Final Results

Anglovaal Mining Ld
25 August 2000

Anglovaal Mining
Avmin

Avmin highlights
* Diamond interests sold for R3,72 billion of which R2,9 billion has been
returned to shareholders
* Headline earnings of R486 million (including a R347 million contribution
from diamonds)
* Headline earnings per share increase 46% to 455 cents
* Significant progress on all major development projects
* Nkomati performs exceptionally well with a 629% increase in operating profit
to R204 million

Financial highlights
Year ended 30 June 2000
Profit before taxation and exceptional items (Rm)       713
Earnings (Rm)                                         3 980
Headline earnings (Rm)                                  486
Earnings per share (cents)                            3 723
Headline earnings per share (cents)                     455

CONTACT DETAILS
Registered address            Investment and media enquiries
PO Box 62379                  Julian Gwillim
Marshalltown, 2107            Anglovaal Mining Limited
South Africa                  56 Main Street
Telephone [phone]      Johannesburg, South Africa, 2001
Telefax [phone]        Telephone [phone]
                              e-mail [e-mail]
Shareholders' enquiries
South African transfer secretaries       London transfer secretaries
Mercantile Registrars Limited            St James's Corporate Services Limited
11 Diagonal Street                       6 St James's Place
Johannesburg, 2001                       London SW1A 1NP
South Africa                             Telephone [phone]
Telephone [phone]                 Telefax [phone]
Telefax [phone]
                                         Capita IRG plc
                                         Balfour House
                                         390/398 High Road
                                         Ilford, Essex IG1 1NQ
Anglovaal Mining Limited
Registration number 1933/004580/06
(Incorporated in the Republic of South Africa)
56 Main Street, Johannesburg, South Africa, 2001
PO Box 62379, Marshalltown, South Africa, 2107
www.avmin.co.za

CONTRIBUTIONS TO HEADLINE EARNINGS FOR THE YEAR ENDED 30 JUNE 2000
                        Base    Ferrous                       Corporate
(Rm)             Gold   metals  metals  Diamonds Exploration  and other  Total
SEGMENTAL INFORMATION
Revenue 
(external sales) 290    496     1 592   339      -            217        2 934
Segment result   (25)    90       279   347     (19)          (70)         602
Income from 
  investments      9      7         2     -       -           165          183
Finance cost       -     (5)      (37)    -       -           (30)        (72)
Exceptional items 28      -         -     -       -         3 620        3 648
Taxation          (7)   (41)      (89)    -       -          (187)       (324)

Minority interest  4      2       (63)    -       -             -         (57)
Contribution to 
 earnings          9     53        92   347     (19)        3 498       3 980
Contribution to 
headline earnings (3)    53        92   347     (19)           16         486


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2000
               Share      Foreign
         capital and     currency   Revaluation            Retained       
(Rm)         premium  translation       surplus  Other       income      Total
Balance at 
30 June 1999 
previously 
reported       1 701          (2)             6     94         202       2 001
Change in 
accounting policy 
(see note 
below)             -           -             (3)     -          (3)        (6)
Restated opening 
balance        1 701          (2)             3     94         199       1 995
Foreign currency translation 
reserve            -           8              -      -           -           8
Earnings           -           -              -      -       3 980       3 980
Special 
distribution  (1 697)          -              -      -      (1 208)    (2 905)
Share issue net 
of expenses        9           -              -      -           -          9
Share election reserve 
- utilised        47           -              -    (47)          -          -
- encashed         -           -              -     (9)          -         (9)
Post-acquisition 
items realised     -           -              -      9           -          9
Balance at 
30 June 2000      60           6              3     47        2 971     3 087 
     
NOTE TO THE FINANCIAL STATEMENTS
During the year the accounting policies were changed to account for the
decommissioning of mining assets, the amortisation of non-specialised
buildings and the recognition of deferred tax assets. These changes had no
significant effect on earnings. The changes have resulted in a decrease in
reserves of R6 million and a restatement of the balances in respect of
deferred tax, environmental rehabilitation trust funds and long-term
provisions.

