Document peaZV78QX0eBe4ekM4Mpg63Xj

FILE NAME Cape Asbestos CAPE DATE 1979 DOC CAPE117 DOCUMENT DESCRIPTION Annual Report - Anglo American Corp. of South Africa Ltd. & other Financial Reports Legal - Tibbs Case Exhibit 15 Balance sheets March Figures in R millions Es Corporation . 1978 1979 22.4 5,9 = @ Ordinaryshareholders equity : Meek Ordinary share capital ...... as WB es edee De premium . ' Notes eee e eect anes 22 3 s 1979 Group 22,4 5,9 351,9 distributable reserves 4 366,7 - afi 239,3 Distributable reserves ...66. e cee eee ce meet ee teen e ne 5 60... 560,2 ': | 2 619,5 ae aS 955,2 preference Preferred stock and shares ~ eee ~ : : oa stock ..:.D . e . sceeceeeue eee te teeeeeeaetensees Pie 2s 4,8 Preferred . an - Preference share os cpraepmiitumal Preference share 2 1,0 3 -J 39,0 be 0 44,8 3 me interests interests ' Outside shareholders interests ms yo = 1.000,0 eo 103,4 7? 146,3 wold 393,7 aa 575,6 Loans :.......;eed eee : Bg? .570,4 9 609,4 17,6 55,7 73,3 111,1 20,9 72,8 93,7 390,4 Other liabilities 4 Creditors taxation and provisions '. dividends Shareholders for us Bank overdrafts 7 . : ; : Hs g.. z 69,0 72,8 11,5 , ? 2582,8 : : Represented by ; e 112,0 11,4 132,4 16,6 Investments a 8 and : General investments 2 8 Listed market value group R3 071,4 071,4 1978 R1 996,7. _ ae . beveeesee ~ Unlisted directors valuation group R314,5 1978 R272,3 R272,3 elevaneeee 10 10 re * 747,5 131,4 123,4 * . 149,0 La a Life insurance investments.. 0.6. ee ee eee ees(ed ce enen babes ee 1 878,9 678,9 : Be ye : ; Botan tt 1 557,8 3: : Interest subsidiary \ in ta ee 466,6 . o a companies 0.0.00. ..5..b. 000. Dice 12 een Fixed assets DiSlecesbecereses be tenee ven PAL ve eee douse vas 9 13 39,1 Leasing assets ". sy Ueebvacceaalenvensbsedsdes bebe ea bee eue dbl eu 8 14 9,8 * 2 : Instalment debtors 0. ee ee a eee 9 227,0 29,8 518,0 547,8 390,4 Loans provision ~ Dieeeeceveues te foe . eb e se eeee ee Lope teen a ns vee 3 a 266,6 ^' ~ Other assets G Stocks stores and workin progress .- 6s. - Debtors Mea eee een daes a beeae nee oon ; 15 9,5 138,7 Cash on deposit atcall and short notice . 547,8 696,0 - 32 o if . 4, 4 { a ve 3 # - a 7 - ee oe Outs wy | . + bd _ ey 4 . . Income statements . . for the year ended March 31 1979 Corporation 1978 1979 Figures inin R millions 2. . 15 . p uo fl eo 8 Fifteen . 8 months ., S 32,6 59,0 s 4,3 100,5 . 196,4 40,0 14,7 ey) 6,81 | topo 2,8 9, 64,3 = 132,1 132,1 % 10,1 0 33,3 74,2 4,6 > 106,3 218,4 49,5 10,6 0,6 1,7 62,4 156,0156,0 10,2 - Investment geinnciomeenrcaolme Interest earned and fee investments .....,.... 600s eeeave eens less expenses ....0.....0025-08- : general Trading profits 00... Surplus on realisation of _. eect e eee e eee investments .. en een ence nees Income from subsidiary companies .....6..2..065 = 3 3 Interest paid oo ice cece r ee eee nee ee tne age eee eee eees Costs of prospecting .......0+4- .-, Provision against . investments . Provision against loans '2200... } eee eee ee eee rnnes c * Profit before taxation Taxation 3 . 9 . a it . ay as \ : . 122,0 0,3 . ; bos 7 : % ES) be 145,8 3,4 < : 142,4 . 4 . Profit after taxation 0.6.0.6. 0000s eee eee tenet eee tenets shareholders interests in Outside profidtisvidends companies -. Preferred stock and preference share i of subsidiary wees dda nnn . . > 8 7 e attributable Profit extraordinary were . is, to ordinary shareholders before items ....;. See eee vee eee te eiaes Group earnings per share 90,2 cents 1978 89,9 cents Netlossarising from changesin exchange rates .. 20. eee e. ee . eee Transfer from currency reserve 6.1... eke ee eens ene eee teeta & = ea rs F SES a 99,1 99,1 3 22,6 fi 22,6 21,4 103,0 3 Ordinary dividends a oo 7.3 aa o: < profit 39,4 Retained Extraordinary extraordinary 79 before items 0.6 ieee itiems tems eee gece Dees Pa 3 eee dees bene ees Deee ase 1,29: 0,4 : 6 2 31,5 9 w]e 0,3 Ps * Retained after extraordinary iittemes ms ee Oee eeeoft profit the Corporation's profit March 197 : Uantatrpipbruotpabrlieated minority interest period Retained profits of subsidiary acquired during the 3 former oe to the Corporation's , ai 1,3 pos}. ae pa [eo . : - 0,9 0,3 : s 0,3 %% 31,8 : reserves * Appropriations to reserves ._ 7 |* = distributable reserves 31,5 General reserve , _= 31,5 : 0,3 0,3 Unappropriated profit Marc3h1 1979 wet eeb eee oe eee ese bes te te Group | 1978 Fifteen months 213,2 78.4 96 18,1 323,4 44,1 |: 11,8 2,5 58,4 265,0 16,9 319 40,4 15,2 5,0 60,6 258,7 17,0 17,0 248 42,7 3,4 46,1 241,7 | 46,4 0,3 46,7 - 202,0 195,0 0,6 0,6 9 103,0 99,0 6,9 o. 92,1 17,5 17,5 | 0,8 a. X sg : . N wee 33 nD les  1978 Fifteen months Source of funds , 2 . * Profitbefore taxationand outside shareholders interest Meveunelase \ Lifeinsiurance nsurancefunds .. issued Loans received net Instalment debtors t : Creditors taxation and provisions overdrafts .. due Interest in subsidiarycompanies s Net decrease inin loans and amounts \" Increaseincostof shares A i. 4 \ Aplication of General investments . Insurance investments Fixed assets , we net companies shareholders subsidiary assets Leasing Loans advanced- advancedcapital Repayment Outside ofloan Outside . . - interest in ws ved : Dividends and . Stocks stores and workin progress Debtors and cash, . Net investment in subsidiaries acquired Interest in subsidiary companies . amounts of Increase incost , * shares Net decrease iinn loansand amounts due Notices to members a 0 Annual general meeting are quoted on such stock exchanges may The reasons for and the effects of the Noticeis hereby given the second annual general meeting of members of Anglo American Corporation of South Africa be sold by the underwriters and the net proceeds of any sale ofsuch rights shall be paid to the Corporation proposed special resolution are contained in the directors report which accompanies this | notice Limited will be held 44 Main Street Johannesburg on Friday August 17 1979 _, The head office and United Kingdom transfer registers and the register of The head office and United Kingdom , transfer registers and the register of at will 11h00 for the following business members of the Corporation be closed members of the Corporation will be closed stateme1n9ts79 of the attend ' Corporation's comply general 4 1 To receive and consider the annual from August 13 to August 17 1979 both days inclusive financial in respect year Holders of share warrants to bearer ended March 31 2 To elect directors accordance accordance with who wish to attendin person or by proxy or in the to vote at any general meeting of the ~ provisions of the Corporation's articles Corporation must with the from August 13 to August 17 1979 days ca inclusive Holders of share warrants to bearer who wish to iin n person or by proxy orto vote at any meeting of the Corporation must comply with the : Corporation i &- of association regulations of the Corporation under which regulations of the under which : fit pass ; i . member at ' 3. To consider and if deemed to ~. with or without modification the resolutionresolution as an share warrants to bearer are issued A entitled to attend and vote the meetingis entitled to appoint a proxy to share warrants to bearer are issued A member entitled to attend and vote at the meeting is entitled appoint a proxy to following ordinary attend speak and vote in his stead A proxy attend speak and vote in his stead proxy resolution namely b hereby Corporation lose authorised portion members Managing form Completion a .:.-, That directors be and they are * _ i To allot and issue all or any -*- the 650 000 unissued redeemable need not be a member of the Corporation s By order of the board of : JT GOLDFINCH Secretary need not be a member of the A form of proxy to enable to vote for or against the resolution or to , abstain from voting is enclosed of of proxy will notpreclude a o a the ; cumulative preference shares of 2,5 cents ; July 1979 : eachin capital of the Corporation and member from attending the meeting ae : providing after % for the allotment andissue of the sharesin terms of the ordinary meeting share incentive scheme the staff hare General | By order of the board JT GOLDFINCH scheme and any shares optiobneen which shall ~~have set aside forallotment^fin=~ Noticeis hereby given that a general meeting of members of Anglo American Corporation Managing Secretary July 24 1979 in | substitution for sharesin Rand Selection of South Africa Limited will be held at Corporation Limited arising on conversion 44 Main Street Johannesburg on Friday Registered Office of bonds of US 1000 each representing ao the Rand Selection US million 6per August 1979 at 11h10 or immediately following the annual general meeting which 44 Main Street Johannesburg ae, : ake : a oe) oe: cent convertible loan 1986 all or any has been convened for 11h00 that day : portion of the remaining 768 766 unissued ordinary shares of 10 cents each whichever is the later for the purpose of considering and if deemed fit of passing persons Corporation in the capital the time or times to such person or at such company orcompancies ompanies and upon such with or without modification the following resolution as a special resolution namely That the articles of association of the Members diary subscricpotnidointions they March by : terms and as may determine Corporation be and the same hereby Financial year end 31 oy l.) amended by the deletion of the existing ' Annual report published July ii To make arrangements on such terms article 93 and the substitution therefor of Annual . and conditions as they may deem fit for the following new article general meeting held August * 7 * the underwriters of 93 Until otherwise determined by the Dividends a offered _ a . any shares by way of rights in 1 On ordinary shares : Company general meeting by ordinary 2 ; issues but not taken up by the persons * - entitled thereto and : " b any shares resulting from the resolution the Directors shall be paid out of the funds the Company by way - . of remuneration for their services at the terim and interim report November paid January final and provisional statement Sy 7 . consolidation of any fractional : entitlements in respect of any shares rate of R5 000 per annum each and the Chairman shall in addition to his declared June paid July preference shares issued pursuance of a rights issue provided that any rights to such shares remuneration as a Director be paid a further sum at the rate of R7 500 per declared June paid June declared December paid December which can be sold in paid form The annum The remuneration so payable 3 On preferred stock _- Johannesburg and London Stock ; ~ shall accrue from day to day and shall be declared June paid August " am Exchanges during the period which they paid quarterly declared December paid February | ~ Anglo American Directorate Corporation of South Africa CHAIRMAN Ea HF Oppenheimer Limited of Incorporated in the RepublSioucth Africa Company Registration No. 05309 06 62nd Annual Report 1979 Containing the financial statements in respect of & . the year ended March 31 1979 - DEPUTY CHAIRMEN S Sir Keith Acutt KBE British ) a GWH GWHGWH Relly DIRECTORS WG Boustred > Mx e JN Clarke British Dr ZJ de Beer MP & . 2 Administration 3 The Corporation its relationship to its administered companies and major associates a 5 Year in brief Directors review 7 Finance and investment 10 Gold and uranium DA DA EtheredgeOBEOBE GC Fletcher MC ]}* ~~ Griffith MB MBHofmeyr JA JA Holmes British G Langton * British G Nicholson - NF Oppenheimer Sir Philip Oppenheimer British B W Pain British Sir Albert Robinson British : LG Stopford Sackville British JOgilvie JOgilvie Thompson ' 8 GH Waddell W Wilson Executive director (>= 14 Diamonds 17 Coal 19 Other mining ? & Ss 21 Industry and commerce 27 Property 27 Exploration and research . ae : , 4 Annual financial statements 29 30 32 Auditors report Directors report Balance sheets et 33 Income statements 34 Notes to the financial statements 4343 Source application of funds statements 44 Subsidiary companies of the Corporation * 50 General investments be 54 Ten year summary Interests of the Group 57 Administered by AAC 64 Not administered by AAC 69 Statutory other information 70 Office addresses ALTERNATE DIRECTORS -. = wos . ; . : es + -. 2 sok TAJ Braithwaite British Bullett British GA Smith British H Davies Dr Dyer Q Dr MAF MAF Ferreira Portuguese W H^'fer Pe D Hoffe : FJA FJA Howard M King OP Koevort PJR PJR Leyden British JLP Mackenzie McKerron : Dr Murray O'Dowd TL Pretorius : M W Stephenson British JD Taylor Canadian |. a ' Webber British A Wilson die Aandeelhouers watn Afrikaanse vertaling van hierdie verslag verlang versoek om met die oordragsekretarissein verbinding te tree Administration CHAIRMAN'S OFFICE : i: Los OPERATING COMMITTEE GWH GWH Relly Chairman J Ogilvie Thompson H Waddell , . a): te o ca : . fet i MANAGEMENT J Clarke Dr ZJ ZJ de Beer JF Drysdale D Hoffe J A Holmes G Nicholson MCO'Dowd NF NF Oppenheimer CHIEF PERSONNEL CONSULTANT ~ N Cathrine : an ~ ad . ECONOMIC CONSULTANT * A Dickman GROUP COMPUTER CONSULTANT M Cowley ; MANAGING SECRETARY AN) JT Goldfinch PUBLIC RELATIONS CONSULTANT . a BR Mortimer CONSULTING ENGINEER K Chant CONSULTING GEOLOGIST Dr FWD FWD FWD Cornwall MINING VALUATION CONSULTANT HM MacLeod HEAD OF TECHNICAL SERVICES J Dyer RESEARCH DIRECTOR GS.James GS.James OPERATING DIVISIONS Coal CHAIRMAN WG Boustred MANAGING DIRECTOR TAJ TAJ Braithwaite ; : DEPUTY MANAGING DIRECTOR D Rankin CONSULTING ENGINEERS P P Coetser D Flint D Rogans c > x ; moe jie ees, i Finance Office % DIRECTOR 0 0 N Clarke MANAGERS JMP Desmidt ASSISTANT MANAGER Holford CHIEF ACCOUNTANT G Leeman CONSULTING GEOLOGIST AM Smith CONSULTING MECHANICAL AND ELECTRICAL ENGINEERS G Burrage M Kinghorn : GO Parnell CONSULTING METALLURGISTS - A Crichton _ . W Horsfall CONSULTING MINING ENGINEERS B . : : a International ordination Office MANAGER JD Taylor CONSULTING ENGINEER MP O'Connor Manpower Resources Office MANAGER GR Canny D Dickson D McNeice C Sutherland ENERGY CONSULTANT * R Cohen ~ 7 FINANCIAL DIRECTOR JA Nichols JF JF Drysdale PERSONNEL CONSULTANTS MARKETING AND SALES DIRECTOR DJ Ritson CWH du Toit PERSONNEL CONSULTANT TG Mann ND Morgan D van Coller FJ Worth . DB Wiggill Commerce and Industry CHAIRMAN SENIOR MEDICAL CONSULTANT ~ Dr JLC JLC Whitcombe MEDICAL CONSULTANT CJ Griffith MANAGER OP Koevort Dr Laing Diamond Services RB bee : ~ . oa Bo : Loy: a Technical Office 6 DIRECTOR JA Holmes DEPUTY TECHNICAL DIRECTORS .- Dr M M Atniore AD Deuchar JLP Mackenzie Dr Murray TL Pretorius M Stephenson " CONSULTING ARCHITECT D Yetton 7 CONSULTING CIVIL ENGINEER DW DW Standish CONSULTING ELECTRICAL ENGINEER Brown CHAIRMAN . ~ Thompson MANAGERS : H DyeDyr er PJ Leyden A Wilson CONSULTING ENGINEERS SF Gandara T Jones JC Martens CONSULTING GEOLOGIST Dr G Murray CONSULTING MECHANICAL AND ELECTRICAL ENGINEERS A MacKinnon KJ Trueman CONSULTING METALLURGISTS G Schwartz J F Slabbert FINANCIAL DIRECTOR LA Lincoln PERSONNEL CONSULTANT C Cross , Drilling and Mining Equipment CHAIRMAN AND MANAGING DIRECTOR H Davies Food and Agriculture CHAIRMAN WJ WJ H^'fer Gold and Uranium CHAIRMAN D Etheredge MANAGING DIRECTOR AND , CHIEF EXECUTIVE G Langton DEPUTY MANAGING DIRECTORS / W Lawrie MS McCrum G Nisbet GS Young CONSULTING ENGINEERS FJ Bayley L Hewitt D Rood E Schmid RG Williams Wilson CONSULTING GLOLOGIST Dr J Pienaar CONSULTING MECHANICAL AND ELECTRICAL ENGINEERS A de Klerk M Glover G D Griese N Love CONSULTING METALLURGISTS J Moore R Pendreigh WT Ruhmer J van Vuuren . FINANCIAL DIRECTOR os F Bentley PERSONNEL CONSULTANT SW van der Colf Heavy Industry CHAIRMAN W Boustred Insurance * CHAIRMAN GWH Relly CHIEF EXECUTIVE DG Nicholson New Mining Business CHAIRMAN A McKerron CONSULTING ENGINEER NJ Keys CONSULTING GEOLOGIST Dr.D Smith eS CONSULTING METALLURGIST Brown Property CHAIRMAN GH Waddell MANAGING DIRECTOR GG Leissner ASSOCIATE AND REGIONAL OFFICES Australia EXPLORATION MANAGER RJA Kernick Botswana MANAGER NDA NDA Hardie Brazil CHAIRMAN * ~ Dr MA Ferreira MANAGING DIRECTOR CD Burnell United Kingdom LONDON COMMITTEE MB Hofmeyr Sir Philip Oppenheimer B Pain JG Richardson LG Stopford Sackville CONSULTING ENGINEERS V Cleasby CS Forristal Smith HJ Stucke CONSULTING GEOLOGIST Dr J F Osten CONSULTING MECHANICAL AND ELECTRICAL ENGINEERS A Purkiss S Sheer CONSULTING METALLURGIST : . : IR Chaston 2 Zambia MANAGING DIRECTODR VI Webber TECHNICAL DIRECTOR M Stephenson CONSULTING GEOLOGIST Dr V Freeman |: 7 CONSULTING METALLURGIST Barlin (*- Zimbabwe Rhodesia CHIEF EXECUTIVE G A Smith MANAGERS | BE Bullett C de Zwaan RJ Hedley CONSULTING ENGINEER TCA Wadeson CONSULTING GEOLOGIST E Hyman CONSULTING MECHANICAL AND 2 ELECTRICAL ENGINEER JH Moll 5 CONSULTING PJ PJ Mostert METALLURGIST ax & NS The Corporation its relationship to its administered companies and associates .. 2 + feat 0 Anglo American Corporation directly and indirectly develops and holds investments in mining industrial and investment companies on a world basis but principally in southern Africa common with other finance houses in South Africa the Corporation operates a system whereby it not only administers companies that are not necessarily subsidiaries but provides them with a full range of administrative and technical services andis able by virtue of its financial strength -: : and standing to assist themin raising capital for expansion and development About 45 per cent by value of the Corporation's generalinvestments are in these administered finance and operating companies A large portion of the remainder is in three major associates De Beers Consolidated Mines Charter Consolidated in London and Minerals and Resources Corporation Minorco these iin n Bermuda Though havetheir own a companies management they have close and historic oy ties with the Corporation and draw upon its technical advice Hence the relationship between the Corporation and the associates is broader than a purely financial one thus strengthening and enhancing the contribu- tion that each can make to mining and # industrial ventures on an international scale In mining the Corporation and its associates have important investments in companies engagedin the production of gold and uranium diainonds copper nickel * coal platinum tin potash asbestos iron orelead zinc manganese and wolfram ' Investmentsin industry range from companies engaged in making and heavy engineering to construction motor vehicles paper and textiles chemicals drilling tools refractories and foodstuffs The principal commercial interests are in insurance and property freight and travel and computer services The significant shareholdings of the Corporation in the principal finance and regional companies and in the three associates De Beers Charter and Minorco are shown in the chart The figures outside each circle or rectangle show the percentage interest held after minorities Each of the South African finance companies has specialised portfolio there is Anglo American Gold Investment Company Anglo American Investment Trust for the diamond Investment American Market value of equity capital Trust R890 000 000 = , Ne Gold Anglo American Investment AS Market value of equity capital o R757 344 000 ' 7 = Anglo American Corporation =749) Market value of equity capital % R446 337 000 Anglo American Corporation Industrial - capital Market value of equity R376 067 000 Anglo American Insurance Holdings Lifeinsurance funds administered R570 442 000 Anglo American Properties _ s =) Market value of voting capital ~ 000 . / R13 377 American Anglo Rhodesia Corporation -- Equity shareholders interest . : 00 0850 000 = 5 : Anglo American Corporation Central Africa Equity shareholders interest Pa 525 000 D Anglo American Corporation of Canada Equity shareholders interest 156 082 000 4 : . & Corporation Anglo American | do Brasil Investment in Gold US 775 000 Other US 107 000 Australian Anglo American Equity shareholders interest 15 466 000 MAS See esa A NS SO Rhodesia Angdu and Anglo The valuations given calculated as showvis in number of operating companies again generally which the Corporation his special relationship through its provision of underwriter new capital issues there are the companies in Corporation holds portfolio investments illustrate the scale their mining operations in 1978 companies administered administered by the Corporation produced over 37 per cent South Africa's gol equivalent to about 27 per cent worid production texcluding Communist countries 33 cent South Afrifan coal and 14 per cent its uranium The copper mines in whichade Corporation holds indirect investments accounted for per con of worid production in 1978 The Corporation's original in was milhon which was raised from 1911 British American and South African soureds hence the title Anglo American Corporation of South Africa The presesit capital and reserves exceed R1 000 million majority of the shate capital is held Africa and most of the balance in United Kingdom and other countries countries there o ordinary shareholders nearly Ast certificates bearer certificates certificates missure missure Anglo Two Cigurmen Cigurmen American Corporation has had only Oppenheimer from present Chairman his son Oppendicimer Oppendicimer Year in brief Equity earnings of Anglo American Corporation rose to a record R202 million during the 12 months to March 31 1979 from the R195 million earned in the 15- month period to March 31 1978. Earnings per share were 90,2 cents for the year 1978 as 89,9 cents although the Corporation's flow of income is highest in the quarter to March 31 each year earnings for the 12 months to March 31 1978 would have been approximately 70 cents a share Ordinary dividends totalling 46 cents a share were d^'claredfor the year compared with 45,25 centsa share for the 15 months to March 31 Corporation's 1978.If the Corporation's share of the undistributed profits of the investments in which it or its associates in aggregate directly or indirectly hold 20 per cent or more of the equity were taken into account the estimated total earnings for the year to March 31 1979 after adjusting for cross- holdings would be 184 cents share compared with 142 cents a share for the 12 months to March 1978 for the 12 months to 31 December 1977 and dividend distribution increased by R18,7 million to R54,9 million These results reflect the notable increase in the gold price and some success in containing working costs The market value of listed investments rose 44 per cent to R1 095 million Anamint's earnings for the year ended March 31 1979 increased by 23 per cent R79,3 million with the dividend up by 25 per cent to R75 million The generally improved economic conditions during 1978 saw Amic's net equity earnings increase by 38 per cent to R52,4 million for the year ended December 31 1978. Earnings increased by 53.7 cents to 195,1 cents and the dividend increased by 10 cents to 80 cents a share Amcoal's turnover to December 1978 increased 19 per cent to R308,4 million in a year of steady growth Net equity earnings improved by 11,5 per cent R52,7 R52,7 million and the dividendincireasedncreasedby 20 per cent to 72 cents a share Value of investments percentage 1979 1978 By prime source Gold Diamonds Coal 40 40 43 43 18 18 19 6 Copper Platinum Other mining Finance Industrial Oil and gas Property Geographical South Africa South West 7 1 .18 17 17 1 1 1 100 100 100 100 100 100 | [ .76 .76 75 75 Namibia Rest of Africa | South of the Equator North America Elsewhere tog Investment income percentage 1979 1978+ 30 28 31 6 1 1 17 17 18 8 100 100 | 1 100 100 100 | 74 74 70 70 a . 10 _ Investments The general improvement in share prices was reflected in the market value of listed _ investments which at March 31 1979 was R3 071 million 1978 997 million exceeding the book value by R2 324 million The directors valuation of unlisted investments at the year end was R314 million An analysis by primary source and geographical location of the Corporation's direct investments and the underlying investments of the holding companies in which itis interested given in the table The total of the market capitalisation or directors valuation of the companies administered by the Corporation and the value of the direct interests held by the Corporation and its administered companies was R6 700 million and is set out on page 7 Investment companies The principal finance companies administered by the Corporation include Anglo American Investment Trust Anamint Anglo American Gold Investment Company Amgold Anglo American Industrial Corporation Amic and Anglo American Coal Corporation Amcoal Amgold's equitearnings for the 14 months to February 28 1979 were R69,7 million an increase of 68 per cent over those Gold and uranium 100 Although the tonnage milled rose by 4,1 per cent the effect of lower recovery grades was to marginally reduce gold production by mines administered by Anglo American Corporation to 261 271 kilograms Despite a further inflation of unit costs working profits improved by 64,9 64,9 per cent to R715,4 million because of thehigher average price received of R5 598 a kilogram or about 200 an ounce Taxation and State's share of profits absorbed R323,2 million or 45,2 per cent working profit Two new ventures East Rand Gold and Uranium Company Ergo and Elandsrand gold mine came into production during 1978 Vaal Reefs Exploration and Mining the acquired right to exploit the main block which |Afrikander Lease holds mineral rightsin return for a royalty based on revenue operations will begin in DecemberMining 19719 979 ee cA Diamonds Sales of rough gem and industrial diamonds by the Central Selling Organisation increased by 23 per cent during 1978 to reach yet another record of 2,552 million De Beers Consolidated Mines increased its consolidated net profit by Excluding interests attributable to outside shareholdersin subsidiary companies' |; for the 15month period ended March1978 ok 32 per cent to R741 million equivalent to 205,5 cents a share while the consolidated ' net diamond account rose significantly to R956 million as a result of 1977 and 1978 price increases and surcharges Dividends of 65 cents a share 1977 52,5 cents were paid and R377 million was transferred to reserves Total mine output was nearly 12 million carats compared with 11,8 millionin 1977 Coal B Sales by the Corporation's Corporation's administered coal mining companies in South Africa rose four per cent to 29,6 million tons equal to about third of the country's total sales with pre operating profits increasing 12,7 per cent to R83 million Kleinkopje Amcoal's major new mine was brought into production in December only two ahead years after the decision to go . project with the South African coal exports increased 21 per cent 15,4 million tons increasing foreign exchange earnings by 31 per cent to R325 million Industry sales grew by six percent to 90,3 million tons = a mining Other mining , The improved platinum market saw consolidated after profits of Rustenburg Platinum Holdings increase from R4,6 3 million in 1977 to R25,8 million Hudson Bay Mining and Smelting reported consolidated earnings of 5,1 million 1977 4,4 million Despite substantially increased revenues from . higher sales of base metals and fertilisers Financial summary Issued ordinary cupital and reserves Listed general investments Book value Market value Unlisted general investments Book value Directors valuation Income from general investments Equity earnings Dividends on ordinary capital March 31 : 1979 millions . 955,2 747,5 071,4 a" 103,0 March 31 1978 R millions 858,3 713,8 996,7 121,8 272,3 213,2 195,0 99,1 decreased profit margins particularly in fertilisers prevented substantial Number of issued ordinary shares 978 377 222 964 532 improvements in net profits Hudbay Strengthenedits operating basein North America during the year through three investments a 37,5 per cent interest in Tantalum Mining Corporation of Canada increased ownership to 100 per cent of Whitehorse Copper Mines and a 50 per cent interest through a holding company equally owned with Minerals and Resources Cents per share Cents per share Earnings 90,2 89,9 Dividends 46,0 45,25 Underlying equity earnings 184,0 178,0 Net asset value 357,0 905,0 This qe was a month period Earnings share per are calculated on the basis of the shares effectively issue during distribution the period 1978 dividend includes a specialinterim of 8,25 cents a share = Corporation in Inspiration Consolidated Copper United States Hudbay's ne petroleum investments all reported contributed 13 per cent to Highveld's half- newsprint a cent increase in exports natin decreased net earnings as a result of lower year earnings to December 31 and static raw material prices ome naturalnatural salesin western Canada and a Boart International achieved a record Sigma Motor Corporation increased sales OD continuing declinein natural oil production group taxed profit of R17,7 million in 1978 of passenger cars and commercial vehicles TE Indonesia The profitability of Nchanga Consolidated and this year profits are expected to be better as a result of greater efficiencies and by 49,9 per cent and 7,7 per cent respectively In January Sigma acquired Copper Mines Roan Consolidated and deeper market penetration Pacsa manufacturer of Peugeot cars and Inspiration Consolidated Copper has Despite difficulties in the iron steel and '~. light commercial vehiclaends of Citro^n improved following the turnaround in the engineering industry Scaw Metals increased cars making it one of the largest motor world copper market while the Zambian equity earnings by 17,65 per cent to R18 manufacturers in the country companies are also expected to benefit from million InDecember Amic acquired the entire the niuch increased cobalt prices Consolidated net earnings of Mondi Paper issued share capital and trading assets Middelplaats Mine near Sishen the western Cape is to be Company improved by R1,2 million to R11,4 million because of a buoyant market for fine of African Products the largest South African processor of maize for industrial opened in August this year writing paper increased local demand for purposes 5 Industry and commerce Highveld Steel and Vanadium Corporation reported a slight increase in earnings from R20,7 million to R21 million for the year to June 1978 with net income increasing to R12,5 million for the following half year to December 31. Difficult market conditions encountered in the financial year subsequently improved with the iron and steel works operating at full capacity while the commissioninofg the plate mill has increased Highveld's local market share for rolled products Highveld acquired Rand Carbide as from July 1 1978 which a Directors review FINANCE AND INVESTMENT Equity earnings rise to R202 million Following a prolonged recession the South African economy entered a phase of moderate and hesitant growth in 1978 reflecting the Government's cautious response to continued concern as to the balance of payments and the low level of foreign reserves With a substantial surplus on the current account largely offset . further net outflows of capital growth in domestic expenditure remained restricted There was a small advance in private consumer spending which was dividends of 46,0 cents a share were declared for the year compared with 45,25 cents a share for the month period to March 31 1978 General investment income was R220,6 million 1978 R213,2 million and interest earned and fee incom^less expenses and interest paid amounted to R38,7 million 1978 R38,0 million Trading profits of subsidiaries were R8,4 million and there was a surplus on realisation of investments of R11,6 million 1978 R18,1 million Prospecting cost R11,8 million 1978 R15,2 million while R2,5 million was provided against loans Taxation absorbed R16,9 A respect of prior years investment provisions and by changes in exchange so that ~ ., the net charge for the year amounted to R6,9 million compared with R33,5 million for the previous 15 months The increase in the book value of listed investments R747,5 million from R713,8 millioi mainly represents the further investment in Elandsrand Gold Mining Company Limited The market value of listed investments reflected the general improvement in share prices during the year and at March 31 1979 these were valued at R3 071,4 million 1978 R1 996,7 million The directors valuation of unlisted >> supplemented by a continued increase in exports reflecting theincrease from mid 1978in the price of gold and other precious metals as well as the growthin exports of coal and other minerals and industrial products 0 These developments held the economy on a generally positive course throughout 1978 However by early this year it became clear that there was a need for further impetus simply to maintain momentum let alone million 1978 R17,0 million and outside shareholders interests in profits of subsidiary companies and preferred stock and preference share dividends totalled R46,1 million 1978 R46,7 million S Gross domestic product and gross domestic expenditure at constant 1970 prices investments at the year end was R314,5 million After adjusting for the outside shareholders interest in the excess of market value and directors valuations over book values the net asset value per share was 1 357 cents March 1978 905 cents The overall equity value of companies administered by the Corporation and of the general investments held by the Corporation and its administered finance companies is set out below bring about the acceleration so vitally necessary to alleviate unemployment which ~ had grown from the already serious level of early 1978. While the 1979 Budget reflecting a bolder move to more stimulatory policies promised an improvement in domestic economic activityin the year ahead theimipact mpact of the recent international oil crisis together with otherinflationary influences has proved to be a severe shock Fortunately the sharp rise in the gold price and earnings from other exports has meant ~ that the balance of payments and Government finances have remained sound , For this reason and as a of result the flexi- a 1972 1973 1974 1975 1976 1977 1978 St Les A provision of R16,3 million was made as extraordinary an item in respect of the Group's investmentin Cleveland Potash Limited which operates a potash mine in north England This mine which is owned jointly with Charter Consolidated Limited and Imperial Chemical Industries Total market capitalisation or directors valuation in the case R millions of unlisted companies of the mining industrial financial and property companies administered by the Corporation 300 Value of the Corporation's interests and of its administered finance companies interests in Value of the direct interests . 