Document xjzBnXyogJRdw2JkOyGnNLrDb

FILE NAME Cape Asbestos CAPE DATE 1983 Mar DOC CAPE186 DOCUMENT DESCRIPTION Annual Financial Statements - Anglo American Corp of South Africa Ltd. Legal - Tibbs Case Exhibit 84 . - a wo a Balance sheets at March 1983 Figures in R million : Corporation 1982 1983 22,6 * 20,9 351,9 304,0 699,4 22,7 33,0 351,9 307,9 715,5 is 4,8 1,0 39,0 44,8 .744,2 4,8 1,0 39,0 44,8 760,3 42,3 * 33,6 Notes Ordinary shareholders equity Ordinary share capital 60sec eee cece eee e eter eves 1 Share premium . .ccc ccc sees cece eee eevee eee eeeeees 234 distributable reserve ..... 0.0.0.0 cee eeeee 234 Distributable reserves eee ee eee eee eens 0.0.0.0... 234 Preferred stock and preference shares Preferred stock 6.0... ccee cece eee eee e een eee e eevee nes 1 Preference share capital . . Preference share premium Outside shareholders interests in subsidiary companies Life assurance funds . 00. cece ee ee eens Deferred taxation ........5.. cece cece ee eee eects Loan capital 6c eee cede te cee eee eee ees 5 6 7 Group 1983 1982 22,7 33,0 1696,7 1471,5 223,9 22,6 20,9 342,0 1 205,0 590,5 4,8 1,0 39,0 4,8 1,0 39,0 44,8 44,8 268,7 480,2 2 635,3 vm, ' |? 415,0 1376,1 022,0 201,7 138,4 214,9 196,2 445,5 575,7 021,2 -| 501,6 921,0 422,6 | 53,8 170,5 i 224,3 - 2032,0 75,3 171,3 246,6 2463,1 2463,1 334,0 ' 57,9 391,9 659,1 7,0 332,0 80,0 412,0 621,2 13,4 611,8 974,0 2032,0 250,4 1416,5 2 463,1 Loans from - Associated companies Others occ eee eee eee ene Other liabilities Creditors taxation and provisions Shareholders for dividends Bank overdrafts dividends 521,1 987,7 1508,8 Represented by ; : Investments Investment in associated companies 6.0.0... - cake eee eee General investments eee ......5...-.000. e ees te cee ce . 8 ~ 9 ween eee eee eee eet ee tenance 10 175,0 ~ 1391,0 Investment in subsidiary companies not consolidated .. Fixed assets ...0000....... 0. ee ok Other assets Stocks stores and township property Debtors 2.0 ee iee propere ty property Loans to - Associated companies .. : Others ce cece ee ee ee nen eters : 12 30,4 13 1050,6 69,4 390,4 1,5 1,5 96,2 1 294,4 850,4 .7 497,4 480,1 618,3 1098,4 | 259,5 170,5 11,3 441,3 946,6 2331 336,4 667,9 050,0 30,0 867,7 68,4 335,2 Income statements for the year ended March 31 1983 Figures in Rig 2 Corporation 1982 1983 : ; a 93,8 18,2 130,7 0,5 : 242,8 90,8 15,8 202,0 15,0 172,6 Dividends from associated companies .......... Dividends from general investments .......... Interest earned and fee income less expenses .. Trading profits ......... 0.000008 investments Surplus on realisation investments . Surplus from life assurance ...... ae Income from subsidiary companies ... . Notes vee 16 16 .17 | 486,0 496,2 : 146,4 . 183,5 Interest paid prospecting eeceecececeeecenceeseeee eeeceeeneen, : 30,2 37,5 Costs of prospecting 0.2.0.0 c. avev. essv. ane 18 \ 176,6 221,0 309,4 ! ~ 0,1 nee | 309,5 4,5 275,2 16,1 259,1 4,5 Profit before taxation Taxation .. ic icc .......0. 0000.00. cc cece - cecucuee ccc n eee cee cee ce cee berreres 19 after taxatti axo atin on 07.00.7000. e eevee eeeccel, le 20 Outside shareholders interests in profits of subsidiary companies Preferred stock and preference share dividends ............. 21 Group 1983 316,6 132,6 217,7 262,0 23,4 10,3 2,1 .1982 a 330,6 =) 142,0 142,9 253,7 6,5 7,8 7,6 964,7 891,1 187,5 39,5 146,9 | 35,6 |. 227,0 182,5 737,7 121,3 708,6 96,8 616,4 611,8 105,1 7 4,5 104,5 4,5 .. Group attributable bef-oberfoe re share of retained profits of associated companretai ined retained e cecees eeee Share of retained profits of associated companies 109,6 . ' ; 506,8 137,7 109,0 fos * 502,8 265,4 305,0 7 Profit extraordiitenmsary 6 22644,5 768.2 14,0 -254,6 1,0 before Extraordinary items . 0.62... cece lee ...2.2....2......06. cece eee eeeeelinne ce 14,1 OF T 0: ' 291,0 253,6 Se | ~ be 630,4 34,5 248,5 249,7 Ordinary dividends eee 0... ena ce eee r ese eees 21 > 249,7 Ye 248,5 _ Retpa rofii t 0n .0.e 0.5d cep elcseeeee 380,7 . <|.. 486,0 t 0,5 1,0 UnappropriaptroefditMarch 31 1982 145,2 - 88,2 . Adjutshert etomforechn angt es in exchange rates 2,0 17,7 : gy 7 43,0 4,9 Appropriations to | reserves " .147,2 -- 527,9 ae 105,9 2 591,9 oF 42,0 42,0 distriburetsaerbvlee reserve . cece | _ General ..... 2. . cee le ccc c en euedacne thee 8 4 117,3 - 243,0 215,3 |. | 203,7 1,0 profit March . 4,9 Unappropriated 31983: 4 ..... fee edaveees 195,3 Earpnericn engtss profits Pg Excluding share of retained profits of associates .-...:....... 1 22 Te 223,3 Inclshu aredofiretn aing ed assoofcaissaoctiaetess ......... eee 23 283,9 ene 222,5 2 339,9 t 4 45 oy x oo _ funds statements application Source and for the year ended March 31 1983 of hi Figuresin R million Corporation 1982 309,4 2,5 275,2 -3,0 SOURCE OF FUNDS Funds generated Profit before taxation outside shareholders interests in profits of subsidiary companies and retained profits of associated companies .. .. Adjustments for items not involving movements of funds Depreciation provisions and changes in exchange rates ......... 311,9 el 3,2 a 12,5 302,6 278,2 12/2 10 280,0 Life assurance funds generated Total funds from operations Funds fromother sources Shares issued and premium thereon under share incentive and share respect of option schemes andin subsidiary company.. of convertible bonds issued by a interests Loan capital 0... ee intere ests interests Netincrease in outside shareholders Extraordinary sharedealing profits .. 00... . ccc een eneee adeceeeee 1983 737,7 46,5 784,2 354,1 1 138,3 12,2 17,0 18,3 8,5 194,3 APPLICATION FUNDS a 59,9 75,9 7,0 1,9 22,0 8,9 Funds were applied towards Cost of investments acquired less cost of investments sold -.- Long term loans to associated companies and others . - Fixed assets o consc olidated consolidated consolidatc ed eee e erenees Subsidiary companies not consolidated ........... Increase in assets of life assurance companies ........ vs 9,0F9,0 [05 29,0 1,8 0,8 87,1 .]2 |. 39,5 |. 85,3 38,7 Investment subsidiary companies shares .. - loans - 129,8 36,7 215,0 ~ 341,0 2 722,9 | 248,5 4,5 253,0 bee 0,1 252,9 249,7 - | 4,5 254,2 ff. 16,1 bs 270,3 declared ordinary dividend Dividends and taxation Interim paid and final dividend . : . seen Preferred stock and preference dividends eet eas ce ebebeeebeneenes shareholders subsidiary Dividends paid to outside in in companies Taxation souss evr IS eee os 205,9 cs | 278,3 1,2 : 4,2 > 334,8 -}-5| 144,0 401,4 202,1 22,3 . Increase Reductionin loans from associated companies and others - Reduction Increasein loans to associated companies and others Increasein stocks stores and township property ee eee .....6.0..c0. Increasein creditors and deferred taxation o 6,6 638,6 19,4 Increase Decrease Increase Decrease _ idn ebtors .......... cash balances 02... .s.eecceceee eee Veeeee 302,6 280,0 249,7 _ 4,5 254,2 58,2 121,3 433,7 410,4 178,6 1,0 71,2 55,2 641,7 37,7 1.194,3 708,6 19,1 727,7 198,5 926,2 3,2 15,7 0,4 914,1 171,7 61,4 116,9 5 46 = . I . i . . . Vee EOP ie ggg seem . j , 2 i i { ^' ri if F poe Anglo American Corporation of South Africa Limited Registration Containing the annual financial statements for the year ended March 31 1983 2 Year in brief and year Directors Alternate directors summary 4 Profile of the Corporation Directors review 12222358 Finance and investment 122222223358 Manpower resources 122222223358 Gold and uranium 122222223358 Diamonds 122222223358 Coal 122222223358 mining . : GWH GWH Relly Chairman J Ogilvie Thompson Deputy Chairman NF NF Oppenheimer Deputy Chairman Sir Keith Acutt KBE British RIJ RIJ Agnew British W G Boustred G A Carey British JN Clarke British Dr Z J de Beer DB Hoffe A Deuchar Australian Dr G Murray MC O'Dowd RJ Hedley British PJR PJR Leyden British PCD Burnell British JLP Mackenzie , 122222223358 Industry and commerce DA DA Etheredge OBE GS Young 122222223358 Property Dr E MAF Ferreira Portuguese D Rankin 122222223358 122222223358 122222223358 Exploration and research Shareholders information Notice to members C Fletcher MC CJ Griffith N Hambro British Dr H B Dyer OP OP Koevort RA RA Hambro British 122222223358 year summary Annual financial statements MB MB Hofmeyr JA JA Holmes British VI VI Webber CBE British ~ BE Bullett British 372144 Auditors report ote 372144 Directors report MW MW King G Langton M P Desmidt WR Lawrie .. 8 . 372144 Accounting policies DG DG Nicholson British 372144 Balance Sir Philip Oppenheimer British TL Pretorius 372144 Income statements 372144 'Source and application of funds JG JG Richardson British Sir Albert Robinson British A McKerron FJA FJA Howard statements i CJ Saunders +486662 .Notes to the financial statements +486662 _- Associated companies HR HR Slack USA Dr J G van der Horst +486662 General investments +486662 Principal subsidiary companies Dr AL Vilakazi USA GH Waddell +486662 . Interests of the Corporation +486662 Resource maps W D Wilson Dr M Atmore +486662 Administration Member of the Executive Committee of the Board 83 . Office addresses > 84 Statutory and other information Aandeelhouers wat n Afrikaanse vertaling van hierdie verslag verlang word versoek om met die oordragsekretarisse in verbinding te tree Year in brief , Profits Group profit was R506,8 million R4 million higher than last year excluding retentions of associated companies On an equity accounted basis earnings were R644,5 million R768,2 million 16,1 per lower The dividend was unchanged at 110 cents a share being 49,3 per cent of earnings excluding retentions of associates which are transferred to non- distributable reserve Investments The market value of listed investments stood at record R7 323,8 million at the year an increase of R3 081,3 million and the directors valuation of unlisted investments was R466,6 million R534,5 million with net asset value per share of 3 321 cents 2 031 cents a 63,5 per cent increase . A further 11 million shares in De Beers were acquired to bring the holding to 34,2 per cent 31,1 per cent of which the 52,2 - per cent subsidiary Anglo American Investment Trust has 27,3 per cent Sigma Motor Corporation is now 50 per cent held 37 per cent the other 50 per cent being owned by Amic The formation of The Tongaat Group resulted in the Corporation holding an 11,2 per cent interest In May 1983 a consortium led equally by JCI and Liberty Life in which the Corporation is participating agreed to buy subject to certain conditions 52 per cent the Premier Group from Associated Total assets of Amlife now stand at R1 460 million 100 million with premium income at R246 million and investment income at R112 million exceeding R200 million and R100 million respectively for the first time Disclosed earnings increased to R10,3 million R7,8 million and the dividend to R7 million R5,3 million Amaprop increased profits by R5,1 million R14,7 million Gold : The average gold price dropped 19,7 per cent to 375 an ounce during 1982 In rand terms the price increased 1,5 per cent R412 an ounce R13 254 a kilogram reflecting a further depreciation of the rand against the dollar Gold mining contributed 41 per cent to investment earnings 40 per cent Administered mines increased gold production by 1,6 per cent being 36,4 per cent 36,2 per cent of the industry total Working profit decreased by 12,4 per cent R1 569 million capital expenditure dropped slightly to R562 million and dividends paid were down 16,4 per cent at R511,6 million Diamonds Sales by the Central Selling Organisation were 15 per cent less at $ 257 million although in rand terms they were nine per cent higher at R1 360 million because of the rand weakening De Beers profit after tax in 1982 was R443 million compared with the previous year's R628 million and the dividend was 37,5 cents 50 cents Stocks at the end of 1982 stood at R1 832 million an increase of R429 million of a which third was attributable to the lower rand . Coal Sales by administered mines fell by seven per cent to 35,6 million tons being 27 per cent 29 per cent of the national total Amcoal earned profits of R113,4 million and paid a dividend of 145 cents Its capital expenditure programme totals R1 310 million of which about 60 per cent will be for three collieries to supply new Escom power stations Amcoal was awarded a further provisional four million tons under the first parotf the Phase IV exports programme Industry and commerce Industrial commercial finance and insurance interests contributed 34 per cent 37 per cent to investment earnings Amic's earnings were 4,5 per cent higher at R186,8 million with the dividend up 9,1 per cent to 180 cents a share Earnings per share decreased 37,1 per cent 416,6 cents Its capital expenditure commitments at the end of 1982 stood at R677,3 million mainly for the Richards Bay pulp mill for Mondi Highveld Steel - R69,1 reported earnings of R69,1 million for the 18 months to December 31 1982. AECI in which Amic holds 39,5 per cent increased sales in 1982 to R1 550 million but trading profit of R221 million was 7,5 per cent down and the dividend was maintained British Foods for R337,2 million The consortium agreed to exchange its .. combined shareholding of 34 per cent South African Breweries for approximately 32 million new shares in Premier The , Corporation's participation will not exceed 20 per cent ANALYSIS OF THE VALUE OF INVESTMENTS AND INVESTMENT EARNINGS Value of Investments percentage Investment Earnings percentage Value of Investments percentage Investment Earnings percentage By prime source Gold 1983 1982 1983 1982 49 41 40 Geographical South Africa 1983 1982 1983 1982 : 84 84 83 80 80 Finance companies Amgold's earnings declined by 20,6 per cent to R195,6 million and the dividend totalled 860 cents 1 000 cents The value of investments increased by R1 109,6 - million to R3 001,7 million Anamint whose principal investment in De Beers earned 1 351 cents a share on an equity accounted basis compared with 1867 1867 cents and 594 cents 702 cents Diamonds Coal Platinum Other mining Finance & insurance Industrial and commercial Oil and gas Property 6221 South West 6221 Namibia 1 1 1 1 6221 Rest of Africa south of the Equator 6221 North America 10 11 Europe and UK Elsewhere 6 146 14 | 4 | 19 24 26 1 1 2 2 4 2 * Excludes outside companies 100100 100 100 100 100 100 | | subsidiary interests in excluding its share of the retained profit of De Beers and its dividend of 590 cents 100 100 100 100 t Includes investment income trading profits after tax and share of retained profits of associated companies was 16 per cent lower The value of investments was R930,3 million R587,7 The above analysis is intended to give an indication of the diversity of the Group A strictly accurate analysis is not possible because of the complex spread of the underlying investments million at the year 2 summary = si : : Equity capital Issued ordinary reserves : capital and reserves r : R millions 1983 wer : 3 223,9 1982 . 2590,5 2590,5 1981. 1980 1979 Es} - 2,010,5 1.325,8 955,2 : Associates and general investments | Book value R millions 1789,5 1789,51789,5 Carrying value R millions 2985,5 Market value R millions 7 790,4 1674,1 2515,5 4777,0 285,5 1895,4 444,2 130,3 1346,7 5423,0 878,9 385,9 INVESTMENTS Morket value EquiEtquyity avalueccounted portion & Million rand , 8.000 7.000 = 000 | o Earnings attributable toordinary shareholders Excluding share of retained profit of associates R millions share 506,8 223,3 502,8 222,5 Including share of retained profit of associates R millions share 644,5 283,9 768,2 339,9 Dividends Ordinary dividend R millions cents a share 249,7 110 248,5 110 Dividend cover 2,03 2,02 527,0 233,4 306,6 136,1 202,0 90,2 866,0 383,6 525,3 233,1 248,3 110 2,12 157,7 157,7 70 1,94 103,0 46 1,96 : Shares : Numberin issue Net asset value per share Share prices ; millions cents cents year high low 227,0 226,0 225,7 225,3- 224,0 321 2065 550 885 2031 1 090 850 085 697 700 230 233 184 1300 1830 700 1357 755 770 490 1979 1981 1982 1983 EARNINGS AND DIVIDENDS Wh Equityaccountedcontribution = Dividendsper share Y Y 1979 1960 1981 1982 1983 SHARES = Net asset value per share Share price aa directors shareholders surplus of investments outside Includes unlisted at valuation and value and directors valuation over book value interestin market * Excludes share of retained profit of associated companies 1979 1980 1981 1982 Profile of the Corporation Anglo American Corporation directly and indirectly develops and holds investments in mining financial industrial and commercial companies on a world basis but principally in southern Africa In 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 technical and other services and is able by virtue of its financial strength and standing to assist them in raising capital for expansion and development More than 51 cent by value of the Corporation's investments and interests in associated companies is in these administered finance and operating companies A large portion of the remainder is in two major associates De Beers Consolidated Mines and Minerals and Resources Corporation Minorco based in Bermuda which has significant investments in mining mineral processing . financial services and commodity , trading companies in North America and in mining finance and investment companies elsewhere Though these major associates have their own management they have close and historical ties with the Corporation and draw upon its technical advice Hence the relationship between them and the Corporation is broader than a purely financial one and serves to strengthen and enhance the contribution 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 engaged in the production of gold and uranium diamonds coal platinum copper nickel oil and gas tin potash iron ore vanadium lead zinc manganese and wolfram Investments in industry range from companies engaged in the manufacturing of steel and alloys and heavy engineering to construction and shaft sinking motor vehicles timber and paper textiles chemicals electrical equipment drilling tools refractories and foodstuffs including sugar The principai commercial interests are in insurance and property banking freight and travel and computer services The significant shareholdings of the Corporation in the principal finance and its administered finance companies at March 31 1983 is set out below regional companies and in the two associates De Beers and Minorco are shown in the chart The percentage interest held is shown outside each figure Each of the South African finance companies has a specialised portfolio there is Anglo American Gold Investment Company Anglo American Investment Trust for diamond mining and marketing investments Anglo American Coal Corporation Anglo American Industrial Corporation Anglo American Life Assurance Anglo American Properties and Anglo American Farms On a regional 1. Total value of the companies administered by the Corporation ...... 2.2... in 2. Interests in 1 of the Corporation and its administered finance companies .. 3. Interests of the Corporation administered and its administered finance companies in the value of administered companies ............... Rm 700 600 300 basis there is Anglo American Corporation Zimbabwe Anglo American Corporation 4. Overall Overall value of and .. 900 do Brasil Australian Anglo American 5. Total of the value of the Anglo American Corporation Central Africa in Zambia and Anglo American Corporation Botswana The valuations companies administered by the Corporation 1 and its interests and those of its given in the chart are calculated as at administered finance March 31 1983 companies in the non- Not shown in the chart are the large number of operating mining and industrial companies again generally not subsidiaries with which the Corporation has a special relationship through its provision of administrative and technical services and financial support both as investor and as underwriter of new capital issues Finally there are other associated companies and companies in which the Corporation holds portfolio investments To illustrate the scale of their mining operations in 1982 companies : administered by the Corporation produced more than 36 per cent of South Africa's gold equivalent to about 24 per cent of world production excluding communist countries 26 per cent of South Africa's coal and 44 per cent of its uranium The overall equity value of companies administered by the Corporation and of the investments held by the Corporation and administered companies 3 . 17 000 ara The Corporation's original capital in 1917J/ was million which was raised from British American and South African sources - hence the title Anglo American Corporation of South Africa The present capital and reserves at book value exceed R3 200 million and the net interest of ordinary shareholders based on current values is over R7 500 million Ownership is widely spread there being more than 24 500 registered ordinary shareholders The majority of the share capital about 85 per cent is held in South Africa and the balance abroad In all about 254 000 persons are employed by Anglo American Corporation and the South African gold coal industrial and commercial companies which obtain administrative and technical services from it The Corporation has had only three Chairmen the founder Sir Ernest Oppenheimer from 1917 to 1957 his son Mr Harry Oppenheimer from 1957 to 1982 and the present Chairman Mr Gavin Relly This has brought a continuity of policy to the activities of the Corporation whose aim is to earn profits for its shareholders but to do so in such a way as to make a real and lasting contribution to the welfare of the people in the countries in which it operates Anglo American Corporation of South Africa Market value of equity capital R4 688 million CAenngtlroalAmAefrriiccaan Corporation: ABnogtlsowaAnmaerican Corporation Equity shareholders interest P4million Mr Gavin Relly who became Chairman of Anglo American Corporation upon the retirement of Mr Harry Oppenheimer in December 1982 Directors review FINANCE AND INVESTMENT continue Group results flagging - Group profit was P506,8 million R4 million higher than last year excluding - retentions of associated companies On an equity accounted basis earnings were R644,5 million R768,2 million 16,1 per cent lower Dividend receipts from gold and diamond investments were marginally lower but were more than offset by higher earnings from interest and fee income surpluses on investment realisations and trading profits in turn leading to a higher tax charge The drop of R127,7 million profits However declining in the retained of associated The South African economy- economyadjustment to world recession COMPARATIVE REAL GROWTH SOUTH AFRICA AND THE UNITED STATES . QQ Quuaarrtteeru r 11997700a 100 rter Index ASA GDP US GNP 110 100 1970 72 74 76 78 1982 o Inflationary pressures These results were achieved in '. economy South Africa's real gross domestic product fell in 1982 for the first time since World War II Although the economic performance of the major trading nations was extremely poor for the third successive year to make the most protracted recessionary period for several decades South Africa during 1981 had been able to avoid the worst of these conditions because of a favourable gold price and so real growth remained ~ relatively strong ' export volumes and weak commodity companies largely reflects lower earnings of Minerals and Resources Corporation and De Beers Consolidated Mines and the loss incurred by Sigma Motor Corporation : . Dividend income at R449,2 million R472,6 million was five per lower policies Interest earned and fee income less tightened flexibility ~ expenses totalled R217,7 million R142,9 significantly hastening million 52,3 per cent higher than last year while interest paid increased to R187,5 million from R146,9 million up by _ 4000 27,6 per cent Trading profits rose R8,3 million to R262 million the surplus _ on realisation of investments was R16,9 million higher at R23,4 million the - disclosed surplus of the life assurance group increased by R2,5 million to R10,3 million Prospecting costs were R39,5 investment million or R3,9 million higher and the tax charge rose R24,5 million to R121,3 R121,3 million partly because of the increased company tax rate . Outside shareholders interest in the profits in .. of subsidiary companies was virtually Seasonally adjusted annual rates IMPORTS EXPORTS AND GOLD OUTPUT Million Merchandise imports rand To Merchandise exports Net gold output 20 16000 16000 12000 000 | 1978 79 Co B1 Seasonally adjusted annual rates 1982 ON BALANCE CURRENT ACCOUNT Million rand Million Tog rrr 000 2000 en 0 ee prices particularly for gold finally forced an adjustment to international realities Excessive domestic demand in 1981 and the first half of 1982 led to a growing current account deficit as well as to continuing inflationary pressures As result both monetary and fiscal reflecting an enhanced were a downward adjustment in domesti demand on the one hand while on the the other a depreciation of the rand | ~ simultaneously sheltered certain sectors from the full impact of the world recession . and discouraged imports Consumer '. spending was curtailed and against this background - and under the impact of interest rates which had soared to record levels - private sector fixed declined rapidly with every effort being made to reduce stocks Public sector activity few was similarly severely curtailed with ~ exceptions . Towards the year and into early 1983 a sharp decline imports ..- assocGiraotuepd's together with current unchanged at R105,1 million The _ _ -4000 marked fall in domestic expenditure . *- share of the retained profits of and an improved gold price resulted in companies fell by 48,1 per cent to -6000 -6000 pronounced improvement in the os payments R137,7 million and was transferred to 1978 60 ! 1-8000 81 1932 account of the balance of distributable reserve in accordance Seasonally adjusted annual rates decline aa, with the Corporation's accounting policies Interest rates were allowed to significantly However the mh RAND RATE AND WEIGHTED more recent fall Dividends totalled R249,7 million R248,5 AVERAGE VALUE OF THE RAND USS in the gold price following reduced crude * million or 110 cents a share 110 cents USS Index oil prices is a reminder of the relatively being 49,3 per cent 49,4 per cent of Rand -100 -100 depressed economic circumstances -- earnings excluding the retained earnings of associates Extraordinary items totalled R14,1 million comprising principally extraordinary charges of associated companies of R22,9 million less extraordinary sharedealing profits of R8,5 million Weighted average value 0.9- 0.9- > of rand 1970 = 100 world although which continue to prevail throughout the western medium . prospects for recovery have improved Yet the short outlook is not favourable as circumstances have been against an South African overall fiscal stimulus to the economy while the relaxation of . 081 1978 79 80 81 82 Monthly averages Inflation and interest rates in South Africa INFLATION averages- Quarterly averages- Pet cent change on previous year < Average annual changes in CPI Strong demand on The Johannesburg Stock Exchange saw the listed holdings increase by R3 081,3 million to a record year market value of R7 323,8 million Unlisted investments excluding loans stood at carrying value or book cost of R280,5 million R332,2 million compared with directors valuation of R466,6 million cent of the ordinary capital of South African Breweries of which the Corporation's interest forms part at price of R8,85 a share ex the company's 1983 final dividend of 25 cents a share the combined holding being exchanged for approximately 32 million new shares in Premier at R25 a share Premier will R534,5 million Total value of investments was thus R7 790,4 million become an investment holding company after transferring its trading interests to R4 777 million having a carrying value or book cost of R2 985,5 million R2 515,5 a subsidiary company The Corporation's participation will not exceed 20 per cent l 1978 Lt 1979 i 1980 1981 1982 million The value of associated companies comprised 77,9 per cent 75,8 per cent of the total value of investments After adjusting for the outside shareholders interest in the excess of the Acquisitions of 1 608 250 shares in Samancor brought the holding of the Corporation and associatesin that company to 31,7 cent and R15 million was subscribed to make the 29 947 200 market value and the directors valuation 12 per cent debentures of R1 each in INTEREST RATES over book and carrying values of Western Deep Levels Limited fully paid investment holdings the net asset value per The Corporation's effective interest in Per cent share was 3 321 cents 2 031 cents an Sigma Motor Corporation Proprietary oF = Prime overdrail increase of 63,5 per cent Limited has increased from 37 per cent - Treasury bills 22 The Corporation has taken the opportunity to 50 per cent as a result of a further Long government stock Long Escoms imi 18 to acquire a further 10 954 400 shares in De Beers Consolidated Mines of which 879 100 were purchased from Luxaf SA acquisition of sharesin that company and indirectly through the acquisition of Stanley Motors Limited Amic owns the other one of the holding companies jointly held 50 per cent with the French banking group Parisbas until March 1983 when the arrangement was terminated The holding in De Beers is thus 34,2 cent 31,1 per cent of which the 52,2 per cent subsidiary Anglo American Investment Trust has 27,3 per cent As part of the arrangements with 1979 1980 = 1982 1983 Parisbas a further 259 400 shares in Anglo American Industrial Corporation Amic were bought by the Corporation exchange residents controls on was =| among a number of measures introduced which now holds 46,4 per cent 45,8 per cent Turnstone Holdings Limited previously an recently to enhance monetary controls But itis reasonable to hope that improved trading conditions against a background -. of substantially flexible South African associated company jointly held with De Beers became a 59,5 per cent subsidiary during the year holding 377 104 South African Breweries shares In May this year . .monetary fiscal policies will : = gradually alleviate conditions and so allow = growth into 1984. The effect of the the Corporation agreed to participate in a ~ consortium led equally by Johannesburg Consolidated Investment Company will nation drought o retarding factor however be s Principal changes investments Limited and Liberty Life Association of ~ Africa Limited to purchase 13 486 564 ordinary shares or 52 per cent in The Premier Group Limited from Associated <. Share investments acquired less disposals British Foods Limited for R337,2 million amounted to R115,4 million at cost The subject to certain conditions The ~ carrying value of investments in associated companies excluding loans stood at R2 681,2 million at the year compared with R2 235,2 million and the book cost of general investments was consortium agreed to pool their present shareholdings of approximately 34 per R304,3 million R280,3 million The holding of 414 060 shares in Tiger Oats and National Milling Company Limited was disposed of and there were purchases and sales of small interestsin various gold mining companies As a result of the merger of The Tongaat Group Limited with Huletts Corporation Limited to form The Tongaat Group Limited on the basis of 117 Hulett shares for every 100 Tongaat shares the Corporation holds 11,2 per centin the new group Results of major South African finance companies The earnings of Anglo American Gold Investment Company Limited Amgold in which the Corporation has a 48,6 per cent interest declined by 20,6 per cent from R246,3 million or 122,2 cents share _ to R195,6 million 890,9 cents for the year ended February 28 1983 mainly because . of lower dividends declared by the gold mining companies during 1982. Amgold's ordinary dividends totalled R188,8 million or 860 cents a share 1 000 cents a relatively high distribution made possible ~ by the group's limited commitments in the year ahead and by the completion of the redemption of the preference shares The value of Amgold's investments increased by R1 109,7 million to R3 001,7 million and the net asset value rose to 13 770 cents a share from 8 712 cents taking the quoted investments at market value and the unquoted investments at directors valuations Mondi Paper Company Limited's pulp mill complex at Richards Bay which is expected to be commissioned in October 1984. Arrangements have been made for Mondi shareholders to provide R150 million of loan and equity finance with an interest rates and exploration expenditure The company's dividend distribution remained unchanged at 600 cents a share Net earnings for the six months to December 31 1982 remained virtually unchanged at R48,7 million and the Anglo American Investment Trust Limited Anamint a 52,2 per cent subsidiary additional R450 million from outside facilities interim dividend of 130 cents was the same as the last year earned 1351 cents a share on an equity accounted basis compared with 1 867 cents in the year to March 31 1982 The Corporation's life assurance interests are held through its 97,7 per cent subsidiary Anglo American Life Assurance Results of major international associates Excluding its share of the retained profit of Company Limited which in turn holds Minerals and Resources Corporation * De Beers its associated company and 100 per cent of African Life Assurance Limited Minorco in which the Corporation principal investment earnings were 594 cents a share and dividends paid were Company Limited and Southampton Assurance Company of Zimbabwe holds 40,7 per cent reported equity accounted earnings before extraordinary : 590 cents 700 cents or R59 million R70 Limited Anglo American Life also wholly items of 135,3 million for the year to _ i million some 16 per cent lower De Beers in which Anamint holds a 27,3 per owns First Consolidated Holdings Proprietary Limited a leasing and June 30 1982 186,4 million reflecting the world economic down cent interest paid dividends totalling 37,5 finance company and during the year However earnings from operations cents a share 50 cents a drop of 25 per cent on last year At the year the value acquired the 28,2 per cent of the equity not already held in the listed investment increased by 65 per cent from 28,2 million to 46,7 million with investments of Anamint's investments was R930,3 company Metals and Minerals Investment acquired in 1981 making a significant million R587,7 million and the net asset value was 9 269 cents a share 5 906 Corporation Limited at cost of R12 million Total assets of Anglo American contribution particularly Consolidated Gold Fields PLC Gold Fields in which cents Life and its subsidiaries now amount to Minorco holds 29 per cent The dividend Anglo American Coal Corporation Limited Amcoal a 50,9 per cent subsidiary earned profits of R113,4 million compared with R105 million on an annualised basis R1 460 million compared with R1 100 million last year Total premium income at R246 million exceeded R200 million for the first time New life assurance business was maintained at 22 cents a share In the six months to December 31 Minorco's unaudited equity accounted earnings before extraordinary items were 27,7 - in the 15 months to March 31.1982 31.1982 an written increased 50 per cent and totalled million with an unchanged six cent interim increase of eight per cent The dividend paid was 145 cents a share amounting to R35,4 million 132,8 cents and R32,5 million annualised The company's net capital expenditure programme totals R1 310 million of which approximately 60 R113 million Recurring premium income increased by 24 per cent to R200 million and investment income exceeded R100 million for the first time increasing by 27 per cent R112 million The disclosed earnings of the group after transfers to dividend Extraordinary losses totalled 40,9 million of which 40,7 million was the company's share of an extraordinary provision of 87 million by Gold Fields in the six months to December 31 referred _ to below per cent will be spent on the construction inner reserves were R10,3 million R7,8 Hudson Bay Mining and Smelting Co ' of the three collieries which are to supply million The dividend for the year was Limited Hudbay in which Minorco holds coal for Escom's new 3 600 MW power increased from R5,3 million to R7 million 44 per cent incurred a 64,2 million stations Tutuka Lethabo and Lekwe Anglo American Properties Limited a 65,6 loss 10,8 million loss in the year to Anglo American Industrial Corporation Limited Amic in which the Corporation has a 46,4 per cent interest reported equity accounted earnings of R186,8 million for the year to December 31 1982 per cent subsidiary increased profits by R5,1 million to R14,7 million 34,6 cents a share from R9,6 million 22,5 cents last year Of this increase 3,3 cents arises from a change in the basis of accounting Decembe3r1 1982 before an a extraordinary gain of 55,5 million from the disposal of a power plant Minorco Hudbay recently announced a proposed Bee organisation and financing involving ~ Although this was 4,5 per cent higher Dividends paid were 18 cents 14 cents Hudbay and Plateau Holdings Inc. than the previous year earnings per share The group's properties are valued at some Plateau which is jointly owned by i: on the increased share capital arising from the merger with De Beers Industrial Corporation Limited and related acquisitions decreased by 37,1 per cent to 416,6 cents However the higher proportion of group earnings now derived from dividend income from associated companies and investments enabled Amic to increase its dividend by 9,1 per cent from 165 cents to 180 cents a share Capital expenditure commitments at December 31 1982 totalled R677,3 R409 million R365 million and the capital expenditure programme totals R67,7 million R83,3 million Johannesburg Consolidated Investment Company Limited in which the Corporation's total investment is 40,2 per cent reported not earnings of R86,1 million for the year ended June 30 1982 compared with R98 million the previous year reflecting lower dividends from gold and diamond investments and higher Hudbay and Minorco in order to pool _ joinUtS investments of Minorco and Hudbay in a listed US company Plateau to be named Inspiration Resources ~ Limited which will have a Canadian subsidiary Hudbay owning the present Canadian investments This will simplify the corporate and management structures within a single entity and enable better access to capital markets both in Canada and the US While Minorco will hold about 60 per cent of the equity it has agreed to million principally for the construction of restrict its voting rights to less than 50 per 9 Mr Harry Oppenheimer delivers his last informal chairman's talk to the senior staff of Anglo American Corporation in the foyer of 44 Main Street after the annual general meeting of the Corporation in August 1982 cent of Plateau is proposed that after capital Andersons is one of Europe's completion of the organisation and will be largest makers of underground coal mining equipment and recently acquired a subject to market conditions there public offerings of additional equity 51 per stake in the US mining National Mine and Minorco has agreed to participate in equipment company has sold its four !! financing to the extent of 50 million Service Company Charter per cent interest in The Rio Tinto Engelhard Corporation in which Minorco of Corporation PLC for 57 million and the . holds 28 per cent earned profits after proceeds of not less than 38,6 # million in the year to December 31 million will be