Report for the year ended 30 June 2000

GROUP INCOME STATEMENT
                                Audited       Restated
For the year ended 30 June         2000           1999 (Note)
                                     Rm             Rm
Revenue                           2 934          2 489
Cost of sales                     2 119          1 673
Gross profit                        815            816
Other operating income               76            126
Other operating expenses            289            297
Profit from operations              602            645
Income from investments             183             54
Finance costs                        72            125
Profit before exceptional items     713            574
Exceptional items                 3 648            208
Profit before taxation            4 361            782
Taxation                            324            147
Profit after taxation             4 037            635
Income from associates                -              4       
Net profit                        4 037            639
Minority interest                    57            118
Earnings                          3 980            521
Headline earnings                   486            289       
Earnings per share (cents)        3 723            561       
Headline earnings 
 per share (cents)                  455            311
Dividends per share (cents)       1 123             70
Capital distribution 
 per share (cents)                1 577              -       
Number of shares in issue 
at end of year (thousands)      107 610        106 200
Weighted average number of 
shares in issue (thousands)     106 889         92 894


GROUP BALANCE SHEET
                                Audited       Restated
As at 30 June                      2000           1999 (Note)
                                     Rm             Rm
ASSETS
Non-current assets              
Tangible and intangible 
fixed assets                      3 916          3 058       
Loans and long-term receivables       2              -
Deferred tax assets                  22             14
Environmental rehabilitation 
trust fund                           51             94
Investments                          57             16
                                  4 048          3 182       
Current assets
Inventories                         586            672       
Trade and other receivables         640            665
Taxation                              3              5
Deposits and cash                 4 160            436
                                  5 389          1 778       
Total assets                      9 437          4 960       
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital                5              5       
Preference share capital              4              4
Share premium                        51          1 692
Non-distributable reserves           56             95       
Distributable reserves            2 971            199       
Shareholders' interest in 
 capital and reserves             3 087          1 995       
Minority interest                 1 185          1 128       
Total shareholders' interest      4 272          3 123       
Non-current liabilities               
Long-term borrowings                562            389       
Deferred tax liabilities            289            163       
Long-term provisions                202            275
                                  1 053            827
Current liabilities
Trade and other payables            493            593       
Taxation                            194             58       
Shareholders for dividends        1 208             18
Shareholders for distribution     1 697              -       
Overdrafts and short-term 
  borrowings                        520             341       
                                  4 112           1 010       
Total equity and liabilities      9 437           4 960       


GROUP CASH FLOW STATEMENT
                                Audited       Restated
For the year ended 30 June         2000           1999 (Note)
                                     Rm            Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from operations      632           460
Interest received                   172            43
Interest paid                       (72)         (125)
Dividends received                   11            11
Dividends paid                      (41)         (139)
Taxation paid                       (68)         (143)
Net cash inflow from operating 
activities                          634           107
CASH FLOW FROM INVESTING ACTIVITIES       
Acquisition of subsidiaries, 
net of cash acquired                  -            35
Proceeds from disposal of 
subsidiaries, net of cash disposed   17           238
Proceeds from sale of 
Hartebeestfontein mine              304             1
Additions to fixed assets 
to maintain operations             (312)         (175)
Additions to fixed assets to 
expand operations                  (973)         (572)
Proceeds on disposal of 
fixed assets                         43            18
Proceeds on disposal of 
investments                       3 732           419
Other investments acquired          (63)            -       
Net cash inflow/(outflow) from 
investing activities              2 748           (36)    
   