2.200 i of the Corporation and its administered finance companies in the market capitalisation or directors valuation of associated and other administered bility imparted by the new dual exchange rate arrangements it is expectedthatt hat official expansion policies will remain geared to * Group profit attributable to ordinary Limited was deemed to have completed its development phase on March 1978 Production during 1978 was disappointing and a pre loss of 15,5 million companies 4. Overall value of the direct interests of the Corporation and its administered finance shareholders rose to a record million for the 12 months to March 31 1979 from the R195 million earned in the month period to March 31 1978 earnings per share increased to 90,2 cents from 89,9 cents a share for the month period However as the Corporation's flow of income is highest in the quarter to March 31 each year earnings for the 12 months to reported for the nine months to December 31 ., 1978. Operations have improved during the first part of this year and while the project is expected to achieve a level of production which will cover its operating costs by the end of 1979 it is not possible to predict when the mine will become profitable Under these circumstances it was thought prudent to provide in full against this companies being the aggregate of 2 and 3 o 600 5 Total of the market capitalisation or directors valuation of companies administered by the Corporation and the value of direct interests of the Corporation and its administered finance companies in associated and other non- March 1978 would have been approximately 70 cents share Ordinary investment The charge to extraordinary items was reduced by tax relief claimed in administered companies being the aggregate of 1 and 3 Aspects of the widely diverse interests and activities of Hudson Bay Mining and Smelting Terra Chemicals Big ' machines applying liquid fertiliser in the US Midwest ^ Canadian Merrill oil drilling and a Francana Oil & Gas geophysical crew drilling seismic shot holes in Alberta the headframe mill Tantalum Mining Corporation at Bernic Lake in south eastern Manitoba and a helicopter delivering supplies to a remote exploration camp in the Rocky . Mountains . PRA INN Re LEY | som a Directors review Anglo American Gold Investment Company Limited Amgold reported equity earnings of R69,7 million for the 14 months to February 28 1979 an increase of 68 per cent over those for the 12 months to December 31 1977. Investment income with African South balance of payments Exports and imports Exports Imports ial Gold Anglo American Coal Corporation Limited Amcoal achieved steady growth during its year ended December 31 1978. Turnover was R308,4 million and net equity earnings improved by 11,5 per cent to R52,7 million The dividend was increased by 20 per cent the exception of a third dividend of R1,2 million from Gold Fields of South Africa Limited is comparable with that for the previous financial year even though the results are for a month period Dividend & . to 72 cents a share Johannesburg Consolidated Investment Company Limited JCI in which the Corporation holds a 41 per cent interest increased its net earnings during the year distributions increased from R36,2 million to ended June 30 1978 by R15,2 million to R54,9 million These excellent results reflected the notable increase in the gold price and a degree of success achieved in containing working costs The market value of listed investments rose 44 per cent to R1 095 million reflecting higher share prices and increased investment in 2000 000 0 tia] 1.000 1.000 R42,2 million The Otjihase copper mine was placed on a maintenance basis with effect from January 1978 and an amount of R44,4 mil ion million was written off as an extraordinary item item Net earnings of JCI for the six months to December 31 1978 increased by 22,8 per cent to R19,4 million Elandsrand and Deelkraal Gold Mining Company Limited following rightsissues by these two companies Capital flows not to reserves relate|d Long EXE Short Inflow a . Anglo American j American Investment Trust Limited Anamint which holds 26,37 per cent of De Beers Consolidated Mines Limited and has investments in unquoted diamond trading a - a:oom. Outflowi companies increased equity earnings Change in net reserves by 23 per cent to R79,3 million in the year ended March 31 1979 and raised dividends - by 25 per cent to R75 million At the year and theinterim dividend was increased by 10 cents to 50 cents a share JCI holds a widespread portfolio of mining and 1000 industrial investments deriving a major D portion of its revenue from gold and diamond interests as well as platinum Following the strong demand for platinum the taxed profit of Rustenburg Platinum Holdings - Limited which JCI administers showed a markedincriease ncrease from R4,6 million to R25,8 million for end the market value of the company's listed investments was R805 million against R520 . || vos 1000 million at March 1978 1974 pe 1975 1976 1977 1978 - Anglo American Industrial ' Limited Corporation Amic benefited from the general improvement in economic conditions during exchange for further Mondi shares Anglo American Insurance Holdings 1978 reporting highly satisfactory results Limited AAIII holds the Corporation's |. Net equity earnings increased by 38 per cent R52,4 million in the year ended December investment in three life insurance % companies all of which showed steady 1978 representing an increase in growth during the year African Eagle Life earnings of 53,7 cents a share 195,1 cents Assurance Society Limited offers a Q Dividend distribution was increased by 10 cents to 80 cents a share This encouraging profit performance reflected the excellent Comprehensive range of equity life e insurance plansis a leading underwriterin the group pensions market the year to August 1978. The Randfontein Estates Gold Mining Company Witwatersrand Limited has recently completed a million expansion programme for gold and uranium and increased its net earnings by 50 per centto R72,3 million for the ended year December 1978 Theequity earnings of Charter Consolidated Limited the Corporation's mining finance associate based in the United Kingdom amounted to 14,5 million for the six months to September 30 1978 compared with 13,2 million the same period the . results of the company's main subsidiaries Boart International Limited Scaw Metals Limited and the return to profitability of Bruynzeel Plywoods Limited In addition the results of Mondi Paper Company were consolidated for the first time following the purchase of a further Guarantee Life Assurance Company Limited concentrates onlife insurance services to the upper income market promoting its products exclusively through brokers Southampton Assurance Company Limited markets a full range of life and pensions products only in Zimbabwe Rhodesia Total previous year and 25,4 million for the year ended March 31 1978. Advantage was taken of the high investment currency premium and strong gold share market and profits on realisation of investments amounted to 9,2 million during the six months compared with 2,7 million for the half year ended 14 per cent of the equity bringing Amic's life insurance funds administered by AAIH September 30 1977. Investment income for o holding to 54 per cent Early in 1979 Amic's at March 31 1979 amounted to R570,4 the period amounted 10,1 million interest in Mondi was again increased to million and premium income increased by compared with 11,8 million for the . 62,7 per cent when Mondi acquired S.A. Forest Investments Limited from Amicin 14,5 per cent to R112,5 million during the financial year corresponding period in 1977. Trading profitosf industrial subsidiaries increased # & Directors review a ae months of the principalprincipal from 9,5 million in the first six of the previous year to 10,3 million for the and Smelting Co. Limited Hudbay and from Amcan's share in the Whitehorse Further details the finance and | in investment in which the Group companies half year to September 30 1978 and Copper Mines Limited joint venture holds a significant interest are given on included for the first time the earnings of Amcan's net asset value at December 31 pages 57 and 64 M.K. Refrigeration Limited Charter's share 1978 including listed investments at market ' i of the retained earnings of associated value and unlisted investments at lower of companies for the half year were 1,6 million compared with 3,6 million for the same period last year and incorporated for the first time Charter's share of the loss of Cleveland Potash Limited of 1,9 million for the three months to June 1978. Taxation million for the six months totalled 10,7 compared with 8,4 million for the half year to September 30 1977 reflecting higher corporation tax on the increased profits from realisation of investments Charter's net cost or directors valuation increased by 16 per cent to 108,4 million Anglo American Corporation Rhodesia Limited Amrho a widely diversified in portfolio of interests in Zimbabwe Rhodesia Net earnings deceased deceased from 4,5 million to 3,3 millionin the financial year to June 30 1978 mainly as a result of reduced dividend income from Hippo Valley Estates Limited and Rhodesian Alloys Limited Amrho has major investments in Wankie } GOLD AND URANIUM t t Strong investment demand } " The increase the gold price during the | E, year under review reflected the weakness of i the dollar and consequent strong investment \ demand which more thanmatched the effects of increased supplies to the market * The price rose from 183in April 1978 to Ss c t 240 at the end of March 1979 with only two interruptions Since then the price has _ risen still further to its current level of asset value including investments at market value and directors valuations amounted Colliery Company Limited Bindura Nickel Corporation Limited Shangani Mining around 280 The principal i 2 after occurred setbacks Treasury to 327 million at September 30 1978 Corporation Limited Rhodesian Alloys and announcements by theUS of gold 4 The profits of Minerals and Resources Hippo Valley Estates in addition to interests auctions The price fell below 170in April ~ Corporation Limited Minorco the amine Corporation 1978 Corporation's in citrus agriculture forestry and timber on news that the US Treasury was to associate Corporation's Bermuda associate for the year ended June 1978 increased by 18 per cent mainly because of substantially higher dividends from its 29 per cent and 43 per cent interests in Engelhard Minerals & Chemicals Corporation and Trend International Limited Minorco's profit before tax and extraordinary items for the processing cement flour milling rolling stock hire property merchant banking and finance resume gold auctions this coincided with 23 India's decision to hold internal gold auctions However the IMF announced that Anglo American Corporation do Brasil Limitada Ambras received a dividend of . it was to reduce the amounts on offer at its monthly auctions from June 1978 and the approximately 3,1 millionin respectof its 49 per cent interestin Minera^aoMorro- Velho S.A. which operates a group of small market soon recovered to break through 200 for the first time A second temporary : reaction with the price falling below gs tte te pungen shes as year to June 30 1978 was 2,4 million higher than in 1977 at 16,3 million , Minorco received no dividends during the level gold mines in the state of Minas Gerais The company also pursued prospecting programmes in base metals and took placein November when dollar support programme launched which : included a substantialincrease in amounts year from its 49 per cent interest in Zambia| Copper Investments Limited Dividends ~ from investments rose by 1,2 million to - 15,1 million while interest and sundry income increased from US million to gold through Unigeo GeologiaeMinera^ao The principal gold prospect is Jacobina in Bahia which is at the feasibility study stage In the metals sector arrangements were completed for the financing of the to be offered at US Treasury auctions Fears of renewed inflation closely related to eventsin Iran andincreases in crude oil prices led to a renewed rise in the price which achieved 250 for the first time 2,4 million Dividend distribution was Codemin nickel project in which in early February | unchanged from 1977 at million or cents a share Extraordinary items amounted to 1,6 million compared with Ambras has acquired a 35 per cent interest The mine and plant are to be commissioned in the first half of 1982 at a capital cost of Theincrease in supplies to the market in the calendar year 1 638 tons in 1977 to 1 741 tons was due the recommencement 34,1 millionin 1977 related approximately 100 million to produce of US Treasury sales which totalled 126 tons predominantly to exchange losses suffered about 5 000 tons a year of contained during the year Although Russian sales on funds held in but not remittable from : in ferro nickel the mine having an estimated are estimated to have remained .. unchanged 7 Zimbabwe Rhodesia and Zambia _ ; life of more than 30 years During the year the Russians do not appear to have sold large 7 Anglo American Corporation of Canada Ambras acquired a majority stake in quantities during the last quarter of 1978 --, : Limited Amcan reported consolidated net Iracema a company involved in the or the first quarter of 1979 when the US earnings for the year ended December 31 processing of cashew nuts A four per cent Treasury sales were at their highest 1978 of 3,7million Earnings were participation in the Banco Bozano Simonsen There is no doubt that the market has marginally * marginaly down on those of the previous . de Investimento was also acquired _ adapted to meet these increased amounts on year because of reductionsin interest Australian Anglo American Limited is offer Fabrication demand with the largest received andin gains on realization of continuing with an extensive exploration coe . component the jewellery industry grew in marginally investments and an increase prospecting and prospecting programme costing some despite higher prices While this expenditures which were almost offset by 5,2 million a year for mineral deposits in is encouragingit willrecalled that the the higher earnings of Hudson Bay Mining Australia New Zealand and Fiji Ny increase in the gold price in 1978 reflected 10 oe eet, Elandsrand a mine ahead of its time was ~. brought into production in the western Transvaal in . little more than four years a full two years sooner than predicted Many innovations the result of a _ think tank approach to project management played a role this achievement One was the installation of shaft loading facilities which enabled development from the shaft to proceed simultaneously with sinking The approach to housing too has been new meet the changing : needs of mining people : Directors review the weakness of the dollar and that the price in stronger currencies varied little However in 1979 the price has risen significantly in termosf the stronger currencies although this does not appear to have affected jewellery demand so far market however has readily absorbed increased official sales which have provided new opportunities to invest in an asset with ) unique physical and monetary attributes While prospects are that official sales will probably continue albeit at a reduced level compared with 47 per cent in 1977. Capital expenditure on producing mines was R448,3 million compared with R430,3 million in 1977. Dividend declarations totalled million R207,9 million more than for 1977 With fabrication offtake relatively stable there remains a vast pool of US dollars and Labour it was investment demand that readily relatively small amount of available gold Wageincreases for whites were less than absorbed the increased in the market demonstrating gold's attraction as and with an international outlook of high inflation and political uncertainty gold can seven per cent and for blacks an average of 12 per cent It is the Corporation's belief that an investment medium in a world of uncertain political economic conditions Krugerrand sales increased by 80 per cent to six million coins the contribution made by Limited the International Gold Corporation Intergold through its marketing and promotional activities was considerable Demand for Krugerrand was particularly strong in the US where the gold market has only continue to play an important role Demand for uranium increased dramatically following the oil crisis in 1973/74 The international recession of the past few years however has led to a downward revision of energy demand in to growth projections and hence to delays in and curtailment of both nuclear conventional energy programmes through- it is in the interests of the mining industry to pay higher percentage increases to blacks For the first time in some years there was no shortage of black labour partly because of the high levels of unemployment in southern Africa and partly because of increased increased and continued efforts toimprove accommodation and working conditions In addition inducements to become of greatly increased importance out the free world This has been migrant employees to return to their Although Krugerrand sales were lower in early 1979 largely because of a build up of stocks by distributors at the end of 1978 there now signs of a recovery and while the Krugerrand is expected to face competition from coins and medallions to be sold by Canada and the United the aggravated in the case of nuclear energy previous jobs after each contract are proving by opposition from environmentalists which successful The consequent lower turnover will have been increased by the incident at of labour is important in increasing the Harrisburg Pennsylvania Nevertheless stability of that labour and should lead to there appears to be a growing awareness higher productivity despite generally that construction programmes cannot be allowed to slip further without inhibiting greater and more difficult mining ., conditions potential market is very large and availability of new coins or medallions can industrial growth Furthermore the Opec oil price increases and Iran's disruption It is clear from the recommendation of the second report of the Franzsen Commission onlyincrease interestin gold as an investment medium It would also appear that gold soldin this form has a lesser _ of the oil market may be expected to bring about renewed interest in nuclear energy The uranium industry in South Africa that any system contributing to the : achievement of a day working week should not be allowed to increase costs and chance of returning to the market than that sold as bullion - Gold's inclusion at a market price without any discount as part of the base of anticipates a continuing major role the world market not least of because its established reputation for reliability negotiations in this respect are continuing In March a country illegal sympathy strike was staged by some the European Monetary System is further demonstration of a growing appreciation of The South African gold and uranium mining industry Krugerrand sales gold as monetary asset and store of value The tendency of central banks with the _ exception of the US and Portugal to retain gold holdings and in some cases to add to them and to value them at market prices has given added confidence and stronger base to the market The industry produced 704 479 kilograms of gold in 1978 which was 7 466 kilograms or 1,1 per cent more than in 1977. Although the average recovery grade declined from 9,22 grams to 8,85 a grams ton production increased because tonnage milled rose by 3,7 million tons to 78,2 million tons and The rapid increian sthee dollar price in the year under review together with the increased importance of the speculative because additional gold was won by non- * primary gold producers The average gold price received in 1978 increased to R5 587 a aspect of investment demand which has kilogram 200 an ounce from R4 084 emphasis resulted from greater on the kilogram 146 an ounce in 1977. Unit costs sce in of Meson forward market particularly in the US should lead to a degree caution in looking increased on average by R3,26 or 13,7 per cent to R27,10 a ton milled Working profits . ayn at future short movements These however rose by R708,4 million or 67,2 per be elements tend to create close relationship cent to R1 762,8 million of which taxation between movements in price and political and State's share of profits absorbed an TT RT monetary and economic uncertainties The estimated R923 million or 52,4 per cent 1975 merges ne Ane Directors review members of the Mineworkers Union in protest against the appointment of coloureds at the OokiepCopper Company Limited's mine to certain positions previously held by whites The strike collapsed within a week A conciliation board was appointed to settle a dispute over the withdrawal of benefits from the striking miners A deadlock was reached and this has been reported to the Minister of Mines Meanwhile greater _ efforts must be made with Government employee associations and unions to resolve the issues of labour utilisation in the interests of all parties Administered mines . kilograms of gold and 288 000 tons of sulphuric acid and made overall profit of R19,2 million for the year ended December 31 1978. Minor modifications to the pyrite section of the uranium plant have overcome filtration problems and led to an increase in the recovery of uranium persistent failures in certain sections of the acid plant have limited production of both and gold and further improvements are necessary to increase the general profitability of the scheme Extensions to the slimes section of the uranium plant are expected to be complete late in 1979 and following the commissioning period the increased Gold production by the eight producing mines administered by Anglo American Corporation declined by 1 137 kilograms or 0,4 per cent to 261 271 kilograms Although the tonnage milled rose by 4,1 per cent or 1 064 000 tons to 27 339 000 tons lower recovery grades were recorded at all mines There was a further inflation of unit Administered gold mines costs and revenue Production costs and gold price emma Market price per ounce sma Rand cost per ounce produced eee Rand per costt on milled costs which rose by R3,08 or 12,7 per cent to R27,33 a ton milled Working revenue increased by 36,5 per cent to R1 462,6 million as a result of the higher average price received of R5 598 a kilogram Working profits improved by R281,4 million or 64,9 per cent to R715,4 million Taxation and State's share of profits absorbed R323,2 million which was R163 million more than .. in 1977. Capital expenditure on mining assets by mines increased from R174,5 million in 1977 R239,4 million Dividends paid totalled R194,7 million compared with R112,9 million in 1977 Uranium productiobny administered mining companies increased to 1 896 tons in 1978 from 1 533 tons in 1977 while East Rand Gold and Uranium Company Limited Ergo produced 118 tons The resultant total of2014 2014 tons represents 44 per cent of all uranium produced in South Africa during the year Further production increases are planned for 1979 : Ore reserves of administered mines are Distribution of gross revenue Available for distribution Tax and State share of profits currently estimated at 60,5 million tons at pay limit based a gold price of R4 610 a kilogram 165 an ounce The Joint Metallurgical Scheme established by the Orange Free State mining companies to recover uranium gold and sulphuric acid from current and deposited slimes produced 653 tons of uranium 1 459 capacity of 500 000 tons a month should be maintained from mid 1980 At Free State Geduld Mines Limited scale sinking operations ofboth the No. 5 main and ventilation shafts started on schedule in February and May 1978 respectively Initial teething problems were followed by good progress through the difficult Ventersdorp lava formation and by the end of the calendar year the main and ventilation shafts were respectively 1 067,8 and 1 071,7 metres below collar A drilling programme is in progress to evaluate the eastern area of the lease Although significant values have been obtained in the B and Basal reefs completion of the planned programme is necessary before the importance of the present results can be gauged The sinking of the No. 3 shaft at Free State Saaiplaas Gold Mining Company Limited is complete Following a month equipping period the shaft is expected to be commissioned in 1980 and to reach full capacity during 1981. The necessary plant extensions and the balance of the programme are on target to meet these dates although funding requirements have yet to be arranged to complete the programme Production build at the President Steyn Gold Mining Company Limited's higher No. 4 shaft has been slower than was forecast and was further delayed in June 1978 when problems were encountered with the steelwork in the shaft This has partly been offset by increasing production at Nos 1 and 2 shafts though with adverse effects upon the grade An underground fire at the No. 4 shafitn the December quarter aggravated the difficulties . At Elandsrand Gold Mining Company Limited the first bar of gold was poured in December 1978 more than two years ahead of the target set in the prospectus The total expenditure on capital works included in the first phase up to initial production is in the region of R183 million The planned gold production in 1979 the first full year of production is 6 000 kilograms and capital expenditure is estimated at R70 million of which nearly R25 million will be spent on development At Vaal Reefs Exploration and Mining Company Limited tonnage milled rose to record 7 822 000 tons in 1978 through better ) A a g Directors review plant availability Meanwhile uranium treatment capacity is being substantially expanded with the extensions to the West uranium plant now fully operational and the commissioning of the new South showed a marked improvement in 1978 owing to the absence of seasonal fluctuations in the availability of black labour the improvement in the recruitment and retention of skilled white miners and the fact The detailed operating results ofgold mines administered by Anglo American Corporation and those in which the Group holds a significant interest are given on pages 58 and 65 uranium plant and extensions to the East that operations were at no time seriously plant expectedin the second prepqauraarttoerry 1979. By the year end all of work interrupted by fires or seismic activity Ergo started producing gold in April 1978 DIAMONDS shaft had been completed on No. 9 which had reached a depth of 480 metres Itis planned to sink a further 1 262 metres during 1979 and to begin station cutting A tragic accident occurred when 41 of the company's employees died in an underground fire at No. 8 shaft on December 1 1978. The area had to be sealed off and the fire has since burnt itself out Shareholders of The Afrikander Lease Limited and Vaal Reefs have accepted an arrangement whereby Vaal Reefs acquires the right to exploit the main block over which Afrikander Lease holds mineral rights in return for a royalty based on revenue provided Vaal Reefs starts mining operations the first uranium having been produced on February 25 1978. Sulphuric acid production from the 1000 1000 day plant started in March 1978 and the 500 tons day plant produced sulphuric acid and oleum shortly afterwards Since then output has increased but production targets particularly for gold and acid have not yet " been achieved Engineering teething troubles and operational problems have been more prevalent than expected and have delayed the build to full output Nevertheless Ergo achieved an operating profit of R18 million in its first full year of operation and declared a maiden dividend of 25 cents a share as envisaged in Third year of record sales During 1978 sales of rough gem and industrial diamonds by the Central Selling Organisation CSO reached a record level for the third year in succession of US 552 million or R2 219 million 23 per cent higher than the previous year Notwithstanding increases in the price of rough gem of 15 and then 17 per cent implemented by the CSO in 1977 growing speculation in the market for rough diamonds related to fears about the instability of currencies and the increasing use of diamonds as a store of value led to an unprecedented demand for most qualities of goods sold by the CSO during the first months of 1978. The effect as soon as possible Mining operations will begin in December 1979 at about 15 000 tons of ore a month which will be transported to Vaal Reefs for treatment the prospectus issued in July 1977 The South African Land & Exploration Company Limited had a successful year Its operations rely entirely on the treatment of was that prices paid for rough diamondsin * the secondary markets were not only wellin excess of prices received by the producers but were also out of line with those then . Meanwhile a separate treatment plant for the recovery of uranium and gold is to be constructed by Vaal Reefs at the site of the new mine for commissioning during the first half of 1981 after which treatment at Vaal Reefs existing plant will cease The capacity of the new plant 50 000 tons a month should be fully utilised about 12 months after commissioning and thereafter the average annual production is expected to be about 385 metric tons of uranium oxide and 460 kilograms of gold In the light of the - potential ore reserves within the main block to be leased to Vaal Reefs which could support a much larger operation the new mine will incorporate features enabling the scale of operations to be easily expanded as circumstances warrant Uranium plant capacity at Western Deep Levels Limited is being extended from 65 000 tons a month to 265 000 tons month to enable the total Carbon Leader reef tonnage to be treated in addition to about 50 000 tons a month of reclaimed slimes from No. slimes dam The escalated cost of the extension is estimated at R50 million with commissioning scheduled for the beginning of 1981. Centares mined waste rock and crushing plant slimes to operating produce and profit amounted to over R2 million Depending on the gold price relation to costs the company should be able to continue on the present basis for at least another year As for the prospecting programme the results of the first of the two exploratory boreholes south and south of the plant area have been extremely disappointing Drillingis continuingin the second hole and the results will determine whether further expenditure is warranted Safety Despite the intensive efforts made to further from reduce accidents the fatality rate on administered gold mines increased from 1,29 per thousand employees in 1977 to 1,82 1978 there was however a reduction in the reportable accident rate from 43,47 to 40,59 Vaal Reefs won the Chairman's Safety Shield awarded on the basis of unprovement in time accidents and Free State Geduld was awarded the Chamber of Mines Millionaire Shield awarded to mines achieving a million consecutive fatality shifts capable of being sustained for polished goods the jewellery trade To counter the threat to the stabilitoyf the trade the CSO in March 1978 at the height of the speculative boom introduced temporary surcharges on its list prices Starting at 40 per cent the surcharge was progressively reduced as the market returned to more normal conditions 10 per cent in July At the August sale the surcharge policy was superseded by a substantial overall price increase of 30 per cent to encourage the liquidation of stocks of polished goods that had built up in the cutting centres Despite continued demand for rough diamonds the market has since quietened and trading conditions following the Christmas 1978 jewellery sales which were lowertthanhanmany had expected indicate a return to normality Industrial diamond sales in 1978 were also higher than the previous year's record In marketing natural industrial diamond the emphasis was on those qualities for which synthetic substitution is still not technically possible Synthetic diamond sales increased markedly reflecting sustained demand for products all synthetic grit particularly those in the coarser sizes and better qualities 14 AN Sy. the inhospitable territory of South Africa's Africa's coast with seals gulls and the occasional lonely fishing hamlet the diamond mines of De Beers Namaqualand division now a major producer of high quality gem diamonds These remote mining communities had to attain a degree of self sufficiency'normally sufficiency'normally found only in much larger centres not only in regard to health food and housing but also in areas no important to the quality of life such as education and recreation Directors review De Beers group results The 1977 and price increases and surcharges contributed to De Beers Consolidated Mines Limited's significantly higher consolidated net diamond account of R956 million which as a result of a change of accounting method is now arrived at after deduction of capital expenditure incurred in maintaining production but before deduction of export duty The corresponding net diamond account figure for 1977 was R735 million Income from other sources notably unlisted investments and interest received rose by R72 million to R263 million and expenditure by R9 million so that the consolidated profit before tax R1 R1 156 million was R284 million higher than in 1977. Taxation including export duty and profits the State's share under mining leases together absorbed R446 million an increase of R115 million Despite the higher incidence of taxation the consolidatneedt profit after tax attributable to De Beers rose by 32 per cent or R178 million to new record of R741 million After allowing for dividends on the preference capital the 1978 earnings equivalent to 205,5 cents 1977 156,1 cents a deferred share from which dividends of 65 cents 1977 52,5 cents were paid and R377 million transferred to reserves Diamond stocks increased by R35 million to R256 million while net current assets rose to R889 million 1977 R502 million At December 31 1978 the De Beers group's cash reserves stood at R1 295 million 1977 R683 million Diamond production from the mines of the De Beers group in South Africa South West Namibia Botswana and Lesotho amounted to 11 994 610 carats in 1978 compared with 11 808 195 carats in 1977 The main contributors to this increase were Finsch mine north of Kimberley the Orapa mine of De Beers Botswana Mining Company Proprietary Limited in which De Beers has a 50 per cent interest and the Namaqualand mines of which Koingnaas and the small Langhoogte mine were brought into production during the year Production decreased slightly at three of the four Kimberley mines mainly because of a policy to extend the life of these mines by retreating dump material and correspondingly reducing the treatment of ore from underground Production at Koffiefontein was also lower as part of the programme to mine the lower grade contact area of the pit and to create an ore stockpile before the change to underground inining in 1981 Production decreases at Premier mine and at CDM were attributable in both cases to a grade declinein recovery Letseng Terai mine Lesotho more than doubled productionin its first full year of operations Productive capacity is expected to increase substantially as a result of capital expenditure programmes within the De Beers group Modifications to the Finsch treatment plant costing some R58 million De Beers mine Dutoitspan mine Bultfontein mine ... Wesselton mine Dump retreatment Finsch mine Koffiefontein mine a Metric tons treated 1978 704 800 792 500 o 1977 725497 806 800 240 800 948 348 .187 400 _ 757 639 640 687 712 694 Carats recovered 1978 1977 720 963 128 214 112 285 885 729 498 733 56 556 817 _ 630 425 342 833 409 Carats per 100 metric tons 1978 1977 15,85 15,71 16,18 32,35 14,15 31,64 27,59 27,14 30,18 _ 69,99 66,65 9,30 11,04 Kimberley Division total Namaqualand mines Premier mine = CDM Letseng mine Orapa mine Letlhakane mine Totals 1001 861 225 964 4066.711 527 403 300 899.997 1417 680 000 400 200 . 565 : 087 564 211 054 224 1983 898 ~ 977 454 330 523 994 920 : 752 2010 2001 24,67 : 26,35 12,54 28,59 _ 28,42 13,43 22 688 3,46 3,34 010 68,45 67,98 981 - 29,74 . 