


1997	1998			1998	1997

US Dollars				SA Rand

		6.	Mining and normal taxation (continued)
			The taxation charge comprises:
24.4	58.4		Mining taxation	319,0	115,2
64.9	97.8		Non-mining taxation	550,6	295,3
1.8	2.9		Share of associates taxation	16,0	8,8

91.1	159.1			885,6	419,3

			The company has, in terms of tax legislation, opted for a tax regime which does not require it to deduct Secondary Tax on Companies (STC) on dividends declared. Notwithstanding this, if any of the company's shareholders are themselves subject to STC, this legislation entitles them to deduct their dividend accruals from this company in the determination of their own STC liabilities.

		7.	Dividends
			Ordinary shares
			No. 84 of 750 SA cents (127 US cents) per share declared on
113.0	123.5		17 July 1998 and paid on 18 September 1998	732,5	511,8
			No. 85 of 800 SA cents (136 US cents) per share declared
123.1	133.1		on 2 February 1999 and payable on 26 March 1999	782,8	599,5

236.1	256.6			1 515,3	1 111,3


		8.	Earnings per share ? cents
			Earnings per share is calculated based on earnings of R1 660,8; $289.7 (1997: R1 385,1; $308.1) and 97 842 263 (1997: 97 839 399) being the weighted average number of ordinary shares in issue during the financial year.

		9.	Mining assets
4 250.8	3 538.7		This balance represents the historical cost, less sales, of the group's investment in the establishment and expansion of its mining undertaking, comprising mining rights, property, shaft sinking, development, equipment, plant and buildings	20 811,7	20 703,7