used to reduce borrowings Z 64,8 1982 66,4 million and again declared dividends of 56 cents a share Some 84 million has been earmarked by the group for expansion projects Net earnings of Salomon Inc. for the year to December 31 1982 increased by 17 per cent to 337,3 million on revenues of 26 703 million up from 25 655 million in 1981. Phibro Corporation acquired Salomon Brothers in October 1981 to form Salomon Inc. in which Minorco's interest 28 per cent Total dividends were unchanged at 94 cents a share Charter Consolidated P.L.C. in which Minorco holds 36 per cent reported equity earnings for the year to March 31 1982 of 37,6 million 32,6 million and paid dividends of 11p 11p a share 10p and finance new investment Net earnings of Gold Fields for the year to June 30 1982 fell 34 per cent to 72,9 million and earnings per share were down 39 per cent at 39p The dividend remained unchanged at 24,5p The main reasons for the fall were lower gold and base metal prices the impact of the US recession on the company's industrial activities in that country lower profits from investment realisations and higher interest charges 31 For the six months to December 1982 net earnings fell to 13,9 million 42,3 million caused largely by losses on commercial and manufacturing operations and lower investment realisations and other net revenue as well as higher interest charges In addition the company made an extraordinary provision of 87 million In the six months to September 30 1982 earnings were 16 million 15,2p a share compared with 21 million 20p in 1981 which included a large abnormal gain from against possible losses on its US oil drill rig manufacturing operations intended to cover fully inventory and other anticipated losses from November 1982 onwards the sale of Charter's holding in Haw Par Brothers International Limited Trading profit of operating subsidiaries of 8,3 million was slightly below the previous 8,8 million with the recession continuing to affect almost every sector Income from Anglo American Corporation do Brasil Limitada Ambras in which the Corporation has an effective 37 per cent interest in its gold mining investments and an effective 46 per cent interest its other investments received dividends of nearly 8,1 investments was little changed at 8,1 million 7,9 million Retained earnings of associates declined from 9,2 million to 6,5 million because Malaysia Mining 1.5 1.5 million from its major investment in vinera^^Moorra Velho MMV which has gold mines near Belo Horizonte in the state of Minas Gerais MMV has * Corporation ceased to be an associate when it merged with Malayan Tin Dredging successfully commissioned a 20 000 tons month treatment plant at Jacobina its Limited new mine in the state of Bahia and is now In late 1962 Charter made two purchases 60 cent stake in South Crofty of the principal asset which is a Cornish tin mining operation and through its subsidiary Alexander Shand Holdings the expanding its main activities in the state of Minas Gerais with the first phase of the Raposos project that will ultimately double production capacity to 100 000 tons a month entire equity of B and LS Contracting which is engaged in open coal mining During the year Ambras increased its interest in Banco Bozano Simonsen de operations in Indiana USA In March 1983 Charter renewed its offer to acquire the outstanding share capital of Anderson Investimento S.A. BBSI an investment bank and continues to a hold significant interest in Cia Bozano Simonsen Strathclyde PLC and as a result now controls more than 98 per cent its CBS the holding company of the Bozano Simonsen group Dividends paid to Ambras from BBSI and CBS totalled 1,6 million 11 Ambras investment in MMV is partly direct and partly through Cia Siderurgica Hime Hime in which it holds 49 per cent and CBS 51 per cent In contrast to favourable year for the financial activities of the Bozano Simonsen group Hime's activities were adversely affected by Brazil's general economic down which impacted particularly on heavy industry and which coincided with the completion of Hime's expansion programme for an additional annual production of 150 000 tons of rolled steel Codemin nickel mine in which Ambras holds 35 per cent was commissioned successfully in the third quarter of 1982 within the budgeted capital cost of approximately 100 million Iracema cashew nut processing company in Ceara had a most successful year In addition to repaying in advance the remaining instalment on a 7 million . foreign loan it also paid a 1,9 million dividend with Ambras share amounting to 1,1 million Ambras declared dividends of 5,5 million for the year andis continuing to prospect MMV for base metals and through for gold significant The Corporation also has a investment in a diversified South American group through its 18 per cent interest in Empresas which complements its existing activities in South America Empresas holds extensive mining and industrial interests in South America its major : operations being Mantos Blancos copper ': mine in Chile Codemin nickel mine in Brazil Arcata silver mine in Peru ~. Petrosur an Argentinian fertiliser . producer Other activities include the : mining of niobium phosphates and . tungsten as well as the manufacture of industrial furnaces all in Brazil and cement production in Peru Mantos Blancos intends to expand its sulphide copper production at an estimated cost of 71 million and the necessary financial facilities are being negotiated Empresas has recently acquired 69,7 per cent interest in Copebras a major Brazilian producer of carbon black fertilisers industrial phosphates and gypsum Anglo American Corporation Zimbabwe Limited Amzim in which the Corporation has a 16,6 per cent interest holds a diversified portfolio of investments principally in Bindura Nickel Corporation Limited Border Timbers Limited Hippo Valley Estates Limited Zimbabwe Alloys Limited and Wankie Colliery Company Limited It also has important investments in the iron and steel and grain milling industries in citrus production and general agriculture and in property and banking Net earnings for the financial year ended June 30 1982 were 11,6 million 10,4 million Australian Anglo American Limited is continuing to explore for minerals and to seek involvement in mining business in Australia and New Zealand It has a 40 per cent interest in an operation to treat goldbearing tailings at Wallsend's Mount Morgan mine Queensland where production commenced towards the end of 1982 Further details of the principal finance and investment companies in which the Corporation holds a significant interest are given on pages 65 to 70 MANPOWER RESOURCES The Corporation's philosophy The Corporation believes that all workers have the right to join or form trade unions of their choice and is committed to the development of constructive relations with these unions both at enterprise and industry level The Corporation favours industrial council systems to provide effective structures which can involve all representative unions in ordinated and orderly process of collective bargaining The Corporation also believes that consultation between management and employees as well as regular and effective dissemination of relevant information is vital to the creation of constructive management relationships The Corporation is committed to achieving racial manning with all recruitment selection training development and staffing on merit only Subsidiary and administered companies conduct regular audits in order to measure progress in this area Regular audits are also conducted to ensure that employees enjoy an adequate quality of life in cases where companies administered by the Corporation are responsible for both the living and the work environment of employees Black trade unions recognised The most important development in trade union affairs has been the further recruitment by unions of black workers in the mining industry Last year's report referred to the agreement concluded between the De Beers Kimberley division and the multiracial SA Boilermakers Society which extended bargaining rights to black workers on the Kimberley mines and in the year under review three unions gained access to recruit black mine workers on mines that are members of the Chamber of Mines the employer organisation for the gold and coal mining industries Two of them are independent initiated unions the Black Mineworkers Union and the National Union of Mineworkers NUM and the third the Federated Mining Union FMU previously the Federated Mining Explosives and Chemical Employees Union is a union associated with the SA Boilermakers Society To date the FMU has obtained collective bargaining recognition for certain categories of workers at two mines one being Vaal - Reefs which is administered by the Corporation In addition the NUM is in the process of being recognised fora range of occupations on three other Corporation- administered mines Elandsrand : President Brand and the Welkom and Saaiplaas divisions of Western Holdings These unions will participatein this year's : year's annual mining industry wage review by : direct negotiations with the Chamber of - a Mines Although negotiations will inevitably . be difficult at times is to be welcomed that black workers are well on their way to having a formal leadership such as that enjoyed by their white counterparts with whom employers can negotiate Union membership among all South African population groups is on the increase in secondary industry A os . a particularly welcome move is the decision of the initiated Metal and Allied Workers Union to apply to join the Industrial Council for the metal industries Progress has also been made through procedural agreements to regulate relations with representative unions at company level Managements of subsidiary and administered companies i / i : i a oy th vd Pg) : Science class at a Soweto technical high school financed by The Anglo American Corporation and De Beers Chairman's Fund are increasing their efforts to consult workers and share relevant information recognising that these activities can create a healthy environment within which bargaining and negotiation can take place Grievance and disciplinary procedures which exist throughout these subsidiary and administered companies require constant attention to ensure that there is fair discipline and that grievances are quickly and effectively resolved Meanwhile the Corporation and its subsidiary and administered companies continued their efforts to ensure fair reward for all their employees Progress was of course restricted by prevailing economic circumstances Many companies are now paying a basic wage which meets the objectivoef the Corporation's manpower philosophy however some have still to reach this target Wages of black workers particularly those of the less skilled have risen dramatically in the last 10 years Improved efficiency and productivity is now essential if a real improvement in reward is to be maintained and is hoped that both parties to the bargaining process will recognise that increased efficiency at work is a shared responsibility and should be a common interest uniting management and workers Training and racial manning In furtherance of the commitment to non- racial manning every effort has been made whenever possible to maintain training initiatives in the face of the economic down A further step to alleviate the skills shortage was taken when the engineering unions agreed to indenture the first black apprentices on both gold and coal mines It is however disappointing to find that although significant numbers of blacks presented themselves for apprenticeship only a few met the educational requirements This is possibly not surprising in view of the general quality of black education Social responsibility The Chairman's Fund which is financed by the Corporation and its administered companies and by the De Beers group supports a wide variety of projects The year has been a particularly significant one for the Fund In April 1982 Mr F Oppenheimer opened the main buildings of the Mangosuthu Technikon the Fund's most ambitious special project to have been completed and Chief Gatsha Buthelezi Chief Minister of KwaZulu simultaneously announced his government's decision to grant the Mangosuthu Technikon autonomous status under its own governing council By the year the Technikon which has been operating since 1979 had produced its first diplomate Amendments to South Africa's Income Tax Act introduced in 1981 extended the range of educational institutions donations that may be deducted from taxable income so as to encourage greater private sector contributions to education The Corporation and its subsidiary and administered companies accordingly have passed on to the Chairman's Fund the accruing tax benefits and this has led to a considerable expansion of the Fund's resources and to the establishment of The Chairman's Fund Educational Trust to handle deductible donations to educational institutions As a result total spending was increased by 40 per cent to R14 million Several important new projects were initiated during the year In education two established private schools Inanda Seminary primarily for black children and Little Flower School primarily for coloured children received substantial grants to enable them to expand and grade the quality of their residential accommodation for pupils Continuing its standing support for teacher education particularly among the black community the Fund is to convert an existing building in Umlazi KwaZulu at a cost of nearly R500 000 for use as a distance teaching centre to upgrade qualified teachers A further venture in technical education has been launched on the West Rand where the Wedela Technical and Vocational High School is to be built by The Chairman's Fund Educational Trust this year Three years ago the Fund supported an investigation by the University of the Witwatersrand into problems arising from the change in the medium of instruction in Soweto schools from the vernacular to English from standard three A pilot project in English language teaching in the early standards of the secondary schools is complete and the materials developed will shortly be published commercially for use throughout South Africa A similar project in primary schools is nearing completion New projects have also been initiated to address the problems of the teachers own command of English and to 13 ( A model of the new technical high school that is to be built at Wedela the black residential area for married employees of Western Deep Levels and Elandsrand mines The high school which is being financed by the Chairman's Fund will cater for 285 pupils in the first phase 2 Boilermakers undergoing instruction and 4 a typists class at the existing technical high school at Western Deep Levels mine 3 A sophisticated visual unit at Vaal Reels is used to produce training and safety films for the Corporation's gold mines improve pupils competence in the language through the development of new approaches to the teaching of English literature All these projects are supported by the Fund which will have invested more than R1,5 million in this important area by the end of 1984 In addition to its programme to build clinics in rural areas of KwaZulu the Fund has extended its commitment to improving health care by supporting a large research and development project which will be run by the Department of Community Health at the University of the Witwatersrand in conjunction with the government of Gazankulu in eastern Transvaal This Health Services Development Unit will analyse the use of both physical and human resources in health care and will make recommendations to improve the use of facilities and to employ staff more efficiently based on appropriate training programmes A start has already been made to train primary health care ~ nurses who will be able to relieve very significantly the burden presently falling on medical doctors who are chronically scarce in South Africa's rural areas The Corporation and its associates have supported The Urban Foundation with substantial contributions since it was started in 1976. The Foundation aims to improve the quality of life principally in black urban communities by way of housing schemes and industrial educational health and other facilities as well as by negotiating with government departments and agencies and mobilising expert opinion Labour Intensive Industries The year was primarily one of consoli- dation for Labour Intensive Industries Trust Limited Litet a vehicle owned and funded jointly by the Corporation and De Beers to create employment opportunities in southern Africa by initiating or expanding intensive industries During the year an additional R1,5 million was committed to new and existing investments Development problems were encountered which made it necessary for Litet to become more involved in management to safeguard its investments and this added to the strengthening of the Litet board has placed the group on a sound footing to offer further employment opportunities In all Litet has created or preserved about 1 500 jobs including 150 this year GOLD AND URANIUM Exchange rate underpins gold revenue The average gold price fixed on the London Gold Market during the year ended March 31 1983 declined by five per cent to 401 an ounce from 420 the previous year However this fall was more than compensated for by further depreciation of the rand against the dollar resulting in an increase of 14 per cent in the rand price to R445 an ounce from R390 As in the previous two years economic and financial considerations dominated the gold markets with price movements exaggerated by short speculative position and covering while the fundamental factors of supply and demand for physical bullion were at times largely ignored particularly by the futures markets Furthermore there seemed little further investment in gold as an asset of last resort As a result of the major structural change in the gold market there is greater emphasis on investment demand and less on industrial and fabrication offtake Investor sentiment and more especially its geared speculative element has been extremely volatile and the resulting large and rapid =: price fluctuations hinder the industrial sector's orderly development and growth and tend also to lessen gold's attraction for the more cautious investor The financial year began with the gold price at 326 high and rising real interest rates in the US and a strengthening dollar Although the price rose rapidly by some 40 in April largely because of a temporary fall interest rates and to a lesser extent because of the Falklands crisis the bear trend of the previous two years continued and the price drifted downwards to reach a low point below 300 in June after a further rise in interest rates and enhanced perceptions of restrictive US monetary policies At these prices there was strong physical demand mainly from investors in the East from the jewellery manufacturing industry and from certain central banks By the end of June the US Federal adopted Reserve Board appeared to have adopted a less restrictive monetary slance with the result that the bearish mood of the market altered Interest rates fell sharply and investors came to realise that gold futures had been oversold relative to physical demand At the same time with the collapse of certain regional banks there were fears of further banking failures flowing from excessive corporate and sovereign debt and of possible defaults The gold price advanced rapidly as speculators rushed to cover their short positions and in early September shortly after the nationalisation of the Mexican banks it reached over 500 It halted as soon as the short positions had been covered as physical demand had fallen markedly and widespread dishoarding had developed Widespread concern over the newly exposed fragility of the international banking system because of global debt led to the swift scheduling of loans to prevent defaults and an immediate crisis was averted There was some concern that certain central banks would dispose of part of their gold holdings so as to defend their weak currencies as the dollar strengthened once more This led investors to move back to yielding denominated monetary assets and the gold price fell to below 400 at the beginning of October There were further declines in interest rates with the deepening US recession and when the Federal Reserve confirmed its shift of policy investor interest in gold revived at what appeared to be attractive prices and there was renewed industrial demand The price was again over 500 by the end of January and remained there for most of February Faced with prospects of an oil price war with possible lower inflation and a stronger dollar poor physical offtake and a weak chart outlook investors took fright and depressed the : price sufficiently to trigger major successive stop selling orders By the end of the month gold briefly traded below : 400 Since then gold has fluctuated within a trading range of 400- with no clear indication of a major change Immediate prospects for the gold price are somewhat mixed Its apparent inability to move upwards out of that trading range is detracting from investor confidence and real interest rates remain attractive Should US interest rates firm as seems possible 15 and the dollar strengthen further the price may decline despite relatively strong physical demand at lower prices The outlook for the year as a whole however is positive seems likely that the world recession will be seen to have come to an end during 1983 led by renewed economic growth in the US and this will be reflected in additional industrial demand for gold Moreover the strains within the international banking system have not yet been overcome and as it becomes clear that gold is unlikely to become significantly cheaper investors could again find it attractive as the most secure form of financial asset particularly if renewed inflationary pressures are expected Nevertheless with the price being dominated by short traders acting on chart signals it is very probable that it will continue to be highly volatile Uranium The overall uranium market remains depressed though spot prices have recovered significantly since August last year For the first few months of the year under review when interest rates remained high electric utility companies particularly in the US were faced with heavy carrying costs of uranium stocks With the worsening economic recession reducing expected demand for electricity and so involving further delays and the cancellation of reactor construction programmes increasing proportions of these inventories were regarded as surplus to requirements and attempts were made to dispose of the excess As selling pressures mounted so prices declined and with increasing costs additional producers became uneconomic These producers then became buyers of stock in order to meet their supply contracts In September however market sentiment altered appreciably Inventory carrying costs fell markedly with the decline in US interest rates and with the possibility of a renewed limitation on US uranium imports selling pressure lessened Inoperative producers continued to buy where possible and certain utilities revised their ~ strategies buying very cheap uranium for inventory in anticipation of higher prices later in the decade Despite production backs a substantial imbalance remains between projected uranium supply and demand This situation is likely to persist at least until 1987 and although inventories should then begin to decline there will still be a considerable overhang of uranium on the market While spot prices may continue to improve term contractual prices being very much less volatile will at best show only a marginal improvement over the next few years Industry production The industry produced 664 218 kilograms of gold in 1982 which was 7 276 kilograms or 1,1 per cent more than in 1981 the first increase since 1978 Tonnage milled rose by 3,1 million tons to 95 million tons which offset the decline in the average recovery grade from 6,92 grams to 6,76 a grams ton The average gold price received in 1982 was R13 254 a kilogram 375 an ounce as against R13 054 a kilogram 467 an ounce in 1981 the increase in the rand price reflecting the fall in the dollar exchange rate during 1982. Unit costs increased on average by R5,68 or 13,7 per cent to R47,25 a ton milled Working profits fell by R416,8 million or 9,5 per cent to R3 966,4 million Capital expenditure on producing mines was R1 258,1 million compared with R1 221,9 million in 1981. Taxation and State's share of profits absorbed an estimated R1 771,6 million or 44,7 per cent working profits compared with R2 025,4 million or 46,2 per cent in 1981. Dividend declarations totalled R1 371,6 million which was R312,9 million or 18,6 per cent less than in 1981 Labour Shortages in certain categories of skilled underground workers during the early part of the year resulted in the industry recruiting artisans and experienced miners overseas However the availability of artisans improved during the last quarter as the economy deteriorated The first black and coloured apprentices have now been indentured Wages of black employees increased by an average of 19 per cent in 1982 22 per cent and of whites by 12 cent 15 per cent Meanwhile among the important developments in the field of industrial relations was the further amendment of the Chamber of Mines criteria for the recognition of trade unions so as to place less significance on the need for registration The first union representing coloureds has been recognised and it is expected that recognition of at least one black union will follow in the near future Some of these new unions will for the first time represent categories of workers in the central wage negotiations with the Chamber this year Discussions between the Chamber and the Underground Officials Association aimed at the cancellation of the only job reservation determination No. 27 left in South Africa are progressing very well Administered mines The tonnage milled by the producing mines administered by Anglo American Corporation in 1982 rose by 7,6 cent or 2 346 000 tons to 33 157 000 tons and although lower recovery grades were recorded by all mines except President Steyn and Elandsrand gold output increased by 3 843 kilograms or 1,6 per cent to 241 965 kilograms This represents 36,4 per cent 36,2 per cent of the industry's total production of 664 218 kilograms 656 942 kilograms Unit costs increased by R6,23 or 14,6 per cent to R48,79 a ton milled Expressed in rand per kilogram of gold produced unit costs increased from R5 506 to R6 686 or 21,4 per cent Working revenue increased by 2,7 per cent to R3 186,5 million as a result of the higher average price received of R13 169 a kilogram Working profits decreased by R221,7 million or 12,4 per cent to R1 568,7 million Capital expenditure on mining assets decreased slightly from R566,9 million in 1981 to R561,9 million Taxation and State's share of profits absorbed R582,8 million which was R121,6 million less than in 1981 Dividends paid totalled R511,6 million which was R100,7 million or 16,4 per cent less than in 1981 Uranium production by administered companies was down from 3 301 tons in 1981 to 3 034 tons being 44 per cent 47 per cent of all uranium produced in South Africa during 1982 16 Administered gold mines - costs and revenue Per : Gold price in US terms ~ Gold price in rand terms 700 <> Rand production 600 500- 500400-400- 1 0 1978 1 1980 - Perka -24 100 -22 100 Vi -21100 -21100 -16 100 - 16 100 -14 100 - 100 10 100 - 100 - 6 100 100 1982 100 J 100 1983 PER CENT CHANGE IN COST PER TON MILLED Average annual changes - Quarterly averages Per cent change on previous year Per cent 1978 1979 1980 1981 1982 1983 DISTRIBUTION OF GROSS REVENUE Available for Capital expenditure Tax and State's share of profits Working costs 1978 1979 1960 1981 1982 OFS mines President Brand held 11,1 per cent by the Corporation and 20 per cent by Amgold had a satisfactory year Tons milled at 3 464 000 tons was a record for the second consecutive year Recovered grade was slightly down at 7,42 grams a ton and gold production fell six per cent to 25 113 kilograms As a result of lower gold production and higher working costs working profit fell 21 per cent to R.167,7 million No. 5 shaft project is proceeding satisfactorily despite persistent intersections of water fissures which have caused delays Station cutting and equipping continue underground while surface installations are almost complete The shaft had reached a depth of 1 564 metres below collar at May 31 1983 and when complete it will have a hoisting capacity of about 150 000 tons a month Another major project is the sinking of No. 1A shaft Apart from assisting with the ventilation of the northern area of the mine and thus enabling remnants and leader reef to be extracted it will also be equipped with a vertical hoist so that the grade No. 1 shaft pillar can be extracted earlier than originally planned President Steyn in which the Corporation holds 16 per cent and Amgold 20,6 per cent recorded a drop of 10 per cent working profit to R146,7 million Operations at the mine were satisfactory and the 3 957 000 tons milled was new record Recovered grade was slightly higher at 6,4 grams a ton and gold production increased by 433 kilograms to 24 934 kilograms Operations in the Video area continued to produce good results Tons milled at 655 000 tons was about 130 per cent up and gold output more than doubled to 5 883 kilograms contributing about 24 per cent to total gold production The working profit of Free State Geduld held 2,2 per cent by the Corporation and 20,2 per cent by Amgold fell 43 per cent as a result of a slightly lower gold price received and an abnormally high increase in unit working costs arising from the high rate of development at Nos 5 7 and 9 shafts and the establishment of stopes in those areas A seismic event which occurred on April 13 1982 caused considerable damage to Nos 1 and 4 shafts and their associated underground workings Both shafts were back in full production by May and the loss in tonnage from these grade areas was made up from the grade shafts causing a drop in grade to 8,4 grams a ton Tonnage milled increased by 7,5 per 3 cent to 193 000 tons but overall gold production fell by 2 088 kilograms to 25 402 kilograms The No. 5 shaft system commissioned in 1982 and which has an ultimate capacity of about 280 000 tons a month continues to dominate the capital projects of this mine During the build of at least two years of ore reserves certain major items are being completed such as the construction of dams and settlers pumping facilities refrigeration plants No. 4 village of the shaft's hostel change houses and offices Feasibility studies on a possible No. 10 shaft continuing At Western Holdings in which the Corporation holds 3,3 per cent Amgold 10,9 per cent and Welkom Gold Mining Company 47,7 per cent working profit declined by 27 per cent to R195,2 million Tons milled increased slightly to 8 038 000 tons but recovered grade fell 10 per cent to 4,91 grams a ton with consequent fall of 1 525 kilograms to 40 152 kilograms in gold production Development of the new mine at Erfdeel is progressing satisfactorily The sinking of No. 1 main shaft commenced in : December 1982 and this shaft which will have a capacity of about 150 000 tons a month is now 720 metres below collar while the ventilation shaft had reached a depth of 1 648 metres at May 31 1983. All current infrastructural requirements are - * complete and production is expected to commence in 1987. At Saaiplaas division a 30 000 tons a month mine mill extension was satisfactorily commissioned in July 1982 while the streaming of the reduction plant at Holdings division was commissioned in late 1982 and is working well This modification is to improve gold recovery and to allow highgrade uranium residues to be stockpiled for future treatment The RK3 borehole near the previously abandoned RK2 hole has been completed without confirming the existence of the steeply Ada May reef on the west side of the division's lease area At Welkom division the viability boundary of the area along the eastern has been assessed and at the current gold price is incapable of supporting either 1 Stoping underground 3 crew descending for sinking of vertical shaft and 6 cutting a shaft station at Elandsrand 2 At Vaal Reefs No. 7 shalt mine autogenous mill was commissioned in September while a new type of mechanised rock drill 4 is significantly improving productivity in stopes 5 The 150 000 1tons a month Simmergo treatment plant officially opened on June 21 this year in the background is the old Simmer and Jack plant a major shaft system from surface or Shaft sinking and prospect development at vertical shaft servicing No. 2 shaft the Afrikander Lease division ceased in However limited exploitation of the area is July 1982 in view of the continuing possible through existing facilities weakness of the uranium market The During the year to December 1982 the mine can be brought back into full ' Joint Metallurgical Scheme of the Orange production of 50 000 tons a month within Free State mines which recovers uranium :) two years While commissioning of the gold and sulphuric acid from residues gold treatment section of the 50 000 tons increased its profit by 5,5 per cent to month metallurgical plant was completed R46,5 million despite a small drop in in October 1981 final commissioning slimes throughput In the last quarter of the of the uranium section of the plant was year a revised feed sources scheme deferred and it has been placed on a care reduced the supply of material to the high- and maintenance basis Vaal Reefs has grade section of the plant This resulted in obtained the right from the Afrikander a 21 per cent drop in uranium production Lease company in which 44,6 per cent to 863 361 kilograms and a six per cent drop in sulphuric acid production held by the Corporation and 17,5 per cent by Amgold to mine for gold in the old whereas gold production increased by Afrikander mine and adjoining areas With 70 kilograms to 3 576 kilograms access development having commenced in August 1982 the first gold was Transvaal mines produced in December and estimated Vaal Reefs held 10,0 per cent by the Corporation and 16,6 per cent by Amgold a set new record by producing 78 750 kilograms of gold in 1982. This output the best ever from a gold mine anywhere in the world and resulted in the company's total revenue exceeding R1 000 million for the third successive year The average rand gold price received was virtually unchanged at R13 036 a kilogram However in view of the price being much lower during the first half of the year a contingency plan was introduced to increase gold production and restrict capital expenditure The fact that management was able to switch operations successfully illustrates the flexibility inherent in an operation the size of Vaal Reefs No. 9 ventilation shaft at Vaal Reefs South lease area reached its final depth of 2 338 metres early in 1982 progress on the main shaft is behind schedule Planned commissioning dates are now July 1983 for the main shaft and November 1983 for the ventilation shaft Meanwhile access development from other shafts to No. 9 shaft is on schedule Production from the Vaal Reef horizon primarily from No. 9 shaft is to be increased and the 120 000 tons a month mine mill and carbon treatment plant at No. 9 shaft shelved because of the low gold price early in 1982 is to be erected by the end of 1984 production is 15 000 tons a month the life of the project being estimated at seven years All aspects of the project to mine the Ventersdorp Contact reef have proceeded satisfactorily with the mine autogenous mill at No. 7 shaft adjacent to the West gold plant being commissioned in September 1982 At Western Deep Levels held 29,3 per cent by the Corporation and 13,2 per cent by Amgold both gold production and the average gold price received increased slightly However these improvements were outweighed by a sharp increase in costs partly due to a 3,7 per cent increase in the area mined and pre profit earned by the company declined Good progress was made in sinking No. 1 main shaft The first blast took place in March 1982 and 1 040 metres were sunk during the year Problems were encountered with the service shaft on July 9 when there was a major inrush of water at a depth of 970 metres flooding the shaft to 420 metres from surface An under plug was cast on the shaft bottom and shaft sinking recommenced in January 1983. The disruption will delay the initial production build but all steps are being taken to accelerate the programme and so minimise the time loss While the weak gold market of the first part of the year resulted in a scheduling of capital expenditure most of the projects then deferred have been started The policy of leaving stabilising pillars continued in 1982 leading to a significant reduction in the impact of seismic events Initial results were very promising of the waste project in which waste rock is placed in mined areas to provide additional support in order to reduce rockbursts and ventilation requirements Underground refrigeration was also improved during 1982. A project to determine the suitability of rubber equipment for certain areas has been successfully carried out and it appears that maximum benefit will be obtained only when such a system of handling reef and materials is extended into the stope A test will be put into limited operation during the course of the year Gold production at Elandsrand in which the Corporation holds 49 per cent and Amgold 23,3 per cent increased by more than 50 per cent to 8 138 kilograms in 1982 and with the swing coinciding with the gold price rise at year earnings improved markedly A maiden dividend of 15 cents a share was declared There was a significant improvement in grade when it became possible to extend mining operations to the 70 and 73 levels in the area immediately adjacent to the shaft pillar Now that there is production on all operating levels management is better placed to maintain target production There was also excellent progress in sinking the vertical shaft and this project is now running well ahead of schedule with two permanent kibble winders available for sinking operations sinking has been completed to 94 level and shaft loading facilities have been installed on 80 and 88 levels The depth of the vertical shaft is to be restricted to allow faster access to the grade ore iri the south area The ventilation shaft will be converted into rock shaft and a seven diameter cast shaft is to be developed The combined system will operate to 98 level instead of 118 level as originally planned which should make it possible to mine the entire pool of grade ore shaft commissioning is scheduled for April 1984 and extensions to the plant to increase capacity to 200 000 tons a month started in January this year The South African Land & Exploration Company Limited Sallies held 26,4 per cent by the Corporation and 17,7 per cent by Amgold operated its enlarged plant for a full year during 1982 and throughput exceeded two million tons for the first time 19 work 1 A rotary bucketwheel excavator at in open alluvial diamond mining operations in the western block of CDM The mining operations extend 100 kilometres north of the Orange river in the coastal area of South West Namibia 2 The new Jwaneng diamond mine in southern Botswana