31,82 808 will increase throughput by 40 per cent and improve recovery efficiency from mid 1980 Mining is to start further south along the Namaqualand coast in the Mitchell's Bay area and production through the Koingnaas plant is to be increased about 50 per cent during the same year The expanded Orapa plant in Botswana achieved full production early in 1979 and at the nearby Letlhakane plant full production from the second stage of development is planned for the latter half of the year A feasibility study of the new Jwaneng mine in southern Botswana has been prepared based on treatment of 400 000 tons a month and on production starting in mid 1982 at cost currently estimated at R270 million Access development to ore reserves below the gabbro sill at Premier is in progress although as result of bad ground conditions stoping in this area due to commence early- in 1980 will be delayed by some months At Letseng workis in progress to increase plant capacity this year to 150 000 tons monthin order to treat ore from the existing satellite pipe as well as from the pit ' The objective of fully integrated conditions of service for employees of all races on the De Beers group's mines in South Africa and South West Namibia is being furthered by the steady implementa- tion of the comprehensive job grading system adopted early in 1978 and by close attention to training and the development of employees Satisfactory progress was made with the extension of the financially assisted ownership schemes in Kimberley and at Koffiefontein to black and coloured employees Progress towards - introducing a day working week Premiermines at the Kimberley and continued during 1978 Continuing work at the De Beers Diamond Research Laboratory on the synthesis of diamond has broughtabout the development of an improved high pressure system and over the next two years new presses will be installed at the De Beers group's synthetic factories in South Africa Ireland and Sweden As a result of monitoring and refinement of existing synthetic grit products a new high impact strength product MDA100 has been developed to augment ranges already being used successfully in impregnated metal bonds for grinding glass and ceramics Further 16 Ly ey Directors review improvements in the quality of amber boron nitride have substantially increased market acceptance of ABN300 and the petal version ABN360 two superhard nondiamond abrasives used in grinding high speed steels The SYNDITE product range was extended to cover applications in rock drilling and turning tools for use on a wide variety of ferrous metals SYNDITE industry in conjunction with the South African Railways and the Richards Bay Coal Terminal Company Limited has embarked on a study of this major expansion programme The domestic market other than in supplies to Escom from tied collieries and the development of the Sasol 2 mine showed continued weakness resulting in coaling early in 1978 and produced 580 000 tons during the year with production planned to build up to 4,5 million tons a year when all generating sets at the power station are commissioned The export collieries in the Transvaal Bank Landau and Kleinkopje together supplied 4,9 million tons of low and steam coal out of the Transvaal Coal drawing dies were also marketed for the first time In collaboration with universities abroad an ray technique has has been developed for the fingerprinting of both cut and uncut diamonds and research into the potential use of this technique is reduced outputs from certain collieries in the industry With surplus capacity in the collieries supplying the domestic market buyers have become more selective in their requirements and this has emphasised the need to improve quality Owners Association's total 1978 exports of 10 million tons The export market for steam coal remained firm throughout the year and higher than anticipated sales of low metallurgical coal were achieved being pursued Further details of the De Beers group are given on pages 65 and 66 South African coal exports Amcoal group : Amcoal recorded further growth in 1978 Turnover increased by 19 per cent to R308,4 million and net equity earnings by 11,5 per cent to R52,7 million with dividends COAL raised by 20 per cent to 72 cents share .. Further growth in exports The South African coal mining industry The Amcoal group collieries had outstanding capital expenditure programmes totalling . R124 million in present money terms increased exports by 21 per cent to 15,4 million tons in 1978 earning R325 million in at the end of the year Amcoal's major new mine Kleinkopje colliery was brought foreign exchange which was 31 per cent higher than the previous year This into production on December 1 1978 an important achievement considering the achievement together with an increased - output from tied collieries for the Electricity decision to proceed with this project was taken only two years earlier Kleinkopje is Supply Commission Escom and the now supplying low coal to Iscor and commencement of production from the new steam coal to both the domestic and export colliery developed to supply Sasol 2 contributed to the six per cent growth in the markets at planned rates The first phase in the development of this mine will be aa industry's sales output from 85 million tons in 1977 to 90,3 million tons in 1978 completed within the original total capital estimate of R109 million in 1976 money Exports through Richards Bay reached 13,5 million tons in 1978 compared with 1974 1975 1976 1977 1978 Vryheid Coronation Limited despite difficult trading conditions in the metallur- 10,9 million tons the previous year This Sales during the year by South African gical coke market was able to achieve the high tonnage was achieved against a design capacity of 12 million tons and despite companies administered by the Corporation rose by four cent to 29,6 million tons same leveolf pre profit as in 1977 but an increase in the taxation charge resulted in machinery difficulties experienced in which was approximately 33 per cent of the the after profit of R4,16 million being 6,2 August and September The last quarter of _ country's total sales output with total per cent less than that earned in 1977. The the year saw the start of the commissioning of the planitn the Phase II expansion and the planned annual throughput rate of operating profits before tax of these collieries increasing by 12,7 per cent to R83 million The most noteworthy achievement Natal Anthracite Colliery Limited group of ~ companies experienced 13 cent reduction in after profits as a result of - 20 million tons was achieved as scheduled by administered collieries was in containing production difficulties which restricted by the end of the first quarter of 1979 unit working cost increases to an average . output at Natal Anthracite colliery In November 1978 the Government of 9,8 per cent well below the country's As part of the revised Government export announced revised export permissions in 1978 rate of inflation of 11,6 per cent allocations referred to earlier Amcoal has principle which will increase exports through Richards Bay from the present authorised level of 20 million tons to 44 The supply of coal to Escom by administered coal mining companies increased * by 1,5 million tons or nine per cent to been awarded permission in principle to export six million tons of coal a year for 30 years Of this permission two million tons a million tons a year consisting of 40 million tons of bituminous coal and four million tons of anthracite The South African coal mining 18,5 million tons as a result of increased sales by Kriel Cornelia and Vierfontein collieries Kriel's opencast mine commenced year has been granted firm as part of Phase II of the export programme and will be provided from Kleinkopje colliery when the & eo 17 21 4 sps a | eetigriemnirs L srs | if 4 ye Kleinkopje Amcoal's newest opencast venture was commissioned earlier this year and the first phase has quickly reached its planned annual production rate Iscor will be supplied with 500 000 tons of low ash metallurgical coal a year and of the 2,2 million tons ofsteam coal production most will be for export the official opening of the mine in March Mr Oppenheimer said that by any consideration Kleinkopje is an immensely important operation and have brought it into production in 18 months and within the estimated cost of R106 million is a remarkable achievement c) Directors review mine reaches full production Thus Amcoal improvement in early 1979 resulting from R25,8 million for the year ended August 31 has the opportunity to expand its export concern over supplies from Zambia Za^flre 1978 compared with R4,6 million for 1977 as activity by a further four million tons a year and Canada events in Iran and inventory The increase is mainly the result of 4 Although capital costs will be higher and replenishment by fabricators with the improved market conditions for platinum projected returns initially lower than for the monthly average price of 827 a ton in during the company's financial year first two phases of exports Amcoal is January 970 in February and 006 in particularly the increased demand by the US confident that additional coal exports will be - profitable in the longer term and therefore intends to participate fully in the Phase III expansion programme March However the price subsequently fell below 900 on several occasions but by mid June had firmed marginally to 916 It is estimated that for 1979 Western world consumption of refined copper will automobile industry and the Japanese jewellery industry coupled with the lack of sales from Russia The free market price of platinum responded by rising to 280 an ounce in August 1978 and by April 1979 the Wankie Colliery : Wankie Colliery in Zimbabwe Rhodesia again exceed production but by a lesser margin than in 1978. With generally firm price was in the range of 388 to 398 an ounce The company in turn increased its reported an increase in net earnings from 1,6 million to 4,3 million for the year ended August 31 1978 despite sales 15 reductions of 30 000 tons of coal and 000 conditions underpinning the market prices are expected at least maintain present levels for some time However a slowdown of economic activity as a consequence of the published price of platinum progressively from a range of 155 to 170 which had prevailed since February 1975 to 240 an ounce by mid 1978 and to 350 an ounce in tons of coke This was achieved partly by a 10 per cent price increase to Zimbabwe Rhodesian consumers and by containing fixed costs The dividend payment for the year increased from 7,5 cents a share in the previous year to nine cents ... recent oil price increases could have a deleterious effect as would any significant increase in production The improved market has had beneficial effects on the Zambian copper mines Nchanga Consolidated Copper Mines Limited NCCM and Roan Consolidated April 1979. These improvements justified the restoration of some of the 20 per cent cut in production which the company made in November 1977. During the financial year ended August 31 1978 Rustenburg Platinum Holdings acquired the entire issued share capital of Atok Platinum Mines Proprietary Further details of coal mines administered by Anglo American Corporation and those in which the Group holds a significant interest are given on pages 61 and 66 Mines Limited RCM have returned to profitable operation but with continuing losses of skilled staff and shortages of spares lower levels of output are expected NCCM produced 370 468 tons of finished Limited for R2,2 million Rustenburg's net earnings for the six months to February 28 1979 rose to R24,4 million from R300 000 in the previous half year and an interim dividend of five cents a share was declared OTHER MINING copper during 1978 compared with 407 978 tons in 1977. RCM's output was 283 387 tons Hudbay reported consolidated earnings for the year ended December 31 1978 of Brighter copper price outlook Several developments during 1978 led to a against 250 509 tons for the previous year As result of continued problems on the 5,1 million compared with net earnings significant turnaround in the Western world copper market after the unpromising outlook of year ago Increased consumption in the export route via Salaam the rail route for exports via South Africa was opened in the latter part of 1978 to enable Selected metal prices on open markets Quarterly averages Copper United States Japan West Germany and the excessive level of finished stocks to be Canada saw total consumption of refined copper in 1978 rise by six per cent over the 1977 level to 7,3 million tons The May 1978 reduced to normal levels A major escalation of cobalt prices developed during 1978 as result of military incursion into the Shaba province of Za^flrewas the main cause for the reduction restricted output from Za^flrethe world's leading producer following the Shaba Platinum in Western world production from 6,9 million tons in 1977 to 6,8 million tons in 1978. Total world stocks of refined copper of incursion NCCM and which recently _ commissioned a new designed to produce 2 400 tons of cobalt a year more than two million tons at the beginning of 1978 have reduced considerably while London Metal Exchange LME stocks ~ declined during the 12 calendar months successively increased their selling price from 6,50 a pounadt the beginning of 1978 to US pound from January 1979 At nearly K44 000 a ton cobalt sales are from 641 200 tons to 373 650 tons and to 254 450 tons at March 31 1979 expected to provide an important contribution to the profitability of each _ Nickel Following the Shaba incursion the LME monthly average cash settlement price for electrolytic copper rose above 750 in October and November and to an average of 772 in December There was a dramatic company during 1979 : In South Africa Rustenburg Platinum Holdings which owns the entire equity of Rustenburg Platinum Mines Limited reported consolidated profits after tax of 1975 if 1976 if fe 1977 1978 1979 19 t 3) som Directors review Canadian Merrill Limited and its 54,9 per Botswana RST Limited has an 85 per cent ~ before extraordinary items in 1977 of 4,4 interest in BCL Limited which operates million The consolidated results include cent interest in Francana Oil & Gas in turn owns 56,8 per cent copper mine at Selebi Phikwe in Hudbay's share of earnings and losses of Limited which of Trend International all reported Botswana The mine made considerable effectively controlled companies which are in which an during the year with production accounted for on an equity basis as well as decreased net earnings in a year resulted in lower sales progress and cost efficiencies Production in 1978 a net 2,6 million gain arising from the oversupplied market in western Canada while the was 39 517 tons of matte compared with conversion of the working capital of foreign of natural gas natural oil production decline in Indonesia 30 772 tons in 1977. However in spite of lower overall metal subsidiaries into Canadian dollars Despite from continued Increases in product prices were satisfactory cost control substantially increased revenues to offset these factors prices resulted in an operating profit of only higher sales of base metals and fertilisers in not sufficient Canadian Merrill's net earnings in 1978 P2 million 1977 loss of P5,9 million After million and decreased profit margins particularly substantial were 2,3 million compared with 3,6 loan interest payable of P26,9 fertilizers prevented any in 1977. Curtailed volumes of gas sundry items the loss on current operations -improvement in net profits Results from oil million P24,7 million compared with a loss of and gas operations in 1978 were on a par taken by the company's major customer during 1978 depressed net earnings was P31,6 million in 1977. Metal prices and with those of the previous year Contributions to operating profit before taxes Moreover Canadian Merrill reported a of its operating results are expected to improve in 1979 while means are being sought to for the were 1,9 per cent from base substantial downward revision year estimated natural gas reserves which improve the company's financial position metals 9,7 per cent from fertilizers and chemicals 73,8 per cent from petroleum resulted in higher depletion depreciation although the heavy interest burden will continue to result in an overall loss unless cent from industrial and 12,3 per and amortization charges in 1978. Francana 2,3 per cent from financial activities Hudbay paid had consolidated net earnings in 1978 of metal prices rise more rapidly than no dividends during 1978 after having 9,7 million down marginally from the recorded in 1977. Product anticipated Bindura Nickel formerly Rhodesian reduced its annual dividend from 80 cents a 9,9 million increases were negated by gas Nickel Corporation Limited having changed share in 1976 to 60 cents a share in 1977 has resumed price curtailments and increased operating costs its year end produced a consolidated net the nine months Since the year end Hudbay declared and expenses The contribution to Hudbay's profit of 1,7 million for dividend payments with a dividend Trend in 1978 approximately ended December 31 1978 compared with in January of 10 cents a share and a further dividend of 20 cents a share declared in April profits by was the same as in 1977. A merger of the Merrill 2,3 million for the year ended March 31 1978. No interim dividend was declared but interests of Francana and Canadian share Hudbay made three significant is considered the final dividend of three cents a investments during 1978 that broadened being International Inc. in absorbing 720 000 was the same as that Chemicals and strengthened its operating base in North cent interest declared for the year ended March 31 1978 which America In Canada the company Hudbay has a 50,5 per 1,3 million 1978 compared At the Cleveland Potash mine in the purchased a 37,5 per cent interest in earned with US million in 1977. Although United Kingdom in which Charter has a 37,5 Tantalum Mining Corporation of Canada q record the financial results per cent interest and Anglo American per . 44 and increased its ownership of Whitehorse revenues set a lower Corporation an effective holding of 11,9 Copper Mines from 41,2 to 100 per cent In were adversely affected by sharply ~ attributable to a worldwide cent production for 1978 was 249 000 tons the United States a new holding company and Minorco has product prices oversupply of ammonia and nitrogen- of potash Problems resulting from the owned equally by Hudbay of derived products higher costs of raw complexity of the orebody and the difficulty acquired 100 per cent of the equity natural of establishing a stable labour force at the and | production Inspiration Consolidated Copper Company materials particularly gas mine caused serious losses of Hudbay and Minorco had previously held increased interest costs Inspiration Consolidated Copper recorded during the year However a recovery which direct interests of 23 per cent and 15 per a loss for 1978 of 7,8 million compared began in the fourth quarter of the year Hudbay's cent respectively in Inspiration with loss of 11,1 million in 1977 with has been sustained in the first quarter Canadian Metals Division expects to realize a when the new 33 low metal prices curtailed production and of 1979 considerable savings increased costs for labour and materials Charter has a 10,6 per cent interest million concentrator at Stall Lake Mine em Studies to upgrade contributing to the loss Deliveries of copper Anglo American Corporation a 3,59 per cent interest in Tara Exploration and fully operational metallurgical plants at Flin Flon are in at 89,4 million pounds were marginally Limited which of Saskatchewan lower than in 1977 and the average price Development Company Limited progress The Government realised fell from 66,84 cents in 1977 to through its subsidiary Tara Mines has decided not to renew Hudbay's licence a lead mine at Navan in the to operate its hydroelectric plant on the 64,92 cents a pound in 1978. Extensive operates of Ireland Production began in Churchill River and discussions to studies are under way to optimize treatment Republic to determine the compensation to be paid processes including a major review of June 1977 and though it has built up at a recently begun , smelter operations Construction of a US slower rate than planned due both to Hudbay have million solvent extraction plant commenced technical factors and to labour disputes it is Hudbay's petroleum investments late in 1979 expected that a production rate of 450 000 represented by its 61,9 per cent interest in for commissioning 20 sees Ee ae LOT ee IWR dae EER Sor ice ae Bo . B Directors review Y: : i a S & . Ds i i # Pp F * . : 2 : 5 Fy a g ^' ann a , } o * tons of lead and zinc concentrates a year will be achieved by the middle of 1979 from 2,3 million tons of ore milled a year The delays coupled with the low zinc prices have prevailed until recently have INDUSTRY AND COMMERCE Gost pressures remain a concern The benefits of the modest upturn the South African economy in 1978 were . in the first three quarters of 1978. Such trends could lead to containing cost i <2 pressures which remain a source of concern and to a continued improvement in export competitiveness Overall the necessitated renegotiation of Tara Mines concentrated in certain areas with others debt financing showing little sign of revival Total private Beralt Tin and Wolfram Limited in which Charter now has a 50 per cent interest reported a pre profit of 3,5 million for 1978 compared with an adjusted figure of 4,7 million for 1977. During the year the {j consumption consumption expenditure increased by high about two per cent embodying a substan- tially increase in spending on durable goods notably transport equipment and a significant declinein durable Portuguese company acquired another wolfram mine Borralha in northern Portugal which has the capacity to increase goods including clothing and footwear Small growthin expenditure on foodstuffs reflected a further reductionin total real overall group production by approximately ' disposable income and continued high 20 per cent unemployment Improved sales of durable expansionary measures in the 1979 Budget should lead to higher growth in domestic demand and with recent changes in exchange rate policy hopefully serve to improve general conditions for investment and the balance of payments Manufacturing output BZ steel Industrial chemicals Mo|tor vehicles parts and accessories Swaziland Iron Ore Development goods resulted largely from replacement Company Limited continued to treat the stockpile of mined ore during the year and demand reinforced by expected price increases and was financed to some extent effected deliveries to Japan under the by savings and credit . medium contract Final deliveries under the contract will be made in mid 1979 and negotiations are being undertaken for the sale of the small amount of ore ; Real investment outlays dropped for the third successive year significantlythere was a major declinein wpuhbliiclesector activity it was mitigated by remaining after completion of the contract ~ The official opening new = Middelplaats Manganese mine near Sishen in the western Cape is to take place August this year Although construction of the incline service ramp has fallen behind the expansion of some public corporations Widespread surplus capacity inevitably . meant fallin private sector . another spending It was not surprising then that. the construction sector displayed marked weakness compounded by a large reduction CMe . . a - 1975 1978 1977 1978 The investments of the Corporation its administered finance companies and its associated companies in industry and schedule progress in general has been very - in private residential commitments satisfactory and the project is expeced be These developments in domestic demand completed within the original capital estimate Trial shipments of ore to potential customers have already been arranged were in reflected the pattern of industrial ~ outputoutput where the total volume increased by four per cent with major contributions commerce cover a wide range of activities including iron steel alloys chemicals and . explosives civil engineering and 4 __ construction drilling tools coal mining equipment refractory and other structural Zinchem and Industrial Mineral stemming from categories directly or Resources Proprietary Limited Zimro indirectly associated with the motor vehicle reported increased net earnings for the year . industry In addition some areas ended March 31 1979. The continued iron and steel basic industries fabricated clay products textiles plastics paperboard _ timber including wattle extract for the leather industry agricultural products and foodstuffs industrial equipment motor depressed trading conditions in the European chrome sand foundry industry together with product substitution in the refractory trade have adversely affected metal products industrial chemicals and paper and paper products - benefited from higher export sales On the there was reduced output in several other vehicles and components rail locomotives andand coaches shipping forwarding and clearing and computer services This wide spread of industrial interests is held the performance of Zimro Minerals & categories including manufacturers food both directly and through its investments Chemicals Proprietary Limited and Hudson and electrical machinery in Amic De Beers Industrial Corporation Mining Company Proprietary Limited Against this background the results attained are very satisfactory and reflect the benefit Highly competitive conditions remained a _feature of both domestic and overseas markets reflected by the fall in total Limited Debincor and Mainstraat Beleggings 1965 Beperk Debincor holds a substantial interest in AECI Limited the of the wide range of products in the Zimro group manufacturing profits in the first half of 1978 comparedwith the same period a year major chemicals and explosives manufacturer There are also other : Further details of mines administered by Anglo American Corporation and those in which the Group holds a significant interest are given on pages 62 and 67 earlier Obviously Obviously however the growth important industrial interests in Zimbabwe industries already referred to enjoyed better 'Rhodesia through Amrho in Zambia through results An encouraging sign after a decline 'Minorco and its subsidiary Zamanglo _ in the previous year was a significant rise in production per hour in manufacturing Industrial Corporation Limited as well as a significant interest in Barlow Rand Limited : : 2 : ob. a E : 2 a e : Z E : e : . oe * 4 4 oo L 21 NS Soe este a at Perinat 1 ah enshia bab ed eneneteaian Mundi Paper ned Durban is Soult Africa's princip^ princip^ supplier ut newsprint and in 1978 had exports worth 40 million Recently it won an order to supply 8.500 8.500 tons of newsprint to the US west coast In addition to newsprint Mondi s product range includes line writing and computer papers and with is new supercalendering equipment high quality magaz~-n~- papers When a fourth paper machine operation by the end of 1980 Mondi's Mondi's capacity will increase by 50 per cent to some 400 000 tons ^ year (OES A DEAE EP ne LOE Ace ar TY 2 ome Seca a Y aoe > Ges i = { Directors review y ., oP 4 B We engineering Ironsteel and The equity earnings of Highveld Steel and Vanadium Corporation Limited for the year tax profit for the six months to December 31 1978 will at least be maintained in the - second half of the current financial year ended June 30 1978 increased slightly to R21 million from R20,7 million the previous year Net income for the year ended December 31 1978 amounted to R12,5 Boart International a owned subsidiaroyf Amic reflecteda record group taxed profit of R17,7 million for 1978 compared with adjusted figure of R16,2 million compared with R9,8 million for the corresponding period in 1977 an increase of 27,4 per cent and the interim dividend was increased by per cent to six cents a share Difficult market conditions encountered million in 1977. Demand for group products was strong in South Africa and Australia but adverse conditions prevailed in Canada Europe and Zambia During 1978 Boart jointly with General Mining and Finance Proprietary Limited is the principal builder of electric locomotives and passenger railway coaches in South Africa Despite a decline in orders from the South African Railways since 1977 the company has maintained its profitability by rigorous control of costs The net income attributable to ordinary shareholders of Vereeniging Refractories Limited a subsidiary of Amcoal increased by 48 per cent to R4,9 million for the year ended December 1978. Coverland = in the financial year to June 30 1978 subsequently improved with the iron and steel works operating at full capacity though production at the Vantra division continued at a reduced level Production at Transalloys Proprietary Limited however has returned to full capacity Apparent world steel consumption in 1978 increased by six per cent over 1977 to reach new record level of 712,5 million tons Further world growth of about three per cent is forecast for 1979 with consumption in the free world increasing at a slower rate than in the communist Domestic steel **, demand during1978 showed some improve- + ment over 1977 but apparent consumption was nonetheless approximately 20 per - cent below the record level of 1975. Further modest growth is expected in 1979 With the commissioning of the plate mill Highveld increased its local market share : : for rolled products The demand for vanadium weakin 1977 strengthened early in 1978 and has since remained steady while the export demand and prices for manganese and silicon ferro- Corporation Limited formed Coalequip Proprietary Limited to market and + manufacture coal mining products An improvement in the group's main markets is Roof Tiles Proprietary Limitedreported improved results and the refractories = division improved its net operating income by 34 per cent to R6,5 million as a result expected in 1979 which with greater efficiencies and deeper market penetration : of the continued import replacement programme and increased orders from the should enhance profits Notwithstanding further difficulties experienced by theiron steel and engineering industry for the year ended December 31 1978 Scaw achieved excellent results with equity earnings of R18 million being 17,65 per cent higher than the - previous year This increase is attributable to an improved volume of export sales steel industry _ Civil engineering and construction Equity earnings of the LTA Limited group for the year ended March 31 1978 were R5,8 million compared with R5,2 million the previous financial year Earnings were 46 . cents a share as against 41 cents Work in hand at March 31 1978 valued at R301 _ from the iron and steel foundries higher prices for rolled steel exports and increased grinding media sales to the expanding mining industTrhye outlook for the foundries is encouraging mainly because of substantial export orders for railroad castings while grinding media sales should compared million previous : with R271 million the year The dividend was increased - by 0,5 cents to 19 cents a share For the six months to September 30 1978 equity earnings were R3,4 million compared with period R3,3 million for the same iin n 1977 Earnings were 27 cents a share as against 26 . satisfactory continue to be A successful.. year is forecast for rolled products as in addition to the price adjustment granted by the Government last September domestic cents Work in hand at September 1978 .was valued at R400 million It is expected that the results for the 12 months ended March 31 1979 will show an improvement over alloys showed significant improvements during the last six months of 1978 In terms of an agreement entered into in December 1978 Highveld acquired the Carbide trading assets of Rand Limited with effect from July 1978 andnow owns the entire issued share capital ofthat company This new division of the group also benefited from the improvement in world alloy demand both directlyin the form of silicon exports and indirectly demand has improved and export prices remain attractive Meanwhile every effort is being made to absorb escalating costs of essential materials and services and hold selling prices at competitive levels Itis - anticipated that Scaw's earnings this year will be higher than last year's The consolidated profit after of International Pipe & Steel Investments South Africa Proprietary Limited IPSA decreased by 26,4 per cent to R8,7 million those of the previous year Timber and allied interests The improved consolidated net equity . earnings for Mondi for 1978 of R11,4 million compared with R10,2 million the... previous year were due to buoyant . market for fine writing paper an increase in the local demand for newsprint and an . increase of 66 per cent in export sales coupled with fairly static raw material _ in increased sales of metallurgical char and electrode paste to the South African ferroalloy industry This acquisition contributed an encouraging 13 per cent to Highveld's . earnings for the half year to December 31 1978. Market conditions are not expected to improve but it is anticipated that the after- for the year to September 1978 Equity earnings of IPSA's two subsidiaries Stewarts& Lloyds of South Africa Limited and Dorbyl Limited decreased by 21,1 per cent to R6,3 million and by 24,6 per cent to R10,2 million respectively Union Carriage and Wagon Company prices In 1979 selling prices are expected increase along with a continued . improvemenitn demand although raw material prices are also expected to increase Available production capacity will be needed for a greater proportion of local sales so that export sales are likely to decline ee Directors review Meanwhile a fourth paper machine and a mechanical pulping plant are to be installed to become operative towards the end of 1980. Production facilities are - also to be expanded at the Durban factory of the subsidiary South African Board Mills Limited whose earnings fell slightly last year as a result of the disposal of its sugar mill With effect from January 1 1979 Mondi has acquired from Amic the total issued capital of S.A. Forest Investments Limited Safi in exchange for the issue of new Mondi shares Safi incurred a loss of R973 000 in 1978 as against a loss of R392 000 in 1977 The Sabie sawmill of the subsidiary Acme Timber Industries Limited was unable to operate to capacity and although some benefit was derived from improved sawn timber prices they were not commensurate with continuing cost increases Steps are being taken to rationalise sawmilling operations in Natal and with the disposal of the profitable operations of M.V. Houtprodukte Eiendoms Beperk together with further increases in selling prices and better use of capacity results for 1979 are expected to improve Efforts to increase export sales are continuing Net earnings of The Natal Tanning Extract Company Limited improved to R2,9 million in 1978 compared with R1,9 million in 1977 because ofa good demand for wattle extract Bruynzeel Plywoods made a profit of R1,5 million in 1978 compared with the previous year's loss of R2,4 million This improvement was mainly a result of benefits from the merger of the particle * activities with those of Bisonbord Limited as well as the stabilisation of selling prices : for sawn timber Motor and transport ss Sigma Motor Corporation Proprietary Limited increased sales of passenger cars and commercial vehicles by 49,9 per cent and 7,7 per cent respectively there having been an initial surge in sales before the introduction of general tax followed by a gradual recovery of the economy In January 1979 Sigma acquired Pacsa Proprietary Limited and the marketing of | Peugeot and Citro^ncars and Peugeot light commercial vehicles will continue through the existing Peugeot and Citro^n dealer network With the rationalisation ... industrial applications In the year to June and strengthening of dealer networks and 30 earnings dropped by 6,7 per cent to the enhancement of its product line Sigma is subject to the effects of the oil crisis R1,06 million on a turnover of R34,6 million dividends were maintained at 18 cents expected to improve its market share and share The company's subsequent results move into profitability in 1979. Negotiations have shown a marked recovery with turnover for the merger of the company's of R30,9 million and earnings of R1,3 million Equipment and Truck Division with certain recorded for the nine months to March 31 interests of Leyland South Africa have been terminated McCarthy Group Limited the largest retail motor organisation in South Africa 1979. The interim dividend was increased by one cent a share to eight cents a share Food increased new unit sales by 10 per cent The 1978 South African maize crop 10,05 during the year ended June 30 1978 million tons was the second highest annual representing 11,9 per cent of the total total on record It was unfortunately vehicle market and increased net equity earningtso R3,2 million compared with R1,6 million the previous year followed by inadequate rainfall for the 1979 crop which is now estimated at around seven million tons and at that level exports Despite static economic conditions during the 12 months from May 1 1979 Freight Services Holdings Limited will have to be reduced from 3,3 million tons maintained revenue while increasing to one million tons attributable group profits by more than 40 |, African Products Proprietary Limited is per cent This improvement reflects ongoing the largest processor of maize for industrial benefits arising from the merger of the purposes in South Africa producing former Freight Services Aero Marine and starches glucose and dextrines at Germiston Manica groups Major developments during the year have been the commencement of and Meyerton in the Transvaal and at Bellville in the Cape In the year to container throughput at S.A. Container September 30 1978 the company's earnings Depots Proprietary Limited the opening of rose by 18,2 per cent to R3,8 million The the Fynnlands steel export facility and the merger of the ships agency companies to Corporation and associated companies had had a significant minority interest in the form Freightmarine Shipping Limited After- original African Products Limited since tax profit for 1978 was R6,9 million 1977 : R4,6 million 1963 and in December 1978 Amic acquired ky vA its entire issued share capital and trading assets The business was merged with a Chemicals and explosives : AECI achieved an increase in group sales in 1978 of 19 per cent to R703,5 million while wholly subsidiary of Amic Orange . ' Free State Land and Estate Company changed Proprietary Limited which then changed net equity earnings rose by 54 per cent to its name to African Products Proprietary : : R57,3 million The total volume of sales in the Republic improved by 11 per cent during the year with increases in all sectors in which AECI operates The million Coalplex project a joint venture with Sentrachem Limited in which AECI has a 60 per cent interest and which was Limited In the year to September 1978 both Soetvelde Limited and RFF Proprietary