Interim Results

Anglovaal Mining Ld
29 February 2000


Avmin
Interim Report
for the half-year ended 31 December 1999

highlights
* Agreement signed by Avmin in February 2000 to sell its diamond interests to
DeBeers for R3,72 billion cash
* Weak demand for ferrous metals, Avgold's loss and a lower diamond royalty
reduces headline earnings to R97 million from R110million
* Assmang's new chrome and manganese projects are under way
* Chambishi Metals' cobalt and copper refinery expansion and construction of
smelter on schedule for commissioning to start in October2000
* Avgold's Target mine development on track

Group Income Statement
                                    Unaudited     Audited
                              Half-year ended  Year ended
                                  31 December     30 June
                                1999       1998      1999
                                       Restated
                                  Rm         Rm        Rm
Revenue                        1 263      1 228     2 489
Cost of sales                  1 011        799     1 673
Gross profit                     252        429       816
Other operating income            45         58       126
Other operating expenses         143        160       296
Profit from operations           154        327       646
Income from investments           28         14        54
Finance costs                     33         71       125
Profit before exceptional items  149        270       575
Exceptional items                (26)       169       208
Profit before taxation           123        439       783
Taxation                          36        104       147
Profit after taxation             87        335       636
Income from associates             -          6         4
Net profit                        87        341       640
Minority interest                 11         62       118
Earnings                          76        279       522
Headline earnings                 97        110       290
Earnings per share (cents)        72        307       562
Headline earnings per 
share (cents)                     91        121       312
Fully diluted earnings per 
share (cents)                     70        305       557
Fully diluted headline earnings 
per share (cents)                 89        120       309
Dividends per share (cents)        -          -        70
Number of shares in issue at 
end of period (thousands)    107 399     90 912   106 200
Weighted average number of 
shares in issue (thousands)  106 284     90 912    92 894
Weighted average number of 
shares used in calculating 
fully diluted earnings per 
share (thousands)            108 391     91 559    93 796

Group Balance Sheet
                                      Unaudited          Audited
                                 At 31 December       At 30 June
                               1999       1998              1999
                                      Restated
                                 Rm         Rm                Rm
ASSETS
Non-current assets       
Fixed and intangible assets   3 073       1 466       3 058
Loans and long-term 
receivables                       2           -           -
Investments                      53         792          16
                              3 128       2 258       3 074  
Current assets
Inventories                     592         593         672
Trade and other receivables     673         448         665
Taxation                          5           -           5
Deposits and cash               219          88         436
                              1 489       1 129       1 778
Total assets                  4 617       3 387       4 852
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital            5           5           5
Preference share capital          4           3           4
Share premium                 1 743       1 551       1 692
Reserves                        330        (120)        300
Shareholders' interest in 
capital and reserves          2 082       1 439       2 001
Minority interest             1 125         425       1 124
Total shareholders' interest  3 207       1 864       3 125
Non-current liabilities
Long-term borrowings 
- interest bearing              379         418         389
- non-interest bearing            6           -           -
Deferred taxation               167         145         142
Long-term provisions            119          40         187
                                671         603         718
Current liabilities
Trade and other payables 
and provisions                  489         330         592
Taxation                         24          72          58
Shareholders for dividends        -           -          18
Overdrafts and short-term 
borrowings - interest bearing   226         518         341
                                739         920       1 009
Total equity and liabilities  4 617       3 387       4 852


