Interim Results

Anglovaal Mining Ld
1 March 2001

Anglovaal Mining Limited
  (Reg. No. 1933/004580/06)
  ('Avmin' or 'the Company')

INTERIM REPORT
For the half-year ended 31 December 2000

HIGHLIGHTS

EARNINGS INCREASE BY 92% TO R146 MILLION

HEADLINE EARNINGS INCREASE 38% TO R134 MILLION

ASSMANG EARNINGS INCREASE BY 194% TO R106 MILLION

NKOMATI'S PROFIT BEFORE TAX UP 198% TO R137 MILLION

CHAMBISHI METALS' COMMISSIONING PROCESS WELL UNDERWAY

TARGET GOLD MINE AHEAD OF SCHEDULE AND
SIGNIFICANT NEW RESOURCES IDENTIFIED

GROUP INCOME STATEMENT
                                       Unaudited                    Audited
                                   Half-year ended                  Year ended
                                     31 December                    30 June
                                  2000      1999       Increase/    2000
                                            Restated*  (Decrease) 
                                  Rm        Rm         %            Rm
Revenue                           1 224     1 263      (3)          2 934
Cost of sales                     891       1 011      (12)         2 119
Gross profit                      333       252        32           815
Other operating income            70        45         56           76
Other operating expenses          149       143        4            289
Profit from operations            254       154        65           602
Income from investments           89        28         218          183
Finance costs                     60        33         82           72
Profit before exceptional items   283       149        90           713
Exceptional items                 12        (26)       146          3 648
Profit before taxation            295       123        140          4 361
Taxation                          94        36         161          324
Profit after taxation             201       87         131          4 037
Minority interest                 55        11         400          57
Earnings                          146       76         92           3 980
Headline earnings                 134       97         38           486
Earnings per share (cents)        135       72                      3 723
Headline earnings
  per share (cents)               124       91                      455
Fully diluted earnings
  per share (cents)               131       70                      3 592
Fully diluted headline earnings
  per share  (cents)              121       89                      439
Dividends per share (cents)       -         -                       1 123
Number of shares in issue at 
  end of period (thousands)       108 409   107 399                 107 610
Weighted average number of
  shares in issue (thousands)     108 050   106 284                 106 889
Weighted average number
  of shares used in calculating 
  fully diluted earnings 
  per share (thousands)           111 071   108 391                 110 805
*Refer to note 1 of the notes to the financial statements.

GROUP BALANCE SHEET
                                           Unaudited              Audited
                                         at 31 December           at 30 June
                                        2000         1999         2000
                                                     Restated* 
                                        Rm           Rm           Rm
ASSETS
Non-current assets
Tangible and intangible fixed assets    4 867        3 072        3 916
Loans and long-term receivables         3            2            2
Deferred tax assets                     13           34           22
Environmental rehabilitation
  trust funds                           51           39           51
Investments                             252          53           57
                                        5 186        3 200        4 048
Current assets                                                    
Inventories                             746          592          586
Trade and other receivables             449          673          640
Taxation                                7            5            3
Deposits and cash                       923          219          4 160
                                        2 125        1 489        5 389
Total assets                            7 311        4 689        9 437
EQUITY AND LIABILITIES 
Capital and reserves
Ordinary share capital                  5            5            5
Preference share capital                4            4            4
Share premium                           51           1 743        51
Non-distributable reserves              73           50           56
Distributable reserves                  3 118        274          2 971
Shareholders' interest in
  capital and reserves                  3 251        2 076        3 087
Minority interest                       1 413        1 129        1 185
Total shareholders' interest            4 664        3 205        4 272
Non-current liabilities
Long-term borrowings - interest bearing 955          374          556
- non-interest bearing                  5            11           6
Deferred tax liabilities                297          209          289
Long-term provisions                    201          151          202
                                        1 458        745          1 053
Current liabilities
Trade and other payables                291          371          493
Short-term provisions                   101          118          - 
Taxation                                103          24           194
Shareholders for dividends              -            -            2 905
Overdrafts and short-term borrowings    694          226          520
                                        1 189        739          4 112
Total equity and liabilities            7 311        4 689        9 437
*Refer to note 1 of the notes to the financial statements