Limited improved their operating results The return on the funds invested in these two undertakings is however very far from satisfactory \ commissioned during 1977 is now fully and reflects the unhealthy situation in operational producing polyvinyl chloride which South African agriculture finds itself PVC carbide acetylene chlorine and caustic soda The plant which uses coal as a base is approaching breakeven and in view of the oil price increases has exceptional Escalating operating costs continue to out- strip increases in prices received by farmers the alarming rise in the farming community's debt adds further urgency to term potential gaining acceptance from consumers that The Chemical Holdings Limited group agriculture is entitled to fair profit margins manufactures and markets a wide range of The Tongaat Group Limited's net equity formulated and other chemicals for earnings for the year ended March 31 1978 The widely varying soils that run from the banks of the Berg river up the shady side of the Simonsberg in the western Cape together with the scientific picking of grapes at optimum ripeness combine to produce a natural range of delicate wines for which the Boschendal Estate is winning increasing recognition At national and regional competitions Boschendal wines won 13 awards including a trophy for the Champion Riesling of the Year Another wine which has attracted particular interest is the Bouquet de Fleurs dry and aromatic and unique among Cape wines Riesling NATE NR Panel BOE AB TET MO ey eed a om: Q -v Directors review rose by 5,5 per cent to R10,8 million this was followed by an of increase 16,8 per cent to R12,6 million for the year ended March 31 1979 Townships Mining and Finance Corporation of an unlisted investment The 1977 profit Limited Creative Homes Limited included a R74 000 surplus on the Kenilworth Centre Proprietary Limited repurchase of debentures Carlton Centre's Marina da Gama Limited and Carlton Centre interim report for the six months ended In Mozambique the two cashew processing companies administered by the Corporation Mocita S.A.R.L. and its subsidiary Antenes S.A.R.L. another Limited These interests managed by Anglo American Property Services Proprietary Limited Ampros include central city shop and office complexes suburban shopping December 31 1978 reported a profit of R1,5 million including a surplus of R175 000 on the repurchase of debentures f a Amaprop reported loss for the 12 months o ' 4 successful year in 1978. Despite all the centres and residential commercial and ended March 31 1979 of R4,7 million } highly unfavourable influences to which industrial township land compared with a loss of R655 000 the a a they were subjected the two companies The past year has seen some decline in the previous year This increased loss is largely earned taxed profits equivalent to R528 000 large surplus of shop and office space and due to the creation of an additional and declared dividends of R333 000 residential accommodation which has R3,7 million provision for losses relating to Exchange control regulations continue to prevent remittance of dividends arisen over the previous five years As there is very limited new property development in any of the major centres and as surplus Amaprop's investment in Marina da Gama the development in Muizenberg Cape Town where land sales have increased over the Other commercial interests accommodation is being reduced rents are previous year but at prices below original The Industex Proprietary Limited group which manufactures industrial Wellington household textiles acquired Industries Proprietary Limited which also produces household textiles on January 1 1978. Demand group's products improved toward the end of 1977 continuing during the first half of 1978 and as a result consolidated taxed profits for the year ended June 30 1978 were 38,5 per cent higher than the previous year expected to start to recover from the depressed levels which have prevailed for long time Any increase in income coupled with a reduced interest rate pattern will assist property companies in the short to medium term 259000 Of the square metres of shops 442 000 square metres of offices and 2 400 residential units managed by Ampros 99 per cent 92 per cent and 99 per cent respectively had been let at March 31 1979 cost Demand for industrial township land is weak and any improvement will depend on a general upturn the economy Amaprop's wholly Cabana Beach resort hotel increased earnings details Further the principal property companies administered within the Anglo American Corporation Group and thosein which the Group holds a significant interest are given on pages and 68 Computer Sciences Proprietary Limited The position of companies holding township provides computer bureau service facilities computers communications through a nationwide data network and markets mini and terminals supported by comprehensive engineering maintenance facilities and customer support functions As a result of the rapid growth in the date processing market the investment made by Computer Sciences in an improved product range and higher levels of customer service and staff development revenues rose in 1978 by significant 22 per cent and profits showed a : " improvement land for resale is however less promising with surpluses on hand and demand at a very low ebb The net earnings of Sorec for the 12 months ended March 31 1979 amounted to R1 million compared million for _ previous 18 months and in view of the company's overall financial position no dividend has been declared The only changes to Sorec's portfolio during this period have been the acquisition of Zambesi House a small office block immediately adjacent to the Carlton Centre in Johannesburg and the disposal of the EXPLORATION AND RESEARCH Coal reserves continue to improve Exploration for a wide range of base metals and uranium continuedin South Africa South West Namibia and in many other parts of the world Investigation of a small secondary uranium deposit in the north Cape is nearing completion and a decision as to its viability will be taken this year Exploration in the Karoo where number uranium occurrences are being investigated in conjunction with the Spanish nuclear fuel Further details of the principal industrial and commercial companies in which the Group holds a significant interest are given on pages 62 to 67 PROPERTY interest in the Rogoff Rand township group The Corporation and associates have a 90 per cent interest in Carlton Centre which comprises a storey office tower the storey Carlton Hotel a major shopping centre covered parking for 2 000 cars and an ice rink Carlton Centre made an after- company Empresa Nacional del Uranio S.A. has so far failed to locate viable deposits and the future of this project will depend upon further work during the coming months Interesting results have been obtained from work which is being carried out in association with the French companies " own Prospects for property improving tax profit for the year ended June 30 1978 Minatome and Omitaramines and Union * Property investments are held mainly of R2,4 million compared with R952 000 Corporation Limited the secondary rol through Anglo American Properties Limited the previous year The 1978 profit includes uranium deposits at Tubas in the Swakop- Amaprop the property owning subsidiaries surplus of R957 000 arising fromthe mund area of South West Namibia of African Eagle Life including Sorec repurchase of Carlton Centre's Further exploration is being conducted in Limited and Amcoal South African debentures and a R100 000 profit on the sale : an attempt to achieve a viable tonnage Lae R100 27 Cy te ae are ARO AEE Fe TE as HB, oe ( Directors review ' The previously reported copper discovery in the Sperrgebiet in South West Namibia proved to be oxidized to more than 300 metres and exploration has ceased for the time being while other targets preliminary feasibility study towards the end of 1979. Indications are that the grade of the ore bodies is low relative to the * expected cost of a mining project though undoubtedly this resource will be of future active in a number of projects to improve operatingefficiencies of production units The environmental protection group which has experienced a sharp increase in activity will soon be strengthened to cater for the in the immediate region are being investigated Gold exploration continued at a high level In the Erfdeel Block north of Free significance In Brazil Ambras is conducting increasing range of ecological problems being encountered in mining and related substantial exploration for gold and base activities An important topic receiving metals through Unigeo Geologia e Minera^ao attention is surface rehabilitation after State Saaiplaas the drilling programme was completed early in 1978. The geological assessment indicated a substantial tonnage Drilling of the auriferous conglomerates at Jacobina in Bahia has ceased and work is concentrated upon metallurgical open coal mining At the Anglo American Electronics Laboratory an analogue system for the e : " at a marginal average grade and mining and engineering studies are in progress Significant gold and uranium results continued to be obtainedin the south of tests and mining plans with particular reference to recoverablegrade More detailed estimates of the expected operating and capital costs for various scales of detection of underground fires in gold mines has been developed which also eliminates the occurrence of false alarms The system is being installed on all the Corporation's _ the Orange Free State goldfields but the operation are being obtained administered gold mines All mines are structure and geological relationships are complex and an expanded drilling programme is still in progress Drilling south and west of the Vaal Reefs mine has continued with variable results while south Charter has continued prospecting with an emphasis on uranium and tungsten In the NorthSea Charteris one of a group of companies holding a fifth round licence over two adjacent blocks and seismic data also being equipped with power maximum demand controllers developed in the laboratory with substantial savings in energy usage Among other projects undertaken during the year were a familiarisation of the Western Areas mine additional is being interpreted to delineate a possible programme on processor systems intersections of the upper Elsburg reefs have drilling target Charter also participates remote control for underground scraper been obtained which warrant further in the exploration programmes of Australian winches and in conjunction with AARL a & investigation Exploratory work for uranium north of Klerksdorp continues but without significant developments at this stage The strong coal reserve position of administered by Anglo American Anglo American and Ambras Exploration in Canada was continued by Amcan and Hudson Bay Exploration and Development Company Limited Base metals were sought throughout the country a system for automatic analysis of gold in plant effluents In the mining field the main research objective remains the improvement of labour productivity through mechanisation and companies method continued to improve during the especially in the Flin Flon area modification The mining research Corporation exploration exploitation year Proven reserves owned and available Trend Exploration Limited continued oil department evaluates new mining systems oat 7 for were increased by some 200 in in Indonesia Canada and the and its emphasis on medium- and short : to 6,6 billion mine tons while United States and elsewhere outside North projects has complemented the term meixlpllioornation ' = activities resultedin further States considerable progress being made toward America Canadian Merrill participatedin drilling both in Canada and the United project work done by the Chamber of Mines of South Africa research establishment the target of securing in excess of nine and Francana Oil Gas was involved Other activities have included the billion mine tons of proven reserves in consolidated coalfields Exploration activities are also carried out beyond southern Africa Australian Anglo American was active in Australia New exploration in Canada Research a J The majority of the Anglo American Research Laboratories AARL activities development of a stoping system improved sequential firing and walking blast barricades accompanied by backfilling To date raiseboring has had a major impact on accelerating the commissioning of new shaft Zealand and Fiji In the Kimberley district of Western Australia the search has continued were again directed towards work for the Gold and Uranium Division and various systems and in most instances results in a faster build of stoping operations achieve for extensions to the Sally Malay nickel exploration functions Studies to The potential of mechanical tunnel borers processes and copper deposit as well as for additional optimum results from recovery was proved with the completion of the first Of inineral zones Other prospects are being were carried further at the Orange Free mechanically bored tunnel in a South investigated throughout Australasia At the Namosi porphyry copper prospect State gold plants at Ergo and on Afrikander Lease ores The previously developed use African gold mine at Free State Geduld in , February in Fiji work by the joint venture comprising Australian Anglo American Consolidated of activated carbon to recover soluble gold and silver is now in scale operation June 22 1979 Zinc Rio Tinto Australia CRA Preussag A longer project to recover high and Amax continued Drilling on the two purity tungsten compounds from its main ore bodies is well advanced and principal ores continues to make good metallurgical testing and initial engineering design work is aimed at producing a progress A process analysis and control group has been established anids already Annual financial statements for the year ended March 31 1979 The annual financial statements which appear on pages 30 53 were approved by - the board of directors on June 22 1979 and are signed on its behalf 30 Directors report 32 Balance sheets n 33 Income statements 34 Notes to the financial statements . 43 Source and application of funds statements 44 Subsidiary companies of the Corporation 50 General investments * Directors HF Oppenheimer Keith Acutt GWH JT Goldfinch Managing Secretary G Leeman Chief Accountant \y 2 . Auditors report oY To the members South Africa Anglo American Corporation of Limited We have examined the annual financial statements and group annual financial statements set out on pages 30 to 53 In our opinion based on our examination and the reports of the auditors of those subsidiary companies not audited by us the financial statements fairly present in the manner required the Companies Act the financial position of the Corporation and of the Group at March 1979 and the results of their operations for the year ended on that date : ALEX AIKEN & CARTER GOLDBY COMPTON & MACKELVIE Chartered Accountants S.A. Johannesburg June 22 1979 Directors report The directors have pleasure in submitting the annual financial statements of the Corporation together with the group annual financial statements of the Corporation and its subsidiary companies for the year ended March 31 1979 insurance Life insurance - The directors of African Eagle Life Assurance Society Limited agreed that the life companies would continue to invest all surpluses in future new business growth and to supplement the inner reserves of the GROUP RESULTS _ This report relates to the consolidated life fund and no surplus has therefore accrued to the Group from the life insurance business income statement and balance sheet of the yy 2 Corporation and its subsidiary companies Dividends The dividends shown above comprise the Profit and appropriations The Group profit after taxation for the year under review was dealt with as follows = Group profit after . taxation Year 15 Months ended ended March 31 1979 March 31 ' 1978 millions R millions a 248,1 _ 241,7 Outside shareholders interests in profits of subsidiary companies Preferred stock and 42,7 46,4 a preference share dividends 3,4 - 0,3 following 1979 Preferred stock millions * Nos 98 and 99 each of 3 per cent declared June 5 and November 23 1978 respectively 0,3 Preference shares No. 1 of 5,25 per cent declared December 15 1978 33 Proportion accrued at March 31 1999 33 $ 1978 R millions 0,3 _ * 0,3 : ' Profit attributable to ordinary shareholders before extraordinary items 7 Per share 90,2 cents 1978 89,9 cental dividends Ordinary dividends ~ Retained profit before extraordinary . items Extraordinary items 46,1 : 202,0 103,0 ; 99,0 6,9 - 46,7 : Ordinary shares ' No. 85 interim of 14 cents a share 1978 12 cents declared : ; ~ 195,0 November 23 1978 31,2 . No. 86 final of 32 cents a share 1978 25 cents 99,1 ' : declared June 7 1979 Special interim No. 82 71,8 of 8,25 cents a share , declared May 3 1977 95,9 - . 33,5 103,0 26,8 : . 55,7 : 16,6 99,1 Retained profit after extraordinary . items 7 92,1 62,4 Extraordinary items Continued difficulties were experienced during 1978 at Cleveland Potash Limited . Unappropriated profit * March 1978 Adjustments to unappropriated profits brought forward Transfers to reserves Unappropriated profit March 31.1979 17,5 1,1 18,6 110,7 100,0 10,7 . 16,0 14,1 30,1 92,5 75,0 17,5 which resulted in a loss of 15,5 million for the nine months to December 1978 The Group holds an effective 11,9 per cent interest in the project Although the mine is performing better at present and may break even on its operating costs by the end of the year further funding will again be required this year to meet the costs of finance and future capital expenditure In view of the uncertainty surrounding the future prospects for the project the directors have considered it prudent to provide in full as an extraordinary charge the sum of R16,3 million against the Group's investment in Cleveland as at March 31 1979. Tax relief claimed and favourable changes in exchange rates in respect of prior years extraordinary charges against investments had the effect of reducing the appropriation for extraordinary items by R9,4 million to R6,9 million review Investments " During the year under review the book value of the investments other than life insurance investments increased by R43,3 million to R878,9 million of which listed investments increased by R33,7 million and unlisted investments by R9,6 million The market value of listed investments at March 31 1979 was R3 071,4 million and exceeded the book value by R2 323,9 million compared with an excess of R1 282,9 million at March 31 1978. The unlisted investments were valued at R314,5 million compared with a valuation of R272,3 million at March 1978 . Capital AUTHORISED ; ; At April 1 1978 the authorised capital of the Corporation was R30 000 000 divided into 240 000 000 ordinary shares of 10 cents each a | 1 241 250 six per cent preference shares - of R1 each and R4 758 750 six per cent cumulative preferred stock oe oo In terms of a special resolution passed by members at a general meeting held on June 1978 the 1.241 six per cent preference shares of R1 each were converted and divided into 49 650 000 redeemable cumulative preference shares of 2,5 cents each As a result at March 31 1979 the authorised capital of R30 000 was divided as follows 240 000 000 ordinary shares of 10 cents - each oa ; 49 650 000 redeemable cumulative preference shares of 2,5 cents each and R4 758 750 six per cent cumulative preferred stock 30 4 ISSUED Ordinary shares Shares in issue at April 1 1978 Allotted during the year Conversion of Rand Selection Corporation Limited RSC 6,5 per cent loan bearer bonds Exercise of share options granted to senior employees Issued in terms of the share incentive scheme . Shares in issue at March 31 1979 Allotted since April 1979 . Conversion of RSC loan No. of shares 222 964 532 893 245 26 000 94 600 223 978 377 175 436 respect of the RSC US 820 000 6,5 per cent convertible loan 1986. The balance of 13 768 766 unissued ordinary shares together with the 9 650 000 unissued redeemable cumulative preference shares are the subject of a general authority granted to the directors in terms of Section 221 of the Companies Act 1973 as amended This general authority remains valid only until the next annual general meeting which is to be held on August 17 1979 and members will be asked at that meeting to consider an ordinary resolution placing the remaining unissued ordinary and preference shares under the control of the directors The full texotf the proposed resolution is set out in the notice convening the annual general meeting A McKerron Alt L G Stopford Sackville June 22 1979 Resignations and withdrawals D Johnson Alt to J Ogilvie Thompson July 21 1978 D Melville Alt to C J L Griffith September 5 1978 : DE DE MacIver Alt to Sir Philip Oppenheimer January 10 1979 A Johnstone Alt to L G Stopford Sackville June 15 1979 H Fraser June 22 1979 A McKerron Alt to H Fraser June 22 1979 EP Gush June 22 1979 Dr M G Atmore Alt to E P Gush June 22 1979 Exercise of share options Shares qualifying for final 67.500 Share premium At March 31 1979 share premiums totalled In terms of the Corporation's articles of association Sir Keith Acutt Mr J N Clarke dividend No. 86 and also being the number in issue at R44,9 million reflecting the R39 million premium resulting from the issue of the Mr G C Fletcher Mr M B Hofmeyr Sir Philip Oppenheimer Mr J Ogilvie Thompson and date of this report 224 313 40 000 000 redeemable cumulative Mr G H Waddell retire from the board by preference shares referred to above and rotation at the forthcoming annual general special Preference shares Subsequent to the passing of the premiums totalling R5,9 million arising from the issue of ordinary shares under the share meeting All the retiring directors are eligible for election Details of the resolution referred to above on July 1978 G 40 000 000 redeemable cumulative preference shares of 2,5cents each were _, option and incentive schemes and upon conversion of RSC bearer bonds after deduction of share issue expenses : * interests of the directors are given on page 69. There are no service contracts granted by the Corporation or any of its subsidiaries issued to certain South African financial "s to any directors of the Corporation institutions in a private placing at a price of ~ R1 per share No application was made for a SUBSIDIARY COMPANIES Details of subsidiary companies in which the DIRECTORS REMUNERATION stock exchange listing for these shares which yield a dividend of 10,5 per cent per Corporation has a direct or indirect interest are given on pages 44 to 49. Particulars of calculated annum on the issue price <. payable yearly in arrear on June 30 and special resolutions passed bythese companies during the period under review December 31 each year The shares are " appear on page 69 of this report redeemable at R1 each in four equal At the general meeting which in terms of ' the notice appearing on the inside front cover of this report has been convened to follow immediately after the annual general = meeting on August 1979 members will be asked to consider a special resolution to instalments on July 1985 January 1986 July 1 1986 and January 1 1987 There were no other issues of preference year shares duringthe this report and up to the date of DIRECTORATE The following changes occurred in the composition of the board of directors Appointments E Bullett amend the articles of association by the adoption of a new article 93 in substitution for the existing article The effect of the new article will be to change the basis upon ~ which the annual remuneration of the Preferred stock Alt to A Holmes May 10 1978 directors is calculated principally owing During the year ended March 31 1979 and up to the date of this report there were no Dr Murray Alt to NF Oppenheimer May 10 1978 to the continued erosion in the value of money The present effect of the articles of changes to the 758 750 six per cent JD Taylor association is that the Chairman receives cumulative preferred stock in issue Alt to Sir Albert Robinson May 10 1978 R6 000 per annum and each other UNISSUED TL TL Pretorius director R3 000. The effect the proposed . . Of the 15 778 687 ordinary shares which Alt to Sir Philip Oppenheimer new article 93 will be to increase the were unissued at June 22 1979 specific authority has been granted to the directors to allot andissue up to 626 700 sharesin respect of the share option and share January 1979 Dr MAF MAF Ferreira Alt to J Ogilvie Thompson January 11 1979 A Braithwaite remuneration to R12 500 for the Chairman and R5 000 for each of the other directors With the present board of 21 directors the total amount payable to directors will . incentive schemes and 1 383 221 shares in Alt to CJ CJ L Griffith January 11 1979 increase from R66 000 to R112 500 , \ \ NN Balance sheets at March 31 1979 Figures in R millions Corporation 1978 1979 22,3 = 351,9 207,8 582,0 , 4,8 Sa 4,8 586,8 22,4 5,9 351,9 239,3 619,5 4,8 1,0 39,0 44,8 664,3 Ordinary shareholders equity Ordinary share capital . 06.6 ccc ccc eee e rete Share premium 1.000... 00. e eee eens eect distributable reserves Distributable reserves . eenes Notes 2 3 4 5 Preferred stock and preference shares - Preferred stock ....... cece reece eee een eee n eee een n ete tne 223 Preference share capital . 02.0260 Cee eee vee 223 Preference share premium Meee 223 ? Outside shareholders interests in subsidiary companies .............- 6 1979 22,4 5,9 366,7 560,2 955,2 57,3 56,8 Loan capital ..... secae See e een enone e cee ene e eect eneeeenane 7 Life insurafunndcs e.......... 2.0.0 ccc e ener e eee eet eneneee Leese 8 393,7 575,6 Loans ......... weeeveeese peed e eee eee eee Beene teen ees 9 17,6 55,7 73,3 111,1 112,0 11,4 123,4 20,9 72,8 Other liabilities provisions Creditors taxation and provisions Shareholders for dividends ; Bank overdrafts . see ... 2.20. .0. c. eve. s ee. e e e. ee ; 93,7 y 390,4 . 132,4 16,6 Represented by Oy : Investments : General investments ... 7 a Listed -market -market value group R3 071,4 R1 996,7 661.2566. tee Unlisted - directors valuation group R314,5 1978 R272,3 149,0 Life insurance investments ......... Leas Mees Leeee 466,6 Interest in subsidiary companies weeeeudens Fixed assets oo 00.0050 0cuee eset c eee ( e tc eteenecaveeed _? 9: a 10 10 69,0 . 72,8 11,5 153,3 2 582,8 747,5 131,4 878,9 678,9 | 557,8 39,1 164,0 18,9 296,5 315,4 iia 227,0 29,8 518,0 547,8 1 390,4 Leasing assets vecees eeeaeLeeeeeenes ee neee e nce n ee tes Instalment ...... 00.06 c ieee ee eee se eeees \Medevee ace 9 Loans - less provision 0... 09%... ccc i nee eve cedeceeeceeseeeeneenes ; : Other assets ^' Stocks stores and work in progress .....6-..0-eeees be eeeeeneeetere Debtors 2... ccc eee eee tee eee twee eens vee ee enone seen eees Cash on deposit at call and short notice 22.6 0. e. ee6 ren. ee r. en. ee 15 9 9,8 13,5 266,6 + 9,5 138,7 547,8 696,0 2 582,8 ax) 32 713,8 121,8 835,6 -577,4 1413,0 29 . - 38,0 10,4 ~ 17,0 207,3 a 8,2 100,6 335,1 443,9 129,6 ? : ae Corporation 1978 1979 Fifteen months Income statements for the year ended March 31 1979 Figures in R millions 1979 Group 1978 Fifteen months ' : ; Li 6 : 32,6 59,0 4,3 100,5 196,4 40,0 14,7 6,8 2,8 64,3 132,1 10,1- 122,0 0,3 121,7 on : 99,1 0 8 22,6 21,4 , 1,2 0,4 - 0,9 ; : 0,3 _ fos 33,3 74,2 4,6 106,3 218,4 49,5 | 10,6 0,6 1,7 62,4 156,0 10,2 145,8 3,4 142,4 103,0 : 39,4 7,9 31,5 0,3 - 0,3 31,8 31,5 31,5 0,3 Investment income - general investments ........-3. sce eee recone Interest earned and fee income less expenses ......-...ccseeeueueeee Trading profits 0... cece tee Vaca e reese ene e enn eeees beeeeee Surplus on realisation of general investments Income from subsidiary companies .............. bee e ecb een ceeede 1B Interest paid prospecting Costs of prospecting eee eee ete e ete e eee Provision against investments ... Provision against loans ede eee beet e ee ete reees elas ones eee ee en cetes Profit before taxation ..... fea TaxaTaxattioniTaoxationnTaxtion Ca 19 220,6 82,8 8,4 11,6 323,4 44,1 11,8 2,5 58,4 265,0 16,9 Profit after taxation 20 Outside shareholders interests in profits of subsidiary companies ...... Preferred stock and preference share dividends ...........6......08. 23 Profit attributable to ordinary shareholders before items extraordinary eee ke eee eee ee eee eee eee tbe e eee enesetaes Group earnings per share 90,2 cents 1978 22 from 89,9 cents . Net loss changesin arising evxe.c.h.ange rates ee ees | Transfer from currency reserve rates eee eee eke eben 248,1 42,7 42,7 46,1 202,0 Ordinary dividends SS yee errs .23 Retained profit before extraordinary items * see e eee ees Extraordinary items --o.coctsensiitireteeeteetenres ; Retained profit after extraordinaryitems 0.6. eee cece veces veces Unappropriated profit Marc3h1 1978 oo vive ce eegedeeensenees penne during Retained profits of subsidiary companies acquired |the period minority attributable to the Corporation's former interest period veces 24 Calan Adjustment for thereto Adjustment taxation prior yecahrasnges eee for in exchange rates sabes . ease eens eee eee 103,0 99,0 . 6,9 92,1 17,5 17,5 0,8 . 1,9 18,6 Appropriations to reserves Dede distributable reserves ......... General reserve vis... sees beeen 3 Melee e eee ene eeeseees es eee ee eee ee at ee teen sees eeniees 110,7 0,9 99,1 100,0 10,7 213,2 78,4 9,6 3 18,1 319,3 40,4 15,2 5,0 60,6 258,7- 17,0 241,7 46,4 0,3 46,7 195,0 0,6 . 0,6 15,7 31,7 0,3 1,3 30,1 92,5- 5,1 69,9 75,0 17,5 33 a a Notes to the financial statements Figures in R millions unless otherwise stated 1. Accounting policies ~ a Investments i The listed and unlisted general investments of the group are predominantly earning term holdings Where in the opinion of the directors a permanent diminution in the value of an investment flowing from normal circumstances has occurred provision for such diminution is charged against current profits ii Expenditure including interest where applicable relating to the development of land buildings forming part of the insurance investments is capitalised and included in the capital cost of the development b Mineral rights Mineral rights and certain development expenditure are generally maintained at book cost Where however exploitation is not likely in the foreseeable future expenditure is written down to a nominal value ' c Instalment debtors and leasing assets Income in respect of instalment debtors and leasing assets is included in the income statement in proportion to the : . instalments accrued . : d Stocks stores and work in progress Stocks and work in progress are valued at the lower of cost and net realisable value on bases consistent with the previous year Cost is determined mainly on the average cost basis and the cost of work in progress includes a proportion of overheads Consumable stores are valued at cost adequate provision for obsolescence ; Sed exchange . e Foreign currencies Assets and liabilities in foreign currencies not covered by forward contracts are expressed in South African currency at the rates of exchange ruling at the year end The rand value of investments acquired from the proceeds of foreign loans covered by forward exchange contracts is : adjusted for any change in the rand liability the loan Gains or losses arising from foreign currency transactions and conversions other than those , relating to insurance ; are : transferred to or charged against a currency reserve : . ; : subidaries Life insurance subsidiaries cn, ; ; The information shown in the consolidated financial statements in respect of subsidiary life insurance companies is in: - : of Act accordance with the provisions the Companies relating to insurance companies In particular of i The market value listed life insurance investments isnot disclosed The basis of v. aluation of these in>vestments is . Bos vt a a. : in _ stated note 11 : ~. ii Contingency reserves and movements thereon are not separately disclosed expenditure iii Insurance surpluses are after transfers to or from contingency reserves Individual items of income and . ~ and taxation other than those required to be disclosed in terms of the Act are not separately stated Additional appropriation oS transfers to contingency reserves may be made as an : ; of profits Bal g Turnover Due to the nature of group's income the directors are of the opinion that the disclosure of a turnover figure would be : the : ne : a8 meaningless h Depreciation on . ae : The Corporation and certain of its subsidiaries write off expenditure on office research and transport equipment : S in the , : . , year of acquisition Depreciation of leasing assets is provided on a straight line basis over the periods of the leases No depreciation of depreciatingbuildings Other is provided assets are depreciated on straight line or diminishing value bases to reduce their book values to iy estimated residual values over their effective lives ; vt i Prospecting expenditure Prospecting expenditure is written off the year in which it is incurred 34 S of _ 7 ; 2. Capital - * Authorised : ati . : 1979 . 1978 * 000 ordinary : : : 240 000 Deel shares of 10 cents ........ ee gna 1 250 six per cent cumulative preference shares of R1 ... be tee eee tees eee eeeeeenenncey a 24,0 > = 24,0 1,2 ae cumulative 4= ,8 9G R4 758 750 six per cent preferred stock ............-+eee0ee 4,8 ; 49 650 000 redeemable cumulative preference shares of 2,5 2,5 cents 1,2 _ a= Bo a : 30,0 30,0 Issued 4 6 secede ordinary * 223 978 377 shares of 10 cents ..........cecceceevccceeceeeces sedaseneeeeey 22,4 22,3 758 750 six per cent cumulative preferred stock 0.6. 0ee cee ee eees ........... > : 4,8 4,8 i 40 000 000 redeemable cumulative preference shares of 2,5 cents 1,0 _ ; : oo ae ; : Unissued . . Be . shares ordinary 10 . i 16 623 of cents i : 28,2 we Be 1,6 27,1 1,7 1,2 : 0,2 - _ : , J 8 ! oe pos 4 : peu: 4 boa i : os i Reserved ordinary shares ( Share option scheme Options granted and outstanding undera scheme which was discontinued in in 1974 nog .1,8 Ss Number of shares 2,9 Tes . ae . - : oe . Outstanding Outstanding : a : : To Changes during year at at * share August 650 * cents per on 1969 oe sy ~ ce cedec ceceeee e eben . Lapsed 500 Exercised +. 500 , 31.3.79 31.3.78 000 000 .. : _ 537 cents per share on January 1972 .......2; he Lee eee n es w 3.000 3.000 500 800 300 shareon ; 700 cents per August 1 1973 . elo eeet vitesse sDevees 000 2000 500 141 a t Options were granted until retirement i : were for 10years or two years after i, O_ E: ofthe optionholderwhicheveris the earlier = ; 300 463 800 Sole 2 Sets ve : BE ~ ar Qo fos : Q i 7 * : ii Shareincentive scheme ; """ During theyear 94 600 shares were issued under the scheme leaving : a : : os Pa Ts ol vie available forissue 002.005 0b he cece advanced poo 2At March 1979 R10 156 000 1978 R9 * 995 000 had ion) to the trustees of the scheme 0000.00 Bee eS : iii ' 6 : ence vera vesendbeneannnee e tae dee b eee been 9 = 00 387.500 8 : : , Conversion rights conversion rights the the , i Be Shares reserved to cover of holders of per : { eg. half cent convertible loan raisedin 1971 by pens ~ . ve 7 % TN aa a Corporation ; Rand Selection Limited see note2 e . es ae To Preference shares , : : 558 451 : De es "92982 862 303 214 . ren The 241 250 six per cent cumulative preference shares of R1 each were converted into 49 000 redeemable cumulative : preference shares of 2,5 cents each 40 million shares were issued on 1 1978 at a premium of 97,5 cents per share The July rate of dividendis 10,5 per cent per annum calculated on the issue price of R1 per share The shares are redeemable at the 7 . issue price in four equal yearly instalments 1985 . 2 commencing July ~ ons us co. Remaining unissued shares : pe ..- ordinary redeemable The remaining 13 768 1978 13 732 254 and 9.650 000 cumulative control ofthe directorsuntilthe forthcoming annual general meeting preference shares are under the : Se 3. Share premium . : : = ; : an ; ; Ordinary shares ; shares Corporation loan * Premium on 893 245 issuedin respectof Rand Selection Limited convertible steele ence : 5,2 ue Premium on 120 600 shares issued under the share incentive and share option schemes - 0,7 Le Preference shares ae So we Premium of 97,5 cents per share on 40 000 000 shares issued the during yearyear olone 39,0 <. = a oy & . a ay fe - 4. distributable reserves | . yo Group Corporation 351,9 _ Balance at Marc3h1 1978 Appropriation from income statement ; eres scree sss realisation distributable investment profits ....... ss :serereereeereresesee . ; 365,8 0,9 366,7 351,9 & a > > i > 5. Distributable reserves es Corporation " General . Unap- . reserve propriated af 7 profit 207,5 40,3 a ae . = . * _ Lge 31,5 239,0 31,5 31,5 ^' 0,3 Total 207,8 207,8 . _- 31,5 4 : . Balance at March 1978 ........ Adjustment thereto for changes in exchange rates .-- +25 eee ees Adjustment for prior years taxation .-.. 2+ eee reenter Retained profit after extraordinary items 2.2... eee ee eee ee as Appropriations . +--+. ea, 239,3 3 Total 470,2 . Group General ., reserve Unap- propriated 449,0 profit 17,5 a 3,1 1,9 2,2 . a 0,8 1,9 3 92,1 0,9 an 99,1 92,1 100,0 560,2 545,9 10,7 Currency reserve 3,7 0,1 3,6 > & SD tg: o4 . 3 ad e % ys > by e Outside interests . Fy shareholders The interests of outside shareholders in subsidiary companies amounted to R103,4 million at March 31 1979 1978 R92,2 in other be in million made up of R21,2 million 1978 R23,6 million the insurance group and R82,3 million 1978 R68,6 million subsidiaries their - . At March 1979 there was also attributable to the outside shareholders of the insurance companies interest of R421,9 million 1978 R274,4 million the excess of market value and directors valuation of listed and unlisted market values and directors valuations are not disclosed in respect i over book a . iinnvveessttmmeennttss respectiveplaryt v of a thelinu suvre aalnucs eesinAsvmearksettments correspondingcorresponding figure is not given in respect of the outside . which form Bs shareholders in the insurance subsidiarie cad 7. Loan capital Pat Corporation & Rand equivalents 1978 1979 22 ee $ BB BTR F - 40,8 Po % : 9,7 = 38,4 b US 425 1978 9 009 000 c US . $ 47 ) 272.000ene < d US 500 000 1978 000 000 . "(el US 12.820 000 1978 20 167.000 - Registered unsecured rand debentures : J o 0,1 _ 0,1 Registered unsecured notes ..... * h Life insurance subsidiaries i Mortgage loan 6. eee eee eee ee reer ences j 440 000 1978 000 Group ~ Rand equivalents + . 1979 1978 8,6 9,7 oe 38,4 9,1 30,0 90,1 49,4 0,3 0,4 0,3 8,6 7,8 4,6 40,8 14,3 30,0 - 0,1 ine 59,1 0,3 0,5 0,4 57,3 56,8 146,3 166,5 f 36 ^' > ey E Details of the individual loans are as follows a Swiss francs 50 000 000 The loan bears interest at the rate of 5,75 per cent per annum and is repayable by November 15 1987 subject to the undertaking that the Corporation will if possible purchase in the market for cancellation up to Swiss francs 7 500 000 of the loan at prices not exceeding par in each of the four 60 day periods prior to November 15 in the years 1983 to 1986. The Corporation has the right to redeem the full loan earlier on any annual interest payment date at a premium of 1,5 per cent reducing by 0,5 per cent per annum in the years 1979 to 1981 and thereafter at par The servicing and repayment of the loan are covered by forward exchange contracts with the South African Reserve Bank b US 425 000 This is the participation of the Corporation in a loan raised by an associated company : < ; The loan bears interest at the rate of 6,96 per cent per annum and is repayable in instalments of 2 856 000 on June 1 in : of each the years 1979 to 1982 - ea c This was the participation of Rand Selection Corporation Limited in a loan raised by an associated company The es participation was taken over by the Corporation during the year and is included in b above & . an d US 500 000 . The interest at the rate of 7,5 per cent per annum and repayable at par in instalments of 1.500 1.500 000 on bears loan 1 in each of the 1980 and 1981 2 500 000 on March 1 1982 and 8 000 000 on March in each of the years March years ~ 1983 to 1987 inclusive The Corporation may in certain circumstances make repayment earlier The loan is participated as follows : Limited Rand Selection Corporation Limited . see Others 0 1979 000's 936 334 i _ 270 1978 000's 10 963 674 21 637 1979 R000's 173 8737 910 ~ 1978 R000's - 533 282 815 % e US 12820 000 The loan raised by Rand Selection Corporation Limited RSC bears interest at the rate of 6,5 per cent per annum _ Holders have the right until January 31 1986 to convert the loan into ordinary shares of the Corporation at a price of : share and at The R5,875 per calculated an exchange rate of R1 equals 1,40 8 balance of the loan then outstanding will be redeemed at par on March 1986. However RSC may on giving : no less ~ wo than 90 days notice redeem the whole of the loan at any time . -* ) ii . iii *. At price of 100,5 per cent until March 1980 and at par ; if thereafter At par the mean of the quotation of the shares of the Corporation on The Johannesburg Stock Exchange on each of ~ the 20 business days preceding the 15th day prior to the day on which notice of redemption is first published is at : . the least 150 per cent of the conversion price At par if RSC has been or on occasion of the next payment due in respect of the loan will be compelled by law to deduct any South African taxes Theconditions of issue of the loan require that any such taxes shall be borne by RSC and The loan may be purchased by RSC at any time any price in the open market or any price not exceeding 103 per cent plus accrued interest by private treaty Bonds purchased by RSC may be reissued or surrendered for cancellation The interest and repayment of the loan covered by forwar:d exchange contracts with thS e South ; f African Reserve Bank at a rate of R1 equals 1,41 Me & a: & Registered unsecured rand debentures & > The debentures issued by RSC bear interest at the rate of 10 per cent per annum and will be redeemed in 15 equal annual - instalments by drawings on the last Friday of March in each year commencing on March 25 1983 with the final : . redemption on March 28 1997 RSC has the right to purchase debentures Debentures so purchased are cancelled and may not be reissued and shall be applied in reducing the next redemption redemptions .. March g unsecured notes The loan of P.79 000 is represented by 5,75 per cent registered unsecured notes which are repayable at par on 31 1982 unless previously purchased in accordance with the note conditions h * Life insurance subsidiaries Of these loans R40 709 000 1978 R43 616 000 is secured by mortgages over certain of the land and buildings shown in note 11. In terms of the Companies Act no further information is required to be given in respect of these loans It i Mortgage loan The loan is secured by mortgage over land and buildings having a book value of R1 214 000 1978 214 000 and bears . interest at the rate of 6,25 per cent per annum is repayable yearly instalments of R5 000 until December 22 1984 and the remaining balance of R259 000 is repayable on June 22 1985 37 [Porm ra ! y . . oo -* . x : * * . . - ' j 440 000 The loan bears interest the rate of 9,5 per cent per annum andis repayablein yearly instalments of 55 000. The loanis covered covered by a forward exchange contract k Registered unsecured notes : The loan of R320 000 is represented by 9,75 per cent registered unsecured notes which are repayable at par in equal annual : instalments on October 16 each year until 1995 : 8. Lifeinsurance - - funds exceed The life insurance funds at March 31 1979 which include additionalinner reserves and unallocated surpluses the a actuarial valuation of liabilities underinsurance policies and contracts at that date Secured 9. short borrowings leasing totalling Loans include borrowings 159 000 1978 R1 382 000 secured by pledge having instalment debtors a book value of R1 000 1978 R1 658 000 and cession of assets and Bank overdrafts include advances totalling 796 000 1978 R6 000 secured by the hypothecation of land and buildings movables book debts leasing assets and instalment debtors a book value of R8 695 000 1978 R7 255 10. General investments amounts provision At cost less written off and amou1n9t7s8 _ Corporation . . 1978 1979 1979 Group - . " 1978 ' Unlisted Listed Unlisted Listed Listed - Unlisted Listed ~ Unlisted 11,4 112,0 16,6 132,4 . value ...0... 0.5. - 747,5 131,4 713 1213 ,8 = ; ; 3071,4 1996,7 390,9 612,2 Market ......... . & 2 7 28,8 43,1 Directors valuation ... 314,5 ; ; Excess overbook value . ; a 17,4 278,9 26,5 479,8 note.. 2.323,9 183,1 1.282,9 150,5 : ; : : 11. Lifeinsuranceinvestments : 4 cae a uv OUys redemption values and equities approximating . Fixed interest securities previously reflected at amounts toto their investment * inrespect of unit linked are now both valued at market portfolios price : 2... repurchase price sheet : Subject to the foregoing investments are shown the consolidated balance the while mutual ; listed held fund units are valued at 1979 5. 1978 following basesafter making allowance for diminutionin value when applicable Government and public authority stocks debenture stocks and all dated fixed interest stocks reflected including redeemable preference shares which are normally held to redemption are at amounts related to their redemption value and consist of the following : er -s. + Government and public authority stocks oS eee ete nsec cep ene ene nese ne eeeens . 220,2 191,2 |/,.* Debentures and other loan stocks .+... 2... wee S ee bee eweeBoa een ce ee ereeleben v ae eee tweens 23,7 14,8 Funds on deposit and treasury bills os eine ceceeer e nee edabe " . > kb ee eens Property investments are reflected at cost or amounts based on periodic valuations of the respective _ underlying properties and consist of , 23,9 -267,8 ; 6,3 212,3 j Freehold land and buildings . e ede eee des Listed equities and options : 'Loans and debentures 257,9 2,7 | 14,8 251,5 1,5 13,9 we 3 : Listed and unlisted equities other than in property owning companies are reflected at cost or of .. revalued amounts based on periodic valuations the respective equities and consist of Listed equities and mutual fund units ere ceee bee e cere nee n tenet tet ae eee ieeeneees . : Unlisted equities Dee ee eee Eee eee nen e Ebene pa ede FEE Heb Ce bee bbe DEE EEG eee Pi 275,4 : 266,9 : 96,1 5,4 101,5 . .| 57,4 -. | 5,4 * 62,8 ' : : * : . a : , : , ven oat : : 38 og oe aa: : coe emer cunt Ay terre gece) ro i woo wear serpeton , Mortgage and other loans and all other investments including funds on deposit are shown at par or at redemption value and consist of Mortgages secured over fixed property ...... 0.0 cece see c cere eee cnc tee ere enter iaeeeeees Loans secured against group insurance companies policies ................ eget ence eee tenet Other loans and investments 0.0... cece 2.02.0. e . e . e ee eee ee te en eee eens hen eeenes , ; : . ; 8 _ 1979 1978 8,0 22,6 | 3,6 34,2 678,9 10,0 20,2 5,2 35,4 577,4 12. Interest in subsidiary companies . ey . Shares at cost less amounts written off and provision ...... 22-26... 2e cee cece cece nent ee 1979 = = 427,6 1978 408,7 Loans less provision . 1... 0... cece ccc eee eee ee nee terete ene e tae teennes ; 212,1 220,6 Dividends accrued .......6.!! end es sete ea eeneee 45,6 64,2 . a 7 : Less Loans from subsidiary compan 0ci cecee eees cae bee ene eee bee een sees 685,3 218,7 693,5 185,2 3 an 466,6 508,3 13. Fixed assets - Group coe 111111 111111 030 - 111 111111 111111 111111 Be 111111 111111 cos . es 111111 Land and buildings ..0.. 6 ce ee 0.0.6 eee . eee 0 ees 1111111 1 Plant machinery motor vehicles and equipment. rights 111111 Mineral eee ee eee eee e eens et eeees 111111 ; 111111 111111 111111 111111 111111 111111 111111 111111 111111 1 1 1 111111 111111 111111 111111 111111 111111 111111 111111 111111 111111 111 111111 111111 111111 111111 111111 111111 111111 111111 111111 4 = 111111 111111 111111 111111 111111 * 111111 Life insurance | : a Furniture motor vehicles and equipment and at cost less accumulated and ; depreciation as amounts written off 0.2.2 ..5.. Slee transport - Officeresearch andtransport written off 1. equipment - Cy Mining assets at cost less recoupments and amounts written off nnSelenePeers G : : . : we * : - . a . 4 a - wes a 2,6 a re: Sa. ae 8 7 2 3,6 _ . A = J} 39,1 = : _ di valuation oe 38,0 . depreciation adjustmentadjustment for accumulated provided at the dates of acquisition the subsidiary companies duly * A register of land and buildings is is open for inspection at the registered authorised representatives office ofice of the Corporation by members or their 14. Leasing assets os even cost 6. Ve At ees ~ Less Depreciation cece eee eee dee eens a eee ee ee ee eben eee eee teens abl e cea eadeees pa deeeene rn Neveedeevestes beans eeeeeeees ; nee . ; ve - eee 1978 OE) 7,4 10,&4 aD These represent finance periods three assets are between assets of and five years subsidiaries whose businessis the leasing of assets The leased for of 39 ; : - Of an on . i & a 15. Stocks stores and work in progress :: : ae materials 2.0 .c00 ccs. ess. e ce. e ee ay Work in progress Consumable stores Finished products ......, Selene . ected eee eee e enna ene t nee . ete en nent e ees es5 eee 2 1979 5,8 0,7 1,1 1,9 9,5 1978 3,2 2,4 1,1 1,5 8,2 16. Contingent and liabilities commitments . a Contingent liabilitiesin various currencies in of respect Corporation a 1978 1979 : . s performance guaranteewith | others to diamond mining company in respect of an agreement which that company has with The Diamond Corporation Limited The Corporation's obligation has however been guaranteed as to 20 cent by Da subsidiary and 50 per cent by an associated company ii Guarantees with De Beers Consolidated Mines Limitedin respect of servicing and repayment of a loan to Highveld Steel a . nant : ' , and Corporation Limited of UC 000 000 a Vanadium is 1978 US 000 000 The servicing and repayment of the loanis* & So 14,3 covered by forward exchange contracts the South African . with Reserve Bank ice tee ee cee e een tee ' ~ iii Guarantees with another to certain lenders to BCL Limited 26,5 19,2 extent Limited equivalent .........-.- 000007 eee beeee Which amount has been guaranteed as ..... bce aenes 4,6 10,8 6,9 7,3 13'0 yo 84 guarantee the A with another loan the Government of Republic of Botswana equivalentrare has been Which amount : guaranteed as to =~ & \SN Ales 3,9 4,6 Group 1979 1978 = R , 2 ae. 8,5 63,1 11,9 41,3 guarantees er ivOther Deveediee ieee eetSeSe ek ek e es 37,2 22,5 Which have been guaranteed as to 0.0. adv0 anced t6 o g. old these These include a guarantee in respect of a loan advanced to gold mining companies for an amount of R19 525 000 1978 R34 080 000 Corporation's guaranteed The Corporation's obligation has been fgemne 18,8 oo 25,9 ety 8 b Commitments in respect of i BCL Limited and whereby the Corporation another undertake to provide or procure 37,5 per cent of Undertakings complete a any finance which may be required to Phase two of the BCL project 721 b finance required by BCL Limited up to an aggregate amount of the equivalent of 000 000 expenditure during April 31 1978 R10 500 for pollution control the period 1979 to December 1983 R10 BCL c up an aggregate amount of the equivalent of R27 070 000 1978 R43 884 000 which may be required by : December Limited during the period April 1.1979 to deficiencies arising from & 31 : 1981 to meet cash deficiencies all kinds other than & . i the acceleration of indebtedness or ii expenditure incurred for the completion of the project or a : _ - iii expenditure incurred for the control of pollution A subsidiary and certain associated respectively companies responsibility ofthese commitments have undertaken oy for 18 per cent 46 per cent ad 43, .40 He fy -* a, an) Py ii The support of the obligations of an associated company in Brazil rplce a to subscribe for 35 per cent of the share capital of Empresa de Desenvolvimento de Recursos Minerais 1979 Codemin S.A. Codemin company developing a nickel mine in Brazilin an amount as at March 31 of US 790 000 R11 659 000 financial andcertain and until certain physical completion tests for the Codemin project have been met been satisfied a commitment tests have - " b to provide 38,88 per cent of such monies as Codemin may require to enable it to pay when due all amounts under a loan agreement under which facilities of US 000 000 R49 882 000 have been granted to Codemin No drawings had been made as at March 31 1979 of which c to provide or procure 38,88 per cent of any funds in excess required to complete the Codemin project US 400 000 R83 192 000 may be Associated companies have undertaken responsibility for 55 per cent of these support commitments g iii Undertakings to acquire subscribe or procure subscriptions for sharesin and to make loans to other concerns iv Capital expenditure R790 000 authorised by the boards of subsidiaries but not contracted for amounting to R377 000 1978 17. Investment income general investments : Corporation 1978 29,0 . 1979 30,6 : ~ Listed 05 .t csc cise eee ene e eee enee Dan e e bebe eee nee eee 3,6 2,7 ; Unlistcce c ed ke ee eee ee ee Cee eee Lest eer ee eee eee ee cease u . Group 1979 1978 182,8 180,0 37,8 33,2 32,6 33,3 =~ . ge 220,6 213,2 18. Income from subsidiary companies a : 2 ; Dividends ..... - sees Lae eeee eae Fees . Interest Interst . * 19. oe Taxation Corporation a : 0. ve NE . 3 neat : : || 1978 > 5,9 .1979 . South African , Re see s Deen ee eae . . . eae eee Nena aces anes Vee . 1,4 7,3 1,4 U Foreign 2. ..0i..0. Sone be ene er ae tee n i cenpeeenes vedbbeeeneeeeeees * 1,4 . | 0,4 . Net adjustmenitn respect of prior year .. : : ( sve nee etvetebh pence haa 7,3 1,8 wp ~ a Corporation * 1979 -. 1978 104,2 95,2 2,1 2,1 3,23,2 106,3 100,5 a GroupGroup : 1978 10,5 . 3,9 14,4 0,2 14,2 . 10,1 10,2 16,9 17,0 2,8 55 - 8,4 8,4 2,8 7,3 1,8 14,2 8,5 14,2 7 Inland changed the many certain .. The Secretary for Revenue has previous practice employed over years in respect of expenditure claimed as deduction for tax in the financial years 1976 and 1978. Objections to the assessmentsby the tax authorities are being lodged and payment of the additional tax has beenmade under protest Taxation for theyear to basis However March 1979 has provided on the assumptionthat the revised intended that objection will be lodged of assessment will be applied is OS payable by a No South African taxation is the Corporation in respect of the year to March 31 1979 as result of the amounts : to items giving rise to a computed tax loss of R16 000. Any additional from taxationin future extraordinalroyss relief charged years in respect of this will be shown as an extraordinary item payable of - South African income tax is not by companies on dividend receipts As the portion the income of the major Corporation and the Group is comprised of the provision for South African taxation is significantly taxation dividends disproportionate to profit before ; ES ^' 41 4 te ; fi 3) ~ _ : . ; : - DoE : . , , ; - 20. Profit after taxation Me Corporation have after The profits of the Corporation and the Group been arrived at taking into account the following expenditure 2 ; ; Group 1978 1979 ; 1979 : > ee 1,2 Administration and professional professional fees 3,2 _ 1978 4,3 coy 0,1 : : 0,1 Audit fees plant Depreciation equipment of machinery motor vehicles furniture and .........00..005 0,5 oe 0,6 : nO : 1,0 Depreciation of leasing . assets 4,5 6,1 and 1,9 2,2 Expenditure on office research transport equipment .......6....45 : 2,5 2,6 . : Loss on disposal of fixed assets * _ : 0,6 10,4 10,4 = 0,5 Leasing charges . . 1,9 ~ 2,4 Directors remuneration 21. remuneration a Corporation's The aggregate emoluments of the from Corporation subsidiary companies are as follows Corporation's : Corporation's directors and alternate directors and its a : Corporation's 3S Directors fees 2.6... cece teen 1979 1978 0,1 0,1 : Other emoluments . .. : 1,6 1,9 ' 1,7 2,0 3% 0,1 .0,1 p Pie7 gg s Segy! DM: 22. Earnings per share _ : being number during months The earnings per shareis based on the number of ' ordinary 217 068 082 shares the effectivelyin issue sharesin issue at March 31 the fifteen Dividends 1979. The 1978 earnings : was based on Onpreferred stock : Nos 98 and 99 of 3 per centeach declaredJune 5 1978 and November 23 1978 : On preference shares ;: a ; - No. of 5,25 per cent declared December 1978. . oa Proportion of preference dividend accrued vaee. wed thes an . an 1979 0,3 2,1 1,0 1978 0,3 ~ oe : re : : : ; ! fed ae en Onordinary shares . share cents 1978 No. 85 interim of 14 cents per 12 declared November No. 86 final of 32 cents per share 1978 25 cents declared June 1979 1978 Special interim of 8,25 cents per share declared May 1977 +... no a os : oS 2.06. eas seeeen : . 31,2 26,8 : 00 71,8 55,7 : 16,6 : 103,0 99,1 : 24. Extraordinaryitems = . Corporation 1978 . .1979 : : : : a wee _ 17,1 ~ 6,9 orga . 17,3 : 2,8 bene : _ ; a 8,4 0,8 21,4 7,9 : 2 : . ; ; at - Provision against investmenitn - wo Cleveland Potash Limited .......0...00: ee eee eke eee Seve eee Soci^'t^M'ini^redu Fungurume Botswana RST Limited . 0660. o ce eeee ces Tax relief claimed in respect of a portion of investment ..... ees ; : > Group i . 1979 5 1978 5: } : , : 16,3 _ _ f 10,4 i 25,9 i ; _ oy 2,8 : : Prior years investment 2 : 4 Tax relief claimed see note 19 .:...:.. an Fn tasteeee oo, 8,4 - : Changes in exchange rates 1,0 _ : , 6,9 oo: 33,5 42 i BE 4 2 2 wo . . my i . ; i t a aa ^' a : , statements Source and application of funds Figuresin R millions s for the year ended March 31 1979 *. Corporation . 1978 - 1979 Fifteen months - . ; 132,1 156,0 9,6 141,7 8,7 133,0 276,7 ; 136,9 2,3 158,3 1,8 156,5 46,0 181,9 27,8 :20,4 _ oe = 574,4 1 61,6 27,5 34,134,1 438,9 Source of funds ae Profit before taxation and outside shareholders for interest adjustments Add Depreciation and provisions less net changesin exchange rates for z Less Taxation nr ...... eee ee of . Proceeds from shares issued .........--2e02 insurance Life insurance funds Loans received ....... creer cree Soa dye + Instalment debtors ........: Creditors taxation and provisions : . , sees Bank overdrafts ....... ces eee e neers Sa a, ' companies Interestin subsidiary ow ne Net decreasein loans and amounts due ; ; Increase in cost of shares 5 ^' an oe 2 . Reo. 8 * 1979 Group 1978 Fifteen ' months 265,0 258,7 eo 4,9 3 269,9 8,5 261,8 % - 15,5 261,4 46,0 113,6 190,3 3,5 23,1 0,2 246,3 276,7 oe 136,9 29,2 . L rn 29,9 rae vol) 34,7 ee Application of funds Cost of investments acquired less cost of investmentsee General investments betes ....... wade sold Ve eed * Insurance investments _ on eae Bi _ pe 60,1 oo 48,1 101,5 2,1 ee 1,6 : Fixed assets 0.0.60 0.0 see eens ot : re - 27,3 Repayment 2,79 - Outside shareholders 99,4 : Debtors cash work 240,8 Si ,,_ Net investment - Interest . oo > 64,9 0,5 os 106,4 a , 232,4 oa Leasing assets ei. eee eee Loans advanced net 2..s...e40 of loan capital- net . interest in tees 005 Mees : yereees Dividends in Stocks stores and in progress : es beveteeee ........- 0+. 0r0te seeeenbe tees in subsidiaries acquired seev ......... in subsidiary companies:+ eda bene ee eran seees : oo 3,9 = 611 20,2 30,7 106,4 1,3 250,8 = = 23,2 1,9 56,7 99,4 oe 247,6 210,6 ; 6. : 300,6 . = 5 Increasein cost of shares : oe m 126,3 = Net decreasein loans amounts due 574,4 438,9 638,1 689,1 " aq A en . : me a A 4 43 on Nid ~ Subsidiary at March 31 1979 companies of the Corporation 1979 1978 in capital Interest in share capital Direct Indirect 1979 1978 1979 1978 + % % % % Incorporated in South Africa es R000's R000's Finance and investment : Investments Limited INNY! Achem . boettieeseeeapenseee sete 1 ne 1 588 Company . 'Afr2 ican and European Investment ordinary .... e..cese ee Limited 180 180 588 preference ........... 500 500 588 Limited 100 African Eagle Property Holdings Limited saeee . " 588 African Gold and Base Metal Holdings Limited .......,. . 100 100 588 African Loans and Investments Limited Ls 7818 7818 7818 7818 7818 48 828 828 828 828 48 2 81818 2818 28 F8 868 2281818828188288F88868 281818281828F8868 281818281828F8868 ordinary .......4. - preference Oa ee eeveeeouene Insurance Anglo American Holdings Limited Limited Anglo American Investment Trust -ordinary a -ordinary .|. - preference . Limited ~~. Anseld Holdings beeeee . Aspella Investments Limited ;..... eeeeeee * Biccard Street Properties Proprietary Limited ... Limited Century Plaza Holdings Proprietary Limited . Charybdis InvestmentsProprietary Limited Conimat Investments Limited ..:...... Control Logic Holdings Limited Limited Coriander Holdings Limited Courser Holdings Limited - - Egret Investments Limited .... Africa Electro Chemical Industries LimiteAfdrica Engelhard Enterprises of Southern Eurangio Limited . Limited . First Consolidated Holdings Greater Services Holdings Proprietary .: Limited . Proprietary Limited - > Guarantee Life Properties Proprietary . Helix Investments Limited .. Institutional Investments Holdings Proprietary Institutional Investments Limited ,.... . eeeke Limited - K.S.J. Properties Proprietary Limited -. Litorn Finance Proprietary Limited Lodestone Holdings Limited . L.S. Properties Limited Limited Marjoram Holdings Limited oat MethA wickoorrddiinnaarry yLLimiLtieimditedmited - B deferreIndvestments 1 2 222 1 222 588 _ 7818 _ - 5 000 5000 5000 5811182821 37 = 81221 1 81221 . 81221 . 5811182821 81221 5811182821 81221 : 16 - 100 .* . 4 oo 4 5811182821 5811182821 81221 81221 81221 1 1 5811182821 81221 : 3 5811182821 81221 8 8 5811182821 81221 . . 7 . 5811182821 81221 . see . . et : : . . . .* 400 ... ... ... 312 " NWN " NWN 100 400 5811182821 ... 5811182821 ...5811182821 ... _ ... 33 =. _ _ _ 81221 81221 81221 81221 81221 81221 81221 81221 81221 81221 81221 81221 22 I. 81221 22 I. 81221 1822 1822 1822 281 8281828F868 2281818828188288F88868 281818281828F8868 1822 281818281828F8868 1822 1822 2281818828188288F88868 2 81818 2818 28 F8 868 1822 2281818828188288F88868 1822 2281818828188288F88868 1822 2 81818 2818 28 F8 868 62 281818281828F8868 182818-8888818 2281818828188288F88868 182818-8888818 182818-8888818 182818-8888818 2281818828188288F88868 281818281828F8868 2281818828188288F88868 182818-8888818 2281818828188288F88868 182818-8888818 2 81818 2818 28 F8 868 182818-8888818 2281818828188288F88868 182818-8888818 281818281828F8868 182818-8888818 2281818828188288F88868 100 2 81818 2818 28 F8 868 182818-8888818 2 81818 2818 28 F8 868 182818-8888818 281818281828F8868 182818-8888818 281818281828F8868 182818-8888818 os. 281818281828F8868 182818-8888818 2281818828188288F88868 182818-8888818 2 81818 2818 28 F8 868 182818-8888818 2 81818 2818 28 F8 868 nr 182818-8888818 281818281828F8868 2 81818 2818 28 F8 868 88 88 100 100 Book value Corporation R millions Shares Loans 1979 1978 1979 1978 0,3 . 20,9 _ - _ - 3,5 _ 9,7 _ - _ . 1,6 . _ 0,8 _ = - . = - _ od _ ey - 0,3 20,9 _ _ vs = _ 24,1 - oo 0,7 _ _ _ ~ 1888 1888 1888 1888 1888 1888 1888 3,5 = 9,7 _ _ _ ~ 1,6 1,6 11,3 _ 0.8 4 * TEE TEE TEE - ve _ _ _ ELFILE 5,5 ~~ _=- _ s ELFILE ELFILE ELFILE ELFILE ELFILE | 5 0,3 = 0,3 - 6,7 _ - 3,2 _- - _ ~ - FS _ - = a ~ [hy Rr eo - _ 112,8 112,8 s ~ - = 117,1 30,2 28,6 = = devteeed eae eres The New Era Consolidated Limited Proprietary Ninth Stage Investments ~ Proprietary Oriole Investments Limited ProprietarLyimited Own Home Finance Company .....0. 0... Limited eases Minerals Proprietary Pan African . Limited ....0500.5 : ProvinciaAl Imnevreisctamnents Proprietary Rand Corporation Acceptance Corporation Investments Limited Limited Randsel Investments Limited ....... j : woes . * 15 550 _ 1 10 200 4 40 . Rand Selection Corporation Limited : ordinary ; preference .. Sate Rhochar Holdings Limited ~" . Runcorn Holdings Limited i senees Sorec Limited . 2... 6 elie see Proprietary Limited becibecnc anes Sorec Developments Limited Sorec Eagle Properties Proprietary Limited Heb ee ew eee eee Sorec Eagle Properties Rissik Street Proprietary Limited .... | to. Finance Sorec Properties Brits Proprietary Limited . South African Mines Selection LimitedLimited . South African Townships Mining and Ro Limited Thaton Limited - Townstate Nominees Proprietary Limited . : Western Ultra Deep Levels Limited Limited Proprietary Zinchem and Industrial Mineral Resources nn enceResa ourcesResourcesResources Proprietary eren nee t rs eee 125 500 27 497 . 4 . . . 000 125 500 27 497 . 4 . 5000 460 3 * 500 .- 094 4460 3 500 , 2094 Life assurance African Eagle Life Assurance Society Limited Guarantee Life Assurance Company Limited .. Proprietary Institutional Life Brokers Nominal amount Limited 6... eee eae ; 283 283 1375 375 10 10 : = 8 _ _ } a | | = cc a 22 22 22 = || || 18 18 18 * 18 $ $ 6 THE THE THE 888 888 100 |||||| |||||| |||||| |||||| |||||| |||||| |||||| |||||| - = 72 8888 8888 8888 100 8888 100 8888 || || = 28-82 100 28-82 28-82 28-82 28-82 100 100 22 22 22 _ | _ 18 18 18 88 88 888 882 888 882 888 882 888 882 888 882 888 882 65 882 .75 882 _ _ 88897 88897 44 88897 44 88897 '88897 100 8889 100 8889 71 = 3,1 _ _ i -. _ _ 0 We 298,9 298,9 Ro y) 0,7 3k f =. => aoe _: - er) = _ = pos : 298,9 4,2 = ce so = - i _ * 9,6 5,5 - ~_ = _ = 6 5,5 = _ _ 113 113 113 = = 7,0 - Se = , 8,3 _ = = sb . _ = 0,5 113 113 113 113 - g - . 16,8 a 0,4 0,4 | | 75 75 75 75 THE THE ||| ||| . _ | 100 - 100 & ||| 9 8 i 4 - 2, me ca See speed Ny aoa -} oth epee Tene a i ; sot iaf . * ~ . . vi - . . ae 8 co . : g . a ' . h Leasing services ~ First Consolidated Leasing and Finance Corporation Limited ... Computer services Anmercosa Computer Computer owning o Services Limited . ...... teen ene beeene Chelstead Holdings Proprietary Limited ...... feet eeeaerene Property administration * . : Anglo American Property Services Proprietary Limited ...... Managerial services PropriLiemit tedary . Zimro ...6....0..0...4 eee beettneeeeas Property owning - : : bf . : : ; <.. : - ; j ' : : yoo African Eagle Life Proprietary Limited Werf Proprietary African Eagle Properties Braamfontein Werf Limited Fo... fda better ver et tae teeeeees 3 African Eagle Properties Jacobs Proprietary Limited . os African Life Centre Johannesburg Proprietary Limited . African Life Centre Pretoria Proprietary Limited . Anmercosa Land and Estates Limited . 7 Barbara Investments Proprietary Limited ... . : B. and S. Building Proprietary Limited ....:... Beherens Street Properties Proprietary Limited _, Benparry Investments Proprietary Limited . . : Braamfontein Centre Proprietary Limited ..... Proprietary Bryanston Hobart Shopping Centre Century Plaza Proprietary Limited . teeeeee 2 Crescent Developments Proprietary Limited ..... Delphin Investments Proprietary Limited Limited Disco Properties Braamfontein Proprietary Limited . Doris Court Proprietary Limited Proprietary Eleventh Stage Investments Proprietary Limited : Esray Investments Proprietary Limited -. . : Exchange Buildings Proprietary Limited . Proprietary -: : Field North Limited .....-. sesees First Stage Investments Proprietary Limited Getzin Investments Proprietary Limited * G.L.L.D. Investment Company Proprietary Limited . Gower Properties Proprietary Limited see : -. Griffen Properties Proprietary Limited : Guarantee Life Properties Southdale Proprietary Limited . .' Highrise Holdings Proprietary Limited : .-.. ~. Ivanel Properties Proprietary Limited -, ~ Ives Investments Proprietary Limited an Jasmin Enterprises Proprietary Limited ... Jobacs Proprietary Limited ......:. 44 Kenilworth Centre Proprietary Limited Limited ~:~ Kersauer Properties Proprietary Limited K-illarney Centre Proprietary Limited .... on - .,., Killarney Developments East Proprietary Limited "Kreza Heights Proprietary Limited ......., Lanaria Properties Proprietary Limited . L.H.A. Properties Proprietary Limited ..,. vreee Lowerberg Properties Proprietary Limited ', sees Lynbeth Strand Street Properties Proprietary Limited . Markort Properties Proprietary Limited -,..,. : . Mbul a Estate Proprietary Limited :; : Miron Investments Proprietary Limited . Naoj Properties Proprietary Limited ; . Ninth Stage Properties Cape Town Proprietary Limited . Ninth Stage Properties Johannesburg Proprietary Limited Patgef Investments Proprietary Limited .. . P.H.B. Investments Proprietary Limited . P.L.G. Investments Proprietary Limited . . , . Rimit Properties j -. : Proprietary Limited ... Sabel Developments Proprietary Proprietary Limited . . . oy ', ; - Sanso Properties Joubert Street Proprietary Limited : - . Sanso Properties Pretoria Limited wee . - o, Sanso Properties Riebeeck Street Proprietary Shengro Proprietary Limited - ee Sixbro Properties Proprietary Limited Limited ... : J Sorec Properties Benoni Proprietary Limited . Braamfontein Holdings - . Sorec Properties Braamfontein Proprietary Limited Limited : Sorec Properties Proprietary Limited .. Nominal amount d- Issued share capital \ 1979 \ 1978 RODO's // R000's 400 I 400 Interest in share capital Direct 1979 1978 Indirect 1979 1978 % % % % - - 100 100 Book value Corporation R millions Shares .1979 : 1978 Loans 1979 1978 - - _ _ . - - 100 = 100 + * b - =_ . . op _ / .75 100 100 Se . . ~ 77 77 7 - _ = : | _ . 0,1 I. . 0,2 # . * 1 * . . 460 1 4 * 1000 275 * 2 . . 7 ad 1 124 * . . 1 * . 2 . . . . * . * . . . 3 . . 4 8 8 . . 2 14 . . * 2 . * . . . * . . 1 _" - 55 L . . = - _ _ 75 21222 id - - 21222 * 100 460 al 100 100 21222 21222 1 . 4 * 1000 275 * 2 . * o: . 1. 124 - 21222 - 100 ., --* 75 ~ * ~~! 86828PRGR8626672R6186272828528262628GERGE - - 8628PRG862672R618627828528628GERGE - , 86828PRGR8626672R6186272828528262628GERGE - 8628PRG8626 72R61862782852862 8GERGE - - 86828PRGR8626672R6186272828528262628GERGE _- 8628PRG862672R618627828528628GERGE - 8628PRG8626 72R61862782852862 8GERGE _ _ 8628PRG8626 72R61862782852862 8GERGE am Se aw 8628PRG8626 72R61862782852862 8GERGE = = 8628PRG862672R618627828528628GERGE - 8628PRG8626 72R61862782852862 8GERGE * _ ee * . - 1 = * * =~ = - 2 oad . = * - hl * - .* 81 _ bf * 2 _ . _ 3 * . =- 4 _ 8 = 8 _ _ - _ = > = = _ 81 8628PRG8626 72R61862782852862 8GERGE 8628PRG8626 72R61862782852862 8GERGE 8628PRG8626 72R61862782852862 8GERGE 8628PRG862672R618627828528628GERGE 86828PRGR8626672R6186272828528262628GERGE 8628PRG8626 72R61862782852862 8GERGE 8628PRG8626 72R61862782852862 8GERGE 8628PRG8626 72R61862782852862 8GERGE 8628PRG8626 72R61862782852862 8GERGE 8628PRG8626 72R61862782852862 8GERGE 8628PRG8626 72R61862782852862 8GERGE 8628PRG8626 72R61862782852862 8GERGE 86828PRGR8866266672R618662728828528262628GGERGE 86828PRGR8626672R6186272828528262628GERGE - 862PRG8627R618278528628GER - 8628PRG8626 72R61862782852862 8GERGE = 8628PRG862672R618627828528628GERGE = 8628PRG8626 72R61862782852862 8GERGE _ 8628PRG8626 72R61862782852862 8GERGE _- 8628PRG8626 72R61862782852862 8GERGE _ 8628PRG862672R61862782582628GERG - 8628PRG8626 72R61862782852862 8GERGE . 4 86828PRGR8626672R6186272828528262628GERGE ~ 8628PRG8626 72R61862782852862 8GERGE bd = 8628PRG8626 72R61862782852862 8GERGE _ a 8628PRG8626 72R61862782852862 8GERGE 2 - = 8628PRG8626 72R61862782852862 8GERGE 14 - - 8628PRG8626 72R61862782852862 8GERGE + _ 8628PRG8626 72R61862782852862 8GERGE - = 8628PRG8626 72R61862782852862 8GERGE * = 8628PRG8626 72R61862782852862 8GERGE 2 = _ 86828PRGR8626672R6186272828528262628GERGE . = 8628PRG862672R618627828528628GERGE . . 8628PRG8626 72R61862782852862 8GERGE . 8628PRG8626 72R61862782852862 8GERGE * _ 8628PRG8626 72R61862782852862 8GERGE = 8628PRG862672R618627828528628GERGE * . 862PRG862672R186278258268GER = 8628PRG8626 72R61862782852862 8GERGE = _ 66 54 - - _ PANO Foe = _ PANO a _ PANO = _ PANO _ 2828 8 8 626 5F26265 28288888862665F26265 2828 8 8 626 5F26265 28288888862665F26265 2 2828886265F26265 ts - 12 os a - _ B _ 4,2 13 ee ~~ Pe ~ _ 28288888862665F26265 2828 8 8 626 5F26265 - . - -_: 28288888862665F26265 - ~ _- _ 2828886265F26265 _ 2828886265F26265 _ = _ 2828 8 8 626 5F26265 2828886265F26265 . - 28288888862665F26265 ~ _ 28288888862665F26265 ~ _: 2828 8 8 626 5F26265 a 2828 8 8 626 5F26265 -_ - 2828 8 8 626 5F26265 = - 2828 8 8 626 5F26265 _ _, 2828 8 8 626 5F26265 _ - 2828886265F26265 ~ 28288888862665F26265 = 2828 8 8 626 5F26265 _ : - 2828886265F26265 = oo. - 2828 8 8 626 5F26265 2828 8 8 626 5F26265 2828 8 8 626 5F26265 186527686FOR 186527686FOR 186527686FOR 186527686FOR = * - = - : = = - 2 = 6,5 = = > 186527686FOR _ - 186527686FOR - - ~ 186527686FOR _ = 186527686FOR > ~ 186527686FOR 186527686FOR = - - 186527686FOR * 186527686FOR _ - ~ = - 186527686FOR 68 = , - = _ 72 55 75 _ > aw _ = - 65 _ 69 ~ _ 100 - 61 = 61 61 69 55 55 - 65 5 } _ Boo = _ ca ae _ = _ -y 65 _ _ _ ~ _ 13,8 13,8 = - _ _ at a 5 = _ = 9 . a , " : <a = _ _ _ 7 2 ~ : sj i ; , ' : : - 7 . he : : : - -& . are Issued share capital 1979 1978 R000's ~ R000's Sorec Properties Cape Town Proprietary Limited .. . Sorec Properties Gardens Proprietary Limited ... . Sorec Properties Hillbrow Proprietary Limited .. . . Sorec Propertics Krugersdorp Proprietary Limited : Sorec Properties Port Elizabeth Proprietary Limited . Sorec Properties Sunnyside Proprietary Limited . . . .. Sorec Properties Waterkant Street Proprietary Limited Sorec Townships Holdings Proprietary Limited ...........-- Stiemond Properties Proprietary Limited . : ! Sydvil Properties Proprietary Limited .. . - Sydray Investments Proprietary Limited . . Talas Properties Mayfair Proprietary Limited : Talas Properties Primrose Proprietary Limited . . . Talas Properties Springs Proprietary Limited ..... . - Talas Properties Vanderbijlpark Proprietary Limited j Tenth Property Company Proprietary Limited .... : Theatre Centre Limited Limited : Proprietary ...50.. cues e eres . ; |. Treveson PropertTireasnsport a Five Three Nine Seven Johannesburg Proprietary Limited .... Proprietary Limited +. ....