which yielded 2.6 million carats in 1982 its first year of operation 3 Finsch mine South Africa s largest single source of rough diamonds produces about 3.8 million carats a year 4 Diamonds from the De Beers Botswana Mining Company's three mines are sorted and valued in Orapa House in the Botswana Diamond Valuing Company's new building in Gaborone before being sold to the Central Selling Organisation in London 5 The Kimberley Mine Museum rich in relics and souvenirs of the pioneering diamond days is a De sponsored project and a major tourist attraction 1 pee The increase in tonnage was partly offset by a decline in the grade of material delivered to Sallies but it enabled Sallies to keep its operating costs constant and so reduce the impact on profits A comprehensive sampling programme of the area around No. 5 shaft of the defunct Van Dyk Consolidated mine was suspended during the third quarter because of the low gold price This as well as the decision to construct a plug to prevent flooding from the north on 188 level delayed the programme by three months The vertical hoists and pump stations for watering of the vertical shaft were commissioned before the year Results from initial sampling are expected towards the end of the year East Rand Gold and Uranium Company Limited Ergo in which 35,9 per cent is held by the Corporation and 20,5 per cent by Amgold produced 5 829 kilograms of gold three per cent less than last year Pump stations for the recovery of the Brakpan and Government Gold Mining Areas slimes dams were constructed during the year and the 150 000 tons a month plant at the Simmergo division began treating Simmer and Jack's dumps on royalty basis in March 1983 Meanwhile the Simmer and Jack South _ Deep shaft was opened and a sampling and prospect development programme is being undertaken The surface drilling programme to determine whether to mine the orebody below the deepest workings of the old Simmer and Jack mine continued This programme is being conducted by the Corporation and its : associates the holders of the mining rights this depth Meanwhile Ergo is considering erecting a carbon plant to improve its gold and uranium recoveries by treating its possibility flotation tailings The of pooling resources on the Far East Rand with those of East Daggafontein Mines Limited their is also being considered to enable their combined material to betreated initiallyin carbon plant and at later date in a flotation plant Safety The reportable accident rate for administered mines decreased to 32,91 from 34,65 per thousand employees per annum and the disabling injury rate to 21,43 from 23,42 The fatality rate was reduced to 1,33 from 1,39 per thousand employees per annum The programme to improve safety and reduce accidents continued and the Chairman's Safety Shield competition was won by President Brand Western Holdings - Welkom division President Brand and President Steyn were awarded the Chamber of Mines Millionaire Shield for working a million consecutive fatalityfree shifts each President Brand President Steyn and Western Holdings Holdings division retained their star ratings in the International Mine Safety Rating System and Free State Geduld was awarded five stars for the first time Detailed operating results of gold mines administered by Anglo American Corporation and those in which the Corporation holds a significant interest are given on pages 70 to 74 DIAMONDS Downward trend reversed While diamond sales by the Central Selling Organisation CSO at $ 257 million were 215 million or 15 per cent less than in 1981 sales in the second half of 1982 Iwere higher than in the first six months of the year or the last six months of 1981 cent Expressedin rand salesin 1982 rose nine per from R1 249 million to R1 360 million because of the progressive weakening of the rand against the US dollar the currency of sale during most of the year The reversal of the downward trend reflected a significant improvement in demand for the smaller sizes and cheaper qualities of rough gem diamonds in September 1982 and again in March 1983 the CSO was able to increase its prices in these qualities resultingin overall increases of 2,5 and 3,5 per cent respectively Since January demand has expanded to some extent into the higher qualities although the market remains depressed for the larger sizes and top qualities Retail sales of diamonds in jewellery in 1982 were within three per cent of the record levels of the previous two years There have also been further reductions of stocks of diamonds in the cutting centres and this coupled with lower interest rates and the continued strength of retail demand has led to greater confidence in the market place The improved prospects may be attributed in large measure to the CSO's ability to support the trade by reducing its offerings to the market and accumulating stocks and to its continuing world advertising and promotional programmes for diamonds in jewellery where new emphasis has been placed on the promotion of the larger better quality diamonds Stocks held by the De Beers group at the end of 1982 stood R1 832 million an increase of R429 million over the year although approximately third is attributable to the effect of the lower dollar exchange rate on conversion of the cost of the opening stocks into rand Sales of industrial diamonds again declined marginally because of the continued economic recession in the US Western Europe and Japan The sharp down in oil drilling and mining activity particularly affected sales of drilling material and to a greater degree than those of grit sizes used in manufacturing An agreement was concludedin December 1982 under which the CRAgroups Limited and Ashton Mining N.V. groups are marketing through the CSO their 95 per cent interest in the gem and 75 per cent of their cheap gem and industrial production from the new Argyle mine in Western Australia In March 1983 the government of Za^flresigned an agreement renewing its established relationship with the CSO for the marketing of the production of Miba mine These agreements are seen as further signs of confidence in the CSO and in the efficacy of its operative marketing system De Beers group results The consolidated net diamond account of De Beers was R287,5 million or R73 million less thanin 1981 reflecting the impact of depressed sales Mining operations were further curtailed during 1982 with mining expenditure reduced by 21 Kimberley pool Finsch mine Koffiefontein mine Kimberley Division total Namaqualand mines Premier mine CDM Orapa mine Letlhakane mine Jwaneng mine Letseng mine Total Metric tons treated 1982 1981 419 4 253 600 951 500 421 900 845 500 3 263 500 Carats recovered 1982 1981 204 | 1 688 850 463 | 944 108 693 322 635 624 700 | 530 5 163 181 | 923 267 462 000 6 537 000 578 000 6 810 700 10018 10018 000 12 544 000 751 | 000 248 | 229 331 000 - 951 216 214 2 459 996 2039 1014 464 1 247 960 677 | 530 470 086 429 532 2621 643 - 000 | 000 45 442 700 | 942 600 119 921 399 815 | 15 438 288 Carats per 100 metric tons 1982 1981 27,24 90,52 11,42 25,71 92,13 9,89 R70 million to R362 million Advertising expenditure in US dollar terms again increased being substantially higher in rand because of its relative decline in value Income from investments outside the diamond industry fell by R31 million to R149 million In part this is because of arrangements governing the merger of Amic with De Beers Industrial Corporation Debincor under which only the interim dividend from Amic and a special Debincor dividend of 70 cents a share * were included in De Beers 1982 investment income the Amic final dividend of 125 cents being payable in the 1983 year In addition interest earned at R49,5 million was some R13 million lower Expenditure on prospecting and research was R3,5 million lower at R59 million while general charges rose marginally to R16 million Interest payable was R56,5 million higher at R95 million reflecting the higher ~ level of borrowings Taxation at R89 million was some R12 million less than the year before Consolidated net profit attributable to De Beers on an equity accounted basis before taking account of the group's share of extraordinary losses of associated companies amounted to R443 million compared with R628 million the year before Earnings were 56,3 cents 101,1 cents a share excluding and 123 cents 174,6 cents including retained earnings of associates associates Dividends of 37,5 cents 50 cents absorbed R135 million R180 million .R255 million R289 million including De Beers share of retained profits of associates was transferred to reserves The carrying value of listed investments increased from R1 376 million to R1.613 million The increase comprises mainly the higher share of retained profits of associates attributable to De Beers as a result of its increased 25 per cent interest in Amic which is now an associated company Taking market value for listed and directors valuation for unlisted investments and loans at book cost the overall value of the De Beers group's investments and term loans outside the diamond business at the end of 1982 was R3 381 million R3 016 million or 84 per cent above the carrying value Reflecting the rise in diamond stocks to R1 832 million already referred to current liabilities exceeded current assets by R172 million up from R86 million while outside shareholders interests in subsidiaries increased by R161 million mainly because of the issue of redeemable preference shares by these companies The net increase in preference shares with accrued dividends and in long and net current liabilities was R283 million De Beers has short- and medium facilities adequate for its overall needs Production Diamond production from the De Beers group's mines in South Africa South West Namibia Botswana and Lesotho amounted to 17 400 000 carats compared with 15 438 000 carats in 1981 an increase of nearly 2 000 000 carats or 13 per cent Of the 1982 total 622 000 carats were from the new Jwaneng mine in Botswana which was brought into production during the year Excluding this new production there was a four per cent reduction in group output to 14 778 000 carats This resulted from efforts to talior production so far as possible to market needs Operations at Koffiefontein a producer of quality diamonds were suspended while those at Finsch which produces smaller and quality diamonds were restored to full capacity At Premier mine production increased by 21 per cent to 2 460 000 carats through improvements in the efficiency of mining and metallurgical controls In Namaqualand the Tweepad plant which had been closed in 1981 shortly after its completion was opened and the Annex Kleinzee plant temporarily closed the overall effect being a 22 per cent reduction in divisional output Production at CDM at slightly over 1 000 000 carats was 19 per cent lower reflecting the continued suspension of operations at certain of the production units and economies in the remaining plant areas At Orapa and Letlhakane mines in Botswana production was some four per cent higher at 5 147 000 carats Operations at LetsengTerai mine which had become uneconomic ceased in October and production for the 10 months was 42 000 carats compared with 53 000 carats in 1981 Capital expenditure on expansion projects by De Beers group mining companies totalled R27 million compared with R116 million the year before This was almost entirely on bringing into production the new Jwaneng mine and largely completes the programme announced in 1979 of bringing the group's productive capacity to about 19 million carats a year Diamond synthesis factories in South Africa and Sweden performed well as did employees of all races on its South African mines took a small but significant step forward when four black apprentices were signed on at Kimberley and Premier The number of De Beers Botswana Mining sponsored students attending courses in Botswana Swaziland the United Kingdom and Canada now stands at 125 Further details of the De Beers group are given on pages 69 and 74 South African coal sales LOCAL SALES Million trans Tans 30 - Value 25 JX Vi - the Irish plant in particular where the technical problems of 1981 were COAL overcome An expansion of the Swedish factory enabled it to add Amborite an hard polycrystalline tool material to its range of products while commercial production of ABN 600 an entirely new form of cubic boron nitride grit began at the South African factory during the year following its development at the De Beers Diamond Research Laboratory Improved synthesis techniques and conversion to larger and more effective pressure systems have lowered production costs and increased capacity and De Beers World coal demand still low Sales output by South African collieries increased during calendar 1982 by six per cent to 134 million tons with 106 million tons going to the domestic market and the balance to exports Growing requirements for the new Sasol synthetic fuel installations and further growth in demand for coal at Escom's new eastern Transvaal power stations accounted for the increase in domestic sales The Richards Bay Coal Terminal RBCT is well placed to take advantage of any turn in demand for synthetic diamond products as the world economy improves Prospecting in southern Africa parts of central Africa and on other continents cost R43 million compared with R47 million In 1981. the group of kimberlite pipes on the farm Venetia in northern Transvaal sampling continued with much work still to be done before the results can be handled 26,1 million tons of the total of 28 million tons sold on the export market and the overall export programme earned million R1 158 R977 million in foreign exchange an increase of 19 per cent There was further progress in RBCT's Phase lil expansion programme which will enable exports through Richards Bay progressively to increase to 44 million tons a year by 1987. In 1982 the assessed In the field of industrial relations black employees in the Kimberley division mines were for the first time directly represented in the annual wage negotiations for employees of the De Beers mines in South Africa The minimum wage for unskilled government in line with its announcement in 1981 that coal exports would be increased to 80 million tons a year made further provisional export allocations to 40 potential exporters for another 27 million tons a year representing the first part of the Phase IV export programme employees on these mines increased in June 1982 from R228 to R257 a month while over the year the average wage in the unskilled band including overtime and allowances amounted to R402 a month compared with R315 a month in 1981 Sales by South African mines administered by the Corporation during the 12 months ended March 1983 fell by seven per cent to 35,6 million tons being about 27 per cent of the national total compared with 29 per cent the previous Despite the curtailment of production and capital expenditure programmes on the De Beers mines the company's calendar year The Corporation's major interest in the South African coal industry is held through commitment to training remained unaltered various courses were held for the full range of mine employees and adult education programmes were available on all the mines The company's 15 n 1 1978 1980 Quarterly 1981 | 1982 EXPORT SALES Million tons = = Tons Value 320 7 6a 220 [| _N 170 120 3 1978 Quarterly 1 1 1979 1980 1981 1982 Amcoal Its sales for the financial year ended March 31-1983 totalled 34 million tons which was five per cent below the annualised tonnage achieved during the , period previous 15 month financial Sales to Escom of 22,2 million tons were marginally higher but exports decreased by nine per cent to 7,2 million tons reflecting weak international demand Average unit working costs increased by ' 14,4 per cent Profit attributable to Amcoal shareholders was R113,4 million eight per cent more than the annualised earnings of the previous financial period and dividends were declared of 145 cents 132,8 cents annualised a share from Amcoal's The first coal new export colliery Goedehoop was processed in March this year and as the tonnage of coal railed to RBCT builds up - in accordance with the programme of the South African Transport Services SATS - so the colliery will increase its production That output together with that from Kleinkopje objective of achieving equal employment and advancement opportunities for The new Goedehoop Colliery processed its first coal and commissioned its rapid loading facility for export coal early this year Coal arriving at the stockpile 1 and 2 the central control room 3 and 4 surface works at the mine bak iii ie Construction of incline shaft at New Denmark Colliery Colliery will enable Amcoal to meet its full Phase Ili export entitlement of six million tons a year The further provisional tonnage awarded to Amcoal under the first part of the Phase IV export programme was four million tons and this will result in the company's overall beneficial allocation in South Africa's export programme increasing in time to 15 million tons a year Further progress was made on the three new collieries which Amcoal is developing as part of Escom's future expansion programme At New Denmark Colliery 3 which is to supply Escom's new 600 MW Tutuka power station near Standerton sales started in the last quarter of the financial year and these deliveries will build up progressively ahead of the planned commissioning of the first generating set early in 1985 Production at New Vaal Colliery is due to commence at the beginning of 1985 about nine months ahead of the scheduled commissioning of the first set of the 3 600 MW Lethabo power station New Vaal is to be an open operation ultimately employing four Graglines Further mine planning was undertaken on the South Cornelia Colliery to supply Escom's Lekwe power station previously Station E where the impact of current economic circumstances on load growth has caused Escom to delay the commissioning of the first set for at least a year beyond the initial date of September indumeni Limited's owned subsidiary Indumeni Coal Mines Limited ceased mining operations on October 31 1982 after negotiations with the South African Iron and Steel Corporation Iscor which paid R2 million in compensation to the company Dividends totalling 70 cents a share have been declared out of retained earnings as at March 31 1983 and subject to the consent of shareholders and of the Supreme Court a further distribution of 90 cents a share will be made by way of a capital reduction Indumeni Limited is continuing to investigate the possibility of turning provisional export allocations awarded to the company under the first part of Phase IV of the export programme to account but as yet no viable project has been identified profits of R688 000 compared with R490 000 in calendar 1981. Dividends for the 15 months totalled 15,5 cents a share 12 cents Wankie Colliery Company Limited in Zimbabwe reported net earnings of Z 734 000 for the six months ended February 28 1982 and Z 011 000 for the year ended February 28 1983 compared with 937 000 for the year ended August 31 1981. Although coal and coke sales during these 18 months were consistent with previous overall performances a sharp down in the last six months of the period saw this trend continue Meanwhile the new open mine is proceeding on schedule and should be in full production by the end of 1983. In terms of a resolution passed at an extraordinary meeting of shareholders held on November 24 1982 the board of directors was empowered to issue to the Government of Zimbabwe 16 882 992 new A ordinary shares carrying full voting rights As a result 40 per cent of the voting shares are now held by the government and the shareholding of Anglo American Corporation Zimbabwe has been reduced to 19,6 per cent Morupule Colliery Proprietary Limited a 93 per cent subsidiary of the Corporation operates a colliery with a capacity of 480 000 tons a year near Palapye in Botswana to supply coal to the Botswana Power Corporation and to BCL Limited In the year ended March 31 1983 Morupule reported after profits of P382 000 some 20 per cent above the P316 000 earned in the previous year of Swaziland Collieries Limited which 48,3 per cent held by the Corporation achieved an after profit of E196 343 compared with the previous loss of E31 459. The company's mining lease expires on July 3 1983 and the company has entered into negotiations with the Swaziland Government for the disposal > the Swazi nation of its assets Further details of coal mines administered by Anglo American Corporation and those in which the Corporation holds a significant interest are given on page 75 Vierfontein Colliery Limited changed its year to March 31 and in the 15 month period to March 31 1983 reported after ARTE 25 OTHER MINING Metal markets await economic turn The economic down throughout the western world in 1982 saw a steady decline in consumption of metals during the first half with stocks tending to rise despite numerous mine closures As a result the price of many metals fell to post low in real money terms Copper prices were particularly depressed as were those for lead while there was an exceptional fall in the nickel price because major producers liquidated stocks in the last quarter of 1982. However there have recently been signs of some recovery in the US and metal prices particularly copper and nickel have risen steadily this year During the first half of 1982 the copper price slumped on the London Metal Exchange LME from 876a ton to 684 ton on June 21 a year low and in real terms its lowest level for more than 50 years reflecting depressed physical demand and selling by speculators As result most North American producers announced backs and mine closures By July however a sharp decline in US interest rates prompted renewed speculative and other buying and prices improved rapidly to around 850a ton The price advanced again in the fourth quarter and by 1982 had risen to 933 it broke through 000 a ton early in the year reached a three high of 126 a ton by the end of February and has remained in that region up to the end of May The recent fall in oil prices has enhanced growth prospects in the major industrial countries and it is to be hoped that an improved industrial offtake will soon provide a more substantial basis for the price advances which have occurred The protracted weakness in the cobalt market continued throughout the year the free market price ranging from 10,80 a pound at the beginning of April 1982 to a low of 3,70 a pound by the end of October Estimated total consumption of primary cobalt in the western world in 1982 was approximately 13 000 tons representing a fall of about 13 per cent over 1981 The decline in copper and cobalt prices adversely affected the operations of INDICES OF SELECTED METAL PRICES Quarter 1978 100 Silver --- Nickel Platinum Copper ~ nominal terms -Copper -Copper - real terms 1 i I [1 370 [PA\ <r [ | 1978 70 1 80 1 81 4 82 1 i} 1983 US terms quarterly averages 1 Deflated by the US GNP deflator Zambia Consolidated Copper Mines Limited ZCCM in which Minorco has an effective 13,7 per cent equity interest In an effort to improve its critical financial situation ZCCM implemented wicieranging cutting measures in all sectors of its operations The company incurred an after loss of K150,7 million for the nine months to December 31 1982 when 424 358 tons of copper were produced compared with a loss of K89,1 million during the same period in 1981 432 244 tons and a loss of K173,6 million for the financial year ended March 31 1982 when 591 853 tons were produced The January 1983 devaluation of the Zambian kwacha by 20 per cent against the Special Drawing Right has provided an immediate increase of 25 per cent in kwacha sales proceeds but this will largely be offset by higher costs of inputs and the company's repayment obligations towards foreign loans which have correspondingly increased Rustenburg Platinum Holdings Limited RPH held 23,8 per cent by the Corporation owns Rustenburg Platinum Mines Limited and Atok Platinum Mines Proprietary Limited RPH reported consolidated profits after tax of R41 million for the year ended August 31 1982 compared with R120 million the previous year Lower market prices and sales volumes were partially offset by the more favourable prevailing dollar exchange rate Dividends were reduced by 10 cents to 35 cents a share The free market platinum price oscillated between 455 and 247 an ounce though the company maintained its published price at 475 throughout the financial year and until January 1983 when it adopted a new policy of moving its price more frequently and more closely in line with the prevailing free market price As a result of higher prices for platinum and palladium and an increase in the sales volume of rhodium RPH declared net operating operating profits of R66,8 million R53,3 million before provisions for the six months to February 28 1983. After profits however fell by 7,1 per cent from R28,1 million to R26,1 million because of higher taxation partly as a result of lower capital expenditure The interim dividend was unchanged at 12,5 cents a share SA Manganese Amcor Limited Samancor a major producer of manganese ore and alloys in which the Corporation and associates hold a 31,7 per cent interest following the sale of Middelplaats Manganese Limited to Samancor last year earned profits from operations of R14,7 million R40,3 million and paid dividends of five cents a share 10 cents in the year to February 20 1983 However the company has raised an extraordinary provision of R34,5 million against its alloy plant in Tennessee in the US which has been mothballed More than 70 per cent of Samancor's products are exported to world steel markets which sharply declined last year Botswana RST Limited has an 85 per cent interest in BCL Limited which operates a copper mine at Phikwe in Botswana and which produced 45 685 tons of matte in 1982 46 565 tons Yet spite of maintaining high production and keeping operating cost increases to within five cent of 1981 costs a marked deterioration in both nickel and copper prices led to BCL operating at a loss of P8,7 million in 1982 compared with a P13,0 million profit the previous year The free market nickel price dropped from 2,65 a pound to 1,65 a pound and the copper price from 0,73 a pound to 0,67 a pound After providing for loan interest of P81 million P68 million and losses on currency exchange fluctuations of P39,7 million P8 million following the 26 depreciation of the pula against those currencies in which certain loans are denominated the year's loss was P129,5 million P62,6 million The accumulated deficit at December 31 1982 was P273,3 million Financial difficulties facing BRST necessitated reaching accommodation with its creditors and in June 1982 negotiations were concluded which provided for a substantial structuring of the BRST group's debts and deferment of most of its financial obligations for a year period Notwithstanding these arrangements BCL required funds to continue operating and during 1982 and up to January 31 1983 the Corporation its associates and the Government of Botswana provided P13,2 million as emergency finance and with Amax Inc. have agreed to provide a further 18 million this year BCL's financial position remains precarious and metal prices must improve considerably for it to have any chance of meeting even its structured financial obligations during the next few years The Corporation and Charter Consolidated each hold 50 per cent of the equity of Cleveland Potash Limited which owns and operates a potash mine in the United Kingdom Operations continued satisfactorily although the potash market remained depressed world To reduce stock levels the company shut down operations for a month early in the " year and consequently 1982 production totalled 401 000 tons 466 000 tons Additional revenue was generated from sales of salt and handling coal and soda ash at the shipping loading terminal but with reduced potash realisations in real terms the company nevertheless incurred an operating loss of 1,9 million in 1982 The Bindura Nickel group in Zimbabwe produced 10 311 tons 9 645 tons of refined nickel in 1982. However a loss of 6,3 million was incurred compared with a previous profit of 3,6 million as a result of weak international demand for nickel and higher interest charges Zimbabwe Alloys Limited incurred a loss of 9,4 million 0,9 million loss during the year ended March 31 1983 because of depressed prices higher costs and interest charges Further details of mines in which the Corporation holds a significant interest are given on pages 75 and 76 INDUSTRY AND COMMERCE Substantially weaker demand Export performance in 1982 was poor having fallen in real terms to a level more than five per cent lower than the peak reached in 1979. This was in addition to the depressed domestic markets Real gross domestic product in South Africa declined for the first time in more than 40 years As for domestic markets consumer spending remained reasonably strong early in the year but then weakened significantly as purchasing power was eroded by a stubbornly high inflation rate increased fiscal deductions from pay packages more moderate wage settlements increased mortgage payments and the high cost of credit generally and growing redundancies Typically durable and durable goods markets were most affected with sales of foodstuffs remaining relatively stable In fixed investment the impact of deteriorating conditions was even more severe Faced with weakening internal and external markets and exceptionally high financing costs private sector activity was sharply curtailed especially during the second half of the year A similar trend emerged in total public sector capital spending ameliorated by relatively high expenditure during the first half of the year by the South African Transport Services although a significant proportion of this was on imported aircraft and by growing outlays by Escom : A decline in total manufacturing output in 1982 was therefore inevitable Indeed the drop of just over two per cent for the year as a whole masked an even more rapid deterioration during the second half Most categories reflected substantially weaker demand although food manufacturers experienced growth albeit at slower rate Average wage and salary settlements remained relatively high and with a rapid decline in output resulted in marked surge in unit labour costs Other cost pressures notably administered price increases aggravated the situation and productivity remained at disappointing levels and so profits declined significantly VOLUME OF MANUFACTURING OUTPUT Downward phase of the business cycle Index 145 pa 135 MON 125 AL 115 85 1 i i L JJ 75 75 1973 74 75 76 77 78 79 80 91 1982 1975 100 UNIT WAGE COSTS AND OUTPUT PER MAN HOUR IN MANUFACTURING Index -200 pt wage costs 150 ae pense eee aes aver 100 Output per manhour 81 50 1 ae | J 1973 74 75 76 77 78 79 80 81 1982 - 1975 = 100 In the year ahead industrialists will undoubtedly strive to contain cost pressures particularly in the sphere of labour However it is generally anticipated that these will only be moderately . alleviated substantial administered price increases having already limited prospects for improvement The short outlook for demand is not good Despite the lifting of last year's loan levy total fiscal demands on individuals have not lessened With more modest wage settlements this year continued high inflation and the effects of the drought real disposable income is likely to drop further and relief during the year will depend on the direct and indirect effects of improved exports Overall 1983 is likely to be another difficult year for industry and commerce but is to be hoped that there will be a renewed basis for growth thereafter The investments of the Corporation its administered finance companies and its associated companies in industry and commerce cover a wide range of activities 27 1 The Tongaat Group's Felixton II sugar mill under construction on the Natal north coast in the background are the old Felixton mill and the Mondi board mill The new mill is scheduled to crush its first cane supplies in late 1983. 2 A Boart Drilling inclined rig at an Orange Free State gold mine This type of rig is used because of the deep dip of the strata and the need to drill as closely as possible at right angles to it 3 A control room operator at Scaw Metals modern bar and section mill monitors the progress of a white steel bar 4 A large transformer being assembled at the Pretoria plant of Asea which produces the widest range of locallymanufactured power distribution and instrument transformers in South Africa 5 The main Mondi Timber sawmill at Sabie in the eastern Transvaal Mondi's 12 sawmills and one plywood plant use about 1,1 million cubic metres of logs a year 60 per cent of them from its own forests including iron steel alloys chemicals and explosives civil engineering and construction drilling tools coal mining equipment refractory and other structural clay products textiles plastics paper and paper board timber tanning extract agricultural products and foodstuffs including sugar industrial equipment motor vehicles and components railway locomotives and coaches shipping forwarding and clearing electrical engineering electronics and computer services This wide spread of industrial interests is held both directly and through its 46,4 per cent investment in Amic There are also industrial interests in Zimbabwe through Amzim in Zambia through Minorco and its subsidiary Zamanglo Industrial Corporation Limited as well as & significant interest in Barlow Rand Limited Iron steel and engineering Highveld Steel and Vanadium Corporation Limited became a 50,1 per cent subsidiary of Amic in January 1982 and the financial year changed from June 30 to December 31. Earnings for the 18 months to Decembe3r1 1982 were R69,1R69,1 million On an annualised basis this was a reduction of 5,4 per cent on the previous year's R48,7 million entirely because of a down in local and overseas markets in the second half of 1982. However export revenue for the year 1982 at R154,4 million was a record Overseas markets became increasingly difficult and by the last quarter sales of all products were down substantially Domestic sales of the group's steel ferroalloys and associated products were also significantly down in the last six months As result it was necessary for the first time since the iron and steel works were commissioned in 1968 to make major production backs and by 1982 ail operations were running well below capacity The continuing crisis in the world steel industry found North American and Western European producers most adversely affected Apparent steel consumption for 1982 compared with the 1979 record dropped by 30 per cent in North America 16 per cent in the EEC 10 per cent in Japan and in the world including the communist bloc by 11 per cent whereas world consumption compared with 1981 was down five per cent However the International Iron and Steel Institute has forecast a 10 per cent growth in apparent US steel consumption in 1983 and this is expected slightly to increase world steel consumption over 1982 World vanadium consumption held up reasonably well until 1982 when a progressive deterioration became apparent The resulting supply of raw material saw prices halved by the end of the year and Highveld reduced its production by 33 per cent in the final quarter The Vantra division continues as has since October 1980 to operate only one its eight roasting units Both the Rand Carbide and Transalloys divisions operated at full capacity until January 1982 but by the end of the year operations were well below capacity because their markets had also deteriorated Highveld's R60 million reversing hot strip mill commissioned in November 1982 is fully operational and temper rolling and sheet cutting facilities are to be installed The first furnace and three reduction kilns in the second iron plant are ready for commissioning but because of market conditions will probably not be brought into operation until 1984. Highveld has the weakest order hook in its history and with both domestic and export demand remaining weak earnings for 1983 are expected to be down substantially The group continues to recruit and train apprentices in anticipation of a shortage of skiled labour when the economy recovers Black apprenticeship in particular is developing - 41 of 300 apprentices in the group are black and their acceptance in the work place has been most encouraging In common with the rest of the iron and . steel industry Scaw Metals Limited wholly owned by Amic was adversely affected by market conditions and the group's earnings in 1982 declined by 20,1 per cent to R36,6 million Scaw's major activities - the manufacture of a wide range of ferrous castings rolled steel products in the merchant bar range and grinding media for the mining and cement industrdeyclin g all suffered with rolled steel tonnage declining by 16 per cent and the tonnage of grinding media sold down 20 per cent Haggie Limited in which Scaw has a 36,1 per cent interest also reported lower earnings and its contribution to Scaw's results declined by 13,8 per cent to R11,2 million The major portion of Haggie's profit continues to be derived from its traditional business as a manufacturer of steel wire and wire rope However its dependence on these sectors is steadily being reduced as contributions have increased from its diversified interests in crushing screening and milling equipment speed twist drills and cutting tools industrial and automotive batteries ferrous metals and engineering and conveyor systems Commissioning of Scaw's direct reduction iron plant which will ensure that raw material supplies are more reliable is scheduled for about 1983 The group's tax earnings for 1983 are expected to decline but with tax allowances which will follow cornmissioning of the new plant profits should be similar to those of 1982 Boart International Limited wholly owned by Amic had a very difficult year in 1982. The world recession severely depressed demand for metals minerals and mining materials with a consequent decline in sales of approximately 19 per cent after allowing for inflation acquisitions and disposals Net earnings declined by 57 per cent to R16,8 million Demand for exploration drilling equipment and contracting services also fell very sharply although sales of percussion drilling equipment and tools provided some stability to croup turnover and earnings particularly as the gold price firmed towards the enodf 1982 The coal mining equipment group had an extremely poor year ' depressed industry International Pipe and Steel Investments _ South Africa Proprietary Limited IPSA in which Amic has a 31,3 per interest and the Corporation 5,7 per cent is the holding company of the listed Dorbyl Limited a diversified heavy engineering group and Stewarts & Lloyds of South Africa Limited with engineering activities in which IPSA holds approximately 51 and 52 per cent respectively Dorbyl earned profits for the year ended September 30 1982 of R35,9 29 A paper machine at Mondi Paper's Merebank Durban mill million a 43 per cent increase while Stewarts & Lloyds profits for the same period rose by 6,5 per cent to R18 million Union Carriage & Wagon Company Proprietary Limited in which the Corporation holds 18 per cent directly and indirectly is a major designer and builder of locomotives and railway passenger coaches which are supplied to the South African Transport Services and to industry