GROUP CASH FLOW STATEMENT
                                            Unaudited             Audited
                                         Half-year ended          Year ended
                                           31 December            30 June
                                        2000         1999         2000
                                        Rm           Rm           Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers            1 514        1 208        2 878
Cash paid to suppliers and employees    1 309        1 074        2 246
Cash generated from operations          205          134          632
Interest received                       88           27           172
Interest paid                           (60)         (33)         (72)
Dividends received                      1            1            11
Capital distribution                    (1 697)      -            -
Dividends paid                          (1 217)      (36)         (41)
Taxation paid                           (178)        (47)         (68)
Net cash (out)/inflow from
  operating activities                  (2 858)      46           634
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from disposal of subsidiaries, 
  net of cash disposed                  -            -            17
Proceeds from sale of
  Hartebeestfontein mine                -            -            304
Proceeds on sale of joint venture       16           -            -
Additions to fixed assets
  to maintain operations                (198)        (111)        (312)
Additions to fixed assets                                        
  to expand operations                  (732)        (323)        (973)
Proceeds on disposal of fixed assets    1            36           43
Proceeds on disposal of investments     5            282          3 732
Other investments acquired              (197)        (45)         (63)
Net cash (out)/inflow from
  investing activities                  (1 105)      (161)        2 748
CASH FLOW FROM FINANCING ACTIVITIES
Increase in shareholder funding         -            7            9
Funding received from
  minority shareholders                 176          -            14
Long-term borrowings raised             376          2            160
Long-term borrowings repaid             (3)          (3)          (6)
Increase/(decrease) in
  short-term borrowings                 178          (106)        163
(Increase)/decrease in loans 
  and long-term receivables             (1)          (2)          2
Net cash in/(outflow) from                                       
  financing activities                  726          (102)        342
Net (decrease)/increase in cash and                               
  cash equivalents                      (3 237)      (217)        3 724
Cash and cash equivalents at
  beginning of period                   4 160        436          436
Cash and cash equivalents at
  end of period                         923          219          4 160
Cash generated from operations
  per share (cents)                     190          126          591

STATEMENT OF CHANGES IN EQUITY
                               Share    Foreign   Revalu-
                         capital and   currency   ation         Retained
                             premium translation  surplus Other  profit  
Total
                                  Rm      Rm      Rm      Rm      Rm      Rm
Half-year ended 31 December 2000
Balance at 30 June 2000           60      6       3       47      2 971   3
087
Foreign currency translation reserve      -       17      -       -       -   
   17
Earnings                          -       -       -       -       146     146
Other movements                   -       -       -       -       1       1
Balance at 31 December 2000       60      23      3       47      3 118   3
251
Half-year ended 31 December 1999
Balance at 30 June 1999 
  previously reported             1 701   (2)     6       94      202     2
001
Change in accounting policies     -       -       (3)     -       (2)     (5)
Restated balance                  1 701   (2)     3       94      200     1
996
Foreign currency translation
  reserve                         -       2       -       -       -       2
Earnings                          -       -       -       -       76      76
Share issues net of expenses      2       -       -       -       -       2
Share election reserve            49      _       _       (49)    -       -
Other movements                   -       -       -       2       (2)     -
Balance at 31 December 1999 
  restated                        1 752   -       3       47      274     2
076