CASH FLOW FROM FINANCING ACTIVITIES
Increase in shareholder funding       9           200
Funding received from minority 
shareholders                         14             -       
Long-term borrowings raised         160           367
Long-term borrowings repaid          (6)          (50)
Increase/(decrease) in 
short-term borrowings               163          (309)       
Decrease in loans and 
long-term receivables                 2            90       
Net cash inflow from 
financing activities                342           298       
Net increase in cash and 
cash equivalents                  3 724           369       
Cash and cash equivalents at 
beginning of the year               436         1 207       
Cash and cash equivalents not 
available due to unbundling           -        (1 140)        
Cash and cash equivalents at 
end of year                        4 160          436       
Cash generated from operations 
per share (cents)                    591          495       

REVIEW OF THE YEAR ENDED 30 JUNE 2000
Although the year was characterised by unexciting movements in the prices
received for ferrous metals and gold, a significantly enhanced diamond royalty
flow and an exceptionally strong nickel price recovery enabled Anglovaal
Mining Limited (Avmin or the Company) to increase headline earnings to R486
million (30 June 1999: R289 million - restated). 
The major event of the year was, however, the disposal of Avmin's diamond
interests to De Beers Consolidated Mines Limited (De Beers) for R3,72 billion.
Taking the proceeds from this divestment into account, together with the
related taxation charges and interest received, earnings for the period
amounted to R3,98 billion (R521 million). 
Headline earnings per share rose to 455 cents (311 cents per share) with
earnings per share of 3 723 cents (561 cents per share).
As reported during the year, De Beers acquired Avmin's 87,5 per cent interest
in The Saturn Partnership (Saturn) for a cash consideration of R3,72 billion
and Avmin's 20 per cent interest in Finsch Diamonds (Pty) Limited (which
effectively equated to an eight per cent profit participation in the Finsch
mine) for R20 million. De Beers also placed its holding of 23 378 955 ordinary
shares in the Company with various portfolio investors. On 31 March 2000, De
Beers paid R3,72 billion into an interest bearing escrow account, which earned
Avmin an amount of R96 million to 30 June 2000. This amount has been included
in the year's earnings. Following shareholder approvals for the transactions
on 12 June 2000, a cash distribution of R27,00 per ordinary share was posted
to all shareholders on 7 July 2000. The distribution was made in cash with an
amount of R1,697 billion being drawn from the Company's share premium account
and the balance of R1,208 billion from its distributable reserves. In respect
of this transaction, Avmin paid Secondary Tax on Companies (STC), which
amounted to R133 million.
Due to the significant amount of the distribution, the Board decided that
there would be no final dividend in respect of the Company's current financial
year. In subsequent financial years, it is the intention to return to the
previous dividend policy, whereby dividends declared annually are covered at
least four times by earnings, although during the next two financial years,
this is subject to bank covenants related to the Company's guarantee of the
debt financing of Chambishi Metals plc (90 per cent owned by the Company).
In terms of the De Beers transaction, Avmin received its 87,5 per cent share
of the royalty accruing from Saturn in respect of the Venetia diamond mine for
the six months ended 30 June 1999 amounting to R81 million (R144 million).
However, the second payment received was significantly higher and the total
Saturn royalty accounted for by Avmin in the year ended 30 June 2000 amounted
to R339 million (R263 million). 
FERROUS METALS
Significant progress was made during the year at The Associated Manganese
Mines of South Africa Limited (Assmang) as project work advanced to establish
Assmang as a major producer of ferrochrome and a reliable, low cost supplier
of manganese and iron ore to the steel manufacturing industry. These
developments include a new chrome mining complex at Dwarsrivier, upgrades to
furnaces at Feralloys Limited (Feralloys), a new shaft system at the Nchwaning
manganese mining operation to access new reserves, the construction of a new
jig plant at the iron ore operation and upgrades to the ferromanganese