Group Cash Flow Statement

                                        Unaudited       Audited
                                  Half-year ended    Year ended
                                    31 December       30 June
                                   1999       1998       1999
                                          Restated
                                     Rm         Rm         Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers      1 208       1 250     2 430
Cash paid to suppliers 
and employees                     1 053         993     1 962
Cash generated from operations      155         257       468
Utilised against provisions         (21)          -        (8)
Interest received                    27           9        43
Interest paid                       (33)        (71)     (125)
Dividends received                    1           5        11
Dividends paid                      (36)       (175)     (139)
Taxation paid                       (47)        (71)     (143)
Net cash inflow/(outflow) from 
operating activities                 46         (46)      107
CASH FLOW FROM INVESTING ACTIVITIES
Net investment in fixed assets     (398)       (621)     (729)
Net investments disposed            237         338       693
Net cash outflow from 
investing activities               (161)       (283)      (36)
CASH FLOW FROM FINANCING ACTIVITIES
Increase in shareholder funding       7          34       200
Long-term borrowings raised           2         325       317
Long-term borrowings repaid          (3)         (1)        -
Decrease in short-term borrowings  (106)       (103)     (309)
(Increase)/decrease in loans 
and long-term receivables            (2)         95        90
Net cash (outflow)/inflow from 
financing activities               (102)        350       298
Net (decrease)/increase in cash 
and cash equivalents               (217)         21       369
Cash and cash equivalents at 
beginning of the period             436       1 207     1 207
Cash and cash equivalents not 
available due to unbundling of 
Anglovaal Industries Limited          -      (1 140)   (1 140)
Cash and cash equivalents at 
end of the period                   219          88       436
Cash generated from operations 
per share (cents)                   146         283       504


Contributions to Headline Earnings - for the half-year ended 31 December 1999

                            Base Ferrous              
(Rm)          Note  Gold  metals  metals  Diamonds  Exploration Other  Total
SEGMENTAL INFORMATION
Revenue 
(external sales)     218     177     651        81            -   136   1 263
Result               (26)     29      89        81           (8)  (11)    154
Unallocated corporate 
expenses               8       6      (9)        -            -    (5)      -
Operating profit     (18)     35      80        81           (8)  (16)    154
Income from 
investments    1       3       1       -         -            -    36      40 
Finance cost   1       -      (1)    (19)        -            -   (25)    (45)
Taxation               -     (11)    (25)        -            -     -     (36)
Exceptional items      5       -       -         -            -   (31)    (26)
Minority interest      7       -     (18)        -            -     -     (11)
Contribution to 
earnings              (3)     24      18        81           (8)  (36)     76
Contribution to 
headline earnings     (5)     24      18        81           (8)  (13)     97
Note 1: For the purposes of the segment report, interest received and paid are
reflected before the effects of intergroup eliminations.

Review for the half-year ended 31 December 1999
Generally lower commodity prices, a stronger than anticipated South African
rand and a significantly reduced diamond royalty payment all resulted in
Anglovaal Mining Limited's (Avmin) headline earnings for the half-year ended
31 December 1999 declining to R97 million (31 December 1998: R110 million -
restated). Headline earnings per share amounted to 91 cents (121 cents per
share - restated). 

Basis of preparation
The financial information for the half-year ended 31 December 1998 has been
reclassified to bring reporting into line with the disclosure presented for
the current period and Avmin's most recent financial year-end. In addition,
the information for the previous half-year has been adjusted to take into
account a change in accounting policy in respect of provisions for the
overhauling of furnaces and ancillary equipment. The effect of this change is
to increase retained income at 31December 1998 by R12 million. The 1998 and
1999 income statements and balance sheets are not fully comparable in that
Avgold, which was accounted for as an associate in 1998, was consolidated in
1999 after the percentage holding by Avmin increased from 45% to 60%.

Exceptional items
Exceptional items relate to investments and insurance commissions.

Sale of diamond interests
Shareholders' attention is drawn to an announcement published on 4 February
2000 in which theBoard of Directors of Avmin announced that agreement had been
reached which, subject to the fulfilment of certain conditions precedent, will
give effect to:
* the sale to De Beers Consolidated Mines Limited (De Beers) of Avmin's 87,5
per cent interest in The Saturn Partnership (Saturn) for a cash consideration
of R3,7billion;
* the sale to De Beers of Avmin's 20 per cent interest in Finsch Diamonds
(Proprietary) Limited (which effectively equates to an 8 per cent profit
participation in the Finsch mine) for a cash consideration of R20million; and
* the conditional placement by De Beers of its 23 378 955 ordinary shares in 
Avmin to portfolio investors.
The total disposal consideration of R3,72 billion will be payable into an
interest-bearing escrow account on 31 March 2000. The full proceeds of the
escrow account will be released to Avmin upon the successful closure of the
transaction. 
The Board is considering a number of options (including a significant
distribution to the Company's shareholders) regarding the optimal utilisation
of the proceeds of the disposal. A further announcement regarding the salient
dates of the transaction, including the date of posting of shareholder
documentation, will be made in due course.