NOTES TO THE FINANCIAL STATEMENTS

1. BASIS OF PREPARATION AND CHANGE IN ACCOUNTING POLICIES
The financial information for the half-year ended 31 December 2000 has been
prepared adopting the same accounting policies used in the most recent annual
financial statements. During the year to 30 June 2000 the Group changed its
accounting policies to account for the decommissioning of mining assets, the
amortisation of non-specialised buildings and the recognition of deferred tax
on all temporary differences. These changes had no significant effect on the
Group earnings, but the Group balance sheet for the half-year ended 31
December 1999 has been restated. The interim financial report has been
prepared in compliance with the South African Statement of Generally Accepted
Accounting Practice, AC 127 - Interim Financial Reporting. Certain amounts
reported in respect of the previous period have been reclassified to bring
reporting for that period into line with the disclosure presented for the
current period and the most recent financial year end.
                                            Unaudited             Audited
                                         Half-year ended          Year ended
                                           31 December            30 June
                                        2000         1999         2000
                                        Rm           Rm           Rm
2. HEADLINE EARNINGS
Earnings per income statement           146          76           3 980
Impairment of assets                    -            -            6 
Inventory written down                  -            -            6 
Investments written down                -            -            7 
Restructuring costs
  - insurance commissions               -            -            6
Surplus on disposal of investments      (12)         21           (3 668)
                                        134          97           337
Taxation                                -            -            140 
Minority interest                       -            -            9 
Headline earnings                       134          97           486 
3.        INVESTMENTS
Listed                                  249          43           52 
Unlisted                                3            10           5 
Total carrying amount of investments    252          53           57 
Market value of listed investments      394          151          131 
                                                      Corporate
                                      Base    Ferrous  explo-  Corporate
   Rm                          Gold   metals  metals   ration  and other Total
4. SEGMENTAL INFORMATION
Primary segmental information
Half-year ended 
31 December 2000
Revenue                         105     333     786     -       -       1 224
Segment result                  19      73      203     (11)    (30)    254
Interest received               1       3       1       -       83      88
Dividends received              -       -       1       -       -       1
Finance costs                   -       (7)     (31)    -       (22)    (60)
Exceptional items               -       -       -       -       12      12
Taxation                        -       (20)    (55)    -       (19)    (94)
Minority interest               (4)     2       (53)    -       -       (55)
Contribution to earnings        16      51       66     (11)    24      146
Contribution to 
  headline earnings             16      51       66     (11)    12      134
Other information
Consolidated total assets       2 306   1 806    2 092  -       1 107   7 311
Consolidated total liabilities  177     1 223    1 016  -       231     2 647
Capital expenditure             267     432     229     -       2       930
Depreciation                    1       26      42      -       2       71

CONTRIBUTIONS TO EARNINGS
  
COMMENTARY

REVIEW FOR THE HALF-YEAR ENDED 31 DECEMBER 2000
A strong operating performance from the ferrous metals division and the
Nkomati mine, coupled with a weak South African rand, increased Anglovaal
Mining Limited's (Avmin) earnings by 92 per cent to R146 million for the
half-year ended 31 December 2000, despite average commodity prices for most
products being lower in US dollar terms. Earnings for the six months ended 31
December 1999 totalled R76 million, which included diamond royalty income from
The Saturn Partnership that was sold during the second half of the last
financial year.

Headline earnings, which exclude the surplus from the sale of investments
during the period, rose to R134 million (31 December 1999: R97 million).
Earnings per share rose 88 per cent to 135 cents (72 cents per share) and
headline earnings per share were higher at 124 cents (91 cents per share).

REVIEW OF OPERATIONS

FERROUS METALS
The Associated Manganese Mines of South Africa Limited (ASSMANG) 

Supported by a favourable US$-rand exchange rate and a stringent cost control
programme, Assmang reported a 194 per cent increase in earnings to R106
million (R36 million) for the period. With higher unit sales prices and lower
costs, margins were an important feature of Assmang's performance. Net
operating profit before depreciation more than doubled to R233 million (R111
million). Sales volumes of manganese ore rose to 0,6 million tons (0,5 million
tons), but iron ore sales declined to 1,8 million tons (2 million tons). Sales
of manganese alloys decreased slightly to 85 000 tons from 88 000 tons, while
chrome alloys were lower at 45 000 tons (49 000 tons).

The new Dwarsrivier opencast chrome mine and beneficiation plant has been
commissioned and the supply of ore to its chrome alloys division has
commenced. The R375 million expansion programme at the chrome alloys division
is also ahead of schedule and due for commissioning during the second half of
this calendar year. In addition, the new R517 million shaft complex at the
Nchwaning manganese mine is on track for its scheduled opening in late 2003.

It is anticipated that Assmang's strong performance will continue with second
half results to 30 June 2001 likely to match those of the first half.

BASE METALS
The Nkomati mine had an exceptionally good half-year with final sales tonnages
of 2 292 tons (1 710 tons) of nickel and 1 284 tons (882 tons) of copper. The
increased mining tonnages, a weaker South African rand and strong platinum
group metal (PGM) prices (Nkomati sold about 18 670 ounces of PGMs during the
period) all resulted in Nkomati's profit before taxation surging to R137
million (R46 million). Nkomati has now achieved full tax paying status and its
total earnings amounted to R96 million (R32 million).

An initial feasibility study on expanding the current Nkomati mine complex by
the open pit mining of 150 000 and then 200 000 tons per month and installing
associated plant facilities was completed last year. The joint venture
partners have reviewed this study favourably, but have asked the project team
to investigate increasing the underground mining tonnages to 75-80 000 tons
per month in addition to the open pit tonnages. The revised feasibility report
should be available to the partners in September of this year.