Earnings for the year ended June 30 1982 increased by 10,3 per cent over the previous year although earnings for the current year are expected to decline Net earnings of Vereeniging Refractories Limited a 51,7 per cent subsidiary of Amcoal were R6,6 million for the year to March 31 1983 compared with R13 million for the 15 months to March 31 1982. Dividends for the year totalled 50 cents a share compared with 81 cents for the 15 months The current world recession seriously affected the refractories and mining divisions because they are largely dependent on the iron and steel and other hot metal industries where there has been a substantially reduced output The economic recession did not affect the building industry to the degree previously forecast and although volumes were lower in certain product lines the building products division achieved satisfactory results The joint venture between Iscor and Cullinan Holdings which will become effective in July 1983 is expected to result in the refractories division losing a major portion of its traditional sales to Iscor the largest . consumer of refractories in South Africa Demand for refractories and minerals will remain depressed until there is a worldwide revival in the iron and steel industry and is forecast that the year will be equally difficult The company purchased Elgin Refractories in May 1983 for a consideration of R7,5 million The increased refractory product range available as a result is expected to bring benefits in the medium and longer term Civil engineering and construction Net earnings of the LTA Limited group for the year ended March 31 1982 totailed R13,2 million R10,7 million or 101 cents a share 83 cents with the dividend increasing by five cents to 35 cents a share The Corporation holds 28,7 per cent and Amic 35,7 per cent of LTA For the six months to September 30 1982 net earnings were R6,3 million R6 million or 48 cents a share 46 cents Work in hand at September 30 1982 was valued at R745 million compared with R885 million at March 31 1982. Profits for the second half of the 1983 financial year are likely to be lower than those for the first half Paper timber and board mill interests The Corporation holds a 29,9 per cent interest in Mondi Paper Company Limited which is a 62,7 per cent subsidiary of Amic Equity earnings decreased in 1982 to R32,2 million R36,9 million largely because of higher interest rates and difficult market conditions Satisfactory progress is being made with the establishment of the Richards Bay pulp mill complex which is expected to cost about R600 million Negotiations for the purchase of the ordinary share capital of the Usutu Pulp Company Limited in Swaziland have been discontinued Mondi's operations were rationalised last year into three operating divisions each concerned with a major product namely : paper board and timber The paper division operates the Merebank mill near Durban - comprising a groundwood mill two mechanical pulping plants five speed paper machines and a finishing department - and a forestry unit with headquarters in Pietermaritzburg The short outlook for paper exports is not favourable and the strong competition of 1982 is expected to continue with severe ' pressure on prices The board mills division with headquarters at Umgeni Durban now operates five mills at Felixton Piet Retief Umgeni Springs and Bellville The mills at Felixton and Piet Retief manufacture liner board and fluting medium for corrugated boxes while the other mills manufacture paper board for the packaging printing and stationery industries The timber division with head- quarters at Sabie in eastern Transvaal operates the largest integrated softwood forestry and sawmilling undertaking in southern Africa having a total afforested area of some 90 000 hectares Timber from these and other forests supplies the group's 12 sawmills and a plywood plant Bruynzeel Holdings Limited Bruhold a owned Amic subsidiary has a 100 per cent interest in Bruynzeel Plywoods Limited Bruply which manufactures a wide range of timber products and holds a 50,01 per cent interest in Spankor Limited producing raw and veneered board The general economic down more pronounced in the second half of 1982 had adverse effects on sales volumes and profits This affected both the structural and industrial timber markets and caused severe price competition for certain other products Residential building activity showed negligible growth while the number of building plans passed declined noticeably The Bruhold group's net earnings fell 15,2 per cent to R10,6 million in 1982 and are expected to drop further this year Notwithstanding lower international demand and consequent reduced volumes The Natal Tanning Extract Company Limited's sales value of wattle extract increased because of higher prices and favourable exchange rates although wattle bark production decreased Earnings of the company a 62,7 per cent subsidiary of Amic with the Corporation holding the remaining 37,3 per cent dropped by 20 per cent to R2 million as a result of the high cost of increased borrowings required to finance term capital expenditure Motor and transport The motor industry experienced a record year in 1981 and the buoyant market conditions continued into the first half of 1982. The expected down that followed in the second half saw retail sales decline 15,3 per cent compared with the same period the previous year Sigma Motor Corporation Proprietary Limited now 50 per cent held by the Corporation and 50 per cent by Amic felt the impact of high inflation rates rising interest charges and the effect of the rand's weakness against the US dollar and the yen Intense market competition also affected profit margins and the group a incurred loss of R55 million for the year Some R40 million of this was attributable to losses on uncovered dollar loans and the higher cost of imports from Japan New management has implemented steps to remedy Sigma's difficulties and expects profitability to be restored in 1984 The Mazda 323 retained its exceptional popularity in South Africa it remained the selling model for the first seven months of 1982 and was the first model range to sell more than 4 000 units in one month Two new car lines together with additional light commercial vehicles will be introduced during 1983 and is expected that the heavy commercial vehicle range will be expanded in 1984 McCarthy Group Limited 12,9 per cent held by the Corporation and 24,6 per cent by Amic is the largest motor vehicle retail organisation in South Africa Group net earnings for the year ended June 30 1982 were R12,4 million R20,3 million Freight Services Holdings Limited in which Amic has an effective 40,3 per cent holding experienced depressed trading * conditions in 1982. Both imports and exports the predominant business of this group were low at the beginning of the year compared with 1981 and declined further in the second half However unaudited net attributable earnings for the 12 month period ended December 31 1982 increased by 14,6 per cent from R12,3 million to R14,1 million This resulted from tighter expenditure control and includes profits earned by SA Containers Proprietary Limited Saftainer acquired during the year from South African Marine Corporation Limited Safmarine for R12 million by way of an issue of four million new ordinary shares in Freight Services Although this issue increases Safmarine's holding in Freight Services Redbury Holdings Lirnited controlled equally by Amic and Salmarine continues to be Freight Services controlling shareholder On August 1 1982 the stevedoring operations of Rennies Grindrod Cotts Stevedoring Proprietary Limited were merged with those of the group which has 50 per cent of this combined operation Chemicals and explosives AECI Limited in which Amic has a 39,5 per cent interest is a major industrial group in South Africa and one of the largest in the chemical sector with capital employed of some R1 170 million The group manufactures and sells a wide range of industrial explosives for mining and other commercial uses general chemicals plastics vinyl products paints synthetic fibres fertiliser and agricultural products Sales in 1982 increased to R1 550,4 million However trading profits at R221 million were 7,5 per cent down on 1981 mainly because of the recession severe competition from imports and increases in the cost of imported raw materials caused by the weakening in the value of the rand With interest and tax rates both having risen during the year earnings per share fell by 12,9 per cent though the dividend was maintained Production and sales of quality explosives and accessories to the mining industry commenced in 1982 at AECI's new factory at Mogwase in Bophuthatswana The new linear lowdensity polyethylene plant at Sasolburg and a new carbide furnace at Ballengeich near Newcastle were also brought into operation A further cyanide plant also situated at Sasolburg was sanctioned and is under construction Major projects under investigation include a chloralkali plant at Richards Bay in association with Mondi Paper a soda ash plant also at Richards Bay in conjunction with the Industrial Development Corporation of South Africa Limited and a plant at Beliville to produce stabilised polyester filament yarns for industrial use In addition the rights to mine salt at Commissioner's Pan in the western Cape were recently acquired and the economics of substantially expanding its small output at an early date are being evaluated Meanwhile development work in alternative fuels and chemical feedstocks continues The government statement on the desired degree of sufficiency in the fuel sector in South Africa is still awaited and an iridication of policy towards alternative fuel projects remains vital 31 Food This year the South African maize crop is expected to total less than five million tons whereas last year it was 8,3 million tons as against the record of 14,6 million tons in 1981. As the country's requirements are more than 6,5 million tons a year it will be necessary to import maize A second year of drought the worst in 30 years has also had a serious impact on the meat industry with a drop in net proceeds to farmers The Soetvelde division of Anglo American Farms Limited Amfarms which is 50 per cent held by the Corporation has accordingly had a difficult year and the short outlook does not look much better Amfarms Cape operation continued to feel the effects of closing its fruit cannery in 1981 with the annual crop of about 10 000 tons of deciduous and citrus fruits now marketed locally and overseas as fresh fruit However jams and vegetables continue to be canned and juice concentrates and pur^'esproduced The area planted to grapes has been expanded and production of and demand for Boschendal quality wines has increased Amic's wholly subsidiary African Products Proprietary Limited Afprod is a major processor of maize for industrial use and operates maize wet mills at Germiston Meyerton and Bellville During the year Afprod extended its agreements with CPC International Inc. CPC to include access to CPC's advanced technology in refinery products With technical assistance from CPC Afprod is modernising and expanding its Germiston mill to achieve greater manufacturing efficiencies and more productive capacity Afprod also has a 50 per cent interest in OKK Foods Limited which prepares stores and distributes meat and dairy products Notwithstanding increased demand for Afprod's products rising costs high interest rates and increased taxation contributed to a 14 per cent decline in Afprod's earnings to R7 million for the year ended December 31 1982 The Tongaat Group Limited and Huletts Corporation Limited merged with effect from April 1 1982 to form The TongaatHulett Group Limited Tongaat in which the Corporation and Amic have interests of 11,2 per cent and 28,1 per cent respectively This large and diversified group's activities include sugar cane cultivation raw sugar milling and refining aluminium fabrication the : production of various agricultural crops the production and distribution of building materials textiles foodstuffs and interests in transport property timber plantations and electronics and general engineering Tongaat earnings for the year ended March 31 1983 of R66,3 million 116,6 cents a share compared with the pro forma earnings for the merged group for the year ended March 31 1982 of R78,5 million 138,2 cents This reduction reflects significantly lower contributions from the sugar division which has been seriously affected by sugar's world slump as well as by delays in a domestic price increase from the textiles division which has been hard hit by the economic down as well as increased interest charges and the higher tax rate Hippo Valley Estates Limited in Zimbabwe produced another record of 251 000 tons of sugar in the year ended March 31 1982 The mill achieved the distinction of being the most efficient in Africa with an overall recovery of sugar from cane of 88 per cent Profit for the year amounted to Z million out of which dividends totalling 3,1 million were declared With the continuing decline in world sugar prices throughout 1982 the company is expected only to break even this year Other commercial interests Computer Sciences Proprietary Limited in which the Corporation and associates hold 75,3 per cent continues to offer a range of remote computing services computer hardware products and customer support to South African commerce and industry through eight operating divisions In 1982 turnover rose to R38 million a slower rate of growth because of adverse economic conditions in the latter half of the year This together with higher interest rates resulted in .: reduced net profit Zinchem and Industrial Mineral Resources Proprietary Limited Zimro a 76,3 per cent subsidiary of the Corporation produces base and industrial minerals tin metal rolled zinc and zinc products and chrome sands Exports during the year were lower in line with the recession in western world economies while local sales were similarly affected by reduced activity in the motor foundry and building industries and reduced offtake by the metal industry as well as the drought agricultural sector Difficulties were initially experienced in commissioning a new plant at the Zaaiplaats Tin Mining Company now a 65,4 per cent subsidiary of Zimro but by the year these had been overcome and the projected benefits should be evident in the coming year Although experiencing a particularly difficult year the group's earnings were much the same as the previous year through strict control of costs and inventory management Further details of the principal industrial and commercial companies in which the Corporation holds a significant interest are given on pages 76 to 80 .. PROPERTY Sound portfolios continue to grow The Corporation holds substantial property investments through Anglo American Properties Limited Amaprop a 65.6 per cent subsidiary and Anglo American Life Property Holdings Limited the property- ~ holding subsidiary of Anglo American Life Assurance Company Limited which is 97,7 per cent held by the Corporation These interests include 775 000 square metres of retail and office accommodation located in prime central city and suburban office and shopping complexes and situated residential commercial and industrial township land The rise in rentals which became evident during the previous year continued strongly for the first six months of this financial year and these increased revenues coupled with contained expenditure have led to sound increases in net profits earned Rent levels in retail premises still reflect satisfactory growth Anglo American Life Assurance head office but for office premises have remained static for the last few months Until the next significant rise in rent levels which should follow in the wake of any favourable economic revival increased profits will be derived from lease renewals and rent escalations During the year Amaprop successfully completed the Carlton Court project comprising 70 luxury hotel rooms adjoining The Carlton hotel as well as the Garden Plaza and 11 Wellington Road office projects all in Johannesburg and Durban's Pine Parkade Progress on the 11 Diagonal Street office project is well advanced and a start has been made on another Parktown office project to be called 9 Wellington Road Anglo American Life's office development in Pretoria was completed and there is satisfactory progress on its Johannesburg and Cape Town office and retail schemes A bold new R40 million office tower is to be built in Durban For the year to March 31 1983 Amaprop recorded a profit of R14,7 million 34,6 cents a share against R9,5 million 22,5 cents Of this increase 3,3 cents arises from a change in the basis of accounting Dividends of 18 cents a share 14 cents have been declared Carlton Centre Limited 80,0 per cent held by the Corporation and Amaprop earned R9,9 million for the year compared with R8,7 million the previous year Dividends paid amounted to R4,5 million There has a been sharp fall the contribution to the Carlton Centre's profits from the hotel component but this has been compensated for by increased earnings from the retail office and parking components A major grading of the retail space is to be implemented over the next two years at a cost of R26 million Further details of Amaprop and Carlton Centre appear on page 80 Be EXPLORATION AND RESEARCH Gold emphasis in Orange Free State Exploration activity for base metals in South Africa and South West Africa Namibia was slightly reduced compared with previous years Work at the Skorpion lead prospect in the Sperrgebiet in Namibia which initially appeared encouraging was terminated because of the excessive depth of oxidation However a limited number of prospects in the Republic have yielded encouraging results although considerably more work will be required to determine whether they are viable Gold exploration was concentrated mainly in the Transvaal and Orange Free State in the search for Witwatersrand deposits A major emphasis has been placed on the area to the south of the OFS gold field where detailed drilling is nearing completion in one area In a second area to the north of Beatrix mine results have been sufficiently encouraging to justify continuing exploration and to start a joint drilling programme with General Mining Union Corporation However in the new area referred to in last year's report results have been mixed Evaluation of a structurally complex block of ground to the south of Vaal Reefs continued and recent intersections of the Vaal reef have returned high gold and uranium values.. Exploration completed in the vicinity of the old Afrikander Babrosco and Wolverand mines north of Klerksdorp has delineated a shallow orebody with limited reserves while the programme to evaluate deep reefs to the south of Western Areas has been encouraging In other areas results are not sufficient to comment on the potential of these ventures Exploration continues at Barberton and has recently commenced in the Pietersburg gold field but results so far have been disappointing in both areas Coal exploration was undertaken in traditional coal areas of eastern Transvaal Natal and Orange Free State as well as in parts of northern Transvaal and the eastern area of Namibia 33 1 A large drill uses chemical foam to penetrate difficult sand conditions in South Australia 2 In South Africa the Corporation's exploration . activities focus on the search for base metals in regions such as the northern Transvaal 34 During the year options were negotiated over some 100 000 hectares of new ground and coal rights to 8 681 hectares were purchased Australian Anglo American remained active in Australia New Zealand and Fiji with continued emphasis on gold and tin although activities in Fiji are to cease Compared with previous years research and stage prospecting have been reduced and emphasis placed on more advanced prospects particularly those in Western Australia and Tasmania Greater attention is also being given to possible acquisition opportunities In Brazil Ambras continued to be involved in exploration through its interests in Research Research into ways of improving gold extraction continues to receive priority at Anglo American Research Laboratories Several of the Corporation's administered mines are now using fixed beds of activated carbon to recover small quantities of gold from waste solutions . a method developed at the research laboratories Four stream gold analysers developed jointly by the research laboratories and Anglo American Electronics Laboratory are successfully monitoring and controlling gold precipitation on administered mines gold plants and five further units have been ordered A method of improving flotation slack warning device to indicate a when cage is jammed in a shaft Installation of the first unit will be in 1983 An analogue rock stress simulation technique which allows measurement of probable associated rock stresses in the vicinity of mining operations An electronic batch weighing and loading system to control ore loading Assizing in conjunction with the Department of Trade and Industries has been completed with an accuracy achieved for a train of 50 ton railway trucks of the order of 0,02 per cent An electronic bell system which is integrated with the lock signalling . Unigeo Geologia e Minera^^aond from gold residues has been confirmed in system Minera^^Moorro Velho MMV Unigeo is preparing for drill evaluation of three advanced projects with polymetallic sulphides silver and gold respectively in Goias and Parana MMV has concentrated on gold exploration with some encouraging results from its trials at President Brand while improved methods of contacting activated carbon with pulp are being developed to optimise economies of recovery of gold from low- grade sources A method for extracting more than 95 per cent of the gold from refractory gold ores using pressure Research continued into applying state- and the computer telemetering techniques to existing instrumentation and so to instrumentation under development as to improve performance significantly For example the electronics laboratories maximum demand equipment has extensive holdings adjoining Morro Velho mine and further west at Pitangui leaching techniques was also developed and pilot plant tests are under evolved into a comprehensive microprocessor energy monitoring In the Chilean Andes adits were consideration and control system and several developed on two of the promising gold silver areas and a joint venture entered into with Compania Minera San Jose Limitada on their Nevada prospect Empresas has taken up 20 per cent of the interest of the Corporation and its The involvement of the research laboratories in assessing new ventures particularly in Australia and South America increased A pilot plant to be constructed in Johannesburg to investigate recovery of metals from comprehensive shaft monitoring systems have been commissioned Further refinement of the laboratories telemetry system also continues Sales of equipment developed by the electronics laboratory continue at a high associates in certain of these prospects In Spain joint evaluation with Charter sulphide concentrates using the Dextec process rate Services and advice are also provided for rope testing 2,5 million ee Consolidated of the Salave gold prospect Assistance to the prospecting companies metres are tested annually instrument continued with a drilling programme continues to be a major portion of the maintenance borehole logging aerial to define potential tonnage and grade laboratories activities Automation of multi- prospecting decelerometry and In addition the Corporation participated in elemental analysis is still being refined for many other matters relating to the use of other projects that are being undertaken direct linking to computers and the electronics in mining tem! by Charter in Spain and the United geology laboratory has improved its cae Kingdom The acquisition by Charter of service to the field exploration teams by the South Crofty group of companies regular staff visits which in addition to existing mining Applied research at the electronics operations owns mineral rights to considerable areas in Cornwall has considerably reinforced Charter's involvement in exploration for tin in the United Kingdom - laboratory has resulted in a number of successful developments reaching the production stage In addition to the onstream gold analysers mentioned earlier these include mine fire detection system already in wide use A fire monitoring system which enables the earliest possible opening and entry into a sealed area Six of these systems have been delivered 35 Shareholders information diary Shareholders +. ShareholdersShareholders diary FFinanciial nancial year March 31 , Annual general meeting Preliminary results published Annual financial statements yearly interim report published published August 25 June =~ June November AAC SHARE PRICES AND VOLUME TRADED ON THE JOHANNESBURG STOCK EXCHANGE Volume high 000 traded Price Ps ZS Volume traded Dividends 1. On ordinary shares Interim . declared November . Final : paid declared paid January >. June July 2. On preference shares - Interim declared June ~ paid June Final declared paid 3. On preferred stock November _ December , Interim poe . declared June paid . . August + Final declared . November final paid a : February 1973 ! 1975 1976 The 1978 financial year was a 15 month period 1976 Analysis of shareholders as at March 31 1983 SHAREHOLDINGS >< A final dividend of 75 cents per ordinary . share was declared on June 1 1983 and is SHAREHOLDER 1-5000 Over 5 000 Total payable on or about July 22 1983 to * shareholders registered on June 17 1983 . Currency conversion guide : + Tphroevifdoeldlowfionrgfoltwing hceurirnefnocrymatcioonnvoefrsion guide : shareholders oote 5 ~ ; MarchMarch 31 one randrandwasequaelqualtoto ; dollars dollars : USPounds sterling Pounds sterling 1983 L wo ,. 0,602,62 * 0:53 0:53 1,84 2 Swiss francs 1,89 - Deutschemarks ; ...: 2,21 4 i CLASSIFICATION Individuals Insurance companies Pension Pension funds Nominee companies Other corporate corporate Holders Shares Holders 312 576 Shares Holders 348 084 | 22015 ---- 527 71 | 416 123 262 179 | 135 394 854 174 | 315 638 1967 241 57 351 Shares 8 ,40 231 396 25 943 1,21 398 2,28 | 106 069 169 59 124 592 French francs : Japanese yen 6,65 218,60 i" I 23 632 16 633 088 365 103 | 903 100,00 226 998 191 a u Head Share Transfer Secretaries * 44 Main Street Johannesburg 2001 - South Africa PO Box 61587 Marshalltown 2107 ; . office BY London 40 Holborn Viaduct London EC1P 1AJ : Consolidated Share Registrars Limited First Floor Edura _ 40 Commissioner Street Johannesburg 2001 South Africa PO PO Box 61051 Marshalltown 2107 Charter Consolidated P.L.C. Stock exchange listings * The Corporation's shares are listed Johannesburg on the stock exchangesin London Paris Brussels Antwerp . Frankfurt Zurich Geneva and Basle : cat , England : Box 102 Charter House : Park Street Ashford Kent TN24 8EQ Erigland Notice to members Annual general meeting Notice is hereby given that the sixth annual general meeting of members of Anglo American Corporation of South Africa Limited will be held at 44 Main Street Johannesburg on Thursday August 25 1983 at 09h30 for the following business consider 1. To receive and the annual financial statements for the year ended March 31 1983 2. To elect directors in accordance with the provisions of the Corporation's articles of association 3. To consider and if deemed fit to pass with or without modification the following resolution as an ordinary resolution namely That the directors be and they are hereby authorised ( To allot and issue all or any portion of the 9 650 000 unissued redeemable cumulative preference shares of 2,5 cents each in the capital of the Corporation and after providing for the allotment and issue of the ordinary shares in terms of the Share Incentive Scheme and any shares which shall have been set aside for allotment in : substitution for shares in Rand b any shares resulting from the consolidation of any fractional entitlements in respect of any shares issued in pursuance of a rights issue provided that any rights to such shares which can be soldin paid form on the Johannesburg London such Stock Exchanges duringtheperiod which they are quotedon stock . exchanges may be sold by the 7 underwriters and the net proceeds of rights paid any sale of such shall be to the Corporation : Holders of share warrants to bearer : : who wish to attend in person or by proxy or to vote at any general meeting of the Corporation must comply with the regulations of the Corporation under which . share warrants to bearer are issued member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to attend speak and votein his stead A proxy need not be a member of the Corporation By order of the board CL MALTBY Secretary ao > June 28 1983 Zz Selection Corporation Limited arising on conversion of bonds of US 1000 each representing the Rand Selection US million 6 per cent convertible loan 1986 all or any portion of the Registered office 44 Main Street Johannesburg : 2001 so remaining 11,786 834 unissued ordinary shares of 10 cents each in the capital of the Corporation together with any sharesin respect of which options under the former Staff Share Option BE Scheme might not have been exercised by the expiry date of July 311 1983 at such time or times to such person or persons company or companies and upon such terms and conditions as they may determine ii To make arrangements on such terms and conditions as they may by deem fit for the subscription underwriters of a any shares offered by way of rights issues but not taken up by the persons entitled thereto and 9 37 year summary Shares in associated companies Equity earnings Equity earnings Issued Number of and general investments Net after tax after tax per share ordinary . | | | | issued capital asset Excluding Including Excluding Including Ordinary Total as ociates as ociates as ociates ~ ordinary and Book Carrying Markett value asociates dividend | ordinary retentions > Year shares reserves value value value share | retentions retentions | retentions | share [| dividend million million R million million million cents million | A million cents . cents cents R militon Dec. 31 1973 129,9 | 353,7 468,6 1231,3 841 58,0 a 44,6 24,0 31,2 a 38,1 : .1974 131,4 397,2 449,7 276,6 923 75,5 57,4 29,0 38,1 . ad 1975 131,7 447,8 518,8 1-233,1 864 84,4 64.1 33,0 43,443,4 1976 131,7 469,7 525,7 1 102,3 784 86,0 65,3 33,0 43,5 March 31 ; 1978 1979 1980 1981 1982 1983 223,0 858,3 835,6 269,0 | . 905 | 195,0 89,9 224,0 . 955,2 878,9 385,9 | 357 | 202,0 90,2 225,3 | 1325,8 | 130,3 346,7 | 423,0 | 184 306,6 | 525,3 136,1 | 233,1 225,7 | 2010,5 | 285,5 | 895,4 | 444,2 2697 2697 527,0 | 866,0 233,4 | 383,6 | 226,0 590,5 | 1674,1 | 2,515,5 | 4,777,0 | 2031 | 502,8 768,2 | 222,5 | 339,9 227,0 | 223,9 | 1789,5 2985,5 7 790,4 | 321 | 506,8 | 644,5 | 223,3 | 283,9 45,25 99,1 46,0 -| 103,0 70,0 157,7157,7 110,0 248,3248,3 110,0 | 248,5 110,0 249,7 Selection Corporation Effective January 1 1977 Rand Corporation became the which 91,1 as Limited issued ~ subsidiary month million its 31 March 31 15 1 changed year from December to the 1978 financial year a period The Corporation also Pon Includes unlisted investments at book value and outside shareholders interestin surplus of market value of listed investments over book . 727 1973 directors shareholders directors investments at valuation and outside interest surplus of market value and valuation over value investments book Saat value 1974 to 1983 Includes unlisteda! .38 oo att a } Ww 4 i } | wae? an nd Annual financial statements for the year ended March 31 1983 . The annual financial statements which . * appear pages 40 to 63 were approved by the board of directors on June 9 1983 and are signed on its behalf 40 Directors report 42 Accounting policies 44 Balance sheets 45 Income statements 46 Source and application of funds . statements 47 Notes to the financial statements 57 Associated companies 60 General Investments . 62 Principal subsidiarycompanies . Directors GWH * JOgilvie JOgilvie Thompson NF NF Oppenheimer CL Maltby Secretary GA Chalmers Group Accountant . Fat Ose ee_S Sx a . : ot ; = Auditors report 4 To the members | ~ Anglo American Corporation of South Africa Limited 4 We have examtihenanenudal financial : statements and group annual financial statements set out pages 40 to 63 In our opinion they fairly present in the manner required by the Companies Act the financial position of the Corporation * 4 and of the Group at March 31 1983 and the results of their operations for the year ended on that date ; EE Boo : ve nes To, . an . Se nr aren : a ~ : te MO ed ne ALEX AIKEN & CARTER PIM GOLDBY Chartered Accountants S.A. ji Johannesburg . June 1983 ye . os ee S oO 7 ns . OT , ge 39' Directors report The directors have pleasurein submitting Dividends Issued the annual financial statements of the Corporation for the year ended March 31 1983 The dividends shown above comprise the following 1983 1982 million R million Group results This report relatetso the consolidated income statement and balance sheet of the Corporation and its subsidiary companies The financial statements of certain foreign subsidiary companies have not been consolidated this year because _~7Preferred stock Nos 106 and 107 each of 3 per cent declared June 1 and November 25 1982 Preference shares Nos 8 and 9 each of 5,25 per cent declared June 1 and November 25 1982 in the opinion of the directors due to the restriction on the transfer of funds and 0,3 0,3 ... 4,2 4,5 4,5 Ordinary shares Shares issue April 1982 Allotted during the year Conversion of Rand Selection Corporation Limited RSC 6,5 per cent convertible loan Exercise of share options granted to senior employees Issued in terms of the share Incentive scheme Shares in issue at Marc3h1 1983 Allotted since April 1 1983 shares ' 020 156 57 135 500 : 400 226 998 191 other factors there is uncertainty as to the remiltability of profits - see accounting policy 1. The comparative figures at March 31 1982 have been adjusted accordingly Ordinary shares No. 93 interim of 35 cents share 1982 35 cents declared November 25 1982 No. 94 finalfinal of 75 cents a share 1982 75 cents 79,4 79,0 Conversion of RSC loan ; Exercise of share options 2917 3500 Shares qualifying for final dividend No. 94 and also being the number in issue at date of this report 227 004 608 Profit and appropriations The Group profit after taxation for the year under review was dealt with as follows . . : million 1982 million Profil after taxation Outside shareholders 616,4 611,8 - interests in profits of subsidiary companies ' Preferred stock and preference share dividends 105,1 | 104,5 4,5 4,5 Do 109 109,0 ~ declared June 1 1983 , Investments 170,3 249,7 169,5 248,5 At March 1983 the investments in associated companies excluding loans had a carrying value of R2 681,2 681,2 million 1982 R2 235,2 million The market or directors valuation of these investments totalled R6 065,9 million 1982 R3 623,1623,1 million while the Corporation's general investments excluding loans had a book value of R304,3 million 1982 R280,3 Preference shares and preferred stock The number of preference shares and the amount of the preferred stock in issue remains unchanged Unissued the 12 995 392 ordinary shares which_ were unissued on June 9 1983 specific authority has been granted to the directors to allot andissue up to 20-700 shares, in respect of the share option scheme the last options in terms of which expire on Group attributable profit before share of retained profits of associated +... companies Share of retained profits of associated companies Profit before extraordinary items . : Extraordinary items Ordinary dividends 506,8 - 502,8 137,7 | 265,4 : | 644,5 768,2 247 248 247 248 million and market or directors valuation 724,5 totalled R1 724,5 million million 1982 R1 153,9 investments During the year changesin included the purchase of a further 3,1 per cent De Beers Consolidated Mines Limited an investment in South African Breweries Limited further shares in S.A. Manganese Amcor Limited Sigma Motor Corporation Proprietary Limited and Jul3y1 1983 and up 981 900 shares under the share incentive scheme as well as 205 958 shares in respect of the RSC US 694 008 6,5 per cent Convertible 1986. The remaining 11 786 834 unissued ordinary shares together with 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 _ Retained profit profit - -: Unappropriated profit March 1982 Adjustments thereto 380,7 145,2 2,0 147,2 - oe 527,9 Appropriations to reserves 332,6 Unappropriated profit _ March 31 1983 195,3 . Earnings per share before +. extraordinary items Excluding share of retained profits of associates- cents Including share of retained . profits of associates - cents : 223 284 - _ 486,0 . 88,2 17,7 105,9 591,9 446,7 145,2 222 340 Anglo American Industrial Corporation Limited as well as payment of the final subscription on the Western Deep Levels Limited 12 per cent debentures The holding of 414 060 sharesin Tiger Oats and National Milling Company Limited was disposed of and there were purchases and sales of small interestsin various gold mining companies : Capital Authorised authorised capital March 31 1983 the authorised of unchanged the Corporation remained at R30 000 000 divided into 240 000 000 ordinary shares of 10 cents each R4 750 six cent cumulative 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 25 1983 and members will be asked at that meeting . to consider an ordinary resolution placing - the then remaining unissued ordinary and the preference shares under the control of directors proposed The full text of the resolution is is set outin the notice convening the annual general meeting preferred stock and 49 650 000 redeemable cumulative ' preference shares of 2,5 cents each 40 Share premium During the year the share premium account increased as a result of premiums totalling R12,1 million arising from the _ issue of 978 035 ordinary shares under the share option and incentive schemes and upon conversion of RSC bonds Associated companies + Details of associated companies of the Group appear on pages 57 to 59 . . Subsidiary companies Details of principal subsidiary companies in which the Corporation has a direct or indirect interest are given on pages 62 and 63. Particulars of resolutions passed by subsidiaries during the period under . review appear on page 84 of this report Directorate December . Oppenheimer retired as Chairman the Corporation and resigned from the board _ Of directors On the same day Sir Keith '. Acutt retired as a Deputy Chairman but G WH remained on the board Mr WH Relly J -.