Review of operations
DIAMONDS
Avmin's diamond investment, Saturn, which receives 50 per cent of the profits
of Venetia diamond mine, operated by De Beers, contributed R81 million (R144
million) for the six months ended 31 December 1999. This payment was received
by the Company in August 1999 and was for Venetia's half-year to 30June 1999. 
The royalty received during the half-year took into account the delays in the
delivery of certain goods from DeBeers' South African mines following a
dispute between De Beers and the South African Government diamond valuator
over valuation. De Beers had informed Avmin that the August royalty payment to
Saturn would be materially adversely affected, which led Avmin to caution
shareholders on earnings for the half-year ended 31 December 1999. It was
expected, as indicated by De Beers, that any shortfall in the royalty paid in
the first half would be recouped in the second half of the year. De Beers has
now informed the Company that Avmin's share of the second half royalty payment
would amount to R258,2 million. 

FERROUS METALS
The results for 50,3 per cent held, The Associated Manganese Mines of South
Africa Limited (Assmang) for the half-year reflected a decrease in earnings to
R36 million (R129 million - restated). The lower earnings arose mainly as a
result of reduced manganese ore sales volumes and significantly lower US
dollar prices driven by the continued downturn in the international steel
industry. Total manganese ore sales decreased by 24 per cent to 567 000 tons
and sales of iron ore increased by 10 per cent to 1 959 000 tons. The results
of Assmang's alloy operations, Feralloys Limited (Feralloys), reflected a loss
for the period under review of R9million (R41 million - profit - restated).
Sales of high carbon ferromanganese totalled 74 000 tons (88 000 tons) and
sales volumes of ferrochrome were slightly lower at 49 000 tons (52 000 tons).
Work is advanced to establish an open-cast chrome mine and benefication plant
on the Dwarsrivier property in Mpumalanga. It is planned that from October
2000 this mine will supply metallurgical grade ores to Feralloys, where the
upgrading of furnaces to increase ferrochrome production capacity from 150 000
tons to 175 000 tons a year is in progress. Work has also commenced on the
development of a new shaft system at the Nchwaning manganese mine to access
ore reserves to replace those of the existing Nchwaning shaft area where
reserves will be depleted during the next four to five years. At the iron ore
mine, construction of a R90 million jig plant to upgrade the quality of mined
ore has been approved and work will commence during the next two months.

BASE METALS
The Nkomati mine, Avmin's 75 per cent held nickel, copper, cobalt and platinum
group metals (PGM) producer, completed a successful half-year with a 15 139
tons increase in ore milled to 107680 tons, which produced a total concentrate
of 17 999 tons (21 494 tons). The average grades were 10,84 per cent nickel,
5,92 per cent copper and 0,57 per cent cobalt. This all led to the production
of 1 951 tons (1 848 tons) of nickel, 1 066 tons (684 tons) of copper and 102
tons (109tons) of cobalt with significant PGM credits. Revenue for the
half-year rose to R113 million (R62 million) and the total on mine cost of
sales amounted to R60 million (R55million). Nkomati's operating profit (before
research and development costs) increased to R53 million (R7 million), which
after other income (mainly interest received) and other expenses, resulted in
a net profit of R32 million (R2 million).
Work is also nearing completion on a detailed feasibility study to assess the
potential of an expansion of mining operations at Nkomati to include portions
of the large, lower-grade reserve base. It is expected that this final
feasibility study will be completed in the next few months.
The US$100 million upgrading of Avmin's 90 per cent held Chambishi Metals plc
(Chambishi) refinery and the construction of a new smelter is well advanced
with the project nearly 50 per cent completed. The commissioning of the new
facilities is expected to start during October 2000, at which stage the
treatment of the high-grade material from Chambishi's slag dumps will begin.
These dumps contain a resource of 20 million tons containing 0,76 per cent
cobalt and 1,06 per cent copper. During the period under review, the Company
accepted a seven-year US$70 million export credit finance facility.
Chambishi's toll-refining business treated 33 052 tons of concentrate during
the half-year, which was lower than had been planned primarily as a result of
difficulties in the supply of pyrite to Chambishi's plant. In addition to
this, there was also a low availability of high-grade concentrates from two of
Chambishi's key customers and the plant shutdown for the month of July 1999
for upgrading and maintenance. Chambishi refined 976 tons of cobalt, 3 580
tons of copper and 25233 tons of sulphuric acid during the period, with the
revenue for the period amounting to R93million. The end result was R1 million
operating profit for the six-month period. During the latter part of the
period under review, Chambishi embarked on a strategy to secure additional
supply from other Central African Copperbelt operators, which, at this early
stage, has met with positive responses and deliveries of feed material.