----+-2++++-+ Van den Berg's Investments Proprietary Limited ... Virawal Properties Proprietary Limited . " _/. Limited ... ca Vogelux Proprietary Voorwaarts Eiendoms Beperk vee pees wee Proprietary Wanderers View Properties Proprietary Limited .... wee Wanderers View Property Holdings Proprietary Limited ; Westander Properties Proprietary Limited ....... . t . Westcom Properties Proprietary Limited .... . \ |: Zaaiwater Proprietary Limited ........ Zeestraat Properties Proprietary Limited . . * . . 500 . 500 . . . id 2 2 * . oo mo . . * . . . bd . id . bl. * . . . * . . 109 _ . 10 . . * : . . . 200 _* 200 * Township developer : Limited ++ i-+-p.+rerserers a Whitehall Court Proprietary Limited a rights mineral holding -;\ : Townships and 7 A /.:., Eastland Centre Proprietary Limited . veadeevanebeser aoe o. * Title tofreehold rights holding 0 oe . . Johannesburg Estate Proprietary Limited ...... eet Company . Property maintenance and design -, sos are : Maintenance and Design Services Proprietary Limited .i....: 56 56 Prospecting =" American Anglo Metal Holdings Base Metal oy S.W.A. Proprietary American Prospecting Limited :, Vues wads ecdseeeeetanes ao Anglo American Prospecting Company Limited 3... a A. . Anglo Company South Limited oo, Anglo American Prospecting Services Proprietary Limited Investments Proprietary : = Dinal Investments Proprietary Limited .... 0.000 : 08008 . c D. unnock Limited . Jeannette Gold Mines Limited ...........- yoyo: Warbler Investments Proprietary Limited ........ Interest in share capital Direct 1979 1978 % Indirect 1979 1978 % % Book value Corporation CorporCoraportatiionon millions R Shares Loans 1979 1978 | 1979 1978 1978 1978 1978 < _ _ - Fixbl Fixbl Fixbl Fixbl _ _ _- = _ - _ - id aoa _ = - _ _ _- _ 9 _- _ _- _ 686986281286392PR83 686698682821286392PR838 686698682821286392PR838 57 686698682821286392PR838 686698682821286392PR838 686698682821286392PR838 686698682821286392PR838 686698682821286392PR838 686 6986828212 8 6392P R 838 686698682821286392PR838 686 6986828212 8 6392P R 838 686669868282122886392PPRR838 - ~_ ee - = _ _ _ - -, 686698682821286392PR838 686698682821286392PR838 686698682821286392PR838 686698682821286392PR838 686698682821286392PR838 686698682821286392PR838 686986281286392PR83 686698682821286392PR838 686698682821286392PR838 686698682821286392PR838 -. 686698682821286392PR838 " 4 686698682821286392PR838 686 6986828212 8 6392P R 838 686698682821286392PR838 100 59 _ 75 55 65 55 55 55 45 68 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 BEREPERF8B33888888 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 BEREPERF8B3 8 8 8 _ = _ _ -_ _ _ _ _ = Loot. 7% = = - so oo _ _ ao hf _ _ _ _ = - - o = _ _ _ _ _ _ _ ad _ - _ - =_ _ _ acm - _ _ - _ _ _ - a i oo _- _ _ = oo _ _ _~ _- = _ ~ ERE PREP EEE PE P REE PIELP & - _ _ 2 _ 75 - - _ . _ _ _ Tek 75 1223201 1223201 1223201 1223201 - - - - - : wy .100 = . = 76 95 , as . t ao 95 95 .72 _ 74 - 56 57 ~ . _ = = =. = = = {t . =, =. = _ * = Manufacturing marketing 7 Foundrex Proprietary Limited ... Glacier Kaolin Proprietary Limited .....+ Barytes S.A. Oxides and Mills Proprietary Limited Wheel Weights Proprietary Limited ... ve 12 21 24 ** 222 222 222 222 Zimro Minerals and Chemicals Proprietary Limited . ** 222 Zinchem Proprietary Limited . ages Seen eee uF Mining Mining processing : Mining and processing - : y Clapham Chrome Proprietary Limited . Ved eaeeeeeeees G. & W. Base and Industrial Minerals Proprietary Limited . Limted G. & W. Silica Sands Proprietary Limited ... . Hudson Mining Company Proprietary Limited Lager Mining Company Proprietary Limited .. Ocean Bentonite Company Proprietary Limited -.. . S.A. Oxides Proprietary Limited ois... cee ese seed ee eee 22-3.85 22-3.85 22-3.85 22-3.85 2 -3.85 22-3.85 22-3.85 10 580 ... - . | Mineral rights holding we _ African Hawk Eagle Holdings Limited ......... ~ Andalusite Transvaal Proprietary Limited ... B : . oa : an . 1 * Booted Eagle Holdings Limited . Calliope Holdings Limited pees 402 - ae 402 _ Crowned Eagle Holdings Limited Ferrobar Holdings LimitedLimted 4 4 seeseeeecees Nominal tformerly G. W. Industrial and a Chemical 46 pF : Supplies Proprietary Limited Ps _ =- = = = _ EEEEEE 77 _ EEEEEE 77 _ EEEEEE 77 = EEEEEE 42 - 677 EEEEEE 77 co - _ 77 77 77 77 41 77 77 635260 635260 oe 635260 io 635260 R= 635260 , .76 NS FFFFF FFFFF FFFFF FFFFF FFFFF FFFFF 177 632216 632216 632216 632216 632216 76 TITTH TITTH TITTH TITTH TITTH TITTH = _ = _ _ _ = - _ = _ a _ _ = _ = = = LETETET = = _ = _ - _ yo LETETET = = - _ _ tisd _ = _ = a . . : : . . . . a . , . ; . ~ en - Issued share capital Interest in share capital o ~ Direct Indirect . 1979 1978 1979 1978 1979 1978 Lok va : : 3 i Roy Braakfontein Colliery Limited Steppe Eagle Holdings Limited Tawny Eagle Holdings Limited Taybard Holdings Limited . 00.0.0... ce 000 R000's R000's . . _ . - J 1 % _ _ _ _ % - _ _ % % 76 76 73 73 76 76 - 76 76 ib Mining rights holding ; . + LangkransAnthracite Proprietary eee : } Limestone Deposits Proprietary Limited .... . DormaCnoatl Syndicate ] -.: Natal Proprietary Limited ........+--+ : : RR. Cs : Prestin Holdings . Proprietary Limited : Prestin Propr ary Limited . = Investments Limited e Sorec . . Proprietary Hl Teastaff Investments Limited Limited . sede eestedeeeenee . os Townsview Investments Limited Ev) 85 . 200 , * 2 iia a 1 85 o 200 | | | 5 . _ 2 _ . _ . _ 1 _ . Incorporated in Australia 000's 000's 7 AustraliaProprietary : Financeand investment . Australia Angborne Investments Australia Lo . Ausrand Proprietary Limited Limited ee, 1 1 2 28 i oi- ; Spinifex Finance Proprietary Limited ... 39 28 . : 7 services Managerial Services . AustralianAngloAmerican * Limited . dees eer eres , 563 . 563 IncorporatedinBermuda Finance and investment 3 01). 000's - 000's Trust Bermuda Limited ; _ AngloAmerican Investment . Incorporated in Botswana fof Managerial services i bot 37 _ P000's - . : Services BN PR Anglo American Corporation Botswana Limited ..... Proprietary * : Property owning : * ue 100 ue ios WestEnd Property CompanyProprietaryLimited saebdda sees 50 50 44 _ _ _ _ _ - RER RER . 75 66688 57 66688 66688 100 BER BER 75 0 55 55 55 75 100 . 868 868 100 868 868 868 -_ a 100 - 100 age 100 100 100 $ 22 22 : Morupule Colliery Proprietary Limited Weve vere etaneeeesees oho ue 35 & . Incorporatedin Canada a Finance and investment . 8 foe ae : t Anselorddinaroy rdinary Limited Limited 28 ~ | ~' 000's 000's . - : ie lf = 19 493 19 493 _ prference ; : ~ % prference oe a --. % preference ...- 10875 6 256 ied _ = oe Cello Securities Limited soeees webeenneee seta deececeetneeee os 1 : Incorporated inFrance Eurafricaine Finance and investment ... . Compagnie FinacierFinanciere . S.A. , ' FF000's x 000 "| fi Managerial services a Charter France S.A. 0.6.2.6: Charter France Services S.A. ... 199 - 100 199 100 _ _ 35 18 18 ~ _ 96 - 96 96 96 _ _ = 63 63 63 - 38 in 6 Incorporated Lesotho ... -{ } a R000's _ R000's . Proprietary Limited Managerial services Company Anglo AmericanLesotho Services Company 9 Limited Company cca eee s ceca ep eeeseeee . L o _ os Incorporated iin nLiberia . 000's Finance and investment . : : Allegro Holdings Limited Anmines Limited . Falcon Investments A -. 66 B vvootitnging Librand Limited . . . |Des esse ees Merlin Investments Limited .. Midway Investment Limited voting 1.- voting voting . eeteeene 81178 . 81178 81178 81178 81178 : 81178 81178 Nominal amount 100 . 100 | | 18110 18110 18110 18110 63 100 63 100 ... = ||| ||| ||| 100 _ 100 100 B ' 100 milions Bookvalue Corporation s R millions cares Loans 1978 1979 7 a oa Bi o at ; . an o : Incorporated in Liberia Liberia Revetment Holdings 2o> stock - stock " 4 Tefancon LimitedInvestments Dormant C7 a > - Anglo European Holdings Litnited NimrodNimrod Investments LimitedLimited > Martingale Investments Limited | | Park Holdings Limited Luxembourg | Swan InvestmentsInvestmLns imited . ' Incorporated in in investment Finance andinvestment S.A. Anglo Australia * A shares | B shares s - S * Anglo Rand Holdings A shares - B shares Anglux oo. Limited S.A. - A shares > - FsharesLimited Axalux Holdings Limited :. Lighthouse Investments Limited .. 0 _./. Orlop Investments Limited ......" Rand Luxembourg Limited S.A. a . A shares .. ; B ashares o ros . sie ou, oS. holding Patent * Crucible S.A. LIT ee Hilux Holding S.A. NiluxHolding S.A Incorporated Netherland Incorporated in in the . Finance investment Antilles . . Georgic Holdings shares N.V. favenees : 2 Incorporated in the Netherlands Holdings vo). Finance and investment _ .Erabas B.V. Gallic B.V. IncorporatedIncorporateid n Rhodesia . Finance andinvestment Appraised Securities Limited .;.... , Blue Skies Private Limited HoldingsHolding(s Consolidated Mines Rhodesia Limited a 4 Jameson Mining Holdings Private Limited Limted New Rhodesia Investments Limited Rhodes Investments . Varied Investments 1968 Private . Limited Financial services Limited American Corporation Services . : American Rhodesian Services Limited . . Life insiurance nsurance : & Assurance Company Limited veiebibeeese voles Property owning Ja Sanso Properties Private Limited . Salisbury Properties Private Limited ... Southampton Southampton Properties Cinema Private Limited Issued share capital 1979 1978 1 000's .000's 174 1 1 1 1 1 1 i 50 1 i 1 > ee | 1 1.000 a 155, oh 1 1000 1 000's 000's ag 205 = 32- ' 11 11 5 Interest in share capital Direct 1979 1978 Indirect 1979 .1978 * 6 % % Book value - Corporation R millions Shares 1979 1978 Loans 1979 1978 Sk | 100 ... 8 8 118188 118188 118188 118188 118188 118188 * ~_ = = _ + -;, * 88181 88181 88181 88181 100 ond - = - o 100 100 , 100 I ~ 100 I 32 100 _ 32 > _ _ 0,3 _ 3,0 a oo 8 18881 18881 18881 18881 18881 y 67 100 100 68866 6c8a866 _ - a : S 5 2 18 18 18 18 es _ = 100 100 3 eo oe 81 81 100 - - _ 0CU's 000's 881 * 80 881 63 881 = _ = wt . th: 45727 727 739 "5939 . aa 'S ra va - 11 100 100 .48 Yi 48 . ae COO's 000's 2~ : 20 20 1028 .. 1028 4 4 12 000 000 12.100 2 2 o 8 | || 8 || 1118 1118 1118 a 100 100 100 100 ? 100 100 100 100 100 100 100 100 _ agg FO = 20,8 _ 20 37 20 37 0 eee _ 100 100 .100 Fe 100 = 1000 1000 I 1 18.1 = 8 18.1 _ 8 18.1 TPT = Nominal amount Holdings formerly Anglo S.A. " now Zimbabwe Rhodesia ' Properties formerly Talas of Rhodesia Private Limited Limited sformerly Talas Properties of Khodesia Salisbury Private 48 Issued share capital 1979 1978 Incorporated in Rhodesia 000's 000's Prospecting Prospecting Neil Chrome Mines Limited x wee e eee eaeas * 60 60 New Middleridge Limited ..... wenee . Rhochrome Limited . ,. : os 130 214 Southridge Limited Valley Exploration and aes Limited ... os 240 330 ; 4 Incorporated in Swaziland 2 Mining oe 8 Swaziland Iron Ore Development Company Limited ........6, E000's _ 000 E000's 000 Dormant =. & at a Swaziland Industries Proprietary Limited sebeceeda : . ce vo 3 Incorporated in Switzerland _ Finance and investment Barque Holding A.G Rand Holding A.C s 7 src ok oa SF000's ;. SF000's ; we 50 50 0 . 50 > 50 Kingdom iz Incorporated the United . & Finance and investment age es . Electramic Limited 4 : aa 000's 000's : . Desl.. 352 352 ,, Luxam Limited .. <x Lydenburg Holdings Limited Pionsjudged Investments Limited - ordinary et 5 5 * - preferred :. Purlined Holdings Limited .... | Limited Marketing Sales Anmercosa Sales : sees Ls , Financeand investment : _ = Anglo AmericanCorporation CentralAfrica Limited wees K000's - K000's : Bye 500 % 500 ey American Anglo Corporation Zambia Services Limited ".... Northern Anglo AmeArican merican Proferties Limited 0 Interest in share capital Direct 1979 1978 Indirect 1979 1978 : 4 Book value CorporaCorporatiton ion R millions \ Shares Loans 1979 1979 + 1978 1979 after attributable its Aggregate profits and losses to Anglo Corporation of South AfricaLimited from : . fsubsidiaries amountto fe 7 Profits . Losses e o General investments . at March 31 1979 , Units held Group Market value Corporation Units held Market value : % Listed Mining finance finace and investment Anglo American Gold Investment Company Limited Botswana R.S.T. Limited .. ....... Q 1979 . 1978 Q = 498 | 905 166 166 R millions 1979 1978 703,9 362,2 490,5 291,9 0,4 i 1979 i} * 1 5 035 1978 035 444 millions 0 1979 1978 206,3 158,0 179,9 0.9 145,0 0,3 Charter Consolidated Limited .. se eeees 301 555 77,3 ., _ =. General Mining and Finance Corporation Limited . Gold Fields Africa Limited of South Consolidated eee eee nenees . Consolidated Investment Company Limited 969 045 77 569 539 010 . 010 900 ~ 036 2,0 _ 2 490 1,8 - ee 10,6 199 59 199 2,0 a 50,7 _ _ 4 Metals and Minerals Investment Corporation . Limited .. Minerals and Resources Corporation Limited ........ . 347 423 347 215 1,6 53,9 - - 145 974 _ = 21,7 + 11,6 ; New Central Witwatersrand Areas Limited . 441 800 441 800 0,9 -_" = -,* U.C. Investments Limited od 338 000 1,2 _ fo * Gold and uranium mining . 1. Witwatersrand and East Rand 515,8 252,1 = 139,9 6 ce | 100,1 14,9 15,2 Bracken Mines Limited ..3...... ~ 30512 269 892 0,3 - - _ | East Daggafontein Mines Limited :.... East Rand Gold and Uranium Company Limited Grootvlei Proprietary Mines Limited Kinross Mines Limited ... 496 497 641 958 2000 323 268 496 497 523 158 158 000 323 268 0,2 85,4 0,3 | 1,8 0892 2.405 089 0892 505 000 478 | 478 _ 12,9 - 1,0 ! 13,8 0,9 0,9 Leslie Gold Mines Limited g .... 200 628 1 250'937 250 937 1,9 0,9 649 112 1,0 0,5 fei 9Winkelhaak Mines Limited 2. West Rand 983 800 17 a 983 800 14,1 539,9 11,2 _ 326,6 Ms 3) = _ op 226,6 _ 116,3 The Afrikander Lease Limited ..,....-.22..2..0200008 998 998 162 16,5 15,0 235 234 6,8 6,2 Buffelsfontein a *. " Gold Mining Company Limited Deelkraal Gold Company LimitedLimited East Driefontein Gold Mining Company Limited 967 100 1.554.843 805 967.100 078 876 17,0 13,8 1, . 3 419 33,5 033 657 372 033 235 226 339 0,1 1,0 34,6 .0,1 0,3 27,0 Elandsrand Gold Mining Company Limited .... Elsburg Gold Mining Company Limited Limited Limited 468 | 565 772 2409.772 224,3 4,7 85,4 4,9 078 - 849 A 147,4 0,2 54,8 =- Hartebeestfontein Gold Mining Company 830 484 7 23,5 15,2 366 7366 0,2 0,1 Kloof Gold Mining Company LimitedCompany Southvaal Holdings Limited _ 508 805 723 29,5 0,3 20,1 637 33 805 637 931 072 072 0,3 4,9 . Vaal Reefs Exploration and Mining Company Limited Western Areas Gold Mining Company Limited .......... Company Western Deep Levels Limited . . Zandpan Gold MiningCompany Limited . Company 1854 3661 854 436 3661 436 366 174 750 792 188 792 58,4 4,0 110,6 5,4 40,8 4,6 87,9 3,8 815 663 467 10 967 815 6,1 23,2 663 23,2 10 967 ay 2 4,2 4S 7 18,4 + 3. Orange Free State oa . Free State Geduld Mines Limited \. Free State Saaiplaas Gold Mining Company Limited Loraine Gold Mines Limited Limited ...........5..0 President Brand Gold Mining Company Limited Limited :- President Steyn Gold Mining Company St. Helena Gold Mining Company Limited .~ . ihe eeeenceees Limited Welkom Gold Mining Company Limited Western Holdings Limited Zi,y . 2 ve 0226 650 . 0226 650 226 650 4546 | 546 256 620 805 558 1.558 527 204 204 i 068 479 894 050 341 068 479 894 Diamonds ps. De Beers Consolidated Mines Limited .... ; 5. Lees ciao ee . . i 109 258 135 109 258 135 : 105,2 6,8 7,9 0,4 29,1 34,3 8,7 18,0 = 917,3 917,3 Coal Corporation Angio American Coal Limited ......05...0005 +. Apex Mines Limited .........21..-.. Natal Anthracite Colliery Limited . Natal Coal Exploration Company Limited Vierfontein Colliery Limited . : 11.408-218 ; 2 86485 cy 044 176 c5r ) _ 305 604 408 218 86 485 644 691 301 305 604 238,6 216,8 1,9 11,4 0,3 Vryheid Coronation Limited ... Witbank Colliery Limited unsecured - shares1979/82 13,5 1979/82 convertible Zuinguin Natal Collieries Limitedconvertible wees 626 : 626 5,1 . . 33.000 33.000 673 875 000 .': R43 200 673 875 1,0 = 2,1 89,1 6,2 5,6 0,9 25,3 30,3 6,1 14,1 + 593,1 593,1 111,0 97,0 10,8 7,8 0,2 3,3 0,3 0,1 1 _ - _ . 25 600 _ _ = 370 370 370 L L . ae 889 350 . . 699 687 =_ . 231 687 - _ _ oo _ THE THE THE 7,3 3311 3311 2,0 2,0 - oo 13211 13211 13211 Platinum Lydenburg Platinum Limited Rustenburg Platinum ....... Limited 342 000 805 3 o 342 000 649 805 75,3 0,6 74,7 32,4 0,3 32,1 on, a 305 & a 305 15,1 15,1 13211 13211 13211 Copper and other mining Bindura Nickel Corporation Limited ...... CompLainymited The Messina Transvaal Development eee eens CompCany ompany Shangani Mining Corporation Limited Tanganyika Concessions Limited 700 466 533 498 114 be | 258 933 = 533 498 114 16,1 7,9 3,1 1,3 1,3 11,9 5,6 2,1 - 1,0 1,0 _ _ - A oo EXT EXT 3S 13211 13211 13211 a formerly Rhodesian Nickel Corporation Limited 50 = Tara Exploration and Development Company Limited .... Zambia Copper Investments Limited eee S Banking e National Bank Limited oe Barclays Limited Nedbank and Syfrets- UAL Holdings . nee RAL Holdings Limited Standard Bank Investment Corporation Limited . on Group Units held Market value mn 1979 1978 1978 R millions 1979 1978 Lot are a 2 a PAF ds 220 996 233 410 996 233 2,3 w 21 riPes 0,2 745 449 _ 900 -- & 6 745 449 499 722 , 381 000 - 250 ' 45,1 40,4 _ 4,7 - Units Units a . Corporation ce a Market value R millions 1979 1978 Industrial and commercial '- ve 323,9 198,9 Le AECI LimitedAmerican bee weno on 187 : 944 187 4,4 2,1 944 187 Anglo American Industrial > 12411 030 173,8 105,5 529 385 Barlow Rand Limited oe 420 420 50,0 30,9 2544 2544 Boumat Limited | Chemical Holdings Limited . . - 38 900 900 9 0,1 -, ] ordinary ......5...... tases - unsecured convertible Cullinan notes Holdings Limited fe vesne eee. : 090 079 -- R770 675 2115 - -_ Is 2153 2153 2153 , 054 ~ 107.918 R126 238 a : 0,2 0,2 Edgars Consolidated Investments Limited . 2 x 73 000 0,3 a _ Gallo Africa Limited 155 470 0,40 299 145 299 145 9,9 ,9 Highveld Limited Steel and Vanadium we 875 875,027 578 578 Corporation = : Hule Corporation Limited .3.......: 1008 I 008 450 2,9 | Company 40,2 Limited Johnson Matthey and seseese 375 851 000 10,6 5.6 -* - Mathey LTA Limited 920 363 3 920 363 9,8 6,5 653 653 McCarthy Group Limited : 3 468 633 3 158 633 2,6 20 * 869 771 728 OP. Romatex Limited ........ - 340 000 424 500 1,0 0,6 Ploel Russell Holdings LimiteBrewrides Brewries : _ * 000 oo 0,1 100 African Breweries # . South Limited The 210 aghordinary .......58.4 000 1 0,1 27228222 Lloyds 27228222 - preference 200 100 200 100 0,2 27228222 | Stewarts and Lloyds of South Africa Limited . 932 362 932 362 1,9 27228222 Pedy Television and Electrical Holdings . Limited . 638 303 0,4 27228222 The Tongaat Group LimitedHoldings wee . Milling 27 82 Tiger Oats and National Company Limited The Union Steel Corporation of South Africa Limited . 638 758 008 12,0 272 82 2 760 760 7 2,2 272822 194 %, 0,3 27228222 Vereeniging Limited 27282 Refractories = cw ee 27228222 127 840 127 840 > Insurance 72 an So . : 0,5 332332 Limited South African Eagle Insurance Company ; .-. B pee Property : Anglo American Properties Limited ~ 2 . 869 483 4 869 483 -prefrance -preferance ++ q 880 425 880 City of Johannesburg - 6.5 1997stock nena see preference First Union General Investment TrustLimited - Rand MinesLimited - loan stock . . wseeeet. Other minor holdings Total market value R187 500 221 100 > & R590 500 R187R187 500 221 100 R592 500 _ formerly Rhodesian Acceptances Holdings Limited 0 xy 8 a Unlisted Mining finance and investment a 5 os : Units held Group Directors valuation 1979 1979 : R millions 1978 1979 we. 1978 fa La .. * 45,4 51,8 Corporation held G Units 3 Directors valuation A millions 1979 19781978 1979 1978 Anglo American Corporation of Canada Limited .... eee 039 841 051 -* . rm tifa ; N . 1a 7 Anglo American Corporation Rhodesia Limited . 2 Australian Anglo American Limited B.C.L. - Limited preference .....:. Hollardstraat Beleggings Beperk Rhodesian Overseas and Investment ....... Company . 705 854 705 854 000 15 400 000 2 : 250 15 250 a _ 980 000 000 = 000 099 |. 000 Diamonds s B a a 108,3 93,2 Abrasive cumulative cumulative _? Grit Sales Limited ......2.......0-22- 600 21 600 W ~ 1 - Cymberline Proprietary Limited variable rate cumulative ao = Purchasing 2 preference . The Diamond ce ieee wes ccc e cree c ee ena cee teen esceerere and Trading Company '000 39 000 sR Oy % Al Limited oe ....a..0s6ee2 ees wees eee Gh 461 756 756 | Proprietary Proprietary Limited ~ The Diamond Trading Company 9. . 500 000 500 000 ' oof Industrial Distributors 1946 Proprietary Limited . st : = an ts 000 000 - AP . RN 000 28 000 ... : ae 2, 200 2. 8 50 _ 50 a 8 _ 8% * ' . ' Coal 5 , ", Blinkpan Koolmyne Beperk .700'000 . 700 000 2,5 1,4 ia o fo " ' 4 s an . : # Brasil Copper and other mining Anglo American Corporation do Cleveland Potash Limited Limitada Cleveland ordinaryprefrence . 2 4 preference sae = 10 loan stock 1984 NY Corporation ~ 11 loan stock 1985 . Gamsberg Zinc Limited * . ; 12,9 449 0 . 000 <x? 875.000 449 - & 000 000 rs 52 000 750 000 334 005 2.000 2.000 000 3 334 005 a, Messina Rhodesia Limited 599 <3} 583 ' wow a Rhodesian Alloys Limited .......5...05 sees 663 266 are Societe de Miniere D'Anglade D'Anglade 000 000 . finance Corporation \ og Oe Gg) Tsumeb . Limited General i .95 000 . 95.000 4aF 0 87,2 24,9 . : Ee Compagnie Holding Franco Sud Africaine 0.3 - Epoch Investments Limited lye a . 285 000 . ' 285 000 ns we -, fo ' * { *s ( : . : . Bae . : 7 @ . , ordinary. <= preference .....%. Management and Technical Services Limited voting i os P A voting B shades D voting Limited MeanInvestments Limited ~ Nave Investments : - A 000 250 000 . .50 000 2. 50.000 ee 250 .100 100 Boe 927 250 - 100 - 100 4 250 227 500 000 = Louis Societe Financiere Le Grand - . * . 279 300 279 300 , Tarl Investments Limited A ar aa : -.. 000 5 000 . n . * . * & . : "4 . ae me - G : . o > Banking Sot sy Company AspellaInvestments Limited Bahamas International Trust Company Company 5. voting st e = 124 voting an Proprietary Central Reserves Limited . Commonwealth . Comonwealth Development Finance Company Limited - The Discount House of South Africa Limited ordinary Industrial Finance Corporation of SouthAfrica Limited -... 0. 1876 * .50 241 525 . 500 437 502 _ National Finance Corporation of South Africa Limited 728 000 7 Industrial and commercial eo o . Cardium Holdings Limited ..... Limited L. Clark and Company : Clay Products Limited 5000 * ; U 094 61 500 Computer Sciences Proprietary Limited 826 334 Consolidated Metallurgical Industries Limited . we 077 R576 922 19 370 350 124 124 876 50 241 525 500 437 502 624 000 : 5 000 114 282 500 1 826 334 000 , R576 922 370 7,4 6,6 0 5 , a a 2 : ey 78,4 : 60,3 it Boog yO 124 / 1876 124 876 50 .50 233 050 233 050 500 | 425 000 - 500 425 000 000 624 000 25 396 76 187 1923 077 370 aa 370 o 20,4 : 52 Ea Group = "+ , Corporation Units held Directors valuation held Directors valuation z on . , a : 5 ig : , . 4 1979 ; 1973 i 1973 ~~ millions 1979 1978 wt R millions 1978 1979 = 1978 Industrial and commercial = . : ae | vot ; . AssociateLsiHmoiltdeidngs Limited na Control Logic Proprietary Conway Johnson LimitedAsociates C.T. Bowring and a ordinary - ..... o preference see . South Africa . 12 500 98 400 2 . _ a 5 000 2 12 500 98 400 ~ 000 2 _ . : - 000 L 000 " " . Y ; . ' eo. & OR C.T. Private * and Associates Rhodesia Bowring and ordinary ; Limited i sees - preference 281 - 1 281 . 37 a ay - _* ROT _ . - ~ Proprietary * Eastern Transvaal Timber Company . 750 7 750 vs tee _ i x n Hall Longmore and Company Proprietary Limited 147 147 _ Proprietary International Steel Investments _ Pipe and S.A. * a Limited ....... . 4019 197 4019 197 820 156 820 156 ; a : ho ~ ad : 7 Kiln Products Limited Limited McCarthy Main Holdings . Beperk Mainstraat Beleggings 1965 Proprietary Middelburg Steel and Alloys weg Limited 274 764 500 . + 1500 * 547 500 547 500 " 595 595 se : 99 562 TU 730 365 000 Sams 562 = . 730 oo 365 000 e > oo : os i & 2 & ~ - a = . . boo. B 5 * a . op ; wb 5 & es Mimbula Fitula Holdings Limited ...........0045 : Mondi PaperCompany Limited y preference RFF Limited 6 2 ordinary ...: - S preference .. 500 000 . 125 . : * + = 14.111 941 a 10 000 = 000,000 443 673 718 464 & 005 a . - v . x ' 610 610 ae : 196 801 ao a . . Loe a a . * : = _ : . . o, 7 oe s . 9 aS) Shaft Sinkers Limited Proprietary 4 Motor CorporationCorporation Proprietary Limited - SigmaProperties Nelspruit Proprietary Limited preference 3 000 000 670 500 000 000 670 - 17.000 17.000 : . _ : 444 859 137 * 038 859 273 : fi on ~ vi - . we . iG < . ee a Ty Company : a formerly Illings Proprietary Limited Soetvelde Farms Limited ...... Union and v Limited 393 7760 393 454 . 3 : 192 9 _ 192 * . a ProperCtaryriage Wagon Proprietary a SR, a 3S : : 17,9 17,9 AiR McCarthy tS Amaprop Z. 2 Investments Limited pQacecnceee 294 294 _ 2 196 196 . wy oe fi O.F.S. Housing Company Limited ... 637 500 | 500 we > 615 615 - Limited 131 America 14 % PEs 4. Anglo American Properties Limited deferred 520 847 : . 131 ae sells)" Carlton Centre Limited 02.4. .6.. . . &.. Creative Homes Limited Dennehof Court Proprietary Limited at 2 >. 14.183.333 14.183.333 505 352 Be, 78 40 183-333 . 505 352 40 oo as > a iv Ae * my 100 000 _ 100 000 i 2,2 2,0 ' " a . F 4 wt a . ne an . Loe To . Proprietary LimitedLimited > : te Marina . Bo Place os 2 Main . Holdings Limited da Gama Limited 559 5.512 559 5512 368 ee 368 me - F = So i . - 6 a 3,3 ae 3,0 2,4 Sundry ~ Beperk : 8S 00e . Tt oo < x - a oe = : Ansa Petroleum Bae s-. Edesa Societe Anonyme Holding Lucas Block Minerals Limited Otherminor : o 1.802 802 2 | % * 200 200 100 100 ae Loe - 100 = 800 . 100 = ar holdings Total You Na : . u directors reer wheeeeee . 314,5 272,3 43,1 28,8 A valiiation TS . \ ie 3 t: AN ~~ we e ~ I } - + a wot ie . . a . @ it a i g s 3 Qos A ~, ray s & =p \ ~ a < 2 a : : * > a Fa : v Ny _ . . wo o j on Gees sve a Number of issued ordinary shares Investments 2 Equity earnings Book Market per value value = share December 31 1969 129 400 129 820 400 400 - | 129 858 200 29 889 300 < 1976 131 387 300 1 131 131 672300 SS. 131 300 " R millions 283,1 818,13 307,33 688,63 434,9 |. 027,4 449,9 | 1 262,1 468,6 | 231,3 449,7 1276,6 518,8 | 233,1 525,7 1.102,3 cents 27,9 March 31 1978 - 1979 222 5324 223 377 835,65 * 878,9 2 269,05 385,9 5 89,95 90,2 1 * 2. 3 4. 6 os : 8 investments book and surplus 1969 to 1973 Includes unlisted investments over book value fad at value outside shareholders interest in listed of market value of MS es investments valuation interest unlisted 1974 to 1979 Includes surplus directors valuation over book value directors at undistributed Group directors equity The ^'quity aggregate the agregate earnings of the Group andits share of the directly or indirectly held 20 per cent or more of and outside shareholders in earnings of companies inwhich the : : of market value and or its associatesin investment consolidated Excluding investment in consolidated . . rights shareholders Includes shares issuedin of the acquisition of RSC and issue issue to RSC Ay respect Not comparable with years owing to the merger of Rand Selection Corporation Limited and the inclusion of other companies previous which merger by virtue of the Based on 217 082 shares became subsidiaries of Anglo American Corporation in in issue the 15 month period January effectively during months 1 1977 to March 31 1978 Includes a special interim of 8,25 cents 0 Fe) PAGE LEFT a BLANK BLANK INTENTIONAL Y INTENTIONALY INTENTIONALLY a THIS PAGE Left | BLANK INTENTIONALLY we, at Corporation The Anglo American Group AAC has direct and interests in a wide range of financial mining industrial prospecting insurance and other companies In many cases additional interests are held and finance are by administered byor investment companies associated with but not themselves i members of the AAC Group Unless Twise stated all expressed monetary currency amounts are South African \ investments of Major listedinvestments Amrho June 30 1978 were Percentage S Bindura Corp. Lid formerly Rhodesian Nickel Corp. Ltd intercit 36,4 Lt Hippo Valley Estates Ltd National Foods Holdings Lt RAL Holdings Ltd 39,8 8.4 24,9 ShanganiMining Corp. Ltd_ _ Wankie Colliery Co. Lid .c 12,7 32,3 certain .Details of the operations of companies on page 62 of this report ofthese appear Details of the operations of Amic's principal subsidiaries and certain of its investments may be found in the sections on industrial companies Year ended December 31 1978 mm 2} Issued capital 26 861 947 R1 shares Total shareholders funds Long- and medium loans Investments Listed book value 1978 R000's 1977 R000's 26 862 335 970 37 , nf 47 442 26 862 299 096 o 16 547 50 324 - market value 88 295 65 152 rey? , * Anglo American Gold Investment Company Limited ~ ADMINISTERED Principal BYAAC investment AAACmgold major finance and t v F a investment companiesCoal changes Anglo American CorporationLimited Amcoal = FebVreunadreyd AAC equity interest - 48,56 per cent AAC's major investment in coci is represented by its interest in Amcoal which is one of the largest coal mining groups in the world having a substantial investiment in the South African interest - 47,83 cent _ Amgoldis aninvestment with shareholdings in South African gold uranium mining companies and _ interests in gold mining and explorationin Australia and Brazil The financial year end was changed to the last day of February following iin n dividend declaration dates by certain gold mining companies in which Amgold has major investments " 2 14 months Year ended December 31 Issued capital G 1979 + 2 R000's : 1977 ROOO's coal industry through its 12 collieries which mine coal 952 012 R1 ordinary shares 21952 21952 952 marketed both the domestic and export markets Amcoal 25 000 000 10c preference a in in also owns property mineral and coal rights in the Transvaal Natal and Orange Free State and participates the coal prospecting programme of AAC through a owned shares Total shareholders funds Ordinary ' funds 500 208 628 183 628 168 661 168 661 subsidiary Amcoal Exploration and Finance Ltd. In addition Amcoal holds a 51 per cent Vereeniging Refractories Ltd a major producer of and allied products in South Africa Year ended December 31 1378 : a capital 50c Issued capital im 491 438 shares 1978 ** R000's 746 Total shareholders funds 201 737 interest in refractories 1977 R000's 746' 165 591 Investments Investments *Listed book value S -market -market value ~ Unlisted book value directors - Loans valuation Equity earnings per share Ordinary dividends per share wy _ 206 580 095 077 2 340 7518 351 744 3180 3180 ote 54 880 250c 731 760811 / 340 289 955 507 , 189c 36 221 165c medi Long and loans Fixed mining and township 119 317 Earning dividend at the rate of 10,5 per cent a year on the issue price of RI a share . assets 725 Investments Listed -- book value ". 720 = market value Unlisted ~ book value 1513 1513 253 directors valuation 005 259 195 860 1463 B11 391 Dividends paid per share Details of Amcoal's principal 61 of this report 24,50 a 52,728 52,728 47 295 24,50 24,50 24,50 201,3c 914 14 095 720 60c principal operating interests appear on page The principal investments of Amgold and its subsidiary Ltd Free company Orange 28 1979 were State Investment Trust at February Percentage Blyvooruitzicht GM Ltd Ltd Buffelsfontein Co Ltd Ltd- Deelkraal GM Co Ltd interest 6,8 20,2 8,7 East Driefontein GM Co Ltd 11,1 East Rand Gold and Uranium Co Ltd 20,0 Elandsrand GM Co Ltd 23,0 Free State Geduld Mines Ltd 20,2 Free State Saaiplaas GM Co Ltd 19,2 Anglo American Corporation Rhodesia Limited Amrho AAC interest - 16,60 per cent equity AmrhoZimbabwe in conjunction with certain associated companies holds the Zimbabwe Charter Rhodesianinterests of AAC and the Minorco and and has a diversified portfolio which groups widely includes major investments in coal nickel and copper mining iron steel chrome and allied engineering industries citrus sugar general agriculture forestry and timber processing cement flour milling rolling stock hire property merchant banking and finance In addition has Gold Fields of South Africa Ltd Hartebeestfontein GM Co Ltd Kloof GM Co Ltd President Brand GM Ltd President Steyn GM Co Ltd St. Helena GM Lid Southvaal Holdings Ltd The Afrikander Lease Ltd Vaal Reefs Exploration and Mining Co Ltd Welkom GM Co Ltd West Driefontein GM Co Ltd Western Deep Levels Ltd. Western Holdings Ltd 10,9 15,5 8,0 20,0 29.6 18,5 13,3 15.3 16,3 18,8 14,2 13,2 20,9 substantial participation in the Corporation's . prospecting programme in Zimbabwe Rhodesia operations companies Details of the of certain of these the sections on gold mining companies appeairn Year ended June 30 1978 Unlisted-directors book value valuation -directors -directors Equity earnings 30310 729 47 062 545 991 per share 141,4c Dividends p^/id 18 804 shaie Excludes assets liabilities liabilities liabilities and a 0 cetain earnings cetain 70c foreign subsidiaries not consolidated items Excludes trading investments The principal 1978 were ' ONSNY 7 of the Amic group at December 31 Percentage / interest industries Building andallied LTA Ltd 37,3 Freight and travel " Freight Services Holdings Ltd directly and through Redbury Holdings Ltd Iron steel engineering and related industries Consolidated Metallurgical Industries Ltd Highveld Steel and Vanadium Corp. Ltd Pipe International Pipe -'C shares and Steel Investments S.A. Pty Ltd Mainstrat Mainstraat Beleggings 1965 Bpk Stewarts & Lloyds of South Africa Ltd Vereeniging Refractories Ltd Pty Ltd. Zinchem and Industrial Mineral Resources Industrialfinance Ltd. Barlow Rand Ltd De Beers Industrial Corp. Ltd Timber and paper Cardium Holdings Ltd - Property Isipingo Property Investments Ltd Food and produce The Tongaat Group Ltd Textiles Industex Pty Ltd 0 Romatex Ltd. Motor and transport McCarthy Group Ltd Pty Sigma Motor Corp. Ltd Anglo AAmermicanerican Investment TrustLimited ' Anamint AAC equity interest - 52,16 cent Anamintis an investment company whose principal holdinga 26,4 cent investment in De Beers deferred shares generates more than cent of its investment income Information on De Beers on pages 65 and 66. A^-amint appears companies also holds shares incertain diamond trading t Year ended March 31 1979 1979 = R000's woo Issued capital 10 000 000 50c ordinary shares 000 ns Issued capital 28 354 G06 51 shares Total shareholders funds Investments 1978 000's 28 355 417 1977 ZRS000's : 28 355 61 550 Limited Anglo American Industrial Corporation Amic . AAC equity interest - 46,20 per cent Amic formediinn 1963 to AAC and has industrial the subsidiaries holdings of in the fields of 500 000 R2 % cum pref shares Total shareholders funds Ordinary shareholders funds Listed book value 5 000 67 533 533 46411 Listed - book value -market -market value Unlisted book value Equity earnings per share Ps Dividends paid per share 19 385 212 629 3 286 11,66 1418 5c 19 567 425 772 537 16,0c 418 5c mining tools equipment and contracting services iron steel and engineering forestry saw milling and timber and maize processing Amic also holds a large portfolio of investments in undertakings of its complementary to those and in industries involvedin paper and packaging freight and travel motors chemicals construction transport and textiles food and produce -market -market value :: Unlisted book value - directors zaluation Equity earnings per share Ordinary dividends per share fe * 805 112 ' 656 . Anglo American Properties Limited - Amaprop AAC equity interest- 48,9948,99 per cent Amaprop is is property spread of investments It has interests complexes hotels medical finance company with a diversified both as to type and geographical location in centre office and shopping suites parking garages and residential and holidayapartment blocks In addition it has land holdings and : township developmentsin the Transvaal Natal and the Cape Province : Year ended March 31 1979 < wa 1979 Issued capital 20 813 258 50c ordinary shares 10 668 000 50c deferred R000's 10406 : Orange Free State mines ag | Administered by the Corporation : Loraine 2. Area held underprospecting permit 3. F.S. Geduld 4. Western Holdings 5. Welkom 6. President Brand 7 President Steyn 1978 1977 + Joint Metallurgical Scheme attributable profit 317 000 R192 000 Taxation and State's sharoe f profit R34 000 R6 759 000 > Dividends paid t R21 060 000 per unit of stock 150c 463 ) treated Includes 463 1977 500 tons treated on the company's behalf on a cost plus service charge basis by Free ' State Saaiplaas Gold Mining Co. Lid ending Planned production for the year ending September 30 1979 : Tonnage 3 100 000 which includes 315 000 tons to be treated = by Free State Saaiplaas Grade 9.5 grams a ton Planned as t _capital expenditure R12 000 000. In addition an amount of . R48 500 000 is to be spent on the Joint Metallurgical Scheme an CO ordinary shares 334- 417 483 50c % cum conv . a red pref shares Total shareholders funds Ordinary shareholders funds Long loans Fixed assets Township properties and debtors Loss attributable to ordinary 15 709 478 17769 17769 48 273 83 454 . 