* was appointed Chairman and Mr Ogilvie <., Thompson and Mr NF Oppenheimer | . were appointed Deputy Chairmen with _ effect from January 1 1983 In addition Mr H R Slack was appointed to the board with effect from : January 1983 and Mr F JA Howard who had been Mr HF HF Oppenheimer's alternate _ was appointed alternate to Sir Albert Robinson with effect from January 1.1983 1.1983 NF Oppenheimer Mr . " Boustred Mr D A Etheredge Dr EMAF Ferreira Mr CJ L Griffith Mr W King Mr.DG Mr.DG Nicholson Mr G Richardson = and Dr J G van der Horst retire from the board by rotation In addition Mr. R . Slack retires in terms of the Corporation's Articles of Association at the forthcoming annual general meeting All the retiring Idirectors are eligible for election Details of the interests the directors ~- are given on page 84. There are no service ~ contracts granted by the Corporation or any of its subsidiaries to any director ~ __ of the Corporation which need to be disclosed in terms of the requirements of The Stock Exchange in London ae wee . : Lm o- an . a B . ree . ' . . . . - ae . Sas a 4 . | Accounting policies The financial statements prepared on the historical cost basis subject to the revaluation of land and buildings incorporate the following principal accounting policies which are consistent with those of the previous year the 1. Consolidation The consolidated financial statements comprise annual financial statements of the Corporation and its subsidiary companies other than certain foreign subsidiary companies wherein the opinion of the directors due to restrictions on the transfer of funds and other factors thereis uncertainty as to the remittability of profits The investmentin such subsidiary companies is shown at . cost less provision where necessary and their results are accounted for only to the extent of dividends received Premiums or discounts on the acquisition of subsidiaries are brought to account as extraordinary items in the income statement . and transfers from or to distributable reserve are made in respect thereof Provision is not made for withholding taxes payable in the event of distribution of the retained profits of certain foreign subsidiary companies Associated a 2. companies An associated company is one in which the group holds as a term investment 20 per cent to 50 per cent of the equity , capital The equity method of accounting for investments in and the income of associated companies is adopted in the group annual financial statements _ The share of the associated companies retained profits and reserves is generally determined from their latest audited annual financial statements but in some instances unaudited interim results are used An adjustment is made for the effect of cross where an company itself deals with its investmentin the Corporation by the equity method holdings equiatsysociated applying the method account is taken group's share of accumulated retained profits only from April 1 1979 the date from which the equity method wasfirst applied or the subsequent date on which an investment first becomes an accounting associated company The group's share of a current loss incurred by an associated company is charged against income only to the extent that retained profits of that company have previouslybeen brought to account Such retained profits are also utilised permanent treatment where in the opinion of the directors provision for diminution in the value of an investment in an associated company is required Any additional provision required is treated as an extraordinary item similar is adopted on a major disposal of an investmentin an associated company The annual retained profits of associated companies attributable to the group are transferred to the distributable reserve No e profits by of account is taken of the withholding taxes which might be payablein the event companies . the distribution of such a foreign method : Exceptions to the policy of accounting for investments in associated companies by the equity are 2.1 where in the opinion of the directors due to restrictions on the transfer of funds and other factors thereis uncertainty as to the remittability of dividends the results of these associates are accounted for only to the extent of dividends received : _. where the investment in mining company and its assets are of a wasting nature and its accounting policyis to appropriate 2.2 from profits within the lifetime of the mine such amounts which together with the share capital and reserves will'equal the appropriated expenditure on mining assets profits so are therefore not available for distribution to declared shareholders ae, the life of the mine the balance of distributable profitsis as dividends while over 3. Investments investments amounts provisions in 3.1 Investments other than in associated companies are reflected at cost less written off and : Where in the opinion of the directors a permanent diminution in value has occurred provision for such diminutionis which extraordinary charged against current profits unlessit flows from an occurrence _. nature profits and losses on disposal are treated similarly in the opinion of the directorsis of an expenditure development nO 3.2 Life assurance investments include together with interest where applicable relating to the : and buildings up to the time the developmentis available for occupation of land 4F.ixed assets and depreciation buildings shorter intervals and 4.1 Land buildings dae Land and excluding leasehold properties are revalued every three years or at if it is considered - | that significant changes in values have occurred The group's share of the net surplus arising is credited to the non- distributable reserve and the portion attributable to outside shareholdersis credited to them If thereis any declinein values which in the opinion of the directors is of a permanent nature an appropriate write downis made Surpluses and deficits on disposals are transferred to and from distributable reserve Expenditure including interest where applicable relating to buildings capitalised : the development of land and 4.2 Mining assets up to the time the developmentisis available for occupation is re * Mining assets are amonised overthe lives of the respective mines or 30 years whicheveris the lesser The assets are stated at cost less sales recoupments and amounts written off cost includes production interest paid on borrowings to finance major capital projects . 42 4.3 Mineral rights Mineral rights and investmentsin and loans to companies holding mineral rights are maintained at cost but are written down to nominal value when thereis little likelihood of the particular rights being exploited When the value of an exploitable mineral rightis considered prospecting to be below cost a write down is effected Amounts written off mineral rights are included in the costs of set against _ royalty receivedin consideration for the exploitation of a mineral right off its cost 4.4 Depreciation depreciated Investment properties including installed plant are not depreciated other buildings are Leasehold land and buildings are amortised over their useful lives on appropriate bases Other depreciable assets are depreciated residual values over their effective lives on straight line or diminishing value bases to reduce their i book values to estimated , realisable Stocks stores and township property Stocks of raw materials and finished products are valued at the lower of cost andnotnot value Costis determined on the last first and average cost bases the cost of finished products includes direct costs and in certain instances the overheads provisions Mine and consumable stores are valued at cost less appropriate determined mainly on the first first basis for redundant and slow moving items Costis Township propertyis valued at the lower of cost which includes development and interest expense and net realisable value ' Foreign currencies Assets liabilities and results of foreign operations are expressedin South African rand as follows < Assets - investments and fixed assets financed by share capital or acquisition reserves are maintained at original cost expressed those financed by acquisition profits and other assets are end at rates of exchange ruling at the year Liabilities expressed contracts Income - are at the rates of exchange ruling at the year end except where covered by forward exchange a statement - is converted at the rates of exchange ruling at the year end ruling Post acquisition reserves and retained profits are individually adjusted to reflect their amounts at the rates of exchange the year end at - exchange contracts covered -. The rand value of investments acquired from the proceeds of foreign loans not by forward is ; : ~ adjusted fofr or any changein the rand liability of the loan Gains or losses arising from currency transactions during the year are includedin theinciome ncome statement Life assurance subsidiaries 6 subsidiary assurance companies complies The information shownin the consolidated financial statementsin respect of the provisions of the Companies Act relating to assurance companies life . with : 7 In particular 7.1 The market value of listed life assurance investments is not disclosed;the bases of valuation are stated in note 7.2 Contingency reserves and movements therein such reserves are not separately disclosed and surpluses aarere stated after transfers toor from oe terms 7.3 Individual items of income and expenditure and taxation other ; Companies Act are not separately stated than those required to be disclosed in | of the , appropriation Additional transfers to contingency reserves may be madeas an _ Loan capital appropriation of assurance surpluses ~ a the associated companies others financial loans Repayments due within one year of year end are includedin from and Turnover group's of figure Due to the nature of the meaningless income the directors are of the opinion that the disclosure a turnover : : would be , Costs of prospecting Prospecting expenditureis written offin the year in whichit is incurred en Pension funds wed members by within the All eligible employees are of pension funds administered the group or are members of funds various : industries which they are employed Funds are valued actuarially projected benefit method and any deficits are funded to ensure the : going Deferred taxation at intervals of not more than three years using a finfancialinancial soundness of the funds a ; timing differences where and Deferred taxation is provided by mining subsidiaries on the deferral method arises from . on certain assets is deductiblein full for tax purposes in the year in which itis incurred butis above amortised the esextpenditure other out 4.2 Deferred taxation is also providedin respect of timing differences on basis 7 43 Balance sheets March 1983 Figures in R million Corporation 1982 22,6 20,9 351,9 304,0 22,7 33,0 351,9 307,9 Ordinary shareholders equity Ordinary share capital . . eeete e eece t eern enee Share premium . ee distributable reserve Distributable reserves 0... 6. cece eee eee eee ees eee 699,4 4,8 1,0 39,0 . 44,8 744,2 744,2 715,5 4,8 1,0 39,0 44,8 Preferred stock and preference shares " Preferred stock 2.66 cece cee nner erect ne nena eens Preference share capital ....... Pecenesueuccavaceereseece : |. Preference share premium 2. seer ete ences ........eseeeer 760,3 Outside shareholders interests in subsidiary companies Life assurance funds ...... Deferred taxation Voces we eeeeeee seeeeeeeee cen eee! capital Liececeeeeeseeeeeneaens ............--..+. Loans from - Associated companies 2s receee eee eee oe, 75,375,3 171,3 - Other liabilities ; Creditors taxation and provisions Shareholders for dividends ... .. : Bank overdrafts hein -. ee beeen een en eens eee een eee Group 1983 1982 22,7 33,0 696,7 1471,5 3 223,9 22,6 20,9 1342,0 1342,0 5 1 205,0 590,5 4,8 1,0 39,0 44,8 3268,7 3268,7 480,2 4,8 1,0 39,0 44,8 635,3 415,0 ; iy aa wy ' 521,1 987,7 480,1 |. | 618,3 Represented by : cc Investments . ve 57,9 General investments companies ow 80,0 in :Investment associated onde t ate eane renee . Dawe e ene eens | 3910 =. 412,0 Lifeassuranceinvestmentsi; : 659,1 7,0 621,2 Investment iin n Voi wee cbeenn ede subsidiary companies consolidated Investment in subsidiary companies not ve Fixed assets .13,4 : 0.000.000.0005:Live a dherteseebescoere oD , . Other assets uo 77,2 | Stocks stores and township property 83,8 Debtors Debtors Debtors a eS 270,2 14,8 ~ 74,1 .8,2 companies Loans to - Associated = - |. 285,0 82,3 611,8 250,4 2 " 974,0 : 2032,0 1.416,5 * 463,1 - 2783.02331.5 2783.0231.5 2783.02331.5 0 392,0 28 2783.0231.5 . 336,4 3.175,0 "|. - * 2667,9 =. 1391,0 |). 1050,0 30,4 | 1050,6=|: 30,0 867,7 - 69,4 390,4 15 15 96,2 |: 12944 1850,4 7 497,4 68,4 .: 335,2 261,4 13,4 2 ' | 274,8 oo.) 652,6 |2 1331,0 : 5 946,6 , . . Income statements Figuresin R million for the year ended March 31 1983 oe piss. ane pe oo : i as bod a , | rp ; Corporation 1982 1983 _ 93,8 90,8 18,2 15,8 . 130,7 202,0 0,5 15,0 242,8 486,0 146,4 ~ 30,2 > 176,6 172,6 496,2 183,5 183,5 221,0 Dividends from associated companies .............0.00005 Dividends from general investments .............. ra Interest earned and fee income less expenses ...... . Trading profits 06 o. cic e cede eee eee Surplus on realisation of investments ...... Surplus from life assurance companies 06.6.0 cee tee Income from subsidiary companies ..-.......% eee sees been Notes 16 16 . 17 Interest paid .. ce eec eeee eee . cee eeene eetesaedbes - Costs of prospecting . 2c ee aee ee better 18 , Group P| 1983 316,6 132,6 217,7 262,0 23,4 10,3 2,1 1982 330,6 142,0 142,9 253,7 6,5 7,8 ..7,6 ~ 964,7 891,1 187,5 39,5 146,9 35,6 227,0 182,5 .309,4 : 0,1 275,2 16,1 Profit before taxation ......... veeeuceeaveusasavepens Taxation cece cece cnet eee eet e tate eeenetaes 19 737,7 121,3 708,6 96,8 309,5 4,5 259,1 4,5 254,6 1,0 253,6 249,7 1,0 Profit after taxation ' eee eee .0.000.00.0.....ccccccasee Outside shareholders interestsin profits of subsidiary companies Preferred stock and preference share dividends ............. Group share attributable profit - before of retained profits of associated companies 7.5 retai6 ned re. tained . .. v eas Share of retained profits of associated companies ...... : - Profit before extraordinary lems 00... .c. 0... Extraordinary items | Ordinarydividends hanesvan etevanees e eee Seb e a ee Retained profit tenner ed ede tenes Senet Veneees eens ve Unappropriated profitprofitMarch 1982 Yeceiene Adjustment thereto for changesinin exchange rates 20 616,4 21 . 105,1 _ 4,5 109,6 506,8 137,7 644,5 oe 14,1 > 630,4 Pal 249,7 380,7 | 145,2 |: 2,0 611,8 104,5 4,5 109,0 4,9 ee Appropriations to reserves Nondistributable reserve oO . . General reserve db 4,9 = Unappropriated profit March 1983 2... ar Earnings per share cents , Excluding share of retained profits of associates . 32 Including share of retained profits of * associates 23 147,2 527,9- [oo 117,3 215,3 | 2 332,6 ' 195,3 - 223,3 ' 283,9 of funds Source and application for the year ended March 31 1983 statements ~*~ Figuresin R million Corporation 1982 1983 309,4 2,5 - 275,2 . 3,0 _ SOURCE OF FUNDS Funds generated Profit before taxation outside shareholders interestsin profits of = subsidiary companies and retained profits of associated companie..s.. Adjustments for items not involving movements of funds : Depreciation provisions and changesin exchange rates ....... 311,9 278,2 3,2 12,5 302,6 12,2 10,4 280,0 Life assurance funds 6. '... eee cece cece eee ee enone - Total funds generated from operations Funds from other sources Shares issued and premium thereon under shareincentive and share option schemes andin respect of convertible bonds issued by subsidiary company Loan capital . Netincrease in outside shareholders interests ... Extraordinary sharedealing profits ccc ces 0.2.2 se . eec. ecse. nes a 2 59,9 * 75,9 7,0 ] 5 9,0 1,8 87,1 85,3 | eo]. 1 1,9 22,0 8,9 29,0 APPLICATION OF FUNDS Fundswere applied towards Cost of investments acquired less cost of investments sold Long term loans associated companies and to others Fixed assets voi... accede ect e ee ne ee beeen tee tne ene companies Subsidiary not consolidated Increasein assets of life assurance companies . Investment 0,8 . 39,5 in subsidiary companies - shares ee loans 38.7 248,5 = 249,7 4,5 4,5 & 253,0 |"254,2 16,1 Dividends and taxation .a Interim ordinary dividend paid and final dividend Preferred preference declared stock and dividends ...06. 060.0. sen eeeed subsidiary companies Dividends paid to outside shareholdersin - Taxation . reece seebee bev eeeie wees he 270,3 401,4 202,1 * 22,3 6,6 Increase associated others in Reduction loans companies in from and others : Reduction Increasein loans to associated companies and Increasein stocks stores and township property Increasein creditors and deferred taxation ...... Increase Decreasein debtors ......3.. wanes 638,6 Increase Decrease in cash balances 6.0.0.0: ..000c ceed en bees 19,4 280,0 1983 Group ' 1982 737,7 46,5 784,2 .354,1 138,3 19,1 727,7 198,5 926,2 249,7 | 4,5 |. - 254,2 58,2 |. 121,3 | 433,7 |= 410,4 - 178,6 to statements Notes the financial Figures inin R million unless otherwise stated 1. Capital ' Authorised - me ordinary 240 000 000 shares of 10 cents , 758 750 six per cent cumulative preferred stock . 49650 000 redeemable cumulative preference shares of 2,5 cents Issued 226 ordinary _ 998 191 1982 226 020 156 shares of 10 cents R4-758 750 six per cent cumulative preferred stock 40 000000 redeema9ble cumulative preference shares of 2,5 cents * ie | i Unissued 844ordinary 13 001 809 1982 13 979 shares of 10 cents : 650 000 redeemable cumulative preference shares of 2,5 cents Reserved ordinary shares - 1.1 Share option scheme G outstanding Options granted and in discontinued in 1974 under a scheme which was : 7 : in . HF 700 centspeprer share on August 1. 1973 ; 1 a ee Bhs fal Number of shares *:. Changes during yeaErxercised Outstanding Outstanding ves Lapsed Exercised 31.3.83 31.3.83 Outsanding 31.3.82 2000 . 500 24200 24200 35 700 Options granted were for - 10 10 years or until two years after retirement . of the option holder whicheveris the earlier Shareinceintive ncentive scheme shares under During the year911 400 1982 200 scheme leaving available for issue ....- . - issued Le were issuu ednder the : 000 been advanced had 2, At March 1983 R18 620 000 1982 R7 625 * to the trustees of the scheme i rights 1.3 Conversion rights Shares reservedto cover the conversion a of holders of the ~ subsidiary see 7.5 + and per cent convertible loan raised inin 1971 by fs a company note 7.5 : Preference shares - : July commencing The 000 000 redeemable cumulative preferenceshares of 2,5 cents each were issued at a premium of 97,5 and are redeemable at theissue price in issue four equal yearly instalments 1985. The rate of dividend isis 10,5 cent per cent per annum calculated on the issueprice of R1 per share . . preference cumulativ Remaining unissuedshares meeting The remaining 786 834 ordinary and 9 650 000redeemable : directors until the forthcoming annual general shares are underthe control ofthe | Share premium Ordinary : shares _ Balance at March 31 1982 700 >, Premium on 920 1982 222 shares issued under the share incentive and share convertible optionschemes _ Premium on57 135 1982 54 458 shares issizedin respect of the loan . . 3. distributable reserve a : . - : : Group . Corporation 1982 .1983 351,9 351,9 i. a ; BN a . oe Ck March Balaa t Mn arc ch e 1982 1... cece ee csc rates eee eee e een eneeees Adjustment thereto for changes in exchange rates -.+. --+ . seer. eee- eees 1983 1.342,0 342,0 . 1982 031,4 0,6 1.032,0 ; share profits 0s Peers Revaluation surpluses on land and buildings . companies e rene eect ees . 2,4 + 70,3 Group's of retained of associated companies .....-.5--.e 7 114,8 2367 Changes in distributable reserves of associated companies :. 239,8 3,3 : : Other . 2,5 6,3 . - 351,9 Se, me 1696,7 1342,0 | distributcaombprlisees rr ann reserve YS on of land : - Surplus revaluation and buildings - 0. seen eee eee eee . Associated companies net retained profits and reserves ...e .. e ..+ x 351,9 *. Other ........ ta daee seve beeeeteneebeesenereee eee ae eee 125,9 | - 1.196,4 0 374,3744,4 0 oe 696,7 OE 128,3 '. 841,8 >> - 371,9 9 342,0 351,9 co, ; ; - 4. Distributable reserves a ". C'"! orporation General Unap- . reserve fi... propriated : eee) > profit ' 303,0 = 1,0 ae wos \ oes . : oe Total Don ne Me an . aot Ze LP a oe .Total et Ce ~ : Balance Cans rt et ete 304,0 Be Adjustment NO -. Balance at March 1982 2..... seedeeees 4. thereto for changes - 2 rates Be exchange : Retained 205,0 La 3,11 PEE : 380,7 117,3 1.471,5 oe 2 oe Unap- 20 propriated =." : profit POW a es er cere Outsiintdeeresshtsareholders interests The of the outside shareholders subsidiary companies amounted to R480,2 million at March 1983 1982 R415,0 to of million At March 1983 there was also attributable the outside shareholders interest R490,4 million 1982 R261,1 million in the exceC ss oa f mart ket value and directordisrvecatlourastion ofcaascsoacsiated companies a: nd gene erae l investments over thea ira boaok values 31 unallocated Marc19h83 The life assurance funds at which include additional inner reserves and : . of .<. actuarial valuation liabilities liabilities under assurance policies and contracts at that date surpluses exceed the ah po ee os ees loans 'Secured Lets Se 7.1 Debentures PO Cente Ep Be a fee of |. 7.1.1 The debentures 1983/1998 are repayable as to R7 000 000 in annual instalments 802). sees) Sh 28 of R500 on February each year and the balance R7 500 000 on February 1998 a 14) ,5 as to 000 of 7.1.2 10 debentures 1986/1996 are repayable R228 in annual instalments 20 be commencing December y/o.R22 31 1986 and the balance of R228 000 on * TE ee 3. December ne 1996.7... Leb e een egeaeenegegteseras bees ded ees | 31 repayable - 7.1.3 The 8,75 debentures 1983/1996 are in annual instalments of R25 000 plus * annual interest Cope the saved by the redemption of debentures in previous years with and : 31 final payment December 1996ese eewre aetna teense e ere Catr ee eee 7.1.4 7.1.5 The 6,5 debentures 1983/1987 are repayable in annual instalments of R50 000 on 31 December of each year and the balance of R1 300 000 on December 31 1987 ........ The 13,375 debentures 1991/2001 are repayable as to R5 000 000 in annual instalments of R500 000 commencing on December 20 1991 and the balance of R5 000 000 on December 14 2001 .... cece cece cern ec ee ence eee e rere neers 7.1.6 7.1.7 The 10 debentures 1986/2001 are repayable as to R7 500 000 in annual instalments of R500 000 commencing on December 29 1986 and the balance of R7 500 000 on December 2001 ee eee eee cette ne etna nen eee nee The 9,2 debentures 1983/2005 are repayable as to R3 960 000 in annual instalments of R180 000 on June 30 each year and the balance of R4 500 000 on June 30 2005 ...... 7.1.8 The 8,25 debentures 1983/2003 are repayable as to R6 000 000 in annual instalments of R300 000 each on June 30 of each year and the balance of R7 500 on June 30 2003 en eee eee eer teen tente eeee on ateeete eens 7.1.9 The 9,25 debentures 1983/1991 are repayable as to R180 000 in annual instalments of R20 000 on June 30 each year and the balance of R300 000 on June 30 1991 but may be repaid in full on giving three months notice to the debenture holders be 7.1.10 The 9,0 debentures 1983/2003 are repayable as to R1 000 in annual instalments of R86 000 on December 31 each year and the balance of R2 150 000 on December 31 2003 7.1.11 The 6,25 debentures 1983/1991 are repayable in annual instalments of R57 500 on June 30 each year and the balance of R1 150 000 on June 30 1991 but may be repaid in full on giving three months notice to the debenture holders be repaid repaid ............ 7.1.12 The 8,125 First Mortgage debentures may be purchased on the open market or by private treaty at such prices and on such conditions as may be thought fit but not above par Any debentures so purchased are cancelled and may not be reissued Annual redemptions are reduced by any purchases In this way the obligation for redemptions has been fulfilled to June 30 1984 and the obligation at June 30 1985 has been reduced by R1 008. Annual redemptions at par thereafter are in instalments of R735 394 each June 30 up to June 30 1995 and the balance outstanding will be redeemed on June 30 1996 .............6.... 7.1.13 The 7,5 Second Mortgage debentures 1983/2001 carry the same terms and conditions in respect of purchases as in 7.1.12 above The obligation has been fulfilled in respect of redemptions to June 30 1984 as a result of purchases and the obligation to redeem on June 30 1985 has been reduced by R9 100. Annual redemptions at par thereafter are in instalments of R400.000 each June 30 to June 30 2001 ....... cece eee eee eee 7.2 Mortgage loan The loan secured by mortgage and bears interest at the rate of 6,25 per annum is repayable in yearly instalments of R5 000 until December 22 1984 and the balance of R259 000 on June 22 1985 Unsecured loans 7.3 Swiss francs 50 000 000 The loan bears interest at the rate of 5,75 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 day periods prior to November 15 in the years 1983 to 1986. The Corporation has the right to redeem the full loan earlier at par on any annual interest payment date The servicing and repayment of the loan are covered by forward exchange contracts with the South African Reserve Bank ...:.. 13,5 0,5 3,9 1,7 6,8 0,3 103,0 8,6 10,0 15,0 8,6 13,8 0,5 4,0 1,7 26,0 7,3 0,3 105,3 8,6 49 7.4 US 000 000 The loan bears interest at the rate of 7,5 per annum and is repayable at par in instalments of $ 000 000 on 1 March in each of the years 1984 to 1987 inclusive The Corporation may in certain circumstances make repayment earlier . 6. 7.5 US 718 000 ect c eee er tee reece ences s The loan bears interest at the rate of 6,5 per annum Holders have the right until January 31 31 1986 to convert the loan into ordinary shares of the Corporation at a price of R5,875 per share calculated at an exchange rate of R1 equals 1,40 The balance of the loan then outstanding will be days redeerned at par on March 1 1986 but may be repaidin full at par on giving no less than 90 notice The loari may be purchased at any time and at any price in the open market any price not exceeding 103 per cent plus accrued interest by private treaty Bonds purchased may be reissued or surrendered forcancellation The interest and repayment of the loan are covered by forward exchange contracts with the South African Reserve Bank at a rate of R1 equals 1,41 35,0 - 7.6 7.6 Registered rand debentures The % debentures are repayable in 14 equal annual instalments by drawings on the last Friday of March in each year with the final redemption on March 28 1997. The debentures may be purchased and if so are cancelled and may not be reissued and shall be applied in reducing the next redemption or redemptions At March 31 the obligation in respect of the 1984 redemption has been reduced by R84 000 2... ccc ee een eee E EERE EEE EEE EOE EE . 7.7 Debentures The 13,375 debentures are repayable in five annual instalments of R3 400 000 commencing the last Friday in June 1987 6..... cece eee e eee ener eee nee beeen renee ee Eee Eee EE EEE sa 000 completed : . 7.8 Project loan carrying Oy Loan facility of R66 000 carrying an interest rate of 10 per annum until the projectis and thereafter 10,6 per annum Repayable over thirty five years from completion of project 7.9 US 856 000 Corporation company Thisis the participation of the The loan was repaid during the year in loan raised by an associated } 7.10 110 000 The loan was repaid during the year 125,1 ' Total loan capital o. * cece eee eee eee eee tense ene e sees 2 Deduct Amounts payable before March 31 1984 228,1 13,2 214,9 Of the above loans the following relate to the Corporation itself Unsecured loans 7.3 Deduct Amounts payable before March 31 1984 ithe, peek cnet eb ee eee ena eects 946,4 million The borrowings of the Corporation by way of loan capital may not exceed R1 946,4 R1 665,2 millionin terms of clause 59 of its Articles of Association 1982 1982 53,7 11,4 42,3 50 8. Investment in associated companies Corporation 1982 1983 181,6 TT 216,6 Listed and Shares at cost less amounts written off provisions .............0.. Share of retained profits and reserves 000. ccc cece cues .........000. Group 1983 1982 1376,2 1119,6 1247,8 .762,8 775,8 62,3 414,4 Market value 0.0... eee cence teen eters eeeeneeenes amounts Unlisted 26,2 Shares at cost less written off and provisions . __Share of retained profits and reserves ..... provision. s ce. ce . ee. e ee. e c. es 5 780,8 109,0 76,4 279,8 . , 146,0 78,6 ay] 4 i i _ Se . : 123,2 243,9 90,1 76,6 Directors valuation 6.0... cece cece ete cen e eter e eect ea eeeee 285,1 343,3 242,8 Carrying value '... 2681,2 235,2 cece eee cee e eee e ee eeeeenees ' i 89,2 Long loans less provisions .........c.ccceceececeseeweeecees 101,8 96,3 j 334,0 332,0 list of the holdings is on page 57 , 2783,0 2331,5 _ : 9. General investments . a . ts At cost less amounts written off and provisions Corporation 1982 1983 : 18,3 7,4 | 17,4 7,5 Shares listed - unlisted . . . seed : me i Group } 1983 1982 - i ; 209,2 172,7 - i : 95,1 107,6 ; : " . 25,7 24,9 - 4 . 304,3 280,3 we eeeeeeeee 32,2 55,1 Long loans Stanek 1 ........... eeaee eee eet ans 7 87,7 56,1 | 57,9 159,6 14,6 174,2 80,0 -- 223,6 16,7 240,3 . ; 392,0 - Market 06.00. ee,2 ececseecccapececsieeweser 543,0 Directors valuation - unlisted 6.2.6. eee cece eee cette ence 181,5 nena . 336,4 962,7 191,2 9 is 1724,5 153,9 i 2 | : j ' thofe the holdingsis on page 60 wt OT ST i Life 10. assurance investments | i Fixed interest securities and listed equities heldin respect of unit linked investment portfolios are valued at market price while mutual fund units are valued at repurchase price Subject to the foregoing investments are shownin the when consolidated sheet on the following bases after making allowance for diminutionin value applicable v4 balance Government and public authority stocks debenture stocks and all dated fixed interest stocks Group Group _ 1983 1982 including redeemable preference shares which are normally held to redemption are reflected , of at amounts related to their redemption value and consist _ Government and public authority stocks . m, | . 490,1 312,4 Debentures and other loan stocks 6.00... 0.. 0. cece sec ecevcrcececucseeueteucccntnes : [> 57,7 66,9 |- Funds on deposit and treasury bills 26... cee cece cece cere Penesens rseeseeneae reflected respective Propertyinvestments are at cost or amounts based on periodic valuations of the underlying freehold land and buildings ....6..0 0... ccc cece cece cece e cece secu eneeeneeecece Listed and unlisted equities other thanin property owning companies are reflected at cost or revalued amounts based on periodic valuations of the respective equities and consist of 79,2 136,2 627,0 . 515,5- : i 424,5 304,0 i Listed equities and mutual fund units Unlisted equities 00. c ccc dec ccc ce cece ceeceauvtencaneane i | 264,6 17146]. 4 : . Mortgage and other loans and all other investments including funds on deposit are shown at par . redemption value and consist of . Mortgages secured over fixed property 2... 6.0... c cece cee ecscececnescseerenuneeucnveas Loans secured against group life assurance companies policies Other loans and investments '. .......... 20. cece cece ne cc ....... cc . cs . ac . ec. eu. ce. es eceeendeesesseeeteneeencevenvenes ' 11. Investment in subsidiary companies 7 Shares at cost less amounts written off and provisions Loans less provisions 2... coke c cece cee cece c .. 2.2... eee cccs cesses cauccuuceccccewes acc ccanerteetunnsentnnnteneceerncenens Dividends accrued 6. cece cece ccc ee cess ecuaaaeecestenuvecucevaae Less Loans subsidiary companies from ............ 0c cccccecccseceeceeeeeeeeeceeneucenas Included in mineral rights 0... ccc eke ccc k eee c cece ec eevceeseeSnnvunetetttnecucevenweus ag } 12. Investment in subsidiary companies not consolidated , Unlisted shares at cost less provision 6. cece eee ec c ee vere eect en eeteeteeevavecerianes Loans ee ec cece cnet rer ed eet e eee e eect ttt turevadtrebateeeeteennrcnenns . Lo : Less Loans from subsidiary companies 0... ee eee e eee eter ce eee eeva eee 13. Fixed assets : : = vate *. ~. Group Land and buildings - Investment properties .. . ' Other : vnc eee assets 20. vehicle2 s vehicles a. nd . equipmentequipment. equipment _ . Plant machinery motor vehicles and equipment , : : Mineral rights at cost less amounts written off Life assurance Furniture motor vehicles and equipment - at cost less accumulated depreciation and amounts written off .. 0.2 depreciatio. n depreciatio. ncen . ce ; : . Corporation Motor vehicles and equipment ......... peeee Mineral rights : Mineral rights at cost less amounts written off _, Subsidiary companies Shares and loans .... j Cost valuation 466,6 61,0 651,7 - 102,1 281,4 . 8,4 = . \ 1983 SS Depreciation Book value Cost ~ _ valuation a 466,6 3,0 58,0 | 206,4 445,3 54,8 47,3 264,2 a 1017,2 28,7 408,0 59,2 514,6 97,4 079,2 4,7 1050,6 moe . 1,3 7,1 _ . 5,4 0,9 ' 13,4 1983 1982 13,6 28,5 20,8 14,5 25,2 13,4 68,9 53,1 1391,0 050,0 Corporation 1983 1982 572,9 574,7 642,5 567,2 17,8 215,4 593,3 1 159,7 499,7 622,1 0,9 660,0 0,9 621,2 659,1 ~ Group 1983 1982 : 34,7 34,7 0.1 ' 34,8 4,4 0,1 34,8 .. 4,8 30,4 30,0 1982 Deprecia- tion . Book value = 1,7 - 192,0 47,9 241,6 408,0 57,5 322,6 49,5 837,6 - 26,5 : oe 3,6 | 867,7 _ : : 6,1 - 0,9 7,0 - .52 At March 31 1982 the land and buildings were revalued on an Limited property investment managers to the existing use basis by Anglo American Pty Land and buildings held by subsidiary group Property Services been hypothecated to secure loan companies included included at cost or valuation valuation of R341 300 R5 363 000 capital of R103 000 000 1982 R105 236 000 1982 R341 300 000 have A register of land and buildings is open for 000 and loans from others of R6 502 000 1982 authorised representativesrepresentatives inspection at the registered office of the Corporation by members or their duly 14. Stocks stores and township property 15. Contingent liabilities and 15.1 There commitments are contingent liabtiesliabilities in variousvarious currencies in Corporation respect of 1982 1903 Limited 33,1 419 15.1.1 Guarantees with another to certain lenders to the extent of the to BCL 6,8 6,8 In equivalent ...,, . respect of which provisionprovision has been made 26,3 35,1 guarantee with another of a loan to the Republic of Botswana Government of the equivalent In respect of which provision has bee.n. made 1983 20,7 13,3 27,0 8,4 Group 1982 24,0 7,6 29,5 7,3 69,4 68,4 Group 1983 1982 31,7 33,1 (10,2) . 22,9 1,8 24,6 12,2 1,4 10,8 subsidiary There are further guaranteesguaranteesguarantes by 15.1.3 Given to the Transvaal Coal companies Owners Association 1923 Pty Limited line the maximum maximum liability being R502 000 15.1.4 Given 1982 R588 000000 regarding the viability of a section of railway to the Richards Richards Bay Coal 1982 Terminal being R15 894 000 1982 R16 107 000 pCloums puanpnayidLiintemrestiintteerdesRt BCT regarding certain loans the maximum liability t the loan agreement dated December 5 53 15.2 There are commitments in respect of The support of the obligations of a company in Brazil whereby that company will provide funds to Empresa de Desenvolvimento de Recursos Minerais Codemin S.A. Codemin a company developing a nickel mine in Brazil until certain physical completion tests for the Codemin project have been met and certain financial tests have been satisfied as follows 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 R64 634 000 1982 US 000 000 R62 135 000 have been granted to Codemin against which US 939 000 R25 130 000 1982 US 260 000 R21 125 000 had been drawn at March 31 1983 provide or procure 38,88 per cent of any funds in excess of US 400 000 R107 796 000 1982 US 400 000 R103 626 000 which may be required to complete the Codemin project Other companies have undertaken responsibility for 55 per cent of these support commitments 15.3 Capital expenditure authorised by the boards of subsidiary companies 15.3.1 contracted for - R138 804 000 1982 R206 846 000 15.3.2 not contracted for R1 406 182 000 1982 R1 528 463 000 Finance for the above expenditure will be provided from internal cash flow and loans An estimated R494 million 1982 R540 million will be recovered from customers R196 million is estimated to be expended in the next 12 months vo 15.4 There are no material finance leases for the hire of fixed assets 16. Dividend income Corporation 1982 1983 79,2 14,6 ; ~ 93,8 ce, 17,4 0,8 18,2 112,0 74,5 16,3 - 90,8 15,0 0,8 15,8 106,6 : Associated companies Listed General investments Listed Unlisted ... Pn x : . Group 1983 1982 . 282,0 34,6 305,0 25,6 . 316,6 330,6 . . 103,2 29,4 132,6 449,2 - 117,8 24,2 : 142,0 .. 472,6 17. Income from subsidiary companies : an Dividends Fees .........06, Interest ........ SESSEOE Seen REESE SC OSOCOTOSOEOSOSIOS , e ee ene : companies ' Subsidiary Subsidiary companies not consolidated Dividends Interest - 2. ke eect cece eee ee . ee re SHEEN eee ete EERE REDE DEO OEE eee eee : 18. Costosf prospecting ; Costs of prospecting include the following charges relating to mineral rights Corporation 1982 1983 _ 1,1 : 5,0 - 0,7 1,8 . Mineral rights written off .....-..- peewee Provision against investments Provision against loans 2... eee aves : eee nee ete tenet eee ees 54 Corporation Corporation 1983 1982 147,0 225,0 19,8 5,8 14,1 3,7 172,6 242,8 Group 1983 2,1 1982 7,7 - 0,1 2,1 TT . 7,6 Group 1983 1,6 3,7 1,8 1982 0,1 5,0 0,7 19. Taxation Corporation 1982 1983 - 5,4 9,7 9,7 9.7 9,7 0,1 9,8 0,1 Dealt with as follows in the income statement Taxation 9,7 121,3 9,8 . . 120,3 South African income tax is not payable by companies on dividend receipts As the major portion of the income of Corporation and its finance subsidiary companies is comprised of dividends the for the significantly disporportionate to profit before taxation provision South African taxation is Profit after taxation The profits of the Corporation and the Group have been arrived at after taking into account the following Corporation =: 1982 1983 2,6 : 0,2 3,5 Administration and professional fees Amortisation of mining assets 0,2 Audit fees $ + b ! _ .0,9 3,6 0,7 11,7 0,6 , Depreciation and amounts written off plant machinery motor vehicles and equipment amounts ; Grants for educational and community development purposes : ; Leasing charges ..... : . Pension fund costs Surplus on disposaolf fixed assets The emoluments of the Corporation's directors and alternate directors from the Corporation and its subsidiary companies are as follows Directors fees Dividends On preferred stock - No. 106 and 107 of 3 per each declared June 1 On preference shares . _ 1982 and Novemb No. 8 of 5,25 per cent declared June 1 1982 No. 9 of 5,25 per cent declared November 25 1982 On ordinary shares No. No. 93 interim of 35 cents per share 1982 35 cents declared November 25 1982 94 final of 75 cents per share 1982 75 cents deciared June 1 1983 22. Extraordinary items Corporation 1982 1983 _ 2018 0,6 _- _ _- 2018 2018 - 23,1 9,7 13,4 (1,0) 1,0 _ _ Provision against investments Provision against loans Provision against investment in subsidiary company Extraordinary sharedealing profits Loss on disposal of loan Less Taxation Extraordinary items of associated companies surplus arising on consolidation Other items 14,0 1,0 23. Earnings per share . The earnings per share is based on the number of ordinary shares in issue at the end of the financial year ~ ; Jf . ~ : re a i. H Associated companies at March 31 1983 i ; 1% , : } { ' \ ig] 4 % 1 x 4 a ge : : > oo . . LISTED Mining finance and investment Anglo American Gold Group Units held Percentage held 1983 1982 1983 1982 Market value million Financial year : 1983 1982 Year for equity accounting purposes 2492,5 1448,2 _ Corporation i Units held ) Market - ' : million : : 1983 LS 1982 1983 1982 : . i . Lo ! 704,3 419,3 i ; : Investment Company Limited . Johannesburg Consolidated 578 578 48,6 48,6 1311,5 791,7 Feb 28.2.83 335 5335 656,2 396,1 23,2 Investment Company Limited 2900 900 39,7 39,7 365,1 171,0 Jun 31.12.82 114 - 380 48,1 Minerals and Resources : . : Corporation Limited ......... New Central Witwatersrand Areas Limited . ..........0046 349 . 