<% FROM="\InformationForInvestors\AnnualReport98\pages\notes1.htm" SITE="anglogold-main" %> Notes to the group financial statements (Page 1)

Statutory annual financial statements

 

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



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