facility. It is expected that about R1,2 billion will have been spent on these
developments by June 2004. 
During the year, Assmang's earnings declined to R127 million (R237 million)
mainly as a result of lower volumes of manganese ore and lower prices received
for iron ore and ferromanganese. Sales of manganese ore, including sales to
Feralloys' Cato Ridge facility, reduced to 1,360 million tons (1,480 million
tons). Iron ore sales increased to 4,170 million tons (3,980 million tons) as
the benefits of the recently commissioned southern extension to the Beeshoek
mine came into effect. 
Assmang's wholly-owned ferroalloy operator, Feralloys, recorded a profit after
taxation of R11 million (R56 million). Sales of high carbon ferromanganese
were higher at 215 000 tons (176 000 tons), but prices received were lower.
Ferrochrome sales prices were fairly stable during the year and volumes
remained almost constant at 114 000 tons (112 000 tons).
Capital expenditure during the year under review totalled R405 million (R317
million) spent mainly on the developments at Dwarsrivier, the new shaft system
at Nchwaning and a new jig plant at the iron ore operation.
GOLD
This was a year of important change and refocusing for Avgold Limited
(Avgold). The most significant event was the decision to dispose of
Hartebeestfontein mine (Harties) with effect from 16 August 1999, which
realised R304 million for Avgold. Consequently, the head office was downsized
and the Company refocused on the development of Target, returning ETC to
profitability and extracting value from the significant resources in the Free
State, north of the Target mine. 
Total gold sales for the year amounted to 4 621 kg, of which 2 344 kg was
contributed by Harties prior to the disposal of that mine. The average cash
cost was R58 040/kg or US$286/oz at an average yield of 4,62 g/t. Inclusive of
hedging activity, Avgold's average gold price received for the year was R61
730/kg or US$304/oz, against the average annual 'spot' price of R56 890/kg or
US$280/oz. Avgold incurred an operating loss of R42 million and an overall
loss of R11 million after investment income, finance charges and taking into
account profits from the sale of Harties. These losses include R29 million of
costs arising from non-recurring items relating to Harties, various
retrenchments and exploration.
Developments at the new Target mine proceeded at a very satisfactory rate with
the significant milestones of the 203 level decline and the return airway
holing completed ahead of schedule. The extensive underground exploration
drilling programme was completed in December 1999, which resulted in an
increase in total measured, indicated and inferred resources (inclusive of
reserves). These now total 25,8 million tonnes at an average grade of 7,79 g/t
containing about 6,5 million ounces of gold. This has allowed a detailed and
comprehensive mining plan to be developed with production now planned at 1,2
million tonnes per annum and annual gold sales increasing to in excess of 350
000 ounces at planned cash costs below $150 per ounce.
The funding required to complete Target, including capitalised interest, is
estimated at R1,1 billion. Interim funding of R300 million has been secured
from Avmin, of which R200 million had been used at 30 June 2000. A bridging
loan of R400 million has been secured from Standard Corporate and Merchant
Bank (SCMB) until 31 March 2001. The long-term financing will be in the form
of a proposed rights issue of approximately R500 million (see today's Avgold
announcement) and the balance by way of a R600 million term bank loan.
This was ETC's first full financial year since the closure and subsequent sale
of the Agnes mine. ETC's expanded Biox(r) facility was commissioned during the
year, but problems were encountered in the downstream section. These have now
been resolved and the plant is operating well with concentrate feed exceeding
50 tonnes a day and recoveries above 95 per cent. During the year, ETC's
Sheba, New Consort and Fairview mines milled 233 000 tonnes (376 000 tonnes)
at an average yield of 9,76 g/t (8,42 g/t). Gold sold was 2 277 kg (3 194 kg)
at a cash cost of R58 140/kg or US$286/oz (R50 468/kg or US$259/oz). 
The surface exploration programme in the Target North and Sun South areas was
completed in May 2000. All the resulting data has been collated, validated and
correctly correlated, with an improvement on the previous estimate of 42,1