GOLD
Avgold Limited's (Avgold) results for the half-year ended 31 December 1999
include Harties to 16 August 1999, being the effective date of the sale of
that mine. The results for the period following the effective date reflect the
operations of Avgold's ETC mines and the downsized head office. Comparisons
with prior periods are thus distorted. As at 31 December 1999, Avgold, held
60,2 per cent by Avmin, sold 3 527 kg of gold with an additional 317kg mined
at Target. The average gold sales price achieved was R60 787/kg or US$310/oz,
compared to a spot price of R53957/kg, and cash costs amounted to R58 101/kg
or US$296/oz. Avgold incurred an operating loss of R26 million which, after
investment income and profit on the sale of Harties, resulted in a net loss of
R18million. Capital expenditure totalled R209million (R182 million).
With the sale of Harties for R45 million and the R251 million received from
the necessary closure of the hedge book relating to Harties' gold production,
Avgold has remained cash positive. The remaining funds required for the
development of Target will be raised within the next six months at a level
lower than would have been necessary before the sale of Harties. A standby
loan facility of R200 million has been provided by Avmin.
The Target mine's underground exploration drilling programme continued during
the period with a total 3923metres of drilling completed from the end of the
exploration declines. The results from this programme continue to confirm both
the resources and the structure to the north of the declines, as anticipated
in the original model. Widths and values are consistent with those obtained in
other sections of the Eldorado Fan. The development of underground
infrastructure to support eventual stoping operations has progressed well and
the 50 level decline, that will link the main surface shaft to the project
area, is on schedule and should connect in June 2000. Target, which remains in
a development phase with all costs and revenue being capitalised, spent R193
million on capital expenditure net of the 317 kg gold sales proceeds.
Avgold is continuing its exploration programme in the Northern Free State area
and results obtained during the period confirm the good values and
considerable widths contained in the Dreyerskuil reef zone. Certain
deflections have also confirmed the presence of a well-developed Ventersdorp
Contact Reef (VCR) in the area. 

Prospects for the remainder of the year
It is anticipated that the results for the current half-year to 30 June 2000
will be significantly better than those reported for the period under review,
as there are indications that prices for all products are showing improvement.
Linked to this is a weaker South African rand, which should benefit the
Assmang and Nkomati operations. In addition, the interest earned on the cash
received from the sale of the Company's diamond interests will have a positive
impact on earnings to 30 June 2000.

For and on behalf of the board

Kennedy Maxwell            Rick Menell
Chairman                   Deputy Chairman and CEO

Johannesburg
29 February 2000

DIRECTORS
K W Maxwell (Chairman), R P Menell (Deputy Chairman and Chief Executive
Officer), D E Jowell, Dr T V Maphai, JRMcAlpine, B M Menell, DrM Z Nkosi.
MANAGEMENT BOARD
R P Menell (CEO), D D de Beer (Finance), J J Geldenhuys and DNMurray (Gold), G
J Robbertze (Base Metals), J C Steenkamp (Ferrous Metals). 
COMPANY SECRETARY
SESather
Further information can be obtained by contacting Julian Gwillim on (011)
634-0092 or by e-mail: [e-mail]

Anglovaal Mining Limited ('Avmin' or 'the Company')
Registration number 1933/004580/06
(Incorporated in the Republic of South Africa)
56 Main Street, Johannesburg, 2001, South Africa
PO Box 62379, Marshalltown, 2107, South Africa