569 711 4} 38 224 513 126 = 678 809 > shareholders Accumulated loss a SO 746 10477 655 y 4 716 Amaprop's be Details of Amaprop's principal operating interests may on page 62 of this report found G . ' President Steyn Gold Mining Company Limited ended Yearequity AAC interest - 15,98 cent = Septembe 1978 1978 1977 Issued capital 566 50c shares R7 283 000 R7 283 000 : Area mined - centares 704 000 634 000 Tons milled 256 000 000 ., Yieldper grams , Cost per centare mined - 8,65 16,47 i Cost per ton milled R23,86 : Working profit R52 865 000 R26 277 000 Joint Metallurgical Scheme New Central Witwatersrand Areas Limited NCW equity 25,01 AAC - interest 25,01 cent interests NCW is an investment company its main interests being in miningfinance and mining companies 74 : 7 months 14 oy Year Aw, ended ended August 31 1177 Issued capital 766 396 50c shares R000's 883 R000's 883 8. F.S. Saaiplaas 9. Helena Total shareholders funds 686 1678 10. Unisel Investments Listed ~ at cost -market _; 1.693 055 : 693 4506 4 11. Video fi which 12. HarmLay Equity earnings share *Dividends Dividends paid per share Do "ova : 3961 22,4c . 2 ,4c 389 22,0c 295 16,7c 291 16.5c 14. Merriesoruit C3 oH 14. SE % ee a. o attributable profit Taxation and State's share of profit Dividends paid _ per share R224 000 K17 37-1000 R11 653 000 2 80c R621 000 R7 000 R2 857 000 20c Planned production for the year ending September 30 1979 Tonnage 400 000 Grade 9,0 grams a ton Planned capital expenditure R19 000 000 su ary Video company The above results relate the company and its wholly- * owned Video Gold Mining Co. Ltd. o eu Welkom Mining . Company Limited AAC eqequityuity interest - 10,95 per cent 0. Year ended September 30 capital e Issued capital 250 50c shares centares Ar^'amined - Tons milled Be Yield - grams 1978 1978 R6 000 500 000 000 6,09 1977 =. R6 000 513 000 OCD 6,36 a we Cost per centare mined 7. R102,91 R86.02 L ey Cost per ton milled oa R23,56 R20,21 tee oo. and uranium 7 uranium Gold and uranium Orange Free State 2 oon : Year ended September 30 1978 : Hh Issued capital 28 100 000 R shares Area mined - cextures Tons milled 7) @ 11997788 1977 -~ R28 000 242 000 R28 000 000 000 234 000 Free State Geduld Mines Limited AAC equity interest - 2,17 per cent Year ended September 30 1978 1978 Issued capital " shares- 10440 Area mined - centares Tons milled Yield grams Cost per centare mined Cost per ton milled . Working profit Joint Metallurgical Sclieme attributable profit Taxation and State's ., oa * 220 642 000 370 12,78 R139,09 R26,50 R142 R20 000 of share profit Dividends paid per share R68 000 R32 000 315c 1&977 000 000 436 000 12,89 R109,56 R21,35 314 . R280 000 000 - R24 240c Planned production for the year ending September 30 1979 Tonnage 3 200 000 Grade grams a ton Planned capital expenditure R50 000 000 A e contare Yield per mined Cost per cinilled Working loss gold Uranium profit Joint Metallurgical Scheme attributable profit R112,97 R112,97 R22,05 000 _ R99,09 R19,03 . 000 716 000 * 000 000 Planned production for the year ending September 30 1979 Tonnage 1 200 000 Grade 3,6 grams a ton In addition it was that the company would to treat 45 000 tons of ore a month from President Brand on a cost plus service | charge basis the end of April 1979. Planned capital expenditure 000 000 841 President Mining President Brand Gold Mining Company Limited AAC equity interest - 11,10 per cent ' Year ended September 30 1978 1978 Issued capital _ 040 50c stock units Area mined - centares 020 621 000 Tons milled * 000 1977 . 000 000 093 State FreeFree State equity SaaSiaapipllaaasas GoGolld d MinMiingning AAC equity interest - 16,18 per cent CoCommppaannyy Limited z Yield - grams Cost per centare mined Cost per ton milled 9,53 R127,35 R25,14 10,56 R117,77 R22,12 _ Subsidiary of President Brand Gold Mining Co. Ltd Working profit R82 R54 Working profit R20 GR7 000 3 ~ Joint Metallurgical Scheme 777 atributable ' 000 i i = attribaundtaStbatle'es share of profit od R9 632 000 R933 000 : Dividends paid per share 2 962 R4 000 y 65c 35c . a | Planned production for the year ending September 30 1979 Tonnage 2 100 000 Grade 6,0 grams a ton Planned capital ! expenditure R5 250 000 i 3 oo i . @ Holdings Limited Yr Limited Western Holdings AAC equity interest - 6,40 per cent .Year s @ ended September 30 1978 1978 Za 1977 W 0 Issued capital a : ~~ R3 496 shares 000 748 000 : = Area mined centares 656 000 689 000 Tons milled Yield grams Cost per centare mined Cost per ton milled Working profit Joint Metallurgical Scheme attributable loss profit Taxation and State's 000 10.64 R107,07 R22,56 . R107 093 000 11,77 R88,62 * R19,74 R74 Bog ge 0 os 0) Togs t * R1 215-000 R534 000 a share of profit Dividends paid share A68 000 R31 110000 415c R48 000 R20,990 000 280c Planned production for the year ending September 30 1979 | Tonnage 3 200 000 Grade 10,2 grams a ton Planned capital expenditure R11 000 000 Vaal Reefs is South Africa's principal uranium producer accounting in 1978 for a quarter the national output - a proportion that will increase now that the South plant development is on stream The South plant near the new No shaft has been built trial and commissioned in 21 months By 1982 Vaal , Reefs three uranium plants will be treating 750 000 tons milled slime a month and producing 1 700 tons of uranium oxide a year - = * <I 3 AAC administered Orange Free State mines * 1978 1977 mines R000's R000's West Rand Joint Metallurgical Scheme The six mines administered by AAC in the Orange Free State Royalty received after taxation 233 714 8 462 184 Far mines Administered by the Corporation Profit HE Free State Geduld Free State Saaiplaas President Brand Dividends paid * 820 5.460 Producing mines : President Steyn Welkom and Western Holdings participate in per share 0 57c 21c CJ major metallurgical scheme for the recovery of uranium gold Mineral and sulphuric acid from current and deposited slimes Year ended September 30 1978 C Pyrite flotation plants slimes treated - tons Uranium plant slimes treated - tons concentrate treated - tons uranium oxide produced - kg Acid plant acid produced - tons Gold plant calcine treated - tons gold produced - kg Profit 1978 16 660 000 522 000 319 000 595 968 275 727 218318 270 R19 484 000 1977 767 000 913 000 54 000 206 345 137 669 ' 34 522 114 R3 800 000 The Afrikander Lease Limited AAC equity interest - 44,55 per cent The company owns certain freehold and mineral rights over bearing areas in the Klerksdorp district of the Transvaal and has leased its main block of mineral rights to Vaal Reefs Exploration and Mining Co. Ltd. Vaal Reefs is establishing a new mine in the area and will pay the company an annual royalty based on revenue Reefs Vaal Reefs Exploration and Mining Company Limited AAC equity interest - 9.76 per cent Year ended December 31 1978 1978 1977 Carletonville 12 1" Kilometres [S can ae E Kilometres ) 10 20 Klerksdorp area mines Administered by the Corporation Producing mines an Mineral rights Klerksdorp Issued capital ^' 1. Randfontein Estates 8. West Driefontein 000 50c shares 500 000 500 000 2. Venterspost 9. East Driefontein Area mined - centares 609 576 3. Libanon 10. Deelkraal Gold tons milled yield - grams Uran t:ons treated yield kilograms 000 8,62 823 0,22 7 165 000 8,95 786 000 0,21 4. Kloof Western 5. Areas 6. Doornfontein 7. Blyvooruitzicht 11. Elandsrand Levels / 12. Western Levels 13. Western Ultra Deep Levels Cost per centare mined R139,43 R121,61 Cost per ton milled R28,68 R26,75 Working profit s gold uranium oxide and . R146 079 Western Deep Levels Limited _ sulphuric acid 000 R17 000 AAC equity interest - 28,70 per cent 1. Afrikander Lease 2. Vaal Reefs 3. Stillontoin 4 Hartebeestfontein 5. Buffelsfontein Royalty payment to Southvaal Holdings Ltd Taxation and State's , R28 000 R8 000 share of profit R37 000 R14 254 000 Dividends paid R53 000 R21 000 per share 280c 115c Planned production for the year ending December 31 1979 Gold Tonnage milled 7 600 000 Grade 8,8 grams a ton Uranium Tonnage treated 7 000 000 Grade 0,20 kilograms a ton Planned capital expenditure R96 000 which includes 000 to be spent on the South Lease area and 000 000 on financing the capital requirements of the Year ended December 31 1978 Issued capital 25 000 000 R2 shares ' Area mined - centares Gold tons milled yield grams Uranium tons treated yield - kilograms Cost per centare mined Cost per ton milled Working profit 1978 R50 000 000 223 000 14,17 874 000 0,21 R144,25 R32,67 1977 R50 000 000 14,61 747 000 0,22 * ~ R141,31 R29,48 i proposed mine of Vaal Reefs on the area leased by it from The Afrikander Lease Ltd. gold uranium R145 R2 341.000 . R88 000 R3 249 000 Far West Rand and Klerksdorp Elandsrand Gold Mining Company Limited ' AAC equity interest - 49,64 per cent The company was incorporated in 1974 and has established a gold mine in the Oberholzer and Potchefstroom districts of the Transvaal The mine produced its first bar of gold in 1978 Year ended 31 December 1978 Issued capital 75 484 238 20c shares Share premium Capital reserve Mining assets 1978 R000's : 097 69 694 110 233 172 388 1977 R000's 065 _ 233 98 615 In June 1978 the company raised R76 742 000 by means of a rights issue to members of 25 161 413 shares 20 20 cents each at R3,05 a share Planned production for the year ending December 31.1979 Tonnage milled 1 000 000 Grade 6,00 grams a ton Planned capital expenditure R70 000 000 East Rand and Evander mines by the Corporation Johannesburg Southvaal Holdings Limited AAC equity interest 9,65 per cent Southvaal's income is derived from royalties receivable from Vaal Reefs Exploration and Mining Co. in respect of that company's mining operations south of the Vaal river and from interest on loans +1 oO. Year ended December 31 1978 1978 1977 R000's R000's Issued capita 000 50c shares Distributable reserves 13.000 13.000 953 13.000 59 Heidelberg 1. Van Dyk & 2. S.A. Land Exploration 3. Vlakfontein 4. Ergo Complex 5. Marievale 6. East Daggafontein 7. Kinross : 8. Lesho 9. Bracken 10. Winkelhaak 60 1978 1977 Taxation and State's share of profit Dividends paid per share 000 R36 000 147,50 R45 054 000 = R20 000 82,5c Planned production for the year ending December 31 1979 Gold Tonnage milled 000 Grade 14,3 grams a ton Uranium Tonnage treated 876 000 Grade 0,21 kilograms a ton Planned capital expenditure R77 000 000 East Rand Coal mines administered 1. Vierfontein 5. Navigation 2 Carnelia 6. Landau 3. Springfield 4. New Largo 7. Kleinkopje 8. Springbok by the 9. Blesbok 10. Bank 11. Arnot 12. Kriel Corporation 13. Balgray 14. Indurmen 15 16. Natal Anthracite Pretoria @ Middelburg Witbank pre HEB Amcoal group collieries HEY Other collieries East Daggafontein Mines Limited AAC equity interest 13,31 per cent Year ended 31 December 1978 Underground operations by the company were terminated in November 1976 and subsequent activities have been confined to clean operations and the salvage and sale of plant and equipment . The company continues to receive modest revenue arising from agreements allowing third parties to undertake /rtain > mining operations East Rand Gold and Uranium Company Limited Ergo AAC equity interest 36,60 per cent Ergo operates a treatment plant in the Springs area for the purpose of recovering gold uranium sulphuric acid and oleum from old mining slimes dams on the East Rand Production began in February 1978 with the recovery of uranium Sulphuric acid production started in March and gold production in April 1978 Year ended March 31 1979 1979 Issued capital 40 000 000 50c shares R20 000 000 Slimos treated - ions 16 251 000 Uranium oxide produced - kg Sulphuric acid produced - tons Oleum produced - tons Gold produced kg Operating profit Dividend paid per share : 157 859 313 251 R18 049 000 R10 000 25c Production targets for the year ending March 31 1980 have been set at 5 kilograms of gold 200 tons of uranium oxide and 450 000 tons of sulphuric acid and oleum is The South African Land & Exploration Company 8 Limited AAC equity interest 18,95 per cent Year ended December 31 1978 h * Issued capital 6 600 35c shares 1978 .. 1977 R2 000 R2 000 Tons milled from dumps Yield - grams is Operating profit & Net sundry income Taxation Dividend paid per share 965 000 1.28 077 000 R807 000 166 000 R1 650 000 25c 897 000 1,82 R860 000 R761 000 R197 000 _ _ The company continued treating waste rock and crushing slimes from various locations on the East Rand Expenditura the year on the prospecting programme amounted to R299 000 Coal Anglo American Coal Corporation Limited Amcoal AAC equity interest - 48,56 per cent Financial details of the Amcoal group are given on page 57 The principal interests of the group are as follows all 100 per cent owned unless otherwise stated Callieries Arnot . Bank Blesbok Landau (3 Navigation New Largo Krugersdorp Johannesburg Potchefstroom Klerksdorp Nal Vereeniging @ Vaal Dam ORANGE FREE STATE 2, Kilometres > 7 60 100 20 40 80 100 Collieries Cornelia Kleinkopje Kriel Springbok Springfield Vryheid Coronation 65 per cent held Industrial es Vereeniging Refractories Ltd 51 per cent held B Vitro Clay Pipes Ltd 50 per cent hold Group coal and coke sales comprise the following 1978 Tons generation Power generation Escom 000's 17 04G 1977 Tons 000's 15 608 Trade Export Domestic 857 655 4.439 214 Metallurgical Iscor Other Coke 593 343 505 25 702 Natal Anthracite Colliery Limited AAC equity interest - 41,10 per cent The company operates a colliery near Vryheid Natal which grade low phosphorus anthracite A whollysubsidiary Balgray Collieries Pty Ltd operates a colliery at Utrecht Natal producing high carbon anthracite Year 18 months ended December 31 ended December Issued capital 000 50c stock units Group coal sales tons Consolidated profit after taxation 1978 Q R2 000 000 978 000 R4 581 600 ya 1977 ie R2 000 000 R2 488 000 i K7 513 000 Dividends paid per stock unit R1 880 000 47c R2 000 67c Volksrust Pongola NATAL RiverRiver Newcastle @ 13 Vryheld Harrismith Dundee 14] Vierfontein Colliery Limited AAC equity interest - 7,64 per cent The company operates a colliery in the Viljoenskroon district of the Orange Free State and produces bituminous coal for sale under contract to the Electricity Supply Commission's Vierfontein power station 18 months ended December 31 1978 31 December 1977 Issued capital * 000 50c shares Coal sales tons Profit after taxation Dividends paid iftaxation per share 4 R2 000 000 466 000 R374 000 R340 000 8,5c 000 000 000 R560 000 R480 000 12.0c Zuinguin Natal Collieries Limited AAC equity interest - 48,13 per cent The company owns the entire issued share capital of Indumeni Coal Mines Ltd which operates a colliery near Dundee Natal Indumeni produces coking coal for supply to Iscor Year 18 months y ~ ended ended December 31 December 31 1978 1977 Issued capital 1400 000 50c shares : ~~ Coking coal sales - tons : Consolidated prolit after taxation Dividends paid per share Sales by the wholly Coal Mines LIGI owned R700 000 386 000 R700 * 000 R547 000 R448 000 32c R672 000 R560 000 40c subsidiary company oy \ : Indumeni Other mining Bindura Nickel Corporation Limited AAC equity interest -35,45 -35,45 per cent Bindura formerly Rhodesian Nickel Corp. Ltd owns the entire issued share capitals of Trojan Nickel Mine Ltd and Madziwa Mines Ltd whose three nickel mines are situated in the Bindura Filabusi and Shamva districts of Zimbabwe Rhodesia The company's other wholly subsidiary Bindura Smelting and Refining Co. Ltd. is situated next to Trojan Nickel Mine at Bindura and produces refined nickel from nickel concentrates received from the company's mines and also from Shangani Mining Corp. Ltd. Copper is also produced as a by- product of the refining process 9 months Year ended December 31 Issued capital Unsecured loans Equity earnings per share Dividend paid per share Middelplaats Manganese Limited AAC equity interest - 50,00 per cent The company is establishing a mine in the Sishen area of the northern Cape manganese belt Prospect drilling on the property indicated reserves of manganese ore in excess of 52 million tons at a grade of approximately 38 per cent and four per cent iron The equipping and commissioning of the main shaft is almost complete and the incline service has reached an ramp and advanced stage of underground completion The plant has been commissioned and manganese ore is being a produced on limited scale The construction of housing for employees has been completed The deposit will be mined by underground mechanical methods The estimated capital cost of the project is R47 million Shangani Mining Corporation Limited AAC equity interest - 12,50 per cent The company operates a nickel mine at Shangani about 100 kilometres north of Eulawayo in Zimbabwe Rhodesia During the year ended June 30 1978 825 000 tons of ore were milled Ore is refined by Bindura Smelting and Refining Co. Ltd. gq paper machine supporting pulping plant to become operative in the last quarter of 1980. A subsidiary South African Board Milia manufactures paperboard in plants in processing timber Transvaa the paper processing and the Cape and plantaions has interests in and based waste paper production Mondi recently acquired Safi see 6 below from Amic in exchange for further shares which had the effect of increasing Amic's holding in Mondi to 62,65 per cent At March 31 1979 AAC itself had an equity interest of 29,77 per cent in Mondi ~ 4. Bruynzeci Plywoods Ltd Bruply The Bruply group of companies manufactures a wide range of timber products including structural and industrial timber laminated timber beams fencing transmission poles doors verivers plywoods and particle boards S. African Products Pty Ltd The company produces starches cornflour dextrins glucose and other based products for both the local and export markets In addition to its production activities the holds a 50 per cent interest in O.K.K. Foods Ltd and an 18,9 per cent interest in Soetvelde Farms Ltd. 6. S.A. Forest Investments Ltd Safi The Safi group is the largest integrated forestry and sawmilling operation in southern Africa owning and leasing a total Republic afforested area of 000 hectares hectares in Swaziland the of South continues Africa and 000 in Safi to manage the plantations of Eastern Transvaal Timber Co. Pty Ltd which owns 000 hectares of land in the Carolina Waterval Boven and Barberton districts of the Transvaal Important investments of Amic not referred to under other headings in this report are 1. Freight Holdings Ltd Services Europe The group operates in South Africa Europe the Kingdom the United States of America United Its and Australia activities include clearing forwarding buying confirming stevedoring ships agency and the servicing of ships and a travel service In addition the group has a Depots controlling interest in S.A. Container Pty Ltd which has the only customs franchise for container handling in South * Africa 2. Industex Pty Ltd The company industrial textiles for the tyre rubber and other industries and spins cotton and synthetic yarns A wholly subsidiary Union Cotton Mills Pty Ltd operates a yarn dyeing and weaving plant which manufactures . a wide range of towelling products and bedspreads 3. The Union Steel Corporation of ) Ltd USCO USCO operates steel works at Vereeniging and produces rolled drawn forged and cast and wire aluminium agricultural discs steel products copper Subsidiary companies Subsidiary electrical and aluminium manufacture cables and conductors industry The Vanadium company has interests in Highveld Steel and Corp. Ltd Hall Longmore and Co. Pty Ltd International Pipe and Steel Investments S.A. Pty Ltd. Stewarts & Lloyds of S.A. Ltd Union Carriage and Wagon Co. Pty Ltd and Unionmod Buildings Pty Ltd. Property Anglo American Properties Limited Amaprop AAC equity interest - 48,99 per cent Financial details of Amaprop may be found on page 58 of this report The company's devlopments property major and property interests in completed are as follows ro] V Amcor House Johannesburg Percentage interest 100 Brickhill Road Parkade Durban 100 Cabana Beach Umhlanga Rocks 100 Carlton Centre Johannesburg 30 Devonshire Hotel and Devonshire House Johan esburg Durban 100 ; Durban Bay House Durban Edura Johannesburg Finsbury township Randfontein 54 100 100 La Lucia township Natal -, 100 Prospecton Industrial Township Durban Muizenberg Marina da Gama Welgelegen Lanterns and Pretoria 50 50 100 Provincial House and Durdoc Centre Durban Transvaal Hause Pretoria Umhlanga Beach Mews Umhlanga Rocks 320 West Street Durban | 51 100 100 100 Carlton Centre Limited AAC equity interest - 49,98 per cent The company owns the Carlton Centre in the central business district of Johannesburg The Centre is one of the largest commercial building developments in the world and comprises a 50 storey office tower the 30 storey international Carlton Hotel two department stores approximately 170 retail . shops and restaurants an ice rink and covered parking facilities for 2000 cars The Carlton Hotel in which the company has an 89 per cent interest is managed by Western International Hotels of Seattle Year ended June 30 1978 1978 R000's =. 1977 ROOD's Industry and commerce Anglo American Industrial Corporation Limited Cardium Holdings Limited AAC equity interest 50,00 per cent Cardium Holdings holds 83 per cent of the capital of The Natal Issued capital 28 380410 ordinary shares Total shareholders funds Secured term loans Unsecured loans W 190 24 674 39 146 013 190 228 317 13 228 Amic AAC equity -46,-46,20 -246,020 per cent Financial details of Amic may be found on page 57 of this report Operating subsidiaries at December 31 1978 all whollyowned unless otherwise stated 1. Scaw Metals Ltd . The Scaw Metals works is situated at Union Junction near Germiston Transvaal Taxed profit of the Scaw group for the year ended December 31 1978 at R18 million was 17,6 per previous cent higher than in the year Scaw's three major fields of operation are ferrous and ferrous castings including railroad components such as rolling stock wheels and bogie castings rolled steel products in the merchant bar range and grinding media for the mining and cement industries 2. Boart International Ltd Boart through its subsidiary and > operating in 27 countries is engaged in the manufacture and marketing equipment of rotary and tools and percussion drilling machinery specialist diamond grinding equipment and tungsten carbide engineering tools steel castings underground mine supports and coal mining equipment Prof~ts for 1978 amounted to R17,7 million compared with R16,2 Tanning Extract Co. Ltd which owns or leases 72 000 hectares of forest land in the eastern Transvaal and Natal which is planted mainly to wattle and pine with smaller areas under gum poplar sugar cane and phormium The principal operation is the production of tanning extract from wattle bark and three factories are operated for this purpose In addition Natal Tanning produced in 1978 approximately 340 000 tons of timber 51 000 tons of wattle bark and 167 000 tons of sugar cane Z o Net earnings of Natal Tanning for the year ended December 31 1978 were R2,87 million compared with R1,87 million for the previous year Computer Sciences Proprietary Limited AAC equity interest 21,49 per cent The company offers a wide range of computer services through two bureaux A systems development and support service is also provided The company's computer hardware division provides services through products which include Datapoint Data 100 ITT Courier Univac V series Texas Instruments and Comten Operating profit Equity earnings per share Surplus arising from purchase .. and cancellation of debentures Accumulated loss 187 1389 4,9c 957 681 000 878 3,1c 74 127 Sorec Limited AAC equity interest 57,00 per cent mainly Sorec is a property investment company with interests shop ing devlopments suburban in prime shop and office and complexes in Africa 18 months Issued capital . 22 497 255 RI ordinary shares 558 560 R1 ordinary deferred shares in million 1977 Total shareholders funds mill Mare 3. Mondi Paper Co. Ltd 53,92 per cent interest Mondi operates a paper mill at Merebank Durban with a capacity of 260 000 tons a year comprising a groundwood three high speed paper machines and a paper finishing Mainstraat Beleggings 1965 Beperk AAC equity interest - 30.00 per cent Mainstraat was formed by AAC Amic the De Beers and the Loans Fixed assets Investments and loans in unlisted companies department Profits for 1978 at R11.4 million were 12 per cent Federale Mynbou Mining groups for the purpose of Equity earnings higher than in 1977. It is planned to install a fourth high speed investing principally in the fields of engineering and heavy per sliare pore The activities of Scaw Metals cover three major fields ferrous castings including railroad components such as rolling stock wheels and bogie castings rolled steel products and grinding media for the mining and cement industries Scaw also operates a light steel foundry producing principally stainless and heat resisting steel castings up 50 kilograms Recently a coiled bar manufacturing unit designed by Scaw was v commissioned which uses controlled cooling to ensure ideal metallurgical properties and to minimise the _ formation ofscale Sorec's major interests in completed buildings are as follows Percentage NOT ADMINISTERED BY AAC it is now doing primarily through its exploration effort Active Australia programmesare being conducted throughout in andin New Zealand en African Eagle Life Centre Cape Town " interest 100 Principal finance and investment i African Eagle Life Centre Krugersdorp ~-, African Eagle Life Centre Port Elizabeth African Eagle Life Centre Pretoria Bramfontein Braamfontein Centre Johan esburg = = Store Benoni CheckersTotal House Johannesburg Civic Towers House Johannesburg Coca factory Durban Damelin Centre Johannesburg Field North Johannesburg . Gardens Centre Cape Town Highpoint Hillbrow Johannesburg Highrise Johannesburg His Majesty's Johannesburg Killarney Mall Johannesburg Life Centre Johannesburg Lloyds Building Johannesburg Opera Plaza Pretoria Sandton City Sandton Sanso Centre Cape Town Shell House Cape Town Sunnypark Pretoria Westbank House Johannesburg 111 Street Johan esburg 100 . 100 companies Barlow Rand Limited AAC equity interest - 8,35 per cent 30 100 100 30 51 . 100 15 100 50 100 51 70 100 28 26 70 20 70 25 51 100 15 Anglo American Corporation do Brasil Limitada Ambras Ambras which was formed in 1973 is ownTehdeby Charter De Beers and Minorco groups AAC and the company has investments in gold base metals banking and the food industry andis so structured that investing groups may participate in different proportions in its various spheres of activity AAC holds 36 per cent in Ambras gold investments and a 45 per banking cent interest in investments in base metals food industry and the The investment in the gold sector is a 49 per cent principal interest in Minera^aoMorro Velho This company has operated a group of small gold mines in the State of Minas Gerais since 1830. The etqouivalent h3a1d of the year January sector the Jacobina a successful year and paid increased 6,7 million respect aproximately aproximately in 1979. The other investmentin the gold prospect in the State of Bahia is held through Unigeo Geologia e Minera^^oin which Ambras interest is approximately 50 per cent A decision as to currently whether a mine can be brought into is expected production = during the year A South African industrial and mining finance and investment company which heads a group comprising aa large companies number of and operating throughout southern Africa the United Kingdom and the continent of Europe The principal interests Factivities of the group include primary and secondary manufacturing mining and explora- tion property investment and the distribution and merchan dising a of diverse range of products to all sectors in the various economies it serves Year ended September 30 1978 fs i Issued capital 103 141 069 10c ordinary shares fully paid ordinary 500 10c shares one cent paid 12 634 10c preferred ordinary shares fully paid 375 500 R2 % cum pref shares Total shareholders funds 1978 R000's 10314 > 43 1219 750 498 178 1977 R000's 236 43 750 414 i niintcekreestl completed | commissiming of Insurance \ produce of i with of American = E Holdings Limited In the base metals sector arrangements were for the financing of the Codemin ferro project in which Ambras holds a 35 per cent interest commenced with a view to Construction has the mine and plant during the first half of 1982 to of nickel contained in ferro nickel mine in excess of 30 years and a about 5 000 tons a year an estimated life ap roximately cost of Ordinary shareholders funds Long liabilities and deferred taxation Book value fixed assets Excess of market value listed investments and of directors valuation investments unlisted 497 428 308 148 603 011 413 796 ae 227 457 429 : " Anglo capital of AAIH acquired AAC equity interest - 100,00 per cent The company's main asset is its 75,00 per cent interest in Bazano African Eagle Life Assurance Society Limited which is one of 100 million During the year Ambras a majority stake in Iracema a company involvedin the processing of cashew nuts A four per cent participation in the Banco Simonsen de Investimento was acquired over book value Equity earnings per share .- Ordinary dividends paid . per share 69 490 045 88,6c 941 30,0c the largest life assurance groups in South Africa offering a Sy comprehensive flexible range of investment life NS assurance plans African Eagle Life is also a leading Anglo American Corporation of Canada Limited Charter Consolidated Limited throughout underwriter in the group pensions market Operations of the group extend throughout South Africa Rhodesia and South West Namibia and include the marketing of industrial life business in the more densely populated areas Subsidiary life companies are Guarantee Life Assurance Co. Ltd and asSsouurtahnacmepetxocnlusAivsesluyrance life range of life : assurance Co. Ltd. Guarantee Life services in the field of through brokers It offers a wide products including those linked to managed property equity fixed interest cash and portfolios Southampton markets a full range of life and pensions products in Rhodesia A wholly subsidiary African Eagle Property Holdings deals property investment and development AAIH also has interest of 47 per cent in Sorec Limited information on which appears above 9 Amcan AAC equity interest - 40,69 per cent Amcan was formed in 1966 to consolidate the major part of the Canadian assets of AAC and the De Beers and Charter groups These include both direct and indirect investments zinc gold silver prospecting crude oil and natural fertilisers gas production agricultural in copper operations Year 1978 Ly endedaDDNeciefmber 5 > Issued capital stock 929 545 no par value shares " Total shareholders funds Investments 1978 CS000's * 101 085 155 161 1977 CS000's 101 085 153 445 AAC equity interest -35,58 -35,58 per cent copper Charteris a United Kingdom mining finance company operating - internationally with interests in gold diamonds tin and wolfram platinum potash and other minerals and important Holdings interests industrialHeatrae Co. Ltd. majority These include a holding in Cape Elastic Rail Spike Sadia Ltd and M.K. Refrigeration Ltd. Based on the market value of listed investments and the of directors valuation unlisted investments the net asset value at March 31 1978 amounted to 287 604 000. The following is an indication of the location of its assets and geographical . revenue taking into account its direct interests also where and possible its major indirectinterests = . Assels 000's Percentage of assets Percentage Percentage of revenue t p Listed equity value - market value . 