67 849 707 233 668 400 40,7 40,0 41.6 37,8 808,5 7,4 480,3 Jun 31.12.82 5,2 Sepl 31.3.83 - ~ - _ . i ad - - - . Gold and uranium mining . 162,0 574,4 . . 506,0 224,5 i Witwatersrand and East Rand East Rand Gold and Uranium : 149,1 113,3 26,8 . 21,8 Company Limited .......... The South African Land & Exploration Company Limited . 069 2427 424 158 565 35,9 37,6 26,4 26,4 131,9 17,2 104,9 8,4 _ 0.0 1711000 1615 378 1615 15,3 11,5 16,2 5,6 West Rand - The Afrikander Lease Limited 998 Elandsrand Gold Mining Company Limited ........., 363 * * L" Western Deep Levels Limited ordinary cee eee ee options .. . . ~ 479 792 630 debentures 800 998 162 972 077 792 630 610 44,6 1012,9 44,6 10,5 461,1 4,2 Dec 49,0 49,5 509,2 217,9 _ 29,3 28,1 436,3 217,5 _- 15,5 6,7 41,4 14,8 : 31.12.82 : 234 479,2 235 4,3 202,7 1,7 31610000 7 * 663 457 083 286 838 ; 467 083 5717 339,8 146,1 Soy es 85,9 _ 8,9 46,2 - 3,9 40,3 4,8 oar : Vi a As , | nr fe re We ke : gd oo fe me z Diamonds De Beers Limited ConsolidatedMines : Seca sere ceeneeeens 727 Platinum . Rustenburg Platinum Holdings a Limited m alee 808.432 Copper mining SA Manganese Amcor Limited 657 112040 808 900 foe | Industrial commercial Anglo American Industrial Corporation . Limited ..... . Cullinar Holdings . Limited : LTA LimitedLimited . 790 395 709 vet 507 955 557 709 uo 34,2 23,8 29,8 46,4 23.0 28,7 1066,3 31,1 1066,3 '588,1 588,1 Dec : 31.12.82 . 407 841 : 407 72,9 : 72,9 44,1 _ 44,1 23,8 231,0 231,0 108,4 . . - 108,4 31 Aug 31.8.82 ' 305 ; 38,5 . 305 38,5 18,2 0 18,2 24.6 189,8 189,8 86,2 86,2 20 J 639,2 . 474,5 45,8 23,0 28,7 - 613,3 8,6 17,3 451,2 9,6 13,7 Dec Jun 31 Mar 5780,8-3279,8 5780,8-3279,8 5780,8-3279,8 : 20.2.83 : : 31.12.82 31.12.82 30.9.82 => 2728 737 2653 081 { ed ae . po ey f 92,7 69,7 os - - 2728 3737 80,5 .; 60,0 _ = 2653 2653 081 12,2 9,7 1414,4 775,8 we poet yl, Ao ae Be, poe 7 . + @ included Not in equity method of accounting for the reasons statedin accounting policy acounting Interest after minority % 1982 18,2 + Refer unlisted associated companies 2 $ Interest after minority 17,9 1982 12,3 UNLISTED _ Mining finance and : investment Anglo American Corporation do Brasil Limitada d : . - A quotas F = quotas .. . 7 G quotas eee M quotasAmerican American Australian Anglo Limited - Gold Eastern Gold Holdings Limited Western Deep Levels Limited - debentures partly paidt -.- . Diamonds Smade Holdings Pty Limited . Coal 8 Koolmyne Beperk Blinkpan . Mooihoek Colliery Limited Swaziland Collieries Limited Group Units held Percentage held 1983 1982 Directors valuation million 1983 1982 75,0 47,3 37717.187 37717.187 36 577 087 29,8 _ 45,0 282 942 619 983 188 46,5 5 : 800 16 000 46,7 29,8 45.0 . 45,0 46,7 403 630 - 403 630 29 947 200 50 000 200 ~ 610542 50 400 000 200 610542 3 . Financial year Year for equity accounting purposes 31.3.83 31.3.83 31.3.83 31.3.83 31.12.82 , 31.12.82 Copper and other mining Cleveland Potash Limited . ; . 500 000 000 - preference .... * - 25 loan stock 1987 .25 loan stock 1987 . + 000 000 000 000 000 000 .US US 320 762 US 320 762 = 25 loan stock 1988 200 200 273 . 25 loan stock 1988 2|... 242 530 788 Corporation - Gamsberg Zinc Limited B 334 005 : 334 005 Corporation Marico Chrome Pty Limited > i 000 000 Mopani Magnesite Pty Limited 2000 2000 Manganese SA As Amcor Limited so , . .. 572 50,0 50,0 50,050,0 ridl 50, 33,3 33,3 50,0 50,0 50,050,0 50,0 . General Finance : . Epoch Investments Limited as ordinary - preference ee 250 000 + 000 FLluoxtasfaSm.IAnvestments Limited . . : Soci^'t^F'inanci^reLouis | Grand . Tart Investments Limited A Tumstone Holdings Limited . .. 868 512 - 279 300 000 . Soe Banking wo oe : Corporation Anglo American ; do Brasil Limitada J'2 quoiaLsimitada Central Reserves 213 164 . 50 250 000 ~ 000 868 512 285 000 _ 279 000 . 100 . 398 50 . .- - 49,0 .50,0 ; 47,7 : 50,0 - 46,7 _: 50,0 36,0 49,0 50,0 17,1 45,0 65,6 : . , 10,4 : Industrial and commercial : Anglo American Corporation do Brasil Limitada . 136,7 162,4 a - H quotas - quotas . .. 6516 194 .. 049 6516 049 45,0 45,0 45,0 45,0 * includedin equity method of accounting for the reasons statedin accounting policy 2 _ . Now listed on becoming fully paid Now subsidiary company 31.12.82 31.12.82 31.12.82 . 31.12.82 . 31.12.82 i 31.12.82 31.12.82 - 31.3.83 31.12.82 58 Corporation Units held Directors valuation | million 1982 1982 270 , 270 707 ied bly SELEGT 227 500 50 000 _- vo 26,4 . 28,0 : nS 39,8 55,0 Anglo American Farms Limited Anglo American Industrial Investments Limited : Preference Bowring Barclays and - Associates Holdings South Africa Limited Cardium Holdings Limited .... Clay Products Limited Computer Sciences Pty Limited Consolidated Share Registrars Limited Units held Percentage held 1983 899 998 1982 998 1983 50,0 1982 50,0 1 000 002 3735 _ 2 235 985 500 100 - . : 002 3735 500 33,3 37,3 - 33,3 37,3 30,8 1920 642 : 19 370 26,3 -22,6 50,0 49,7 Directors valuation million 1982 Financial year Sept Year equity = accounting. - purposes 30.9.82 : 31.12.82 31.12.82 - 31.12.82 31.12.82 Corporation Units held 1983 1982 Directors Valuation Fimilion Fimillion 1983 .1982 ~ : > 1.100000 - =. an 50001 oe -: 343 500 750 750 50,0 50,0 31.12.82 G & W Industrial Minerals Private Limited . sete - 000 50,0 . : : : ~ 750 21,0 a - Beperk Mondi Paper Company Limited Shaft Sinkers Pty Limited aes Pty . Sigma Motor Corporation Limited * Stanley Motors Limited .-; . 1S,t. Lucia Sugar Farms Pty * Limited : ~ 500 '14211941 000 000 8319 165 725 000 . 25 000 547 500 941 000 000 8 202 697 * 000 : Limited B't Property - vanae . Botsalano Properties Pty : 2. + Limiled peevene 4 Creative Homes Limited _ ._ Isipingo Property Investments -- Limited 2. .: ~ Ve Main Place Holdings Limited . . a __ MGA Investments Pty Limited - 75 352 - 1000 559 104 49 . 75 505 352 * 1000 559 104 Sundry Labour Intensive Industries Trust Limited ; wee MinBleocr k Ma inelras ls Protec Pty Limited Limited . 4 100 , 000 : 4 100 000 - Limited a B voting .. Pees 500 1000 500 1000 30,0 . | 29,7 50,0 37,0 . > 50,0 : . 50,0 31.12.82 31.12.82 31.3.83 31.12.82 - 31.12.82 > : 30.4.82 - : 37,5 28,7 50,0 27,9 26,0 . : Dec June 31.12.82 30.6.82 : : : 28 Feb +J , un Feb 28.2.83 30.6.82 * 28.2.83 50,0 50,0 | . 25,0 . 30,0 3 50,0 . co : Do, fe Dec 31.12.82 Jun 30.6.82 Mar 31.3.83 . . . 31 Dec 31.12.82 . ~_ ~ . 511 3 .- 365 000 610983 610983 : 365 000 983 -. a 8213913 000 445 >. onc Pte 25 000 000 -. . * 285,1 343,3 after Aggregate attributable Poe tax profits and losses for the year to the group from its associated companies amount to : 1983 1982 : : R R Profits audited R107,6 million 1982 R152,9 million . Losses audited R31,0 million 1982 nil .. , - : . million million 146,5 - 236,2 40,3 _ . 106,2 236,2 Now a subsidiary company General investments at March 31 1983 * LISTED Mining finance and investment General Mining Union Corporation Limited Gold Fields of South Africa Limited Gold and uranium mining Witwatersrand and East Rand Bracken Mines Limited Mines East Daggafontein Mines Limited Kinross Mines Limited Winkelhaak Mines Limited West Rand Buffelsfontein Gold Mining Company Limited Deelkraal Gold Mining Company Limiled -. .. Driefontein Consolidated Limited Elsburg Gold Mining Company Limited Hartebeestfontein Gold Mining Company Limited . Randfontein Estates Gold Mining Company Witwatersrand Limited : Southvaal Holdings Limited Vaal Reefs Exploration and Mining Mining Company Company Limited . . Western Areas Gold Mining Company Limited Zandpan Gold Mining Company Limited Orange Free State Free State Geduld Mines Limited , President Brand Gold Mining Company Limited . . President Steyn Gold Mining Company Limited .. _.. Welkom Gold Mining Company Limited Western Holdings Limited Limited Apex Mines Limited . Vierfontein Colliery Limited , Witbank Colliery Limited . ;. Platinum Lydenburg Platinum Limited a 3 Copper and other mining | Botswana RST Limited ., . Zambia Copper Investments Banking an Barclays National Bank Limited Industrial and commercial ~ Barlow Rand Limited ae British Petroleum Company Limited . Gallo Africa Limited -. McCarthy Group Limited . Messina Limited Sasol Limited African .. The South African Breweries Limited '. ~ - preference . - ordinaryt . Stewarts & Lloyds of Limited The Tongaat Group Limited _ Tiger Oats and National Milling Company Limited . . The Union Steel Corporation of South Africa Limited Insurance ; South African Eagle Insurance Company Limited Sundry . ~. Other minor holdings : After minority 6 763 702 shares effectively held | 60 Units heid Group 1983 1982 5 538 539 010 5 538 010 24012 323 268 983 800 012 496 497 323 268 983 800 956 067 1014 186 581 1868 160 833 118 966 100 385 843 2660 2344 147 830 484 Market value R million * 1983 1982 210,8 121,7 138,0 72,8 89,0 32,7 923,1 42,9 0.1 584,5 7,4 35,4 603,1 500 2316 223 1.939 076 896 334 182 792 308 723 896 076 1384 465 792 226 650 569 527 328 204 639 133 479 894 226 650 558 527 2328 204 3614 133 479 894 Corporation Units held Market value 1983 1982 R million 1983 1982 13,4 7,2 200 675 59 199 200 59 199 - 5,4 3,6 8,0 - 3,6 154,6 3,7 108,2 1,8 161478 478 3,7 2 840 033 657 244 840 7366 7366 135,8 _ = 74,7 - ' 39,4 ~ 21,5 86 485 604 __ 000 > 485 305 604 33.000 342 342000 2.166 171 39 809 2166 171 39 809 444 114 1444 074 6974 699 087 856 962 087 569 2205 1 466 933 . 6 000 - 6 250 000 200 100 377 104 932362 932362 6 994 606 194 200 100 932 362 419 654 414 060 606 194 962 087 2544 277 087 277 134 615 : 615... 3 750750750 000 152 800 152 800 223,6 223,6 UNLISTED Mining finance and investment Empresas Sudamericanas Consolidadas S.A. - ordinary .... - preference Diamonds Abrasive Grit Sales Limited ... Cymberline Pty Limited - ordinary - variable rate cumulative preference The Diamond Purchasing and Trading Company Pty Limited .. The Diamond Trading Company Pty Limited Industrial Distributors 1946 Pty Limited - ordinary .. - participating preference . Industrial Grit Distributors Shannon Limited - ordinary .. A eae Copper and other mining Beisa Mines Limited . Tsumeb Corporation Limited General finance Management and Technical Services Limited A voting 2.6.6.5 B voting . D voting H voting Banking Group Group Units held 1983 1982 $ . Directors valu | ~~ million 1983 1982 61,6 74,3 69 300 45.000 600 100 000 300 000 600 100 000 78,9 77,7 461 185 000 756 185 000 330 000 000 330 000 150 000 28.000 200 000 200 1,3 == 380 952 000 380 952 105 000 6,0 5,7 Corporation Units held Directors valuation R million 1983 1982 _ . 1983 1982 - _ - _ 380 952 - -_ 5,2 5,6 5,1 5,3 The Discount House of South Africa Limited National Finance Corporation of South Africa Limited . Industrial and commercial Altemor Footwear Pty Limited J. L. Clark and Company Limited . 1.900 217 500 873 600 000 1900 217 500 873 600 38 094 19,0 20,2 217 500 873 217 500 873 - 25 396 3,4 3,4 : Conway Johnson Limited . Hall Longmore and Company Pty Limited Pipe Holdings Middelburg Steel and Alloys Holdings Pty Limited . Union Carriage and Wagon Company Pty Limited ... 905 000 147 4019 197 730 905 257 454 3511 R576 922 492 000 147 4019 197 730 905 257 454 776 077 923 820 156 730 192 820 156 730 192 Property 5,7 3,0 5,5 2,8 Anglo American O.F.S. Housing Company Limited ...... 637 500 637 500 615 131 615 131 1 Sundry 3,8 3,5 2,3 2,7 Edesa Soci^'t^A'nonyme Holding A.G. ...-..:eses evens Small Business Development Corporation Limited ........ 2400 500 000 2400 000 000 600 000 1600 000 181,5 16,7 14,6 Principal subsidiarysubsidiary companies at March 31 1983 Incorporated in South Africa Finance and investment Company African and European Investment Limited . ordinary . preference Investment Anglo American Investment Trust Limited - ordinary - - preference | Delaunay Limited . - A shares B shares .. Delaunay Two Limited Eurangio Limited ...... First Consolidated Holdings Pty Limited Marjoram Holdings Limited Metals and Minerals Investment Corp. Numitor Investment Holdings Limited .. shares . B shares The New Era Consolidated Limited : Rand Selection Corporation Limited . Rhochar Holdings Limited Selection South African Mines Selection os Limited South African Townships Mining and Finance Corporation Limited 220.20... . Tarchon Investment Holdings Limited Turnstone Holdings Limited shares 0... = - shares ... Turnstone Two Limited .. ae Western Ultra Deep Levels Limited ..- Resources Zinchem and Industrial Mineral Pty Limited ......0 es seeeeee Life assurance Issued share capital 1983 R000 1982 R000 Interest in share capital Direct 1983 1982 % % Indirect 1983 1982 % % Book value - Corporation R million Shares 1983 1982 Loans 1983 1982 180 500 5000 000 4 . 400 6906 180 3500 000 000 1 ~ - . 400 2 906 . 550 625 27 5000 4460 - 550 625 27 5000 460 1 . . 1500 2096 i ~ - 1500 2096 8 _ 21 21 282111 282111 282111 282111 282111 282111 282111 888-08 888-08 888-08 888-08 888-08 18 18 88170 88170 88170 88170 88170 85 85 85 _ 821 821 821 821 821 821 821 1808 1808 1808 1808 1808 1808 188120 188120 188120 188120 188120 188120 188120 821 821 8121 8121 821 821 8121 8121 | 18-888 18-888 18-888 18-888 18-888 18-888 || || - 22/08 22/08 22/08 117887 117887 117887 117887 117887 117887 117887 133111 133111 133111 133111 133111 133111 22/08 - 81 81 | ... " 111 111 111 16 ! R ... ! 20,9 _ $ | * . 18 18 | 11 11 . . 3,1 298,9 5,5 8,6 . 3,8 > . _ 0,8 _ _ 3,1 298,9 5,5 8,6 _ . * . = 0,5 .0,4 A | | 18 18 % 16,7 22,1 48,7 25,9 _ 102,0 _ 56,1 : - 3.8 _ - _ 61,6 10,6 47,8 _ 121,3 ~_ 4,6 4,6 18 18 18 18 18 10,8 . - _ Mining andprocessing Amcoal Collieries Limited Corporation Anglo American Coal Corporation Limited Vereeniging Refractories Limited . . - ordinary .... 7 - preference oe Zaaiplaats Tin Mining Company Company Limited .. steeee Property owning Anglo American Properties Limited Anmercosa Land and Estates Carlton Centre Limited . . Carlton Hotels Limited . . Incorporated in Australia Finance and investment Angborne Limited Investments Australia Proprietary 2.2.02. a Managerial services . Australian Anglo American Services Limited ...,. Incorporated in Botswana Managerial services Anglo American Corporation Botswana Services Pty Limited Nominal amount 62 3283 1375 3283 1375 702 220 2552 1000 268 702 12220 12220 2552 1000 268 234 3460 14 190 436 85 031 3460 14 190 436 000 - 000 1 1 1000 P000 1000 P000 . | | - 2 oad 81 100 81 - _ - 100 NI NI III III III 1811 1811 1811 1811 _ _ 100 88 88 52 52 878 878 878 8125 8125 8125 8125 100 100 1,4 52.878 52.878 1,4 52.878 52.878 - 52.878 _ 52.878 - TIT TIT TIT TIT 100 100 - 100 100 _ _ _ 1 : _ ~~ 1,4 ~ 26 26 _ 26 i * - 0,6 - 5,1 I ... ... 47,9 5,7 7 end 44,5 5,7 _ _ - nd . 0,2 0,1 Incorporated in Liberia Finance andinvestment Anglo European Holdings Limited . . Benam Investments Limited ... Codemin Holdings Limited . . shares . Falcon Investments . voting ........ B voting . Hime Holdings Limited . A shares Raglan Investments Limited A shares .......4.5 Revetment Holdings Limited A stocks C K stocks Issued share capital 1983 .1982 000 000 Interest in share capital Direct 1983 1982 % % Indirect 1983 1982 % % 6 6 2 2 . . . 1 116 1 116 81 81 8 - 100 95 11888 11888 11888 100 45 - 100 18 318I 318I 318I 318I 11888 , . 100 1811 318I L , 8 1811 | . 6 67 18 18 1811 g 5 67 100 18 1811 > Book - value Corporation R million Shares Loans Loans 1983 1982 1983 1982 * 1 6.1 - 47,0 8,7 . 27,2 _ 118,4 . 19 4,6 41,9 7,2 20,9 _ 124,7 . - =_ I =- 240,8 238,2 Incorporated in Luxembourg Finance and investment Anglo Australia ....... - A shares .. B shares .. Anglo Rand Holdings S.A. shares .... shares .... Axalux Holdings Limited . . 000 000 2050 660 3000 500 1631 2050 660 3000 500 1631 100 ~_ 100 - 100 888 888 888 888 888 18 18 = 81 81 18 18 181 181 181 1,8 - 2,6 _ 0,7 215 215 215 215 215 1,0 0,3 I Incorporated Zambia Finance and investment Anglo American Corporation Central Africa Limited .......... . K000 K000 : * 500 2500 I I 100 100 =: we - Incorporated in Zimbabwe Finance and investment 000 = 000 RIL Limited 2.2c. cer6 e e e. ee e2 ens 100 100 _ _ 100 100 _ _ _ Life assurance Southampton Assurance Company of Zimbabwe Limited ..... eee ec esse en ene neen een eee eee Other oo cece cece cece et ee teen erers 1000 1000 - _- 98 100 _ - = 12,3 572,9 22,2 574,7 10,1 642,5 In the opinion of the directors the publication of information on the principal subsidiary companies of the group is more meaningful for a proper appreciation of the affairs of the group than publication of such information on all the subsidiaries Accordingly with the necessary consent terms of the Companies Act 1973 the names of various subsidiaries have been excluded all of which however are included in the consolidated : annual financial statements as set out in accounting policy 1. Shareholders may obtain a copy of the list of all subsidiaries at the financial year on request to the registered office of the Corporation Aggregate after profits and losses attributable to Anglo American Corporation of South Africa Limited from its subsidiaries amount to R million 1983 .. 1982 Profits Losses been eens 409,9 0,9 435,0 2,8 Nominal amount THIS PAGE IS LEFT BLANK INTENTIONALLY Interests of the Corporation Anglo American Corporation and its subsidiaries AAC have interests in a wide range of financial mining industrial prospecting insurance and other companies In many cases additional interests are held by finance and investment companies administered by or associated with AAC Information on the principal interests follows Unless otherwise stated all monetary amounts are expressed in South African Coal Anglo American Coal Corporation Limited Amcoal Blinkpan Koolmyne Beperk Morupule Colliery Proprietary Limited Indumeni Limited Vierfontein Colliery Limited Other mining Botswana RST Limited Cleveland Polash Limited Gamsberg Zinc Corporation Limited Rustenburg Platinum Holdings Limited S.A. Manganese Amcor Limited Samancor currency Companies administered poration are shown by by the Index Principal finance and investment companies Anglo American Coal Corporation Limited Amcoal Anglo American Corporation do Brasil Limitada Ambras Anglo American Corporation Zimbabwe Limited Amzim Anglo American Gold Investment Company Limited Amgold Anglo American Industrial Corporation Limited Amic Anglo American Investment Trust Limited Anamint Anglo American Properties Limited Amaprop Australian Anglo American Limited Barlow Rand Limited De Beers Consolidated Mines Limited De Beers Sudamericans Consolidadas SA Empresas General Mining Union Corporation Limited Gencor Gold Fields of South Africa Limited Cor- Page 65 65 65 67 666668 666668 666668 666668 666668 69 69 Tsumeb Corporation Limited Industry and commerce Anglo American Farms Limited Amfarms Anglo American Industrial Corporation Limited Amic , Computer Sciences Proprietary Limited Consolidated Metallurgical Industries Limited CMI Cullinan Holdings Limited LTA Limited Mainstraat Beleggings ( 1965 Beperk McCarthy Group Limited Middelburg Steel and Alloys Holdings Proprietary Limited Mondi Paper Company Limited Natal Tanning Extract Company Limited Shalt Sinkers Proprietary Limited Sigma Motor Corporation Proprietary Limited South African Breweries Limited Tongaat Group Limited Union Carriage and Wagon Company Proprietary Limited 4 Vereeniging Refractories Limited Zinchem & Industrial Limited Zimo MinerMainleralResources Proprietary 88 Property 88 Anglo American Properties Limited Limited Amanropt Johan esburg Consolidated Conslidated Limited JCI Company Minerals and Resources Corporation Limited Minorco New Central Witwatersrand Areas Limited NCW Western Ultra Deep Levels Limited Gold and uranium ' B' anking and insurance ' A n'glo American Life Assurance Company Company Limited 70 Barclays National Bank Limited Bowring Barclays and Associates Holdings South Africa Limited Afrikander Lease Limited FRR Discount House of South Africa Limited Page 155 155 155 155 155 PROPRK PROPRK PROPRK PROPRK PROPRK 76 76 REFEREE REFEREE REFEREE REFEREE REFEREE REFEREE REFEREE FEB FEB FEB 22 79 22 22 22 22 8 888 888 888 88 88 80 80 Buffelsfontein Gold Mining Company Limited FRR Driefontein Consolidated Limited FRR East Rand Gold and Uranium Company Limited Ergo Eastern Gold Holdings Limited East Hold Elandsrand Gold Mining Company Limited Free State Geduld Mines Limited Hartebeestfontein Gold Mining Company Limited Orange Free State Joint Metallurgical Scheme President Brand Gold Mining Company Limited President Steyn Gold Mining Company Limited South African Land & Exploration Company Limited Southvaal Holdings Limited Vaal Reefs Exploration and Mining Company Limited Welkom Gold Mining Company Limited Western Areas Gold Mining Company Limited Western Deep Levels Limited Western Holdings Limited Winkelhaak Mines Limited FRRRFERR FRRRFERR FRRRFERR FRRRFERR FRRRFERR FRRRFERR FRRRFERR FRRRFERR RRRRRFER RRRRRFER = RRRRRFER RRRRRFER RRRRRFER RRRRRFER 74 RRRRRFER Principal finance and investment companies Anglo American Coal Corporation Limited Amcoal AAC equity interest - 50,9 per cent AAC's major investment in coal is represented by its interest in Amcoal one of the largest privately coal mining groups in the world having a substantial investment in the South African coal industry through its 12 operating collieries which mine coal and anthracite sold on domestic and export markets The Amcoal group owns property mineral and coal rights in participates the Transvaal in the coal Natal and prospecting Orange programme Free State and of AAC and its associates Diamonds De Beers Consolidated Mines Limited De Beers 74 Amcoal holds a 52 Refractories Ltd a major products in South Africa per cent producer interest in Vereeniging of refractories and allied Year 15 months ended March 31 ended March 31 1983 1982 Issued capital 24 439 890 50c shares Total shareholders funds Long and medium loans Fixed assets less depreciation R000 220 019 19 326 251 R000 220 026 19417 43 245 Mining assets at cost less amortisation Equity earnings per share Dividends per share Details of Amcoal's principal 445 836 113 444 464.2c 35 438 145c operating interests 322 187 131 251 537.0c 570 166c appear on page 75 of this report Anglo American Corporation do Brasil Limitada Ambras Ambras is the vehicle for investment by AAC De Beers and Minorco and their associated companies within Brazil and is so structured that investors may participate in different proportions in its various spheres of activity Ambras main investments are in gold and nickel exploration banking the per cent food industry and steel AAC holds an effective 37 in Ambras gold investments and 46 per cent in its other investments Ambras major gold investment is its interest in Minera^^o Morro Velho S.A. MMV which operates the biggest Brazilian underground gold mine and other gold mines near Belo Horizonte in the state of Minas Gerais The first phase of the Raposos project an expansion programme for 100 000 doubling MMV's production capacity to tons a month was approved in the last quarter of 1982. A 20 000 tons a month treatment plant at the company's new mine in Jacobina in the state of Bahia was commissioned in the third quarter of 1982 Ambras increased its interest in Banco Bozano de Investimento S.A. BBSI a leading investment bank during the year and continues to hold a significant interest in Cia Bozano Simonsen CBS the holding company of the Bozano Simonsen group Cia Siderurgica Hime Hime in which Ambras holds 49 per cent and CBS the balance has recently commissioned a new steel plant with an annual capacity of 150 000 tons of rolled steel Hime also operates a second plant for the production of light steel shapes and bars forgings and foundry products The Codemin nickel mine in which Ambras holds 35 per cent was successfully commissioned during 1982 Ambras has a majority interest in the Iracema cashew nut processing company in Ceara which has a capacity for 20 000 tons of raw seed a year Anglo American Corporation Limited Amzim AAC equity interest - 16,6 per cent conjunction Amzim in , conjunction with certain holds the Interests in Zimbabwe of AAC as ociated and Minorco and has a widely diversified portfolio which includes major mining investments in coal nickel and copper engineering Industries iron steel and allied citrus sugar general agriculture forestry and timber processing flour milling rolling stock hire property merchant banking and finance Year ended June 30 1982 Issued capital 212 shares Total shareholders funds Investments Listed - book value - market value Unlisted - book value Equity earnings per share 1982 ZSO00 709 591 26 932 18 248 864 11611 20.56 1981 25000 709 651 698 405 324 104 18,4c 84 Glass cladding being applied to 11 Diagonal Street Amaprop's dramatic office development in the financial area of central Johannesburg The building is by US architect Helmut Jahn who is also designing another for Amaprop in central Durban tigy Ny feos ad i 99 Major investments of Amzim at June 30 1982 were Bindura Nickel Corp. Ltd Border Timbers Ltd Hippo Valley Estates Ltd National Foods Holdings Ltd RAL Holdings Ltd Wankie Colliery Co. Ltd Zimbabwe Alloys Ltd Effective percentage interest 63,1 53,1 29,5 18,2 38,8 19,6 55.6 Anglo American Gold Investment Company Limited Amgold AAC equity interest - 48,6 per cent Amgold is an investment company with substantial interests in South African gold and uranium mines an interest recovery a group of gold mines in Brazil and in a gold operation in Australia The also participates company in gold Africa and uranium prospecting programmes in southern Australia South America including Brazil and Spain and in the ownership of mineral rights in South Africa Year ended February 28 1983 Issued capital 21952012 R1 ordinary shares Ordinary shareholders funds Investments Listed - book value market value Unlisted - book value - directors valuation Loans Equity earnings share Dividends per share 1983 R000 952 291 696 460 2946 648 5401 = 55 011 16930 195 562 891c 188 787 860c 1982 ROCO 952 285 250 252 283 858 247 12618 33771 10221 347 1122c 520 subsidiary The principal investments of Amgold and its company Orange Free State Investment Trust Ltd. at February 28 1983 were Percentage Anglo American Corporation do Brasil Ltda indirect Blyvooruitzicht GM Co. Ltd Buffelsfontein GM Co. Ltd Deelkraal GM Co. Ltd Doornfontein GM Co. Ltd Driefontein Consolidated Ltd Eastern Gold Holdings Lld East Rand Gold and Uranium Co. Ltd Elandsrand GM Co. Lid Free State Geduld Mines Ltd Gold Fields of South Africa Ltd Hartebeestfontein GM Co. Ltd Kloof GM Co. Ltd Loraine GM Ltd President Brand GM Co. Ltd President Steyn GM Co. Ltd St. Helena GM Ltd Southvaal Holdings Ltd The S.A. Land & Exploration Co. Ltd The Afrikander Lease Lid Vaal Reels Exploration and Mining Co. Ltd Welkom GM Co. Ltd Western Deep Levels Ltd Western Holdings Ltd Western Ulira Deep Levels Ltd Zandpan GM Co. Ltd interest 20,0 6,8 20,2 8,6 7,0 12,4 9.5 20,5 23,3 20,2 10,9 15,5 8,0 12,2 20,0 20,6 18,6 13,3 17,7 17,5 16,6 19,0 13,2 10,9 28,9 13,2 companies Details of the operations of certain of these pages appear in the section on gold mining companies on 70 74 Anglo American Industrial Corporation Limited Amic AAC equity interest - 46.4 per cent The Amic group engineering is invested primarily in the fields of iron steel explosives and industrial and chemicals mining and construction tools equipment and contracting services packaging paper forestry sawmilling and timber proces- sing sugar maize and starch processing and food motor assembly and distribution freight and travel building and construction and electrical engineering and electronics Year ended December 31 1982 1982 1981 Issued capitalcapitl R millions millions 676 782 R1 ordinary shares 1000000 5,625 per cent 45,7 27,0 cum first pref shares of R2 2,0 = 403 12.375 per cent red second pref shares of R1 funds Ordinary Long- and medium loans 1361836,8,66 196,0 = 623,1 154,6 Associated companies Carrying value - excluding loans Market directors valuations 701,2 760,3 182,3 281,1 Investments Book value Market or directors valuations 25,4 47,6 Equity accounted earnings per share 186,8 41666 41666 Ordinary dividends share The principal operating companies and major investments 31 December 1982 were 80,7 180c principal of the Amic 31,0 99,2 178,7 60266 44,5 165c group at Percentage Principal operating subsidiaries interest African Products Pty Ltd Boart International Lid Bruynzeel Holdings Ltd Control Logic Pty Ltd Highveld Steel and Vanadium Corp. Ltd Mondi Paper Co. Ltd The Natal Tanning Extract Co. Ltd Scaw Metals Lid Principal associated companies . 100,0 100,0 100,0 80,0 50,1 62,7 62,7 100,0 AECI Asea Electric S.A. Ltd Freight Services Holdings Lid Haggie Ltd Pty Industex International Ltd Pipe and Steel Investments 39,5 49,8 40,3 36.1 37,5 . SA Pty Lid LTA Ltd McCarthy Group Ltd Sigma Motor Corp. Pty Ltd The Tongaat Hulett Group Ltd 31,3 35,7 . 24,6 38,0 28,1 Major investments Barlow Rand Ltd The Union Steel Corp. of SA Ltd Vereeniging Refractories Ltd 1,0 13.1 15,4 Subsequent to the year end Amic and AAC acquired the 25 previously per cent interest in Sigma previously held by by subsidiaries of the Chrysler group Amic and AAC now each have a 50 per cent interest in Sigma companies Details of the operations of certain of these appear in the section on industrial companies on pages 76 79 Anglo American Investment Trust Limited Anamint AAC equity interest - 52.2 per cent Anamint is an investment company the principal holding of which is a 27.3 per cent investment in De Beers deferred shares that contributes over 60 per cent of its investment income Information on De Beers in which AAC holds a further 6,9 per cent appears elsewhere Anamint's other investments are in certain unlisted diamond trading companies Year ended March 31 1983 Issued capital ordinary 250050c ordinc aru ymsphraerfes shares of R2 Total shareholders funds Ordinary shareholders funds Interest in associated compcoamnpyany Caring value Markel value 1983 R000 5000 5000 709 709 515 394 1982 R000 5000 5.000 298 298 436 890 510001 Other investments Directors ' valuation earings earings retained excluding retained profits of associated company including profitsprofits as ociated of associated company share per Ordinary Ordinary dividends share 11656 78923 . 59411 594c 135 148 1351c 000 590c 11656 666 70217 702c 186 677 1867c 000 700c Anglo American Properties Limited Amaprop AAC equity interest - 65,6 per cent . Amaprop is a property finance company with a diversified spread of Investments mainly in the major cities of South Africa has interests in city centre and suburban office and shopping hotels medical suites and parking garages In addition it has land holdings and township developments in the Transvaal Natal and Cape Province Year ended March 31 1983 : Issued capital * : 1983 . R000 1982 R000 . 42617 ordinary distributable reserves Retained profit Tolal shareholders funds Outside shareholders interest Long liabilities Properties and equipment Township properties and debtors Profit the year Dividends paid per share 85 234 196 737 211 167 66 968 156956 156956 414506 14 685 707 7671 18c 85031 116276 5611 206918 64 195 135 365 .370 116 794 548 952 14c Details of Amaprop's interests may be found on page 80 of this report . Australian Anglo American Limited AAC equity interest - 46,7 cent Issued capital 18 000 000 in 50c shares The company was formed to investigate the establishment of regions which mining activities in Australia and neighbouring it is now doing through exploration investment and acquisition of joint venture interests in developing properties The company is participating in a gold tailings treatment exploration Queensland operation in and gas exploration has a small investment in an oit and is conducting active programmes in Australia and New Zealand Barlow Rand Limited AAC equity interest - 6,1 per cent A South African industrial mining finance and investment company which heads a large and diversified group which operates in southern Africa the United Kingdom the United States and continental Europe The principal interests and activities of manufacturing mining electronics building and and general engineering ; group the construction include heavy supplies equipment paper and : sugar food and textiles 67 In Brazil Ambras is expanding its production of minerals 1 Nickel bars are cast at Codenun nickel mine in which Ambras holds a 35 per cent interest 2 A new incline shaft at Jacobma mine in Bahia where a 20 000 tons a month gold treatment plant 3 has also been commissioned Year ended September 30 1982 1982 Issued capital R millions 144 666 10c ordinary shares 000 6 cent cum pret shares of R2 Ordinary shareholders funds Long liabilities Book value of fixed assets Excess of market value of listed investments and of directors 14.4 0.8 294.4 793.6 2377.8 valuation of unlisted invest- ments over book value Equity earnings per share Ordinary dividends per share 280.5 245,9 175.1c 99.1 70c 1981 R millions 12,6 0.8 1013,7 440,7 522,9 181,6 257,3 204,2c 88,4 70c Deduct Transfers to reserves including share of retained profits of associated companies Deferred dividends Increase in unappropriated profil Earnings per deferred share excluding retained profits ol associates including retained profits of associates Dividends per deferred share 1982 R millions 38.0 56.3c 123.0c 37.56 1981 millions 288.5 179.9 468.4 159,9 101,1c 101,1c 174,6c 50c Year ended June 30 1982 Issued capital 335 477 25c ordinary shares Total shareholders funds Loans received Investments Listed ~ book value market - value Unlisted - book value - directors valuation Equity earnings per share Dividends share 1982 R000 084 398 082 390 258 584 301 022 494 331 781 807c 81677 500c 1981 R000 4081 348 263 20510 394 1391016 23971 73 384 166611 1021c 622 500c De Beers Consolidated Mines Limited De Beers AAC equity interest - 34,2 per cent Interest after minorities - 21.1 per cent The principal activities of the De Beers group are the mining of natural diamonds the manufacture of synthetic diamond and related hard material the marketing of diamonds produced by the group and by other producers and the management of a portfolio of investments outside the diamond industry Details of the operations of the De Beers group may be found on page 74 of this report Year ended December 31 1982 1982 Issued capita R millions 000 40 per cent cum pret shares of R5 929 8 per cent cum second 4.0 pref shares of R1 2.8 359 789 042 5c deferred shares 1981 R millions 4,0 2.8 18,0 Total shareholders funds Deleried shareholders funds Long liabilities interst 565,7 3 558,9 64.0 59,7 t Diamond mining and trading assets stores and materials Diarnond stocks Investments Listed - carrying value - market value Unlisted - carrying value - directors valuation Long loans Other assets Net current liabilities 585,0 1832.3 1612,7 3059,9 129,3 223.8 96.8 120.7 172,2 689.4 538,3 403,1 1376,2 2 292,4 161,7 568,1 568,1 156.0 140,2 86,1 204.6 689,4 Empresas Sudamericanas Consolidadas S.A Empresas AAC equity interest - 18.0 cent AAC and associates hold a 40 per cent equity interest in Empresas the remaining 60 per cent being held by Consolidated Mining and S.A. Empresas has extensive mining and industrial interests in South America Its major operations are Mantos Blancos copper mine in Chile Codernin nickel mine in Brazil Arcata silver mine in Peru and Petrosur an Argentinian fertilizer producer Other activities include mining of niobium phosphates and tungsten as well as the manufacture of industrial fumaces in Brazil and the production of cement in Peru Empresas has recently acquired a 69.7 per cent interest in Copebras a major Brazilian producer of carbon black fertilizers industrial phosphates and gypsum General Mining Union Corporation Limited Gencor AAC equity interest - 6.5 per cent Gencor is a mining finance company that has substantial interests in companies producing gold and uranium platinum chrome ore ferrochrome asbestos coal and base metals It holds a wide range of interests in both light and heavy engineering In paper production packaging and printing farming and food shipping construction steel production foundry products concrete steel and asbestoscement pipes pipeline construction refining cf oil and marketing of petroleum products and mining equipment Year ended December 31 1982 1982 1981 Issued capital 778 40c ordinary shares 250 000 6 per cent pref shares of R2 Long liabilities ROCO 31912 500 748 366 R000 31912 500 269 702 Johan esburg Consolidated Investment Company Limited JCI AAC equity interest -39.7 -39.7 cent companies JCI a mining finance company with substantial investments in gold platinum diamonds coal copper and other minerals and in mining finance industrial property and financial investment Year ended June 30 1982 1982 1981 Issued capital R millions millions 7 600 R2 ordinary shares 34 500 000 fixed rate red cum 14,6 14,3 pref shares of 10c each Issued at 100 cents per share per yielding 11.25c per annum share a 5500 5500 000 variable rale red 3,5 3,5 cum pref shares of 10c each issued at 100 cents per share 000 000 A variable rate 0,5 0,5 . red cum pref shares of 10c each issued at 100 cents - per share Total shareholders funds Ordinary shareholders funds 4,0 387,1 307,1 4,0 331,2 251.2 Long liabilities Investments Listed - book value 62,0 . 186,5 39,4 143.5 market value Unlisted - book value 473,3 38,6 - 542,5 41,5 - directors valuation Equity carnings per share 99,0 86.1 1189c 112,1 98.0 1376c Dividends paid 43,8 42,8 per share 600c 600c At June 30 1982 the principal investments of JCI were as follows Diamond account including trade investment income Interest and dividend income Other Less Prospecting interest and other charges . 287,5 198,5 11.8 497,8 171,7 360,3 242.3 3.2 605.8 116.5 Ordinary shareholders funds Investments Listed - book value - market value Unlisted - book value - directors valuation Equity earnings per share . 239 307 075 140 908 202 609 651 267 430 335c 063 330692 1601 503 038 330 566 791 401c Gold . Elsburg GM Co. Ltd The Randfontein Estates GM Co Witwatersrand Ltd Western Areas GM Co. Ltd Platinum Percentage . interest 25,4 24,0 6.3 i . Consolidated profit before tax Taxation and State's share of profits under mining leases Consolidated profit after tax - Minority interests Share of retained profits of associated companies Net profit Deduct Preference dividends Net profit attributable to deferred shareholders Deduct Ordinary dividends Holdings 326.1 489,3 per share 139613 139613 175c 613 Rustenburg Platinum Ltd s 32,9 i | 175c Mining finance 89.0 101.1 Free State Development and Investment Corp. Ltd 49.9 i Gold Fields of South Africa Limited Diamonds 237,1 388,2 32,8 22,6 AAC equity interest - 3.3 cent De Beers Consolidated Mines Lid - 0,9 204,3 . 