The Chambishi Metals Plc toll-refining operation experienced a difficult
half-year. This was mainly due to lower concentrate grades and quantities of
feed material from third parties. The plant produced 1 500 tons (976 tons) of
cobalt and 5 840 tons (3 580 tons) of copper for its clients. Chambishi Metals
received an average cobalt price of US$11,47/lb for the period and the plant
reported a net operating loss after taxation of R21 million (nil) for the
half-year.

Chambishi Metals has virtually completed the new and expanded facility to
treat its 20 million ton surface slag deposit. Commissioning of the feed
preparation plant commenced in October 2000. By the end of January 2001 the
first alloy was tapped from the furnace. The remaining construction and
commissioning activities focussed on the downstream leach plant are on
schedule, with the first saleable metal production from slag due in March
2001.

Precious Metals
Avgold Limited 

A higher gold price and well maintained costs helped reverse Avgold's R23
million headline earnings loss in the six months ended 31 December 1999 into a
R11,5 million profit for the comparable six months in 2000. Gold sales from
operations, now being derived only from the ETC mining complex, totalled 1
432kg (3 527kg) at a cash cost of US$249/oz (US$296/oz). During the last
quarter of the six months period, Avgold achieved a cash cost of US$222/oz, a
trend that is continuing into the second-half of the year. The average rand
gold price received for the period was higher at R73 129/kg (R60 787/kg), or
US$314/oz (US$310/oz).

The rate of development advance by mine crews at the new Target mine continues
ahead of schedule and plan.

Avgold successfully completed a rights issue at the end of October 2000 to
provide R500 million of funding for the new Target mine. The remaining funds
required for the completion of Target will be financed by a five-year facility
of R700 million made available in US dollars and rands, which has been signed.

External consultants have finalised an assessment of the resources to the
immediate north of the Target mine declines. This information has enabled the
resources for the newly named Paradise area to be augmented. The indicated and
inferred total resource of the Paradise area is 13,8 million ounces (from a
previous calculation of 7,2 million ounces) at an average grade of 10.02g/t
(previously 7.37g/t). The main increase is in the Elsburg Reefs, which are
within 2 500m of surface. These results suggest that the Eldorado Fan extends
further north than previously anticipated. A pre-feasibility study has been
completed on the Paradise area to assess the viability of increasing Target's
production from 350 000 ounces of gold a year to 500 000 ounces. An important
feature of this is that Target's life of mine could extend from the current 13
years to over 40 years.

ACQUISITION OF ISCOR SHARES
During December 2000 and January 2001, Avmin acquired a total of 35 293 300
(13,7 per cent) ordinary shares in Iscor Limited for a cash consideratoin of
R490,6 million, which was funded from existing cash resources. An alliance has
been formed with the Industrial Development Corporation of South Africa
Limited to pursue strategies for unlocking value in Iscor.

DIRECTORATE
On 27 November 2000, Roy Oron was appointed as a non-executive director of
Avmin and, on 1 February 2001, David Murray was appointed as an executive
director. Mr Murray also assumed his position as President and Chief Operating
Officer of the Company from that date. 

PROSPECTS FOR THE REMAINDER OF THE YEAR
Operating results for the current half-year to 30 June 2001 are expected to
show a slight improvement over the first six months period. This will be due
to continued strong performances from the ferrous metals division and the
Nkomati mine, maintaining the positive momentum at Avgold's ETC mine, and the
commissioning to full production, over the next few months, of the new
facility at Chambishi Metals. However, overall earnings over the next six
months are expected to be slightly reduced due to lower interest earnings.

For and behalf of the board:

Kennedy W Maxwell                  Richard P Menell
Chairman                           Deputy Chairman and Chief Executive Officer

Johannesburg
1 March 2001

Registered office:
Anglovaal Mining Limited, 56 Main Street, Johannesburg 2001

Directors:
KW Maxwell (Chairman), RP Menell (Deputy Chairman and Chief Executive
Officer), DN Murray (Chief Operating Officer), DE Jowell,  Dr TV Maphai, JR
McAlpine, BM  Menell, Dr MZ Nkosi, R Oron. Company Secretary: SE Sather