893 509 143 255 82 896 United Kingdom Rest of Europe 98 899 30 929 Unlisted - book value 220 387 North and - equity value 2013 807 South America 55 043 Earnings before extraordinary items ~ . per share 3 506 35,3c Earnings after extraordinary items 725 - Dividends paid per share 1986 20,0c 3913 39,4c 771 4319 43,5c South Africa of Zambia Rest Africa South Asia Australia 136 904 7348 665 |, 079 16 868 The principal investments of Amcan at December 31 1978 , 366 735 27,0 8,4 15,0 37,3 2,0 1.6 4,1 4,6 100,0 32,8 18.0 9,7 37,9 1,5 2,4 5,7 2,0 100,0 were Direct and indirect percentage interest Ambay Services Ltd Francana Oil & Gas Ltd Hudson Bay Mining and Smelting Co. Ltd. Lytton Minerals Ltd Tombill Mines Ltd 50,0 28,3 412 33.9 50,7 Whitehorse Copper Mines Ltd - joint venture 33,3 Details of Amcan's principal operating interest Hudson Bay Mining and Smelting Co. Ltd appear on page 67 of this report Year ended March 31 1978 * os Issued capital 104 837 397 shares of 25p each fully paid and 286 500 shares of 25p each 1p paid up Share premium and reserves Long indebtedness and | ferred taxation 1978 000's 26 212 181 150 58 064 Australian Anglo American Limited AAC equity interest - 42,78 per cent Issued capital 18 000 000in 50c shares TheThe company was formed to investigate the establishment of mining activities stralia and neighbouring regions which eestinents ylisted - at cost -market -market value Unlisted - cost Unlisted\\- directors valuation Equity earnings Dividends paid 133 943 210 478 48 673 52 380 25 435 8 703 64 2a ASTER Equity earnings for the half year to September 30 1978 totalled 14 460 and an unchanged interim dividend of 3.025p a share was declared which absorbed 172 000 At March 31 1978 Charter's principal direct and indirect investments were as follows Percentage held maintaining an existing mining facility or capacity is now charged against the diamond account and diamond export duty which hitherto was deducted from the diamond account now treated iscomparison the been restated as part of the tax charge To facilitate 1977 consolidated financial statements have Anglo American Corp. do Brasil Ltda Anglo American Corp. of Canada Ltd Anglo American Corp. of S.A. Ltd Anglo American Investment Trust Ltd Australian Anglo American Ltd Beralt Tin and Wolfram Ltd gold Botswana RST Lid: Cape Industries Ltd . Cleveland Potash Ltd Malaysia Mining Corp. Berhad Minerals and Resources Corp. Ltd Rustenburg Platinum Holdings Ltd ~ Selection Trust Ltd : Union Corp. Ltd J 12.0 24,8 5,9 10,0 15,0 48,2 4,5 66,9 37,5 28,6 20,0 4,2 25,8 9,5 De Beers Consolidated Mines Limited AAC equity interest 30.37 per cent The principal activities and interests of the De Beers the mining of natural the by * diamond the marketing of diamonds produced group are the group and by other producers and a portfolio ofinvestments outside outside the diamond industry Details of the operations of the De , group may be found on page 66 ofthis report Year ended December 31 1978 : 1978 1977 R000's R000's Issued capital 800 000 R5 40 cum pref shares excluding subsidiary company holding 2 866 929 R1 % cum second 978 978 pref shares 359 789 042 5c deferred shares 867 989 867 17 989 General Mining and Finance Corporation Limited AAC equity interest - 9.57 per cent General Mining is a mining finance company which through its own holdings and those of Union Corp. Ltd in which it has a majority interest has substantial interests in companies producing gold and uranium platinum chrome ore ferrochrome asbestos coal and base metals Interests are also held engineering heavy in wide range of companies and property industrial and shipping Year ended December 31 1978 1977 R000's Issued capital 000 R2 % cum pref shares 41470 40c ordinary shares fully paid 000 40c ordinary shares - partly paid Total shareholders funds Ordinary shareholders funds ., 500 16 588 853 701 294 462 500 16 456 9 768 023 317 Listed book value -market -market value Unlisted book value ~ directors valuation Equity earnings per share Ordinary dividends per share 273 471 647 438 209 178 361 151c 24 827 60c 357 445 123 916 136 981 43 266 104c 18 496 45c Consolidated Limited JCI . Total shareholders funds ~ Deferred shareholders funds Long liabilities _, Minority interests a Diamond mining and trading assets Diamonds on hand mining companies other companies bok s Investments = Listed - bookvalue * = market value Unlisted - book value - directors valuation Long loans Net current assets Other 1917 1910 605 70 350 75 351 063 651 225 584 35 446 220 184 417717 417717 817 489 76 596 186 558 69 046 888 957 121 2003 651 426 419 934 40 886 070 539 735 170 527 " 38 962 181 783 395 489 612 446 540 130 101 425 502 206 100 803 539 Diamond account Interest and dividend income Other 956 389 234 123 360 734 765 079 537 Less interes Prospecting interes other charges Amounts written of investments less surplus on realisation of investments " 219 872 507 899 926 381 48 351 6313 Consolidated profit before tax Taxation and State's share of profits under mining leases 1156 405 887 871717 298 197 Consolidated profit after tax Minority interests 750 579 339 573 520 10 174 Profit attributable to De Beers 741 240 563 346 per deferred share Deferred dividends 156c 18B 889 per deferred share 52,56 Note In 1978 a change in the basis of accounting was inade to the extent that capital expenditure for the purpose of AAC equity interest - 40,81 per cent substantial investments JCI is miningfinance company gold coal in platinum diamonds with copper and other minerals and in mining finance industrial property and financial Year ended June 30 1978 , Issued capital 7 105 600 R2 ordinary shares 34 500 000 10c fixed rate red pref shares yielding 11.25c per share per annum 5 500 000 10c variable rate red cum pref shares yielding _ initially 10,75c per share per annum Total shareholders funds funds LoOrndingarty erm loans and sdharehoelders ferred taxation Investments Listed - book value -market -market value Unlisted - book value - directors valuation Equity earnings por share Dividends paid per share 1978 R000's 211 550 073 170 073 68 698 141 096 276 27 808 67 544 237 594,4c 12080 170c 1977 R000's 211 184 411 411 86 232 147 462 225 357 30 886 454 030 380,4c 12080 170c Before extraordinary item- item- provision against investment ^fin former subsidiary R44-42 R44-42 000 1977 R12 000 000 At June 30 1978 the principal investments of JCI were as follows Percentage interest Gold Elsburg GM Co. Ltd The Randfontein Estates GM Co. Witwatersrand Lid 25.4 24.1 Western Areas GM Co. Ltd 6,5 Platinum Rustenburg Platinum Holdings Ltd Diamonds De Beers Consolidated Mines Ltd 27,5 0.9 mining Other mining Consolidated Murchison Ltd antimony The Natal Cambrian Collieries Ltd Otjihase Mining Co. Pty Ltd copper Palabora Mining Co. Ltd copper Shangani Mining Corp. Ltd nickel Tavistock Collieries Ltd Industry Publishing Argus Printing and Consolidated Metallurgical Consolidated Matthey & Co. Ltd Co. Ltd Ltd Lenning Holdings Ltd Steelbrite Ltd The South African Breweries Ltd Toyota S.A. Ltd Property Downtown Real Estate Corp. Ltd J.H. Isaacs & Co. Ltd. Main Place Holdings Ltd Milpark Investments Pty Ltd Percentage interest 25,0 100,0 49,0 4,5 49,0 50,0 17,9 50.0 22,7 99,0 64,2 18,7 15,0 28,0 49,0 61,0 67,0 Minerals and Resources Corporation Limited Minorco AAC equity - interest 39,99 per cent domiciled Minorco is a finance and investment company in Bermuda with in commodity trading industry copper mining base metals and oil exploration and production Year ended June 30 1978 1978 1977 ordinary Issued capital 0 73 579 517 BDS1.40 BDS1.40 shares 8 572 1,40 deferred shares 000's 103 011 12 000's 011 12 Total shareholders funds Investments Listed book value 328 018 209 546 710 228 356 -market -market value earnings less Unlisted book value Loans less amounts written off Equity per share 214 270 78 702 474 15 145 20,6c 313 879 10 934 720 17,3c Dividends paid 829 8829 - per share 3: At June 30 1978 Minorco's principal holdings in the following companies 12c investments 12c included 1. Engelhard Minerals & Chemicals Corp. 29,0 per cent marketing interest the operations of which embrace the of ores minerals and metals the mining and processing of non- metallic minerals and the refining processing and fabricating of precious metals 2. Inspiration Consolidated Copper Co. 50,0 per cent interest 3. Trend International Ltd 43.1 per centinterest 4. Zambia Copper Investments Ltd 49,98 per cent interest Information the three latter companies appears on page 67 ofthis report ( uranium Gold and uranium Rand Far West Rand and Klerksdorp Buffelsfontein Gold Mining Company Limited AAC equity interest 8.79 per cent Year ended June 30 1978 Issued capital 2 11 000 000 R shares 1 Area mined - centares ({ Tons milled 1978 R1 000 817 000 000 1977 R11.000 R11.000 000 815 000 199 000 Yield - grams Cost per centare mined Cost per ton milled 9,10 R111,45 R28,95 9,15 R93,85 R23,91 Working profit - gold Net profit uranium pyrite and acid Taxation and leaso R39 674 000 R13 020 000 R25 151 000 R9 502 000 payments Dividends paid pershare 436 R18 000 170c R15 058,000 = R14 300 000 130c Planned capital expenditure for the year ending June 30 1979 R22 000 000 ^' wf East Driefontein Gold Mining Company Limited AAC equity interest - 5,15 per cent Year ended December 31 1978 Issued capital 510 R1 shares Area rined centares Tons milled Yield - grams Cost per centare mined Cost per ton milled Working profit Taxation and State's share ofprofit Dividends paid per share 1978 1977 R54 000 460 000 * 313 21,1 R138,27 R27,50 K202 20B 000 R54 000 407 000 096 000 23,3 R129,15 R25,08 R145 914 000 R115 DDO 15c R83 000 000 78c Planned production for the year ending December 31 1979 Tonnage 2 400 000. Planned capital expenditure R23 000 000 Elsburg Gold Mining Company Limited AAC equity interest 7,98 per cent Year ended December 31 1978 1978 1977 Issued capital 30 203 000 R1 stock units Dividends paid per stock unit ROOD'S 30 203 926 13,0c R000's 30 203 552 8,45c The company owns 48,7 per cent ofthe equity of Western Areas cent G. M. Co. Ltd in which AAC holds 3.50 per features of Western Areas are as follows The salient 1978 1977 Issued capital 40 306 950 R1 stock units Tons milled R40 000 000 = 307 000 579 000 Yield - grams Cost per ton milled Working profit . Taxation Dividends paid per stock unit 5,6 R24,28 486 R7 523 000 R8 061 000 20c 6,0 R21,56 000 R1 584 000 R5 240 000 13c Zandpan Gold Mining Company Limited AAC equity interest - 9.08 per cent Year ended June 30 1978 1978 1977 . Issued capital 13 020 285 RI shares Dividends paid per share R000's 020 5403 41.50 R000's 13 020 864 22c . company's The main businessis the holding of a 19.6 per cent investment in Hartebeestfontein G. M. Co.Ltd in which AAC holds 7.42 per cent The salient features of Hartebeestfontein are follows 2 1978 1977 Issued capital 11 200 000 R1 shares R11 000 R1 000 Area mined - centares 000 000 Tons milled Yield grams Cost per contare mined Cost per ton milled Working profit gold uranium and pyrite Taxation and State's 928 11.1 R125,01 R31,47 R31,47 R68 314 000 R10 959 000 2 000 11,3 R100,16 R25,91 R37 735 000 R4 424 000 share of profit Dividends declared per share 000 000 250c 000 = R15 135c Planned production for the year ending June 30 1978 Tonnage 900 000 Grade 10,7 a grams ton Planned capital expendi- ture R16 000 000 Cost per ton milled Working profit Taxation and lease consideration Dividends paid per share 1978 R50 347 000 R33 000 R15 480 000 129c 1977 R13.13 R32 568 000 R21 782 000 R10 320 000 86c Diamonds De Beers Consolidated Mines Limited AAC equity - interest 30.37 per cent details Financial report of De Beers may be found on page 65 of this wholly Principal interests at December 31 1978 all subsidiaries unless otherwise indicated owned The 1. Kimberley Division of De Beers operates the De Beers Dutoitspan and mines at Kimberley the Finsch mine north of Kimberley and the Koffiefontein recently mine in the Orange Free State The Division has embarked on a scheme to treat material from old mine dumps in the Kimberley area The NamaqualandAn ex Division is currently miningalluvial deposits on the farms Annex Kleinzee and Dreyers Pan and from the new Koingnaas and Langhoogte mines which came into production in August 1978. De Beers also operates the Premier mine at Cullinan in the Transvaal implementing the policy of the industrial diamond division and administers the De Beers Diamond Research Laboratory 6. The Diamond Corp. Pty Ltd and its subsidiaries contract with various producers who are not members of The Diamond Producers Association for the purchase of their production The Diamond Corp. group has built up large financial resources which facilitates the holding of stocks of diamonds thereby stabilising the trade 7. De Beers and its subsidiaries hold 33,11 per cent of the issued ordinary share capital of Anglo American Corporation and also have substantial direct interests in other mining finance and investment companies as well as in gold and uranium diamond copper and other base metals coal industrial and commercial banking and property companies 8. De Beers Industrial Corp. Ltd Debincor 60,93 per cent owned is an industrial finance and investment company whose main asset is a direct and indirect interest of 39.91 per cent in the issued ordinary share capital of AECI Ltd. It also has a direct interest of 9,16 per cent in Mondi Paper Co. Ltd. De Beers has a total interest direct and through Debincor of 27,3 cent in AECI which produces mining explosives and accessories a wide range of plastics heavy chemicals for industrial and agricultural use vinyl products animal feedstulls and synthetic fibres In addition AECI has a 60 per cent interest in Coalplex a R220 million based complex which produces polyvinyl chloride and a range of chlorochemical products 2. CDM Pty Ltd has open alluvial mining operations along the southern portion of the coast of South West Namibia Coal 3. De Beers Lesotho Mining Co. Pty Ltd 75 per cent owned operates the Letseng diamond mine in Lesotho 4. De Beers Botswana Mining Co. Pty Ltd 50 per cent owned Blinkpan Koolmyne Beperk ' AAC equity interest - 17,50 per cent operates the Orapa and Letlhakane mines Botswana An important new mine is being developed at Jwaneng in southern Botswana it is estimated that commercial production will begin in 1982 This company which is a subsidiary of Trans Coal Corp. Lid operates two mines in the Middelburg district of the Transvaal Blinkpan colliery which supplies coal to Escom's Komati power station and Haasfontein Colliery which supplies 5. De Beers Industrial Diamond Division Pty Ltd is the outlet for the sale of De Beers natural diamond drilling materials and a portion of the coal export requirements arising from the contract between the TCOA and the Japanese steel mills boart and leading materials companies under through its management is a diamond and related hard It is in addition the management company During the year ended June 30 1978 sales of Haasfontein 2 coal contributed 769 050 tons towards total sales of 204 462 tons by the company > Diamond mines of southern Africa 1. COM 2. Dreyerspan Annex Kleinzee Tweepad 3. Langhoogte 4. Koingnaas 5. Finsch 6. Jwaneng 7. Orapa 8. Letlhakane De Beers 9. Bultfontein Dutoitspan Wesselton Kofiefontein 10.11. Premier 12. Letseng ie River Fish SOUTH WEST AFRICA NAMIBIA Se OS BOPHUTHATSWANA f Evander Winkelhaak Mines Limited AAC equity interest - 8,20 per cent Ye ended September 30 1978 ) 1978 Issued capital 000 000 R1 shares R12 000 000 Tons milled . 000 Yield - grams ' > 7,60 1977 R12 000 025 000 7,85 Kilometres 50 100 o{N ce | LESOTHO / 4 TRANSKEI TRANSKEI 66 Other mining deficits and development expenditure required for the build of production Anglo American Corporation of Canada Limited Amcan AAC equity interest - 40,69 per cent Financial details of Amcan are given on page 64 Amcan's principal investment is its holding of 41,2 per cent in Hudson Bay diversified Mining and Smelting oriented organisation Hudbay Co. Ltd a organisation with Canadian and international operations and investments in the fields of mining and metallurgy fertilisers and agricultural chemicals petroleum and industrial products Hudbay produces copper and zinc from ore mined in the Flin Snow Lake area of Manitoba approximately 650 kilometres northwest of Winnipeg Production of ore from these mines totalled 1 851 000 tons in 1978 1977 822 000 tons and metal production from all sources was as follows 1977 Refined copper pounds Slab zinc pounds Cadmium pounds Selenium pounds Gold ounces Silver ounces Lead pounds 000's 135 303 820 219 135 1322 915 Hudbay's major interests include 1. A 61,9 per cent interest in Canadian Merrill Ltd which is exploration engaged principally in oil and gas and in production Canada and the United States 2. A 54,9 per cent interest in Francana Oil & Gas Ltd FOG which is engaged in the exploration for and the production of a crude oil and natural gas in Canada FOG has 56,8 per cent interest in Trend International Ltd which is engaged primarily in the production of crude oil in Indonesia and in the United States and international exploration for oil and gas In addition Amcanitself has a 28,3 per cent interest in FOG 3. A 50 per cent interest in Inspiration Consolidated Copper Co. which is primarily engaged in the production and sale of copper from its Arizona properties 4. 50,5 per cent interest in Terra Chemicals Inc. which manufactures chemical Chemicals fertilisers International and feed ingredients at Port Neal Iowa and distributes these and allied y\ agricultural products in the United States 5. A 100 per cent interest in Whitehorse Copper Mines Ltd which produces copper concentrates from a mine at Whitehorse in the Yukon Si Kiln Products Limited AAC equity interest - 41,85 per cent The company which is administered by Gold Fields of S.A. Ltd operates a kiln at the Berg Aukas mine near Grootfontein in South West Namibia It produces zinc oxides from zinc silicate concentrates and bearing residues purchased from its wholly subsidiary The South West Africa Co. Ltd. oxide is The zinc production production as ociated sold to an South African zinc refining company Minerals and Resources Corporation Limited Minorco AAC equity interest - 39.99 per cent Financial details of Minorco are given on page 65 Minorco has an interest of 49,98 per cent in Zambia Copper Investments Ltd which in turn has the following interests in the Zambian copper mining industry 1. a 39.99 per cent interest in Nchanga Consolidated Copper Mines Ltd which operates a copper mine a refinery and a centralised services division at Kitwe and copper mines at Chingola and Chililabombwe on the Zambian Copperbelt A lead and zinc mine is in operation at Kabwe some 200 kilometres south of the Copperbelt The Zambian Government holds the remaining 60,1 per cent in Nchanga 2. a 12,25 per cent interest in Roan Consolidated Mines Ltd which Chibuluma and copper mines at Mufulira Luanshya Chambishi on the Zambian Copperbelt at Kalengwa the Western Province of Zambia and a copper refinery at Ndola The Zambian Government holds 51 per cent of the company's capital ZCI also has an interest of 11,75 per cent in Botswana RST Limited information on which appears above % Rustenburg Platinum Holdings Limited AAC equity interest - 19,97 per cent The company holds the entire issued share capital of Platinum Mines Ltd which operates three major platinum mines in the Transvaal and is the free world's largest primary producer of platinum The company also owns Atok Platinum Mines Pty Ltd. Other platinum group metals as well as nickel and copper are important contributors to total revenue . Year ended Augus3t1 1978 1978 & 1977 Botswana RST Limited AAC equity interest - 12,05 per cent . Charter De Beers and ZCI also have interests in this company which has an interest of 85 per cent in BCL Ltd. a company conducting a nickel and copper mining operation at Selebi Phikwe in the Republic of Botswana The remaining 15 per cent interest in BCL is held by the Government of Botswana Processing problems are being resolved in all sections of BCL's operations and the production rate of copper matte reached a monthly average of 3 293 tons during the 12 months to December 1978 compared to 2 564 tons a month for the previous year Year ended 31 December 1978 1978 1977 Issued capital 123 440 625 10c ordinary shares 806 10c deferred shares Total shareholders funds Ordinary shareholders funds Fixed loans Mining assets at cost less recoupments Unlisted investments Equity earnings per share Dividends paid per share RODO's 344 188 900 712 100 278 400 R000's 344 271 300 271 300 400 271 800 400 600 3,7c 100 2,5c Issued capital 972 282 P2 shares Long loans Mining assets and other capitalised expenditure Total sales revenue Net loss P000's 35 959 229 704 225 710 EG 536 24 682 P000's 959 918 203 056 56 557 815 Tsumeb Corporation Limited AAC equity interest - 2,38 per cent of The company is engaged in the mining and treatment copper and lead in South West Namibia Year ended December 31 1978 1978 1977 Production of copper matte -- ions After extraordinary items 517 772 Issued capital 000 000 50c shares Total shareholders funds R000's 2000 870 R000's 2000 229 Cleveland Potash Limited AAC equity interest - 12,50 per cent The company operates a potash mine and an associated processing plant in the Cleveland area of north England Technical problems at the mine have been largely overcome although a deterioration in industrial relations during 1978 affected production A further sum of 20 million was made available to the company during the year to meet operating Long loan and deferred taxation Inventories and fixed assets Metal sales Net profit Saleable production Blister copper - tons Lead - tons 623 323 009 641 30 867 357 18 628 446 945 2218 23459 40418 Industry and commerce Chemical Holdings Limited AAC equity interest - 36,74 per cent The companies in the Chemical Holdings group manufacture and market an important range of industrial chemical products and also provide expert service on the uses of the chemicals and their application in particular industrial fields The products cover a wide range of industrial activity including inter alia metal treatment chemicals water treatment chemicals including dispersants for the control of oil slicks laundry and dry cleaning chemicals size for the paper industry detergents and extreme pressure lubricants e Issued capital 4 195 000 R1 shares Total shareholders funds Convertible notes loans and deferred taxation Equity earnings per share Dividends paid per share 9 months ended March 31 1979 R000's 195 10 265 174 370 2 31,1c 336 8c Year ended June 30 1978 R000's 232 7627 2:59 055 32.Ge 582 18c Consolidated CMI Metallurgical Industries Limited AAC equity interest 19,23 per cent CMI administered by JCI was formed to produce and market chrome The company's R56,5 million plant at Lydenburg of in the eastern Transvaal was commissioned in the first half 1977 and has a designed annual capacity of 120 000 tons of carbon chrome Depressed world chrome markets and the need to introduce certain modifications to the plant resulted in a decision to revert to a stream operation with effect from the beginning of May 1978. The modification programme had been planned for completion by June 1979 by the end of March 1979 a major portion of the modifications had already been completed The company resumed stream operations with effect from the beginning of May 1979 Cullinan Holdings Limited AAC equity interest - 26,37 per cent Cullinan is engaged in the production of retractories electrical and industrial porcelain products and building bricks The mining activities of various subsidiary companies include the and marketing of minerals used mainly in the refractory and other heavy clay ceramic Industries township and property development design and marketing of electrical transmission line systems Year ended June 30 1978 Issued capital 8019 983 50c ordinary shares 500 000 R2 5,5 cum pref shares Total shareholders lunds Ordinary shareholders funds Loans and deferred liabilities Book value offixed assets Interests in associated companies Investments and loans Equity earnings per share Ordinary dividends paid per share 1978 R000's 4010 1.000 19177 127 16 126 22 823 - .90 2'050 858 35,6c 1.123 14c 1977 R000's 010 1.000 18010 16 960 15518 20 206 236 898 2.323 29,0c 042 13c Gallo Africa Limited : AAC equity interest - 9,19 per cent The company manufacture and its associated and distribution of are gramophone tapes music publishing and the distribution electronic products visual equipment and activities engaged in the records and of consumer other related <<. Year ended June 30 1978 * 1978 R000's 1977 R000's Issued capital 658 ordinary shares fully paid 162 700 25 cent ordinary shares partly paid 150 000 R2 % 165 17 cum pref shares Total shareholders funds 300 095 Ordinary shareholders funds Long loans deferred taxation and amount due to vendor 795 . 3583 Fixed assets 993 Unlisted investments Book value 284 Directors valuation 1546 Equity earnings 8 per share 0,2c Ordinary dividends paid 94 per share 2c Excluding net profit of R444 000 on sale of investment 165 17 300 6714 6414 600 4377 280 252 21 0,5c 419 9c Highveld Steel and Vanadium Corporation Limited AAC equity - interest 26,38 per cent Highveld operates an iron steel and vanadium complex at Witbank Transvaal The full ore requirements of both the vanadium steelworks and the Vantia division which produces pentoxide are supplied by Highveld's Mapochs mine A subsidiary Transalloys Pty Ltd. is a major supplier of Highveld's requirements of alloys Year ended June 30 1978 1978 1977 Issued capital 67 763 270 R1 shares Total shareholders funds Long loans and accumulated deferred taxation Fixed assets Equity earnings per share Dividends paid per share R000's 763 105 171 Ba 255 048 = 21 001 31,0c 10842 10842 16c RODO's 721 963 49 347 909 * 740 Gc 10 158 15c International Pipe and Steel Investments South Africa Proprietary Limited IPSA AAC equity interest 5,70 per cent IPSA is the holding company for two subsidiaries Dorbyl Ltd. in which it has a 54 per cent interest and Stewarts & Lloyds of SA Ltd in which it has a 52 per cent interest Dorbyl the foremost heavy steel engineering group in South diversifed Africa is involved in all facets of heavy engineering manufacturing and construction and has diversified interests in shipbuilding ship repair and the erection and installation of mechanical and electrical equipment The Stewarts & Lloyds group comprising over 30 operating subsidiaries manufactures and distributes a wide range of commodities required by the mining agricultural automotive and industrial markets and by the public sector J.L. Clark and Company Limited cent AAC equity interest - 12,70 per subsidiaries The and its | \ are and suppliers of a wide range of heating conditioning refrigeration solar water heating and industrial equipment and of are engagedin the cutting and distribution trade paper board to the ' LTA Limited B - AAC equity interest 31,29 per cent i building largest The LTA group is one of the and civil engineering construction finance groups in southern Africa The activities of the companies in which it is interested cover the full building and civil engineering spectrum from small works to major projects turnkey projects involving the complete design design engineering and construction of plant technical and buildings and also design and management the manufacture of prefabricated buildings and building components steel reinforcing and structural steel construction Year ended March 1978 Issued capital 12 527 840 R1 ordinary shares fully paid 173 500 RI ordinary shares live cents paid Executive Share Incentive Scheme 1978 R000's 528 9 1977 R000's 12 528 9 manufactures and markets the Mazda Mitsubishi and Chrysler range of passenger vehicles and a wide variety of Mazda and Chrysler light commercial vehicles The Equipment and Truck earthmoving and Division marketed Komatsu Hitachi and Ameise material handling as well as and Mack trucks In 1979 these operations will be undertaken by a subsidiary wholly Sigma Power Corp Pty Ltd on an agency basis Earlyin January 1979 Sigma acquired Peugeot and Citro^nSA Pty Ltd now known as Pacsa Pty Ltd which adds Peugeot and Citro^nto the Sigma range 572 R1 10 cum con red pref shares Total shareholders funds 42 34 962 47 31637 Soetvelde Farms Limited Ordinary shareholders funds term and deferred 920 31 590 AAC equity interest 49,90 per cent - The company was formed to consolidate and develop the liabilities Equity earnings 925 761 222 176 farming interests of AAC and the De Beers group over large areas of the Transvaal Orange Free State and northern Cape per share 45c 41c Its operations include the growing of maize wheat potatoes Ordinary dividends paid per sitare McCarthy Group Limited AAC equity interest 20,42 per cent 382 19,0c 2319 18,56 and vegetables mainly and other dryland of cattle pigsand crops and the breeding raising and fattening sheep The company also supplies fresh fruit to the mining industry through its Fresh Debshan subsidiary Foods Ltd. subsidiary Ranches Pvt Ltd wholly has an a cattle ranching operation near Gwelo Zimbabwe Rhodesia larges The group is the retail comprises various Africa and franchises particular vehicle for motor organisation in South companies marketing each specified areas in the Dawn Orchards Ltd another wholly subsidiary produces tomatoes a range of vegetables and tropical fruits under irrigation in the Lowveld of the northern Transvaal acquired The group which recently the Volkswagen franchise in Pretoria and a Ford franchise in Johannesburg also has extensive interests which in the main are leased to certain property trading and of its are administrative divisions Various in the of vehicle distribution and leasing transactions and the importation and of motorcycles and industrial engines The Tongaat Group Limited AAC equity interest 17,38 per cent African major The company is a producer within the South sugar industry and is the holding company of a diversified group Its interests include the production and distribution of Year ended June 30 1978 D capital Issued ordinary 1978 R000's 1977 R000's building materials textiles animal feeds bakery products poultry products mushrooms and electrical and electronic engineering In additionit has a 26,0 per cent in Huletts interest Corp. Ltd in which AAC also has a 3,3 per cent interest 16 987 415 50c ordinary Year ended March 31 1979 shares 000 R2 5,5 cum pref 494 494 y 1979 1978 R000's RODO's shares Total shareholders funds Ordinary shareholders funds Long liabilities Equity - earnings share Ordinary dividends declared per share 300 004 34 704 204 3 164 18,66 1274 7,5c 300 32.993 32 693 321 1 99.1.c1c 019 Oc Issued capital 935 R1 ordinary shares fully paid 282 000 RI ordinary shares live cents paid redeemable 000 RI 6,5 per cent preference shares ~ 936 re 14 eo 320 331 16 Total shareholders funds 135 980 Middelburg Steel & Alloys Proprietary Limited AAC equiequtity y interest 8,01 per cent cent Barlow Rand The company whichis part of the owns the entire issued share capital of Ltd group Midelburg Chrome Holdings Pty Ltd. Middelburg Chrome and its subsidiaries produce and market stainless steel chrome and other of alloys Equity earnings Middelburg Steel before tax for the year ended September 30 1978 were R2,4 million 1977 R13,7 million Limited RFF Limited AAC equity interest - 49,84 cent On its extensive estate in the Groot Drakenstein Valley of the western Cape Province the company grows deciduous fruit for sale on the South African and export markets and for canning in factory its own It also produces wine and table grapes and pure fruit juice concentrates Its winery markets a range of wines estate under the naine Boschendal The company has a major livestock section consisting of a piggery and Ordinary shareholders funds Long loans Book value fixed assets of Investments at valuation . . companies Asociated Listed 134 660 875 179 293 11 026 973 092 116 Market value 954 .6887 Unlisted Directors valuation Equity earnings per share Ordinary dividends paid per share 1586 586 : 12 567 60,7c 835 * 23,2c ay 1175 175 10 760 52,2c 085 20,0c Adjusted for four capitalisation issue on January 19 1979 - Property dairy Main Place Holdings Limited Shaft Sinkers Proprietary Limited AAC equity interest - 50,00 per cent Shaft Sinkers and its wholly subsidiaries provide an integrated design and construction service to the mining and civil engineering industries for shaft sinking tunnelling raiseboring and underground excavations Net profits of the group before tax for the year ended March for 31 1979 were R3 428 106 compared with R2 831 986 nine months ended March 1978 the | AAC equity interest - 27,95 per cent Main Place administered by JCI owns a 4,8 hectare site adjacent to the financial district of Johannesburg The land is being held for future development Banking and insurance Sigma Motor Corporation Proprietary Limited AAC equity interest - 36,98 per cent Sigma is held as to 75 per cent by AAC and Amic and the balance by Chrysler Corp. of the United States The company Barclays National Bank Limited AAC equity interest 12,67 per cent provides a comprehensive banking service through approximately 1000 1000 offices throughout southern Africa The main function of the group is commercial banking including i H i. t 4 } i e f H i H ec. ener Nomen, ne denen 68 Stee Sa fara Statutory and other information international trade finance foreign exchange dealings business development and commercial intelligence These services are suplemnted divisions by separate and subsidiaries specialising in merchant banking hire purchase leasing factoring and all aspects of insurance and pension schemes Barclaycard associated with VISA is the largest credit card operation in southern Africa Year ended September 30 1978 1978 1977 Issued capital 53 234 011 R1 ordinary shares Total shareholders funds R000's 234 997 R000's 53 234 227 337 Total assets 5 691 867 5 168 974 Total deposits Advances and 3 890 330 484 729 Special resolutions passed by subsidiary companies Adoption of new articles of association Crowned Eagle Holdings Limited Steppe Eagle Holdings Limited Tawny Eagle Holdings Limited Amendments to articles of association African and European Investment Company Limited Botswana Anglo American Corporation Proprietary Limited Services Directors shareholdings The interests of the present directors and alternate directorsin the the shares of Corporation at March 31 1979 in register of interests of the directors appearing in the shares of the Corporation are set out below withfni ote of changes changes between such that date June 22 1979 All exercise of share options such changes involved the Directors I Beneficial i Non bene ficial Option to acquire ., AL 31.3.79 .At 22.6.79 Sir Keith Acutt GOO - _ other accounts Equity earnings per share Dividends paid share = <> 574 346 779 69,1c 970 30c 309 234 33 708 63,3c 12 244 23c C.T. Bowring and Associates Holdings South Africa Limited AAC equity interest - 50,00 per cent Through varicus subsidiaries and companies the company conducts insurance broking operations in all fields of insurance in southern Africa Year ended December 31 1978 Gower Properties Proprietary Limited Sanso Properties Joubert Street Proprietary Limited Sanso Properties Pretoria Limited Sanso Properties Riebeeck Street Proprietary Limited Voorwaarts Eiendoms Beperk Change in capital structure Anglo Australia S.A. Anglo Rand Holdings S.A. Purlined Holdings Limited W Boustred TAJ Braithwaite B Bullett GA GA Carey N Clarke H Davies ZJ de Beer Dr Dyer DA Etheredge MAF Ferreira GC Fletcher 30 000 333 1500 9.000 9.000 15 000 1000 30 000 15000 +1 400 2.028 000 30 000 10000 000 000 ' 000 100 _ = 6000 000 ad 6000 000 = 100 1.000 100 _ 7000 _ = 1000 - 000 100 - 500 000 8.000 _ 10000 1000 500 - 10000 Issued capital 50 000 R1 ordinary shares 2 R1 class cum pref shares 2 R1 class cum pref shores Total shareholders funds =~ Equity earnings per share Dividends paid es 1978 R000's 50 R2 R2 644 032 R20,64 1977 R000's 50 R2 R2 541 1084 R21,68 Change in directors remuneration Anglo American Investment Trust Limited Ordinary resolution Change of name Anglo Australia S.A. from Anglo Holdings S.A. Anglo Rand Holdings S.A. Griffith WJ H^'fer Holle M Hofmeyr JA JA Holmes FJA Howard M King 000 15 000 15000 15000 300 30 000 1000 1000 1000 1000 9000 500 500 000 9000 500 500 . 10000 100 100 1000 2000 _ = 000 > ordinary per share preference A share preference B share 930 R18,60 137 ca 69 . 89 a 44 980 R19,60 137 69 89 44 from Australax S.A. CMH Limited Ifrom Consolidated Mines Holdings Rhodesia Limited Crowned Eagle Holdings Limited from Casca Holdings Limited NRI Limited OP Kaevort G Langton PJR Leyden JLP JLP Mackenzie A McKerron LG Murray 15 000000 500 000 15 000 8818 8818 8818 8818 81 81 000 = 3.000 = 000 6000 000 no 3000 nd ~ 000 2000 The Discount House of South Africa Limited AAC equity interest ~ 20,7020,70per cent ~ company As registered discount house the negotiates call loans from banks building societies and mining houses for from New Rhodesia Investments Limited RIL Limited fromfrom Rhodes Investments Limited Southampton Assurance Company Limited 200 : DG Nicholson 30 000 88 000 = CO'Dowd 000 1000 500 - HFOppenheimer 18 333 268 -~ - ~ includes - subsequent investment in a range of domestic short securities and contributes to making active markets in the securities in which it invests ' Equity earnings for the year ended December 31 1978 were | R2,07 million compared with R1,56 million the previous year 7 u from The Southampton Assurance Company of Rhodesia Limited Southampton Properties Private Limited frem Talas Properties of Rhodesia Private Limited Southampton Properties Cinema Private Limited Private from Talas Properties of Rhodesia Salisbury Steppe Eagle Holdings Limited Limited from Rowbridge Investments Limited my Tawny Eagle Holdings Limited from Antigonus Proprietary Limited Zimro Minerals and Chemicals Proprietary Limited and from G. & W. Industrial Limited Chemical Supplies Proprietary Change in number of directors 33; First Consolidated Leasing and Finance Corporation Limited 565 350 Oppenheimer registered +18 333 268 ' includes 100 registered Sir Philip Oppenheimer 200 +7 195 430 BW Pain _ T Pretorius 000 WH Relly Sir Albert Robinson 000 = MW MW Stephenson LG Stopford Sackville 000 it JD Taylor 15 000 Ogilvie Thompson 000 GH Waddell 18 333 268 includes ~ o = 2s = 1000 > 100 100 1.000 1.000 _ 100 _- 1.000 - 500 000 - 9.000 _- _ 000 ae ' = 500 18.000 _ 000 _ _ 000 Greater Services Proprietary Limited 1.000 Gower Properties Proprietary Limited 4 Litorn Finance Proprietary Limited Sanso Properties Joubert Street Proprietary Limited V Webber A Wilson W D Wilson registered 000 000 000 = 060 10.000 000 10000 10000 000 _ _ Sanso Properties Pretoria Limited Sanso Properties Riebeeck Street Proprietary Limited 380 The Corporation is not aware of the directors family interests extent if any of the Conversion from private to public company Tawny Eagle Holdings Limited Liquidation Shares held a under share incentive scheme Indirect Indirect partial a Sole beneficiary of trust Anglux Limited S.A. Rand Luxembourg S.A. Sleieqo: HK HEAD OFFICE " - . 44 Main Street Johannesburg 2001 PO Box 61587 Marshalltown 2107 Q Telex 7167 Telephone 838-8111 Managing SecretaryJT JT Goldfinch OFFICES OF GROUP AND ASSOCIATED COMPANIES Australia Australian Anglo American Limited 581 Little Collins Street Melbourne Victoria 3022 Telex 30728 Telephone 622141 Secretary JE JE Clark Bermuda Anglo American Investment Trust Bermuda Limited Belvedere Building Pitts Bay Road Pembroke ~ P.O. Box 650. Hamilto Telex 3348 SPECT BA Telephone 51255 Secretary D F Ellis Botswana Anglo American Corporation Botswana Services Proprietary Limited Botsalano House The Mall Gaborone - 11 Telex 2410BD . te Telephone 51133 Secretary A V Waterston Brazil Anglo American Corporation do Brasil Limitada Rua Araujo Porto Alegre 36-8 Andar CEP 20.016 Rio de Janeiro RJ Brazil Brazil Telex 21723 AACB BR , Telephone 2446355 Secretary R N Lima Canada Anglo American Corporation of Canada Limited : Box = Dominion Centre Toronto Ontario M5K 1BB Telex 6524372 Telephone 3622192 Secretary K Taylor QC France Charter France S.A. * 9 Rue de Vienne Pari8se Telex 280406 5225484 Telephone Secretary PJS PJS Reid- oS Luxembourg . Anglo Rand Holdings S.A. 50 Route D'Esch BP 459 Telex 2234 Telephone 443002 Secretary D P Paton Portugal Anglo American Corporation de Portugal S.A.R.L. 244 Avenida Da Liberdade Lisbon Telex 18316 Telephone 561126 Secscretar:y De Viera a Castro United Kingdom Viaduct : 40 Holborn Viaduct London EC1P 1AJ England Telex 27529 : . Telephone 3531545 London Secretary D S Booth Zambia : Anglo American Corporation Central Africa Limited 74 Independence Avenue Lusaka ae Telex ZA 41190 Telephone 53000 Secretary M Kiely Zimbabwe Rhodesia 70 Jameson Avenue Central Salisbury C.4 Telex 4113 Telephone 704461 Managing Zimbabwe Zimbabwe Secretary Rhodesia Rhodesia G T Bain SHARE TRANSFER SECRETARIES Consolidated Share Registrars Limited 62 Marshall Street Johannesburg 2001 PO Box 61051 Marshalltown 2107 Charter Consolidated Limited PO Box 102 Charter House Park Street Ashford Kent TN24 8EQ England Members of the Corporation who wish to receive copies of the annual reports and accounts of quoted companies associated with the Corporation may obtain them upon application to the Managing Secretary or to the London Secretary of the Corporation Changes of address should be notified to the Corporation's transfer secretaries 70 a a te Ce pes te POR re crete De 3 Me. agence enna