365,6 Gold Fields of SA is a South African mining and finance house which has a investments Other mining Bindura Nickel Corp. Ltd substantial portfolio of Consolidated Murchison 8,7 240,0 264,5 principally in gold mining companies and in Ltd antimony gold 25.2 companies 444.3 engaged in mining and processing of coal and base metals Otjihase Mining Co. Ltd copper 49,7 630.1 in finance industry and property In addition il controls Palabora Mining Co. Ltd copper 4,5 number of exploration and Tavistock Collieries Ltd a 100,0 1,8 1.8 companies Industry : 442.5 628,3 The Argus Printing and Publishing Co. Ltd Consolidated Metallurgical Industries Ltd 17,9 46,2 Share of extraordinary losses of associated companies 14.9 427.6 = 628,3 Lennings Ltd Shaft Sinkers Pty Ltd The South African Breweries Ltd Toyota South Africa Ltd Wesco investments Ltd 94.3 20,0 20,4 18,9 4,4 Property Downtown Real Estate Corp. Ltd Main Place Holdings Ltd Milpark Investments Pty Ltd interest 28,7 61,2 66,7 and Minorco Limited AAC equity interest - 40,7 per cent Minorco originally incorporated in London in 1928 has been domiciled in Bermuda since 1970. Over the last 13 years Minorco's interests have been rapidly expanded from + early dependence on the Zambian copper mining industry to their present diversity now encompassing major investments In companies operating in six continents across a broad spectrum of natural resource and related industries These companies are principally engaged in the marketing of commodities financial services the mining and marketing of precious and base metals and diamonds industrial operations and the coal and petroleum industries Year ended June 30 1982 1982 1981 : " " Issued capital 162919 1,40 ordinary shares 8572 1,40 deferred shares Total shareholders funds Investments US5000 = 228 088 12 637 050 000 222768 222768 12 1516 114 Minerals materials & Chemicals containing precious metals and the Division which manufactures performance products and speciality chemicals based on metallic minerals Net earnings in 1982 were 64.8 million compared with 66,4 million in 1981 Hudson Bay Mining and Smelting Co. Ltd is diversifed Canadian natural resource company with interests in base exploration and precious metal metalurgical mining and extraction and marketing and related industrial operations oil and exploration and gas and chemical marketing fertilizer and chemical : agricultural and and coal and marketing A significant mining part busines is its in of the group's business is through its interests in Inspiration Consolidated Copper Company Inspiration Coal Inc. Terra Chemicals International Inc. and Trend International Ltd. Hudbay Incurred a net loss of 8,7 million in the year to extraordinary December 31 1982 after laking account of an gain of 55,5 million on sale of a power plant with a net loss of 10,8 million in 1981. The company and Minorco recently announced a proposed reorganisation and financing of their interests Phibro operates on a wide basis through its two autonomous subsidiaries Philipp Brothers Inc. which markets a wide range of commodities and Salomon Brothers Inc. which provides investment banking services Net carnings carnings in 1982 increased to 337 million from 289 millio New New Central Witwatersrand Areas Limited NCW Listed - carrying value -market -market value 1317 783 1084 873 294 457 1522917 Unlisted - carrying value 230 306 211031 earnings on equity basis per share ca Dividends paid per share 128 204 0,80 842 0,22 171 768 1,43 31 447 0,22 Minorco's principal Investments at June 30 1982 were s , Anglo American Corp. do Brasil Ltda . Anglo American Investment Trust Ltd Anglo American Corp. Zimbabwe Ltd Australian Anglo American Lid Percentage Interest Gold - 20 Other - 25 10 47 Gold 24 Charter Consolidated P.L.C. Consolidated Gold Fields P.L.C. Sudamericanas Consolida s - Consolidadas Engelhard Corporation S.A. Hudson Bay Mining and Smelting Co. Ltd Imetal S.A. Inspiration Consolidated Copper Co. Inspiration Coal Inc. Salomon Inc. Terra Chemicals International Inc. Trend International Ltd Zambia Copper Investments Ltd Other -30 -30 36 29 10 28 44 6 50 50 28 50 43 50 Further details regarding certain of these investments follow or may be found elsewhere in this this report Charter Consolidated is an investment holding and finance company with substantial mining and industrial interests The principal mining interests are in coal tin wolfram and potash Industrial interests include railway track components and mining equipment Earnings for the year to March 31 1982 increased to 37,6 million from the previous year's earings of 32,6 million Consolidated Gold Fields is a based natural resource group with major interests in mining construction materials manufacturing industry and commerce The largest contribution to earnings is from gold mining The company has a 48 per cent interest in Gold Fields of South Africa Ltd. Net earnings for the year to June 30 1982 declined from the C equity interest - 40.0 per cent NCW is an investment company its main interests being in South African mining finance and mining companies 13 months Year ended September 30 1982 ended August 31 1981 Issued capital 1766 50c shares Total shareholders funds Investments F000 883 746 R000 883 1729 Listed - at cost -market -market value Equity eamings share Dividends paid per share 693 17312 1271 72c 1254 71c 1693 847 1432 81.1c 1413 80c Western Ultra Deep Levels Limited AAC equity interest - 60.3 per cent investments This subsidiary holds in gold mining and mineral rights over portions of various farms in the comprises Potchefstroom district of Transvaal The portfolio investments in the Driefontein Consolidated Elandsrand and Western Deep Levels mines having a market value at March 31 1983 of A88,2 million Borehole U.D. 33 was drilled for account of Western Deep Levels Ltd to intersect the Ventersdorp Contact reef in that company's extension to its lease area and south of its new No. 1 shaft system The hole was then deepened from 200 metres from surface to intersect the Carbon Leader reef the final depth being 4 294 metres In addition borehole U.D.34 drilled on portion 6 of a the farm Kraalkop district Potchefstroom reached final depth of 4 346 metres In terms of a participation agreement 22,5 per cent of prospecting expenditure is bome by Witwatersrand Deep Ltd. previous year's record of 110,2 million to 72,9 million Engelhard Corporation operates on a world basis through two divisions the Engelhard Industries Division which manufactures precious metal products and refines Gold and uranium Far West Rand and Klerksdorp Bufelsfontein Gold Mining Company Limited AAC equity interest - 8,7cent Year ended June 30 1982 1982 Issued capital 000 shares Area mined - square metres R11 927 679 Gold tons milled 262 yield - kilograms kilograms Uranium tons treated 8,54 844 3 000 yield - kilograms kilograms Cost per square metre mined Cost per ton milled Working profit 0.195 603 850 R201.28 R57.24 gold silver pyrite and acid uranium Capital expenditure R158211000 R16216 appropriated Taxation and lease payments Dividends per share 000 R72993 R59 540c 1981 R11000000 887 678 3372 8.16 517 3 137 000 0,196 615 100 R177.70 R46,78 R239 R17 000 R39 R125 665 000 R78 000 710c Planned capital expenditure for the year ending June 30 1983 R50 000 000 Limited Formerly East Driefontein Gold Mining Company Limited AAC equity interest - 2.6 per cent , Year . ended June 30 Issued capital R1 000 shares Area mined - square metres Tons milled Yield - grams Gold produced - kilograms Cost per square metre mined Cost per ton milled Working profit Capital expenditure Taxation and State's share of profit Dividends per share 1982 R102 000 1203 623 695 000 13,46 76 655,5 R221,43 R46,80 R684 075 R122 935 000 R397 488 000 R239 000 235c Average for East and West Driefontein mines As this is the first financial year following the merger of the mining assets of West Driefontein Gold Mining Company Ltd with those of the company no comparative figures have been shown for the previous period Elandsrand Gold Mining Company Limited AACequity interest - 49,0 per cen Year ended 31 December 1982 Issued capital 1982 " 95619825 shares R19 Area mined - square metres 000 Tons milled 1531 Yield - grams 5,32 Gold produced - kilograms Cost per square metre mined Cost per ton milled 8138 R247,03 R47,11 Working profit R39 000 Capital expenditure A25 000 Dividend per share R14 493 . 15c . 1981 965 256 000 1214 4.29 204 R237,92 R50,17 000 769 _- 31 Planned production for the year ending December 1983 Tonnage milled 1 680 000 Grade 5,7 grams a ton Planned capital expenditure R57 000 000 70 Far West Rand AdministbeyrAeAdC CI Producing mines Mineral rights mines 1. DoomfonteinDoomfontein Doomfontein 2. Byvooruitzicht 3. Driefontein Consolidated 7. Elandsrend 8. Venterspost . 9. Randfontein Estates A. West Cocks section 7 B. Easi North TheNew South B. Roodepoort Project 4. Western Ultra Deep Levels 10. Libanon 5. Western Deep Levels 6. Deetkraal 11. Western Areas 12. Kloof Gold Mining AAC equity interest - 7,3 per cent Year ended June 30 1982 Company Limited Issued capital 1982 1981 200 shares R1 Area mined - square metres 000 000 Gold tons milled 950 yield - grams 10,2 produced - kilograms 30094 Uranium tons treated 950 yield - kilograms 0,14 produced kilograms 206 Cost per square metre mined Cost per ton milled Working profit R225,87 R58,04 R1 20 0 0 R11200000 804 000 2994 10,5 31426 297 000 0,15 485 949 _ R187,62 R50,38 gold uranium pyrite and 022000 R302R3028 854 50040 sulphuric acid Capital expenditure > Taxation and State's 000 000 - R14 R16 000 share of profit Dividends per share Zandpan GM interest owns fontein R122819 000 650c Co. Ltd in which AAC has 19,6 per cent of the equity R190985 000 R114 R114 800 000 1025c a 9,1 per cent of Hartebeest- Southvaa Holdings Limited . AAC equity interest - 9,6 per cent Southvaal's Income is derived from royalties receivable from Vaal Reefs Exploration and Mining Co. Ltd in respect of that company's mining operations south the Vaal river and from interest on loans Year ended Decembe3r1 1982 . Issued capital 50c shares 000 Distributable reserves Royally received Profit after taxation Dividends per share 1982 R000 13000 8664 157 029 86 131 85 800 330c 1981 R000 13000 8333 158 152 93 300 355c The Afrikander Lease Limited AAC equity Interest - 44,6 per cent The company owns certain freehold and mineral rights over uranium areas in the Klerksdorp district of Transvaal and has leased its main block of mineral rights to Vaal Reefs Exploration and Mining Co. Ltd. tributing The company suffered a loss of R43 000 in the year to December 31 1982. As a result of the additional agreement with Vaal Reefs whereby that company is to mine the old Afrikander Mine and adjoining areas for gold the minimum annual royalties receivable by the company now total A125 000. Unless there is an appreciable increase in the gold price the company will only receive the minimum .. royalty over the next two years in view of Vaal Reefs Initial capital expenditure programme The mining for gold is a relatively short operation and high Investment returns should not be expected at this time The uranium section of the mine is geared to be brought back into production at short notice shoula there be Indications of an turn in the market Vaal Reefs Exploration and Mining Company Limited Klerksdorp area mines 1 Administered by AAC Klerksdord Kilometres 0 10 20 1. Vasi Roofs North South C. Afrikander Lease 2. Hartebeestonicin 3. Stilfontein 4 Buffelsfontein AAC equity interest - 10,0 per cent Year ended 31 December 1982 Issued capital 1982 1981 50c shares 000 Area mined - square metres Gold tons milled " 000 1970 205 000 yield - grams 8,56 produced - kilograms 750 Uranium tons treated 8 000 yield - kilograms 0,21 0,21 produced - kilogranis Cost per square metre mined Cops er tt on milled Working profit 1721 R222,81 . R47.68 000 1872000 000 8,65 507 502 000 0,20 693 569 R194,57 R42,31 gold uranium oxide and R592 : 000 R591416 000 sulphuric acid Royalty payments to Southvaal Holdings Ltd The Afrikander Lease Ltd Capital expenditure Taxation and State's R30 000 R42 000 R157 000 R81 250 R129 000 . R158 000 R50 000 A136612 000 share of profit R231 532000 R218481000 Dividends per share R178 R186 200 000 940c 980c Planned production for the year ending December 31 1983 Gold Tonnage milled 9 250 000 Grade 8,0 grams ton Uranium Tonnage treated 7 969 000 Grade 0,20 kilograms ton . at Planned capital expenditure R145 000 000 which includes R74 000 000 to be spent on the South Lease area including R51 800 000 on No. 9 shaft system R5 000 000 Afrikander Lease and R66 000 000 in the North area Western Deep Levels Limited AAC equity interest -29,3 -29,3 cent Year ended 31 December 1982 Issued capital 1982 1981 7 R2 000 shares Area mined - square metres Gold tons milled R50 000 R51 100000 000 | 746000 000 3 000 yield -grams -grams produced - kilograms - 11,28 476 12.36 39013 Uranium tons treated 2272 2331000 yield - kilograms produced - kilograms 0,08 183 394 0,09 ' 212484 Cost per square metre mined Cost per ton milled : Working profit R282,46 R62,48 R234,94 R55,53 gold uranium Capital expenditure Taxation and State's R304 206 000 . - 214 R121 R121 R122 R331630000 R331630000 000 R121 000 share of profit Dividends R108 000 R126 000 R100 R101 000 share . as 395c On Increased share capital . a 405c oeve Planned production for the year ending December 31 1983 Gold Tonnage milled 3 300 000 Grade 11,8 11,8 grams a ton Uranium Tonnage treated 1680 Grade 0,126 kilo- a grams ton expenditure Planned capital expenditure R145 000 000 oe 2 Loo East Rand . Western Areas Gold Mining Company Limited AAC equity interest - 2,4 cent Year ended 31 December 1962 Issued capital -.. 1982 : 1981 40 306 950 R1 stock units R40 000 Tons milled Yield - grams Gold produced - kilograms 768 4,5 16923 Cost per ton milled Operating profit R52,44 658 Capital expenditure 368 Taxation _ Dividends 10c per stock unit 031 Elsburg GM Co. Ltd in which AAC holds 6,4 48.7 per cent the equity of Western Areas R40 307 000 291 000 4,1 17 706 * R41,80 R51 000 R40217 398 000 . R16 000 1: 40c per cent owns Company East Rand Gold and Uranium Ergo Limited the AAC equity interest -35.9 -35.9 cent purpose Ergo operates a treatment plant in Brakpan for purpose of _. a recovering gold uranium sulphuric acid and oleum from old - commissioning mining slimes dams on the East Rand Final of the Simmergo plant in Germiston which treats dump | | material and ore mined underground the Simmer and Jack mine was carried out in the quarter ended March 31 1983 71 1 The No. 2 shaft at Holdings division - Western Holdings where work has been completed on washing and screening plant to treat the shaft's waste rock dump the town of Welkom is in the background 2 Shaft equipping at No. 5 shaft of Free State Geduld Major construction expenditure remains before the shaft commissioned in 1982 reaches its design capacity of 280 000 tons a month 3 Main and ventilation shafts at No. 1 shaft Erfdeel division Western Holdings The main shalt has now reached a depth of more than 720 metres and the ventilation shaft 1648 metres below collar East Rand mines TO] Administered by AAC Johannesburg ee 1. Simmergo Simmer & Jack EAPM 3. SA Land & Exploration 4. Ergo Complex Orange Free State Eastern Gold Holdings Limited East Hold AAC equity interest - 40,4 cent East Hold was incorporated on February 19 1981 to finance the cost of establishing the Erfdeel gold mine in the Orange Free State Mining operations at the Erfdeel mine will be conducted by Western Holdings Ltd West Hold and East Hold will be allocated 85 per cent of gross revenue and will remaining bear 65 per cent of gross expenditure while the 15 per cent of each will be for West Hold's account East Hold advances loans to West Hold to finance the after cost of capital expenditure incurred by West Hold in developing the mine The amount of these loans is limited to advances made up to the end of the quarter in which full production is reached The mine is expected lo start normal stoping operations in 1988 and build up production to full ~ capacity of 225 000 tons a month over a period thereafter Details of West Hold may be found page 74 of this report Year ended September 30 1982 1982 1981 Issued capital 000 000 shares of no par value one cent paid Shareholders loans to R000 10 R000 10 East Hold Loan to West Hold Capital expenditure at Erideel 000 968 439 000 11813 897 Planned capital expenditure at Erfdeel in 1983 R38 000000 Orange Free State mines ma] by Administered AAC 4. St Helena St. Helena Boisa 5 President Brand 6 President Steyn 7. Unisel 8. Harmony 9. Beatrix * Krometres Year ended March 31 1983 Issued capital ood 1982 000 shares Slimes treated - tons Uranium oxide produced 000 R20 500 000 000 19 000 - kilograms Sulphuric acid produced 261955 296 259 - tons Oleum produced - tons Gold produced - kilograms Operating profit A Capital expenditure Taxation \; Dividends per share : 458612 632 854 R73 127 000 830 000 10 175 000 R25 625 000 62.50 454 954 502 6008 R66 697 000 R22 454 000 R6 673 000 R45 100 000 110c the Production targets for year ending March 31 1984 Ergo gold 5300 5300 kilograms uranium 200 kilograms suichuric suichuric acid and oleum 500 000 tons Simmergo gold 1200 kilograms sulphuric acid 000 tons Be The South African Land & Exploration Company ' Limited AAC equity interest - 26,4 cent Year ended 31 December 1982 " 1982 1981 Issued capital 700 35c shares Tons milled from dumps 213 945 A3 213 945 Yield - grams Gold produced - kilograms Operating profit Net sundry income Taxation Capital expenditure Dividends share crushing The company continued treating waste rock and plant slimes from various locations on the East Rand The programme to water Van Dyk No. 5 shaft to permit sampling in selected areas in order to determine whether a viable mining operation can be established in this area was continued 31 Plannec production for the year ending December 1933 Tonnage milled 2 160 000 Grade 0,85 grams ton Planned capital expenditure R4 400 000 Free State Geduld Mines Limited AAC equity interest - 2,2 per cent Year ended September 30 1982 1982 Issued capital 50c shares 10440 Area mined - square metres R5 220 000 COO Tons milled 065 000 Yield - grams Gold produced - kilograms 8,41 776 Cost per square metre mined Cost per ton milled R324,51 R62,38 Working profit A132 000 Joint Metallurgical Scheme attributable profit R4 957 000 Capital expenditure including JMS 11 197 000 Taxation and State's share of profit 417 | R98 000 Dividends per share R32 000 ' R63 684 000 310c 610c Planned production for the year ending September 30 1983 Tonnage milled 3 500 000 Grade 7,5 grams a ton Planned capital expenditure R68 000 000 President Brand Gold Mining AAC equity - interest 11.1 cent Year ended September 30 1982 Issued capital Company Company Limited " 1982 1981 000 Area mined Tons milled 50c stock units square metres 000 000 020 700 Yield - grams Gold produced - kilograms Cost per square metre mined Cost per ton milled -- 45,62 Working profit R165 000 Joint Metallurgical Scheme attributable profit 421000 Capital expenditure R39,36 R240 361 000 000 Including JMS Taxation and State's R45 426 000 share of profit Dividends stock per unit of stock 000 000 R123 : R61 000 000 435 595c Planned production the year ending September 30 1983 Tonnage milled 3 300 000 Grade 6,9grams a lon Planned capital expenditure R66 000 000 , President Steyn Gold Mining mpany Limited AAC equity interest 16,0 per cer Year ended September 30 1982 1982 Issued capital 400 shares Area mined - square metres Tons milled A7 283 200 708 000 000 Yield - grams Gold produced - kilograms 6,40 827 Cost per square metre mined Cost per ton milled . R250,57 R45,76 Working profit A138 Joint Metallurgical Scheme attributable profit Capital expenditure Ri9841000 Ri9841000 R39.00 R182 000 R14 000 including JMS Taxation and State's R44 781 000 R37 885 000 share of profit Dividends per share R73 000 000 R55 352 * 380c R96 264 000 R75 000 515c ending Planned production for the year September 30 1983 Tonnage milled 3 960 000 Grade 6,5 grams a ton Planned capital expenditure R42 000 000 The above results relate to the company and its whollyowned subsidiary Video Mining Co. Ltd. Welkom Gold Mining Company Limited AAC equity interest - 13,7 per cent The company was incorporated in 1947 and until June 1981 conducted gold mining operations In the Welkom district of the Orange Free State On July 1981 the company and Free State Saaiplaas GM Co. FSS became investment holding companies having sold their respective undertakings as going concerns to Western Holdings Ltd West Hold in exchange for 000 3 185 and 3 653 000 West Ford shares respectively FSS subsequently became a owned subsidiary of this company August 10 1981 by an exchange of shares De Beers group diamond mines in southern Africa 1. CDM 2. Dreyers Pan Annex Kleinzoo Tweepad 3 Langhoogte 4 Koingnaas Mitchells Bay 5 Finsch 6 Jwaneng 7 Crapa 8 Lethakana 9. De Be ntein Dutoitspan Wesselton 10. Koffie n 11. Premier 12. Letseng Operations ceased 1962 Windhoek Year ended September 30 1982 Issued capital taxtion 300 50c shares Profit after taxation and State's share of profit for 1981 Dividends share , ~ 1982 R000 | 1981 RO00 150 150 505 32 481 123,56 . 46 925 658 155c 250 000 . shares > woo : Western Holdingsl.imited Holdingsl.imited AAC equity interest - 3,3 cent 90c on 300 000 * shares SOUTH WEST AFRICA NAMIBIA SOUTH AFRICA MS eS, if it BOPHUTHATSa a WA \ C t 9 NT Johannesburg mining The Westem Holdings complex consists of four divisions the Holdings and Welkom divisions together mining the Western lease and the Saalplaas and Erdeel divisions together mining the Eastern lease establishment Although the of the complex took represent : on July 1 1981 the figures shown with an asterisk for 1981 statistics relating to all the divisions as if the complex had been in operation for the whole of that year ~\ ra . _ , Maseru QV LESOTHO ended Year . September 30 1982 1982 1981 1981 Issued capital fra 376 50c shares Area mined - square Tons milled R7 188 1503 8 000 R7 167 188 . 475300 000 Year ended Septembe3r0 1982 - Pyrite flotation plants 1982 * Diamonds 1981 -' Yield - grams 4,91 5,45 slimes treated - tons 18 416 000 649 000 De Beers Consolidated Mines Limited Gold produced - kilograms Cost per square metre mined 39917 A215,25 039 R175,76 Cost per ton milled R39,77 R32,82 Working profit R182662 R324 396 000 Joint Metallurgical Scheme : attributable profit * Capital expenditure 452 = 000 Including JMS R107 000 R87 000 Uranium plant slimes treated - tons Concentrate treated ~ tons Uranium oxide produced . kilograms Acid plant :: _ ~ acid produced - tons Gold plant 210 652 976 668 343 954 . 6 166 000 436 808 1080 310 343 De Beers AAC equity interest - 34,2 per cent Interest after minorities - 21,1 per cent : Financial details of De Beers may be found on page 69 of this report . : . Principal interests at December 31 1982 all owned subsidiaries unless otherwise indicated 2 X:. Texation and State's share of profit Dividends . per share oo : 332 . R82 R102645 R68 805 1 480c R102645 R102645 700c on 000 shares calcine treated - tons 314 587 : 325 148 Gold produced - kilograms Capital expenditure 3706 R3 000 3 109 R6 225 000 Profit . R46 671 000 R48 236 000 : Planned capital expenditure for 1983 R3 000 Kimberley The Beers Dutoitspan , operates Division of De Beers Bultfontein Weselton the De mines and mines at Kimberley the Finsch mine north of Kimberley and the > Koffiefontein mine in the Orange Free State In June 1982 at were temporaily The Division also treats material from mine dumps in the :"'-.- on + 334 376 shares ending 30 : Planned production for the year September 1983 Tonnags milled 8 800 000 Grade 4,7 grams a ton Planned capital expenditure R73 000 000 of which R38 000 000 will be for further development of the Erideel division Evander Winkelhaak Mines Limited AAC equity interest - 8.1 cent Year ended September 30 1982 1982 1981 Kimberley area The Namaqualand Division is currently mining alluvial deposits on the farms Koingnaas Langhoogte Tweepad and Karreedoomvlel De Beers also operates the Premier mine at Cullinan in the Transvaal 2. CDM Pty Ltd conducts alluvial mining operations along the southern portion of the coast of South West Namibia Orange Free State Joint Metallurgical Scheme . The mines administered by AAC in the Orange Free State Free State Geduld President Brand President Sleyn and Western Holdings participate in a major metallurgical scheme for th recovery of uranium gold and sulphuric acid from current and deposited slimes Issued capital . 000 R1 shares Tons milled Yield - grams Gold produced - kilograms Cost per ton milled Working profit Capital expenditure Taxation and lease 000 R12 180 2095 000 6,38 358 R30,59 R106 045 000 R10 766 000 : R12 180 000 000 R5 000 3. De Beers Botswana Mining Co. Pty Ltd 50 per cent owned operates the Orapa and Letlhakane mines in central Botswana and the large new mine at Jwaneng in southern B1o9t8s2wana which was brought into production in January : 4. De Beers Lesotho Mining Co. Pty Ltd 75 per cent owned at present in liquidation operated the Letseng Terai diamond mine in Lesotho until a decision was taken consideration Dividends per share R66 579 000 R38 123 000 313c R85 557 000 R49 938 000 410c during 1982 to close the mine which had been operating at a 74 5. De Beers companies Industrial Diamond Division Pty Ltd through under its is leading a of synthetic diamond and related hard materials and is the outlet for the sale of De Beers natural diamond drilling materials and boar It also administers the De Beers Diamond Research Laboratory 6. The Diamond Corporation 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 Corporation group has important financial resources which facilitate the holding of stocks of diamonds thereby stabilising stabilising the trade 7. De Beers and its subsidiaries hold 38,2 per cent of the issued ordinary share capital of Anglo AmericanCorporation and a 22 per cent interest in Minerals and ResoAunrgcleos companies Corporation Ltd. Through the merger at the beginning of 1982 of De Beers Industrial Corporation Ltd the main investment of which is 39,5 per cent in AECI Ltd with American Industrial Corporation Ltd Amic De Beers now holds 25 per cent in Amic a major industrial group in South Africa The De Beers group also has direct interests in gold and uranium diamond copper and other base metals coal industrial and commercial banking and property Coal mines and gold 1. Vierfontein New 2. developing 3 Cornelia 4. Springfield 5 Largo 6 Landau 7. Kiemkopje 8 Goodshoop mining areas 9 Bank 10 Arnot 11. Khel 12. New Denmark 13. Vryheid Coronation 14. Natal Anthracite 15. Indumeni Operations ceased 982 Pretoria Krugersdorp Mid elburgMidelburgMiddelburg Witbank Witbank ee Carletonville Amcoal group collenes I Other collieries administered by AAC Gold mining areas Free State mines a Orange area Klerksdomr inp es c Rand mines a. West Rand area e East Rand mines f Evander area Hendrina \, Potchefstroom @ Bethal TRANSVAAL @ Secunda 12 Greytingstad Coal Anglo American Coal Corporation Limited Amcoal ORANGE FREE STATE AAC equity interest - 50,9 cent Financial details of the Amcoal group are given on page 65 Group coal and coke sales comprisethe following Year 15 months ended March 31 ended March 31 Kilometres Power generation Escom Trade Export Domestic Metallurgical Iscor Other Cake Anthracite 1983 Tans million- milion- 1982 Annualised Tons million 20 40 60 80 OO 22,2 7,2 1,7 1.4 0,3 0,5 21,8 8,0 2.1 1,7 0,4 0,5 Morupule Colliery Proprietary Limited AAC equity interest - 93,0 cent year The company operates a colliery near Palapye in Botswana the production of which is sold principally to the Botswana Power Corporation for use in its power stations The colliery's productive capacity is 480 000 tons a Indumeni Limited Export . 0,3 0,9 Domestic : 0,4 0,4 34,0 The principal interests of the group are follows as Collieries owned by wholly owned subsidiary Collieries Ltd |. Arnot Bank Natal Anthracite New Denmark GoederCoo rnelia p New Largo New Vaal Kleinkopje Kleinkopje Kriel ~~ Landau Springfield Vryheid Coronation 35,8 Amcoal Industrial owned Vereeniging Refractories Ltd 52 per cent owned Vitro Clay Pipes Ltd 52 per cent Coverland Roof Tiles Pty Ltd 17 per cent owned Blinkpan Koolmyne Beperk AAC equity interest - 35,0 per cent This company which is a subsidiary of Natal Coal Corporation Ltd operates two mines Blinkpan colliery and colliery in the Middelburg Middelburg district of the Trans- vaal AAC equity interest - 57.6 per cent The company owns the entire issued share capital of Indumeni Coal Mines Ltd. For the period to October 31 1982 Indumeni Coal Mines operated a colliery near Dundee Natal producing coking coal for supply to Iscor At the request of Iscor this mining operation was discontinued from November 1 1982 because of the economic recession in the steel industry in South Africa and world R2 million compensation has been received from Iscor Issued capital 1400000 50c shares Coking coal sales - tons Consolidated profit after taxation Dividends per share Year ended March 31 1983 R700 000 180 000 R564 000 R980 000 70c 15 Months ended Marc3h1 1982 R700 000 403 000 R920 000 R840 000 60c Coal sales by both collieries to Escom Iscor and to the 960 000 tons general trade during the year ended June 30 1982 totalled 3 093 000 tons 1981 2 Vierfontein Colliery Limited AAC equity interest - 7,6 cent a Viljoenskroon The company's colliery which is situated the district of the northern Orange Free State bituminous coal for sale under contract to Vierfontein power station produces Escom's Issued capital 50c shares 4000000 taxtion Coal sales tons Profit after taxation Dividends per share 15 Months ended March 1983 Year ended 31 December 11981 000 000 1947 R688 000 R620 000 155 000 000 8490 000 R480 000 12c Other mining Botswana RST Limited AAC equity interest - 12,0 cent This company has an interest of 85 per cent in BCL Ltd a company conducting a copper mining operation at Phikwe in the Republic of Botswana The remaining 15 per cent interest in BCL is held by the Government of Botswana *. The production of grade matte in 1982 was 45 685 metals to's compared with 46 565 tons in 1981. Contained comprising 17 756 tons of nickel 18 375 tons of 254 tons of cobalt showed an increase of 34 copper and tons the previous best year Record netal productioonveirn 11998812 reflected improved recoveries in the surface plants In common with other base metal producing companies the operating profits of BCL continued to be adversely affected by the rapid decline in metal prices The company's results were also adversely affected by continuing high interest rates and foreign currency movements 75 Year ended 31 December 1982 Issued capita 17979 shares Long liabilities Mining assets and other capitalised expenditure Total sales revenue Net loss on current operations Accumulated delicit 1982 P000 959 540 250 324 64 173 458 273 307 1981 P000 959 400 725 296 257 276 602 143 849 Cleveland Potash Limited AAC equity interest - 50.0 per cent The company operates a potash mine in the United market Kingdom The depressed state of the potash continued and the company incurred an operating loss of 1.9 million in 1982. Sales of salt as a product and handling of material through a shipping loading terminal are helping to reduce operating losses Gamsberg Zinc Corporation Limited AAC equity interest - 33,3 per cent The Corporation and associates hold 45 per cent in Gamsberg while Newmont Mining Corporation USA and its associates hold the remaining 55 per cent The company owns mineral rights over farms in the north western Cape Al December 31 1982 ore reserves totalled 152,6 million metric tons containing 7,1 per cent zinc and 0.55 per cent lead A detailed evaluation of the project is currently being undertaken the results of which are expected towards the end of 1983 Rustenburg Platinum Holdings Limited AAC equity interest - 23.8 per cent The company holds the entire issued share capital of Rustenburg Platinum Mines Ltd which operates three major platinum mines in the Transvaal and Bophuthatswana and is the communist world's largest primary producer of platinum The company also owns Alok Platinum Mines Pty Ltd. Other platinum group metals as well as nickel copper and cobalt sulphate are important contributors to total revenue Year ended August 31 1982 1982 millions 1981 R millions Issued capital 125 431 10c ordinary shares Ordinary shareholders lunds Mining assets at cost less recoupments Unlisted investments Equity earnings per share Dividends per share 12,5 592,4 387.1 58,6 41,0 32,7c 43,9 35c 12,5 527,3 377,2 44,8 120,0 95,8c 56,4 45c SA Manganese Amcor Limited Samancor AAC equity Interest - 29,8 per cent Year ended February 20 1963 Issued capital 149 635 500 4c shares fully paid 270 4c shares 0,4c paid Ordinary shareholders funds Book value of fixed assets Investments Net current assels Equity earnings per share Dividends per share 1983 ROGO 985 1 565 194 049 45 181 175 382 694 9,9c 7482 5c 1982 R000 5616 1 265 660 169 48 283 036 40312 28,7c 054 10c Tsumeb Corporation Limited AAC equity interest - 2,6 cent The company is engaged in the mining and copper and lead in South West Namibia Year ended 31 December 1982 1982 Issued capital 000 50c shares Total shareholders funds Long debt Inventories and fixed assets Metal sales Net loss R000 4000 098 1604 688 105 604 88358835 treatment of 1981 R000 2000 961 6650 72 593 780 3439 Sales Blister copper - tons Lead - tons Silver - kilograms 494 37 804 87 478 935 36 667 090 Industry and commerce Anglo American Farms Limited AAC equity interest - 50,0 cent The company's business includes summer and winter grain crops cattle ranching livestock breeding and fattening game farming the production and processing of vegetables and deciduous and tropical fruits and trading in fruit vegetables and meal It also produces a range of estate wines - marketed under the name Boschendal - table grapes and pure fruit The company's juice concentrates livestock section consists of five piggeries three dairies and a sheep and cattle feed lot The company also produces sisal from its farms in eastern Transvaal and northern Zululand Anglo American Industrial Corporation Limited Amic AAC equity interest 46,4 per cent Financial and other details of Amic may be found on page 67 of this report Operating subsidiaries at December 31 1982 all wholly owned unless otherwise stated not referred to specialised grinding machinery impregnated diamond and tungsten carbide engineering tools cutting and drilling equipment and diamond tools for construction applications steel castings and precision parts and in industrial and project engineering Sales declined by approximately 19 per cent while group net earnings for the year declined by 57 per cent R16,8 million 3. Bruynzeel Holdings Lid Bruhold Bruhold has a 100 per cent equity interest in Bruynzeel Plywoods Lid Bruply and a 50,01 per cent interest in Spankor Ltd. Bruply owns plantations and sawmills and manufactures a wide range of timber products including structural and industrial lumber laminated timber beams shelving and container floors treated and untreated tencing and transmission poles doors plywoods and vencers The Spankor group operates particle board plants in the Transvaal Natal and Cape Province and a medium- density fibre board plant has been commissioned thus adding an important new product to its range Equity earnings of the group for 1982 amounted to R10,6 million compared with R12.5 million in 1981 4. Control Logic Pty Ltd 80,0 per cent interest The company manufactures electronic control systems industrial instrumentation and electronic equipment for cars and commercial vehicles and a range of emergency lights and electronic ballasts A loss of R2.5 million was incurred in 1982 compared with a profit of R0.8 million in the previous year 5. Highveld Steel and Vanadium Corporation Ltd 50,1 per . interest Highveld which became a subsidiary of Amic on January 1 1982 operates an iron steel and vanadium complex at Witbank Transvaal The full ore requirements of both the steel works and the Vantra division which produces vanadium pentoxide for the export market are supplied by Pty Highveld's Mapochs mine A subsidiary Transalloys Ltd produces manganese and silicon alloys for both local and export markets while the Rand Carbide division metalurgical produces ferosilcon char electrode paste and other products associated with the steel and ferroalloy industries Highveld's group net earnings for the 18 months ended December 31 1982 amounted to R69,1 million Export earnings at R242,1 million were at a record level 6. Scaw Metals Ltd Scaw's three major fields of operation are the manufacture of a wide range of ferrous castings particularly railway 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 Haggie Ltd In which Scaw has an effective 36.1 per cent interest is a major manufacturer of wire and wire rope and provides a wide Net range of equipment for the mining and other industries earnings of the Scaw group decreased by 20 per cent from R45,8 million to R36,6 million in 1982 companies Important associated and investments of Amic not referred to elsewhere in this section of the report are 1. AECI 39,5 per cent interest AECI manufactures and sells a wide range of industrial explosives for mining and other commercial uses general chemicals plastics vinyl products paints synthetic fibres fertilizer and agricultural products Sales for 1982 increased to R1 550,4 million but trading profits at R221,0 million showed a 7,5 cent decrease Interest after minorities - 17,9 per cent elsewhere in this section of the report were 2. Asea Electric South Africa Ltd 49,8 per cent interest Samancor is one of the world's largest integrated producers of manganese ore and alloys and exports more than 70 per cent of its products to the world's steel producers ferro- Manganese chrome ore and quartz are into and silico premium grade silicon Other products include dolomite serpentine phosphorus phosphoric acid fertilizers sodium and graphite 1. African Products Pty Ltd The company's three maize wet mills produce a wide range of specialty starches and glucose syrups dextrins and other based products for both local and export markets In addition to these activities the company holds a 50 per cent interest in OKK Foods Lid It has extended its know how agreement with CPC International Inc. one of the world's net earnings largest maize processing and starch producing companies Group declined by 13,6 per cent to R7,0 million in 1982 Asea operates the largest transformer factories in South Africa and produces the widest range of power distribution and instrument transformers available from local manufacture The group offers a complete range of associated products including mini stations capacitors circuit breakers surge arresters disconnectors and relay systems Group net earnings increased by 5,0 per cent to R8,0 million for the year to December 31 1982 Ltd 2. Boart International Boart through its subsidiary companies operating worldwide is variously engaged in exploration drilling in the manufacture and marketing of rotary and percussion drilling equipment and tools coal and gold mining machinery and consumables conveyor and vibrating equipment and engineered systems underground mine supports 76 3. Freight Services Holdings Ltd 40,3 per cent interest The group operates internationally with interests in a wide variety of diverse traffic activities including specialised international buying and trade finance for imports and exports travel agency and ancillary services surface forwarding airfreight warehousing bulk cargo and project services for imports and exports world stevedoring chandling ships maintenance seamen's transport and offshore services agency representation and marketing services for shipping principals and container unpacking storage and management Group net earnings for 1982 increased by 14,6 per cent from R12,3 million to R14,1 million 4. Industex Pty Ltd 37,5 per cent interest Industex manufactures various industrial textiles for the tyre rubber and other manufacturing industries and spins cotton and synthetic yams Its two wholly subsidiaries Wellington Industries Pty Ltd and Union Cotton Mills Pty Ltd produce towelling products and household lextiles as well as yarns for the hosiery and sewing thread trades Group net earnings for the year to June 30 1982 decreased by 25.5 per cent because of slack demand for certain