million ounces to 54,7 million ounces of total resource for Target North and
Sun South combined. More importantly, this is an increase of 17,4 million
ounces of indicated resources and 10,9 million ounces of these are within 2
500 metres of surface and within 5 km of the Target mine workings. 
BASE METALS
Avmin's nickel (and copper, cobalt and platinum group metals as by-products)
producer, Nkomati, had an exceptionally good year reporting an operating
profit of R204 million (R28 million). The mine milled 239 000 tons (189 000
tons) of ore, producing 41 240 tons (37 104 tons) of concentrate with an
average nickel grade of 10,66 per cent (10,10 per cent). This resulted in
final metal production levels of: nickel - 4 400 tons (3 700 tons); copper - 2
500 tons (1 400 tons); and cobalt - 230 tons (200 tons). The mine remained at
the lower end of the international cost benchmark. The study to assess the
potential of a significant expansion at the mine has been completed and has
been presented to Avmin's 25 per cent joint venture partner, the Anglo
American group.
Chambishi Metals plc (Chambishi), the cobalt and copper producer on the
Zambian Copperbelt, toll refined 64 000 tons (81 000 tons - 10 months) of
concentrate for its clients through its existing plant, producing 1 900 tons
(1 800 tons - 10 months) of cobalt and 7 700 tons (8 600 tons - 10 months) of
copper. In addition to this, 14 200 tons of heterogenite acquired during the
year from the Democratic Republic of the Congo was processed and produced 300
tons of cobalt. The net result for the year was an operating loss of R27
million (R49 million - profit - 10 months). Difficulties were experienced
during the first nine months of the year in terms of the volumes and quality
of concentrate deliveries and pyrite supply from various clients while the
Government of the Republic of Zambia finalised its privatisation of Zambia
Consolidated Copper Mines Limited. This was substantially completed on 31
March 2000 and a marked improvement in concentrate quantity and quality was
evident during the last two months of the year and has continued to the date
of this report. In addition to this, the existing refining facility has been
upgraded to bring this plant to an internationally competitive standard. 
Chambishi has made significant advancement in the construction of its new and
expanded facility to treat a 20 million ton surface deposit located about 35
km away from the plant. As at 30 June 2000, the facility, which will cost R1,2
billion, was 85 per cent completed and the start of the cold commissioning
phase is expected within a few months. The full production rate of about 4 000
tons of cobalt and about 3 500 tons of copper a year is expected to be reached
toward the end of this financial year. Together with Chambishi's other sources
of feed material, this will bring total cobalt production to about 6 000 tons
a year and about 10 000 tons a year of copper. This level of production is
expected to be reached during the 2002 financial year. 
THE YEAR AHEAD
The Company remains subject to commodity price and exchange rate fluctuations,
but it is expected that the weighted average prices for the commodities
produced by Avmin will be higher during this financial year. As a result,
while earnings to 30 June 2001 will decrease because of the diamond asset
sales and subsequent cash distribution to shareholders, higher levels of
production and contributions from Avmin's core operating areas of gold, base
and ferrous metals are likely to improve. It is important to note that the
various expansion initiatives underway are also well sequenced to
progressively add new earnings over the next two years. 
WITH THANKS
Our appreciation is expressed to all our employees and fellow directors for
their dedication and tremendous commitment to achieving the ambitions of the
Company. This support will serve Avmin well as it embarks on its next phase of
growth.

For and on behalf of the Board 

Kennedy Maxwell, Deputy Chairman
Rick Menell, Deputy Chairman and Chief Executive Officer                      
                                               
25 August 2000

DIRECTORS: K W Maxwell (Chairman), R P Menell (Deputy Chairman and Chief
Executive Officer), D E Jowell, Dr T V Maphai, J R McAlpine, B M Menell, Dr M
Z Nkosi.
MANAGEMENT BOARD: R P Menell (CEO), D D de Beer (Finance), D N Murray (Gold), 
G J Robbertze (Base Metals), J C Steenkamp (Ferrous Metals). 
COMPANY SECRETARY: S E Sather