Changes in South Africa New Industry Directions

1
Changes in South Africa New Industry
Directions
2
Year-end Results (IAS/US/Imperial)
Amortisation
3
Financial Ratio Analysis (IAS/US/Imperial)
4
Cash Flow Statement (IAS/US/Imperial)
5
How ?

• Production cost benchmark of R40 000/kg
• Production down 10
• Mature labour relations, no strike action

6
The Elandsrand Example
200
180
160
140
120
100
Mar-
Jun-
Sep-
Dec-
Year
98
98
98
98
g/employee
7
Cash Cost Improvements/oz
8
South Africa The Future

• Workplace change
• Technology
• Reserves and resources

9
Workplace Change

• 50m to combat illiteracy
• Productivity-linked wage deals
• Team work emphasis
• Zero Tolerance safety campaign

10
Technology
11
Reserves and Resources (as at 31/12/98)
Million Ounces Reserves
Resources South African and African
116.3 151.2 South and North American
9.4 21.6 Other (including inferred)
0 208.5 125.7 381.3 _at_298 gold price
resources are inclusive of reserves
12
Enhancing Reserves Production Base

• Western Deep Levels South Shaft Deepening
• Moab Khotsong
• Elandsrand Sub-Vertical Shaft

13
Enhancing Reserves
Additional ounces Western Deep Levels South
Deepening (M oz)
15 M oz
14
Enhancing Reserves
Additional ounces Moab Khotsong (M oz)
9.4 M oz
15
Elandsrand Sub-vertical Shaft
16
Western Ultra Deep Levels


17
Our Strategies Beyond South Africa

• Diversity
• - Operational Risk
• - Country Risk
• - Blue Sky Potential

18
Our Origins
19
Growth in Africa
20
Global Operations
21
Global Exploration

22
Market Development
Good delivery gold bar
23
Market Development

• Expenditure at US20m
• Market place opportunities

24
Market Development
25
A Company for the New Millennium