products and change in the basis of stock valuation 5. International Pipe and Steel Investments South Africa Pty Ltd 31,3 per cent interest IPSA is the holding company of Dorbyl Lid and Stewarts & Lloyds of South Africa Ltd in which companies it has a 51,0 per cent a 51,8 per cent interest respectively Dorby The group has diversified interests andis involved in heavy engineering ship building and general fabrication ship repair of bodybuilding rolling stock bus and commercial vehicle as well as the erection and installation of mechanical and electrical equipment and project engineering Net earnings of Dorbyl for the year to September 30 1982 increased by 43.0 per cent to R35,9 million The Stewarts & Lloyds group manufactures and distributes a wide range of products to the raining agricultural and industrial markets and to the public sector The product range includes metal tubing and allied products mild steel sheets plates and sections iron castings centrifugal pumps diesel engines generating plants irrigation equipment windmills air conditioning units and refrigeration components and mining machinery Net earnings of Stewarts & Lloyds for the year to September 30 1982 increased by 6,5 per cent to R18,0 million 6. The Union Steel Corporation of South Africa Ltd USCO 13.1 per cent interest USCO which is controlled by South African Iron and Steel Industrial Corp Ltd Iscor is engaged in the manufacture and sale of various types of steel castings copper cable and wire aluminium conductor and cable and agricultural Implements USCO also has investments in steel merchants and suppliers of copper and aluminium rod and in manufacturers of copper wire and allied products Group net earnings for the year to September 30 1982 were R5,5 million compared with R10,0 million for the nine months to September 30 1981 Computer Sciences Proprietary Limited AAC equity interest - 26,3 per cent The company offers a wide range of data processing products and services including the Infonet remote processing service and computer equipment from various manufacturers such as Datapoint Northern Telecom NCR- Comten Hyperchannel Texas ITT Courier Printronix Epic Pinnacle as well as a locally designed intelligent All of this terminal equipment country service division and manufactured is supported by a Consolidated CMI Limited AAC equity - interest 15.6 per cent Johannesburg CMI a member of the Investment Company Ltd group of Consolidated was formed in 1975 to produce and market ferrochrome The company operates a ferrochrome plant in the eastern Transvaal comprising two production streams with a total design capacity of 000 tons of alloy a year The company's entire output is exported to consumers in the USA Canada Japan and Europe Recessionary conditions in overseas markets which first became evidentin 1980 continued throughout 1982 and decrease resultedin a in the demandfor ferrochrome The production reduced suited tomarket requirements Despite recent indications :of to levels more st upturn in demand low levels in the near rate until there export markets are more vil continue at its present definite signs of improvement in Cullinan Holdings Limited AAC equity interest - 23,0 per cent Cullinan controls and manages trading divisions and subsidiaries engaged in the manufacture of refractories mining and beneficiation of clays and ceramic minerals production of building bricks township and property development and the manufacture of PTFE industrial plastic products Cullinan also has a 70 per cent interest in Cullinan Electrical partnership with Blue Circle - whiwc hih ch manufactures and markets a wide range of industrial electrical products and is engaged in electrical contacting operations Year ended June 30 1982 1982 1981 Issued capital 10 437 581 50c ordinary shares 500 5.5 cent cum pret of shares R2 each Ordinary shareholders funds Loans and deferred liabilities Book value of fixed assels Equity earnings per share Ordinary dividends per share R000 5219 1000 51893 211 958 760 83,9c 2958 27c R000 929 1000 364 37 774 036 801 109,6c 3549 36c LTA Limited AAC equity interest - 28,7 per cent The LTA group is one of the largest building and civil engineering construction finance groups in southern Africa The activities of the companies in which is interested cover the full building and civil engineering spectrum from small technical works turkey the through to major projects industrialised and desdigensignalso projects involving of plant buildings buildings design and management mechanical and electrical engineering the manufacture of prefabricated buildings and building components steel reinforcing and structural steel construction Year ended 31 March 1982 . Issued capital 078 240 R1 ordinary shares 784 10 cent cum red pref shares of R1 each Ordinary shareholders funds Long liabilities Equity eamings per share Ordinary dividends per share 1982 R000 078 21 77 263 31731 228 101c 578 35c 1981 R000 13062 26 51775 403 683 83c 3919 30c 1965 Beperk AAC equity interest - 30.0 per cent Mainstraal was formed to hold certain joint interests of AAC and the Federale General Mining Union AAC Corpation group in the heavy and steel engineering industries The company has interests in Highveld Steel and Vanadium Ltd Hall Longmore and Corporation Company Pty Ltd Pipo and Steel Carriage Ltd Stewarts & Lloyds of SA Lld and Union Carriage SA Pty aro Wagon Company Pty Ltd. Mainstraat's net eamings for the year ended June 30 1982 were R5.09 million compared with R4,88 million the previous year McCarthy Group Limited AAC equity interest - 12,9 per cent motor organisation The group is the largest vehicle retail in South Africa Trading operate vehicle throughout the Republic More than 5500 people are employed and in the year to June 30 1982 vehicle sales 75 000 units Certain import industrial engines and distribule motorcycles and premises occupied by thetrading and lease Year ended June 30 1982 Issued capital 17 066415 50c ordinary shares 1982 R00R0 000 533 1981 R000 R000 8533 150 000 5,5 per cent pref shares of R2 each Ordinary shareholders funds Long liabilities Equity eamings per share Ordinary dividends per share 300 941 8 860 371 72,56 120 30c 300 631 B 192 344 119,66 7 168 42c Limited Steel & Alloys Proprietary AAC equity interest - 13,4 per cent The company which is part of the Barlow Rand Ltd group owns the entire issued share capital of Middelburg Steel & Alloys Pty Ltd which produces and markets stainless steel and other ferro alloys The year to 30 1982 was another generally difficult year reflecting the recession in the world steel industry and group results were only marginally better than those of 1981 when net earnings were R2.1 million The alloys division achieved a marked improvement in profitability over the previous year more than offsetting losses incurred by the steel division during final commissioning of a R150 million expansion project However in the six months to March 31 1983 Middelburg Steel incurred a loss of R8 million Mondi Paper Company Limited AAC equity interest - 29,9 per cent A programme of rationalisation of the Mondi group of companies was carried out during 1982 with the formation of three operating divisions each concerned with a major product namely paper board and timber On April 1 1982 Mondi acquired the ordinary share capital of Huletts Paper Ltd at a cost of R32 million The two mills operated by that company at Felixton and Piet Retiel have been integrated into the Board Mills division The company's interest in the timber business of Hun Leuchars & Hepburn Ltd was increased from 10 per cent to 20 per cent on February 28 1982 in accordance with the agreement whereby Mondi will acquire a 49 per cent interest in HL & H Timber Holdings Ltd over a three period ending March 1 1984 at a cost of R26,95 million Negotiations for the purchase of the ordinary share capital of the Usutu Pulp Company Ltd of Swaziland were discontinued 77 1 Mondi Timber's headquarters main sawmill and plywood plant set amidst one of the world's largest plantation blocks at Sabie eastern Transvaal 2 Mondi Board Mills Springs mill a major manufacturer of carton board has rebuilt certain machines and modified others to increase its capacity significantly 3 One of three pre- production rolary kilns of Highveld Steel's No. 2 iron plant which will take Highveld's making capacity to 1.1 million tons 4 Aluminium sheeting being manufactured at Huletts Aluminium Pietermaritzburg part of the large and diversified Tongaat group Satisfactory progress is being made with the establishment of a pulp mill complex at Richards Bay and present indications are that the original October commissioning achieved 1984 the mill will target date for of be The Paper division comprises the Merebank paper mill near Durban and a forestry unit with headquarters in Pietermaritzburg The Merebank mill is made up of a mechanical mill two thermo pulping plants five speed paper machines and a finishing department Bowater Paper Company Pty Lid a owned subsidiary stocks and distributes a wide range of paper products and manufactures disposable paper and plastic containers The Board Mills division with headquarters at Umgeni Durban now consists of five mills at Felixton Piet Retief Umgeni Springs and Bellvillo The mills at Felixton and Piet Retief manufacture liner board and fluting medium used in the production of corrugated boxes while the other mills manufacture paper board for the packaging printing and stationery industries The Timber division with headquarters at Sabie in eastern Transvaal operates the largest integrated softwood forestry and sawmilling operation in southern Africa with a total afforested area of ome 90 000 hectares Timber from these forests is supplied to the group's 12 sawmills and a plywood plant All three divisions encountered difficult trading conditions during 1982 and this combined with the very high cost of money caused earnings to fall this year In the Paper division domestic demand was not much higher than the previous year but exports were severely with depressed by the world recession stiff competition in the market place leading to low prices The weakening of the rand against the US dollar helped to cushion this effect to some extent The Board Mills division was the best placed of the three divisions and the inclusion of the former Huletts Paper mills from April 1 1982 helped to keep the division's results at a reasonable level The results of the Timber division were adversely affected by stocking by merchants and declining demand for structural and worked timber products Timbrik Pty Ltd which is a owned subsidiary of Mondi manufactures industrialised building panels pallets and furniture Mondi Paper Company Ltd received the State Award for Export Achievement in 1982 Group net earnings for 1982 were R32,2 million compared with R30,9 million in the previous year The Natal Tanning Extract Company Limited NTE AAC equity interest - 37,3 cent NTE owns or leases 76 000 hectares of forest land in south- eastern Transvaal and Natal The land is planted mainly to wattle and pine with smaller areas under gum poplar and sugar cane The principal operation is production of tanning extract from wattle bark and two factones are operated for this purpose The value of wattle extract exported during 1982 was R20,4 million and NTE produced 382 000 tons of timber 35 400 tons of wattle bark and 130 000 tons of sugar cane Net earnings of NTE for the year ended December 31 1982 decreased by 20,0 per cent to R2,0 million Shaft Sinkers Proprietary Limited AAC equity interest - 50,0 cent provide Shaft Sinkers and its wholly subsidiaries an integrated design and construction service to the mining sinking and civil engineering industries for shatt speed tunneiling excavations Major contracts completed during 1982 included the Main shaft at Finsch Diamond Mine Free State Geduld No. 5 shaft Cooke 2A ventilation shaft President Steyn No. 4 sub- vertical shaft and the shaft systems at New Denmark Central Mine During 1982 work commenced on the shaft systems for the New Denmark North Mine Kloof No. 4 ventilation shaft President Brand No. 1A shaft and the sliping of Raposos No. 4 shaft at Nova Lima in Brazil Group earnings before tax for the year ended March 31 1983 were R6.3 million compared with A10.2 million the previous year Sigma Motor Corporation Proprietary Limited AAC equity interest - 50,0 per cent Sigma is jointly held by AAC and Amic following the recent acquisition by these companies of the 25 per cent held by Chrysler Corporation of the USA The Sigma group assembles and markets Mazda Mitsubishi Peugeot and Citro^n ranges of passenger vehicles together with a wide range of Mazda and Mitsubishi commercial vehicles A wholly subsidiary Sigma Power Corporation Pty Lid markets Komatsu and Ameise moving and materials handling equipment and holds the Michelin tyre franchise for equipment trucks and cars Financing services are provided by Sigma Finance Corporation Pty Ltd. The group employs about 5 700 people and vehicle sales to the dealer network during 1982 were approximately 57 000 units The profitability of the group was severely affected by the tightening of trading conditions during the year and by the decline of the rand against the US dollar and Japanese yen A loss of R55.0 million was incurred in 1982 compared with net earnings of R23,2 million in 1981. With the commissioning of an expanded production facility at Pretoria and with significant new model introductions planned for 1983 Sigma's management is confident that the group can regain its leading position in the automotive industry The South African Breweries Limited AAC equity interest - 4,5 per cent Interest after minorities - 2,7 per cent The South African Breweries Limited was incorporated in 1895 and was the first industrial company to be listed on The Johannesburg Stock Exchange Until 1960 it was basically a one product beer company but then began diversifying into the wine and spirit industry retailing hotels and selected manufacturing activities until today about 55 per cent of net earnings are from beverages and 45 per cent from its diversified interests It controls the quoted Retail Ltd Amrel Associated Furniture Companies Ltd Afcol Edgars Consolidated Investments Lid Edcon O.K. Bazaars 1929 Ltd and Southern Suns Hotel Holdings Ltd and holds 30 per cent of Cape Wine and Distillers Lld and 22 per cent of Romatex Ltd. Year ended March 31 1982 1982 1981 Issued capital 249 667 20c ordinary shares 000 6,2 per cent cum pref shares of R2 each R000 850 2000 R000 44 481 2000 618 7 per conv red cum pref sharoe f s R1 each 2475 7 cent prof shares of R1 each 42631 2475 631 2475 000 8 per cent cum pref shares of R1 each Ordinary shareholders funds Long liabilities Current value of fixed assets 800 666619 666619 733 785 867 1200 663 239 676 609 038 Investments Listed - carrying value - market value 053 320 89 997 101883 101883 Unlisted - carrying value - directors valuation 042 520 679 401 Equity earnings 167 022 per share 75,1c Ordinary dividends paid 971 per share 34c Excludes 26 847 497 shares issued during part settlement of in interest Edcon 120 729 54,3c 60048 27c March 1982 in The Tongaat Group Limited AAC equity interest - 11,2 per cent During 1982 the Tongaat Group Limited merged with Huletts Corporation to become one of the world's largest sugar producers The group has substantial interests in aluminium fabrication maize and wheat milling cotton ginning the production and distribution of building materials textiles animal feeds edible oil and margarine breakfast cereals pet foods mushrooms asparagus eggs and pullets transport property timber plantations electronics and general engineering Year ended March 31 1983 1983 R millions 1982 A millions Issued capital 56 740 R1 ordinary shares Ordinary shareholders funds Book value of fixed assets Turnover Profit before tax Taxation Equity earnings per share Dividend paid per share 56,8 685,5 704,8 1284,2 116,9 33,6 66,3 116,66 33,0 58c pro forma 56.8 6176,479.6177,7 1 649.7 141,3 45,2 78.5 138.2c To make comparisons meaningful the pro forma 1982 figures have been shown on the basis that the merger had been effective from April 1 1981 Union Carriage and Wagon Company Proprietary Limited AAC equity interest - 2.8 cent The company manufactures electric diesel electric and diesel hydraulic locomotives and railway passenger coaches which are supplied mainly to the South African Transport Services and to industry Thereis a high level of local conterit in this rolling stock Its one operating subsidiary Unionmod Buildings Pty Ltd manufactures factory modular buildings During the year ended June 30 1982 group earnings increased by 10,3 per cent over the previous year Mainstraat Beleggings 1965 Bpk in which AAC holds 30 per cent owns 47,7 per cent of the equity of Union Carriage Limited AAC Interest - per cent equity 51,7 a wide of bricks variety refractory and materials which are used in high temperature applications in theiron and steel alloy and other industries resistant bricks and mortar for the chemical industry and high alumina refractories and dolomite products Subsidiary and associated companies are involved in the manufacture of building bricks Stallon stressed beams lintels floor systems concrete roof tiles and vitrified clay pipes and fittings for house drainage and sewers while others mine raw materials that are used by the group and sold outside it Year 15 months ended March 31 ended March 31 Issued capital 5 000 50c ordinary shares 500 000 5,5 per cum non pret shares of R2 each 1983 R000 552 1000 1982 R000 552 1000 Ordinary shareholders lunds Long liabilities Book value of fixed assets 53 664 2217 39 468 734 2218 41482 41482 Net current assets 25 818 024 Equity earnings per share Dividends per share 6541 128,2c 2551 50c 13.009 259,4c 113 81c 79 Zinchem & Industrial Mineral Resources Proprietary Limited Zimro AACequity interest - 76,3 cent Zimro is an investment holding company the major subsidiaries of which operate in mining processing and marketing a wide range of industrial and base minerals in zinc chemicals tin mining and production and metal rolling and metal chemicals A controlling interest in African Zinc Mills Pty Ltd was acquired during 1982. This company is engaged in the rolling of zinc sheet the manufacture of calots and zinc- based alloys general As a result of recessionary conditions during the past year not earnings for the year ended March 31 1983 marginally were below the previous year's level An extensive imple- has been campaign mented together with a cost reduction in an to contain expenses during an difficult 1983 Zaaiplaats Tin Mining Company Ltd. 65,4 per cent owned by Zimro reported net earnings for the year to March 31 1983 of R312 compared with R106 000 in the eight months ended March 31 1982. Capital expenditure amounted to R425 for the year compared with R512 000 in the previous month period and ore milled on the completion of Phase II of the company's new mill programme totalled 72 919 tons 60 270 tons in the eightmonth period Property Anglo American Properties Limited Amaprop AAC equity interest - 65,6 per cent Financial details of Amaprop may be found on page 67 of this report The company's major property interests are as follows Percentage interest Anglo American Life Centre Durban Anglo American Life Centre Cape Town Anglo American Life Centre Krugersdorp Anglo American Life Centre Port Elizabeth Brickhill Road Parkade Durban leasehold Carlton Centre and Carlton Hotel Johannesburg Checkers Store Benoni Civic Towers House Johannesburg Devonshire House and Hotel Johannesburg 11 Diagonal Street Johannesburg leasehold Dovehouse Township . Natal Durdoc Centre and Provincial House Durban 100 per cent acquired subsequent to year end Edura Johannesburg Garden Plaza Johannesburg Gardens Centre Cape Town Highpoint Hillbrow Johannesburg His Majesty's Johannesburg Jet PartIndustrial Township Boksburg Killame f Mall Johannesburg La Luca Township Umhlanga Rocks Linwood Villa Building Durban Lloyds Hotel Johannesburg Lymepark Township Sandton Marina da Gama Muizenberg McCarthy Chrysler Building Durban Norscott Slopes Township Sandton Parklown office parkland parkland Pine Parkade Durban leasehold Samancor House Johannesburg leasehold Shaka's Rock Township Shaka's Rock Natal Sunninghill Extension 2 Township Sandton Sunnypark Pretoria Transvaal House Pretoria Twentieth Century Johannesburg Welington 9 Road 11 Wellington Road Johannesburg leasehold Wesbank House Johannesburg leasehold CarCl entrt e Lo imin ted AACequity interest -80,0 -80,0 per cent Interest after minorities - 62.5 per cent The company owns and operates the Carlton Centre in the central business district of Johannesburg The Centre comprises a storey office tower the storey International class Carlton Hotel two department stores approximately 170 retail shops and restaurants an ice rink and covered parking facilities for 2 000 cars The Carlton Hotel in which the company has an 89 per cent interest is managed by Westin Hotels of Seattle USA Year ended March 31 1983 1983 R000 1982 R000 Issued capital 410 50c ordinary Total ' funds liabilit Secured term shares : Unsecured liabilities Book value of fixed assets Equity eamings per share Dividends share 14 190 128 144 874 404 175 883 34,8c 541 16c 190 122 524 771 6324 168 752 657 30.56 257 15c Main Place Holdings Limited AAC equity interest - 27,9 per cent Main Place administered by JCI owns a hectare site adjacent to the financial district of Johannesburg The land is being held for future development Banking and insurance Anglo American Life Limited Company Company AAC equity interest - 97,7 per cent Anglo American Life is one of the largest life assurance companies in comprehensive South Africa range of life The company offers a products including policies linked to managed property equity fixed interest and cash portfolios The company has been an important innovator in the field of updateable life assurance which enables policy holders to adjust their premium contributions and life cover to help keep pace with inflation Its Masterplan and Masterseries range of products are market leaders and extremely well known within the life assurance industry It is also a leading underwriter in the group pensions market Subsidiary life companies are African Life Assurance Company Ltd and Southampton Assurance Company of Zimbabwe Ltd. Other major subsidiaries are Anglo American Life Property Holdings Ltd which holds and developas large portfolio consisting chiefly of prime office and shopping properties First Consolidated Holdings Ltd a leasing and finance company and Metals and Minerals Investment Corporation Ltd the remaining 30 per cent not already held having been acquired during the year Anglo American Life has assets in excess of R1 460 million and paid dividends of R7.00 million 1982 A5,25 million from disclosed earnings of R10,25 milion 1982 R7,75 million in the year to March 31 1983 Barclays National Bank Limited AAC equity interest - 13.3 per cent Barclays National Bank Ltd the largest banking group in southern Africa is engaged in banking in all its aspects and in the provision of related services Il comprises the commercial bank with a widespread network of branches Barclays National Merchant Bank Ltd and the general banks Barclays Western Bank Ltd which with its owned subsidiary Barclays Western Credit Ltd concentrates mainly on purchase vehicle sales and consumer finance and Barclays National Industrial Bank Ltd which arranges or provides medium- term and project finance mainly for corporate customers by way of leasing suspensive sale discounting and factoring facilities Year ended December 31 1982 1982 R000 1981 R000 Issued capital 234 011 R1 ordinary shares Total shareholders funds 53 234 462 616 234 408 564 Total assets 13 132 003 10 795 222 Total deposits 748 124 Advances and other accounts 920 905 Equity earnings 101 per share Dividends share Bowring Barclays Africa Limited South AAC equity interest - 33,3 per cent The insurance broking interests of C.T. Bowring and Associates Holdings South Africa Lid and Barclays Insurance Brokers South Africa Ltd were merged on January 1 1981. The issued share capital of the merged company is owned as to one third each by AAC Barclays Bank and Marsh & McLennan New York through C.T. Bowring U.K. Through various subsidiaries and associated companies the company conducts insurance broking operations in all fields of insurance in southern Africa Year ended 31 December 1982 Issued capital 006 R1 ordinary shares Total shareholders funds Equity earnings share Dividends per share 1982 R000 150 R28.28 1981 R000 The Discount House of South Limited AAC equity interest - 17,5 per cent As a discount house registered in terms of the Banks Act 1965 the company negotiates call loans from banking institutions and building societies which may regard the loans as liquid assets for statutory purposes and from mining houses The funds borrowed are invested in a range of domestic negotiable free mainly short securities principally treasury bills bank acceptances negotiable certificates of deposit and stocks and debentures of the local public . makes Reserve Bank and 3 Land Bank The company active markets the various securities in which it invests trades high levels of these securities with a wide range financial institutions and other investors and ciferscifers portfolio services The in of the Harlow Meyer Savage of London has established Cheelah International Money Brokers Ltd. South Africa's first foreign exchange broking company Net eamings for the year ended December 31 1982 were the R2,64 million compared with R1.60 milion year previous Mineral resources and mining Desert Steppe grass NATURAL VEGETATION Savan ah Savannah Tropical Forest = CJ Rain Forest T=] Agriculture Stock Raising [_] ECONOMIES Forestry Manufacturing Fishing Other Tsumeb NAMIBA NAMIBIA \ Bay Walvis Windhoek S.A. @f i ; BOTSWANA Atlantic Ocean Johannesburg i f. = Johanesburg ahari Kimberley YS WAL ABOVE HEIGHT SEA LEVEL METRES Port Elizabeth Indian Ocean DENSITY OF POPULATION Persons per km an 10 200 1 5 20 2002+ 00+ Cities of more than 000 Bl @ Coal a Chrome @ Copper & Diamonds Gold @ Manganese * @ Iron Ore * Nickel @ Platinum * Uranium * = Fluorspar Oil Y . t ; ~~ Railways } Administration CHAIRMAN'S OFFICE SECRETARY TO EXECUTIVE COMMITTEE Sunter ECONOMIC CONSULTANT A Dickman PUBLIC RELATIONS Mortimer CONSULTANT LEGAL SERVICES MANAGER DL Titlestad SECURITY CONSULTANT FAJ van Zijl SECRETARY CL Maltby PURCHASING COLaRngPstOonRATE SERVICES MANAGER DW Darke MANAGER Chairman's Fund DIRECTOR MC O'Dowd Finance Office DIRECTOR MW King MANAGER JMP Desmidt FINANCE MANAGERS GM Holford AW Lea AJ Trahar von Backstr^m ACCOUNTING CONSULTANT Leeman GROUP ACCOUNTANT Chalmers CRCONSULTANT GROUP RRD DuInNcTanERANndeArsLonAUDIT MANAGER CORPORATE FINANCE CONSULTANT CWP Yates Manpower Resources Office MANAGER JF Drysdale W PEGRSOMiNtcNheEllL CONSULTANTS FJ MorganMorgan SENIOR MEDICAL CONSULTANT Laing ce MEDICAL CONSULTANTS Dr Potgieter CHC Thomas CONSULTING ACTUARY Brown INDUSTRIAL RELATIONS CONSULTANT RM Godsell TRAINING CONSULTANT RJB Spence Technical Office DIRECTOR Holmes * TECHNICAL DDEPrUTY AD Deuchar DIRECTORS JLP JLP Mackenzie CONSULTING ENGINEERS A Chant JC Martens HJ Stucke MPO'Connor MPO'Connor CONSULTING ARCHITECT Yetton CONSULTING CIVIL ENGINEER JM Evans CONSULTING ELECTRICAL ENGINEER CONSULTING Dr Cornwall Cornwal GEOLOGIST 82 CONSULTING GEOPHYSICIST Biesheuvel CONSULTING MECHANICAL ENGINEER TC Kuun CONSULTING METALLURGISTS Dr M Brittan LN Stewart TECHNICAL SERVICES CONSULTANT Dr LC Browne MINING VALUATION CONSULTANT HM MacLeod METAL HEAD CONSULTANT TECHNICAL OF JFC Fisher STUDIES DIVISIONAL MANAGERS RHT Garnett FR FR Sergiades MDArNLAoGvEedRaSyRESEARCH Tumilty NT van der Walt CONSULTING MINING ENGINEER GROUP COMPUTER CONSULTANT BJ Shaul COMPUTER SERVICES MANAGER PH Williams OPERATING DIVISIONS Coal CHAIRMAN WG Boustred MANAGING DIRECTOR D Rankin DEPUTY MANAGING DIRECTOR DF Rogans CONSULTING ENGINEERS PP Coetser JD Flint GO Parnell Sutherland CONSULTING GEOLOGIST Whittaker CONSULTING MECHANICAL AND ELECTRICAL ENGINEERS G Burrage M Kinghorn Smith Smith CONSULTING METALLURGISTS JA Crichton DW Horsfall CONSULTING CONSULTING MINING ENGINEERS Mr Baars IF Buchan PD Dickson Laybourne GJ Livingstone Blevins WC Matier RB Watson ENERGY CCONSULTAN ONSULTANT FINANCIAL DIRECTOR Hosking MARKETING AND SALESDIRECTOR MARKETING MANAGERS Dr CampbellCampbell MANAGERS HB Stacey KH Williams PERSONNEL Wiggill CONSULTANT DiamondServices CHAIRMAN JOgilvie JOgilvie Thompson MANAGERS Dr B Dyer PJR Leyden FINANCIAL DIRECTOR Lincoln DEPUTY MANAGERS RM Crawford Campbell CONSULTING ENGINEERS AP Brittz T Jones JO Richards CONSULTING GEOLOGISTS Edwards Dr LG Murray CB JB Hawthorne CONSULTING MECHANICAL AND ELECTRICAL ENGINEERS A MacKinnon Dr Rees CONSULTING METALLURGISTS G Schwartz JF Slabbert ORE VALUATION CONSULTANT MM Oosterveld PERSONNEL CONSULTANT Cross Food and Agriculture CHAIRMAN MB Holmeyr Gold and Uranium CHAIRMAN DA Etheredge MANAGING DIRECTOR AND CHIEF EXECUTIVE G Langton DEPUTY MANAGING DIRECTORS WR Lawrie GS Young CONSULTING ENGINEERS FJFJ Bayley ECW Brereton Hewitt DM Rood Steyn Waddams RG Williams CONSULTING Dr PienaarPienaar GEOLOGIST CONSULTING CONSULTING MECHANICAL AND ELECTRICAL ENGINEERS AP de Klerk 4 ' x KJTrueman AS Webster METALLURGISTS CONSULTING WA Kretschmer V Moore PJ Mostert CONSULTING MINING ENGINEER WH Farthing FF IBNeAntNlCeIyAL DIRECTOR - - MANPOWER DIRECTOR SW van der Coll PERSONNEL CONSULTANTS PJJ Botha FJ Marneweck INFOGOLD Davies AJ MANAGER Weinbrg MDArRR KMETWeIinNbGergMANAGER DIVISIONAL MANAGER - ADMINISTRATION PJ Eustace Industry and Commerce CHAIRMAN CJ Griffith MANAGER OP Koevort FINANCIAL DIRECTOR WG Boyd Insurance and Property CHAIRMAN de Beer New Mining Business CHAIRMAN AB McKerron PROSPECTING MANAGER Gower CONSULTING ENGINEER NJ Keys CONSULTING GEOLOGIST Dr L Coetzee CONSULTING MECHANICAL AND ELECTRICAL ENGINEER JL Grubb CONSULTING METALLURGIST Brown FINANCIAL DIRECTOR P Scott Steel and Engineering CHAIRMAN WG Boustred ASSOCIATE AND REGIONAL OFFICES Argentina and Chile DIRECTOR PCD Burnell Australia GENERAL MANAGER GR Appleyard Botswana CHAIRMAN LG Nchindo Brazil CHAIRMAN Dr MAF Ferreira MANAGING CONSULTING PCD BMuArNnAeGlIlNG DIRECTOR GEOLOGIST Dr F DM Horscroft South West Namibia DIRECTOR Hoffe United Kingdom LONDON COMMITTEE JN Clarke FJA Philip Sir JG RichardsonOppenheimer CONSULTING .JV CleasbyCleasby ENGINEER Zambia MANAGING DIRECTOR VI Webber MANAGER OT Phillips Zimbabwe CHIEF EXECUTIVE GA Carey we MANAGERS BE Bullett RJ RP HHeedldeyley DIRECTOR TECHNICAL TCA Wadeson CONSULTINGMECHANICAL AND ELECTRICAL ENGINEERS JR Tayici CONSULTING METALLURGIST NH Jackson CONSULTING MINING ENGINEER JM Pryor oo ne Le ToT i | i eT ce nen we INTERNATIONAL OFFICES Argentina Anglo American Corporation Argentina Holdings Limited Corrientes 316 6 Piso Oficina 655 1314 Buenos Aires Argentina Telex 22752 DABIN Telephone 32-6475 Administrative ManagHOeHO rDominguez Australia Australian Anglo American Limited 581 Little Collins Street Melbourne Victoria 3000 Telex 30728 Telephone 622141 Secretary JE JE Clark Botswana Anglo American Corporation Botswana Services Proprietary Limited Botsalano House The Mall Gaborone Telex 2410 Ambot BD Telephone 51131 Secretary HJ HJ Crankshaw Brazil Anglo American Corporation do Brasil Limitada Rua Araujo Porto Alegre 36-8 Andar 20016 Rio de Janeiro RJ Telex 2121723 AAC BR Telephone 210-1224 Secretary RN Lima Chile Minera Angio American Chile Limitada Clasificador Correo 9 Europa 1969 Providencia Santiago Telex 94375 Telephone 465799 Administrative Manager CE CE Corthorn Luxembourg Anglo Rand Holdings S.A. 50 Route D'Esch BP 459 Telex 2234 CENTOL LU Telephone 443002 Secretary DF DF Ellis Netherlands Anglo American Services Netherlands BV Telex 16762 Erabs NL Telephone 020-252863 Secretary JR JR Roynon Portugal Anglo American Corporation de Portugal Limitada 244 Avenida Da Liberdade Lisbon 1200 Telex 18316 AAC P Telephona 561126 Secretary A Costa Cabral South West Namibla PO Box 1906 Tenth Floor CDM Centre 10 B^...lowStreet Windhoek 9000 Telex 56658 Telephone 061 35061 Office Manager S M Jackson United Kingdom 40 Holborn Viaduct London EC1P 1AJ England Telex 264791 Telephone 3531545 London Secretary DS Booth Zambia Anglo American Corporation Central Africa Limited PO Box 31986 74 Independence Avenue Lusaka Telex ZA41190 Telephone 212323 Group Secretary J W Fanning Zimbabwe Anglo American Corporation Services Limited PO Box 1108 70 Samora Machel Avenue Harare C4 Telex 4113 Telephone 704461 Secretary W N Bray SHARE TRANSFER BECRETARIES Consolidated Share Registrars Limited First Floor Edura 40 Commissioner Street Johannesburg 2001 PO Box 61051 Marshalltown 2107 Charter Consolidated P.L.C. PO Box 102 > Charter House Park Street Ashford Kent TN24 BEQ England Members of the Corporation who wish to receive copies of the annual reports of the Corporation and its listed administered companies may obtain them upon application to the Secretary or to the London Secretary of the Corporation Changes of address should be notified to the Corporation's transfer secretaries 83 Statutory and other information 4 - Resolutions adopted by subsidiaries in general meeting Adoption of new Articles of Association Anmines Investments Limitert Eria Limited on Laelia Limited Martingale Investments Limited Meadow Investments Limited Raglan Investments Limited Redan Investments Limited Adoption of Share Incentive Scheme Anglo American Life Assurance Company Limited to Articles of Amalgamated Collieries of South Africa Limited Amaprop Townships Limited Amcoal Collieries Limited Anglo Power Collieries Proprietary Limited Anmercosa Anderson Limited Anmercosa Avonlea Limited Anmercosa Marshall Limited Anmercosa Unitas Limited Anmercosa 9 West Limited Anmercosa 47 Main Limited Balgray Collieries Limited Blesbok Colliery Limited Carotol Holdings Proprietary Limited City Developments Limited Delaunay Limited . Drumlin Holdings Proprietary Limited East City Centre Proprietary Limited Hedge Investments Proprietary Limited Leibtown Investments Proprietary Limited McCarthy Brickhill Properties Proprietary Limited McCarthy Property Investments Limited Metals and Minerals Investment Corporation Limited Muckleneuk Properties Proprietary Limited Natal Anthracite Colliery Limited New Largo Colliery Limited Prestin Holdings Proprietary Limited =~ Progress Investment Company Proprietary Limited Scylla Investments Proprietary Limited Springbok Colliery Limited Springfield Collieries Limited The Coronation Collieries Limited Vryheid Coronation Limited to of First Stage Investments Proprietary Limited Guarantee Life Property Holdings Proprietary Leiblown Investments Proprietary Limited Amcoal Export Services Limited Anglo American Coal Corporation Limited Anmercosa 47 Main Limited Limited Change of capital structure Central Reserves Private Limited Delaunay Limited Greenfield Shopping Centre Proprietary Limited + - Maudsley Holdings Limited Metals and Minerals Investment Corporation Limited Centre Properties Proprietary Limited Prestin Holdings Proprietary Limited Sorec Properties Waterkant Street Proprietary Limited Change of name Amcoal Export Services Limited from Wyandot Holdings Limited Amlife Holdings Limited from Kirchmann Holdings Limited == Conversion of company from private to public status Anglo American International Services Limited Anmercosa Anderson Limited Anmercosa Avonlea Limited Anmercosa Marshall Limited Anmercosa Unitas Limited Anmercosa 9 West Limited Anmercosa 47 Main Limited Eria Limited Laelia Limited Longmeadow Home Farm Limited Mbulwa Estate Limited Risana Estates Limited Serpollel Holdings Limited Zaaiwater Limited Deregistration of company City Developments Limited Leiblown Investments Proprietary Limited Muckleneuk Properties Proprietary Limited Prestin Holdings Proprietary Limited Disposal of assets . Amcoal Exploration and Finance Limited Barbara Investments Proprietary Limited Esray Investments Proprietary Limited First Stage Investments Proprietary Limited K.S.J. Properties Proprietary Limited Natal Anthracite Collieries Limited New Largo Colliery Limited PLG Investments Proprietary Limited Springfield Collieries Limited Sydray Investments Proprietary Limited Vryheid Coronation Limited , rat Liquidation company =} 1 Perdix Investment Holdings Pr prietary Limited Swaziland Iron Ore Developmy nt Company Limited Shareholdings over five per cent According to the register of members of the Corporation the following are registered as holding five per cent or more of the ordinary share capital of the Corporation De Beers Holdings Proprietary . Limited Fermain Nominees Limited Percentage Holding of equity 072 19 789 334 6,64 8,72 Petard Nominees Limited 056 400 5,75 Resident Nominees Limited 745 575 10,90 South African Mutual Life Assurance Society 374 312 7.21 However according to the annual report of De Beers Consolidated Mines Limited for the year ended December 31 1982 that company the holding company of De Beers Holdings Proprietary Limited was at that date the beneficial owner directly and indirectly of 86 705 527 ordinary shares : Since its year De Beers has announced the purchase of a further 568 660 ordinary shares in the Corporation Directors shareholdings The interests of the present directors and alternate directors in the shares of the Corporation at March 31 1983 appearing in the register of the interests of the directors in the shares of the Corporation are set out below There have been no changes between that date and May 28 1983 Sir Keith Acutt RIJ Agnew MGM Atmore WG Boustred B Bullett Beneficial = 100 10000 000 600 000 Nonbene- ficial 600 188 188 188 1 Option to acquire | | | | I PCD Burnell Beneficial 25 000 Carey 23 000 7000 JN Clarke 500 Dr ZJ Beer 50 000 772 828 JMP Desmidt 000 AD Deuchar HB Dyer 18.000 000 500 DA Etheredge 000 000 MAF Ferreira 26 000 500 GC Fletcher CJL Griffith 20 000 20 000 Hambro = RN Hambro Hedley Holfe MB Hofmeyr 100 000 1300 25 000 10 000 Holmes FJA Howard MW King OP Koevort 35 000 100 50 000 000 G Langton Lawrie 000 000 PJR Leyden JLP Mackenzie 000 10 000 000 500 AB McKerron 000 LGLG Murray 10 000 600 DG Nicholson O'Dowd 000 20000 000 4000 Oppenheimer 18 943 includes 100 registered - Sir Philip Oppenheimer 200 195 430 TL Pretorius 000 D Rankin GWH . Richardson 10000 000 55 000 000 Sir Albert Robinson CJ Saunders HR Steck 100 100 743 943 includes 000 JOgilvie JOgilvie Thompson Dr J G van der Horst Dr Vilakazi GH Waddell registered 65 000 500 943 18 743 943 includes 1000 V Webber registered 10 WD Wilson 000 GS Young 1000 19 800 800 Non- benoficial 8888888888888888888888 88888888888 88 88 88 88 88 88 88 88 Option to acquire - | 88888888888 88888888 88888888888 8888888888888888888888 88888888 8888888888888888888888 8888888888888888888888 8888888888888888888888 8888888888888888888888 8888888888888888888888 8888888888888888888888 8888888888888888888888 88888888 88888888888 8888888888888888888888 88888888888 88888888888 88888888888 8888888888888888888888 88888888888 88888888888 8888888888888888888888 88888 88888888888 8888888888888888888888 : 1000 || || 1 | | _ |||| |||| |||| |||| 2000 18 18 | | | = 2000 1 - 1 I 100 100 1000 100 1000 = 1000 - 5.000 - . 1000 - 100 = 4000 8ll 8ll 8ll x = 000 1 _ 100 1 The Corporation is not aware of the extent if any of the directors family interests Shares held under a share incentive scheme tIndirect #Indirect partial Sole beneficiary of a trust : A 3 i i 1 | i \ AN , i as > 5 j i | at my i } i : wt } : } ; } } j t 3 : i >