Interim Results

Majedie Investments PLC
24 May 2001



MAJEDIE INVESTMENTS PLC

24 May 2001


                                INTERIM RESULTS

                    for the six months ended 31 March 2001


Financial Highlights


- net assets per share decreased by 16.5% to 372.8p

- earnings per share decreased by 9.0% to 3.43p

- interim dividend unchanged at 3.1p



Performance


- net asset value total return of -15.8%

- share price total return of -12.4%

- benchmark total return of -11.2%



Chairman, Henry Barlow comments:

Since the middle of last year the US economy has experienced a rapid
deceleration and stock markets around the world have retreated. Company
valuations have been highly volatile and many have fallen significantly.
Although markets have recovered somewhat since the end of March, it is
disappointing to report a reduction in net asset value during the six months
ended 31 March 2001 of 16.5% to 372.8p per share.



Interim Dividend

The interim distribution will remain unchanged compared with last year at 3.1p
per share.  It will be paid on 6 July 2001 to shareholders on the register at
the close of business on 22 June 2001.



Performance

During the six months ended 31 March 2001 the portfolio's net asset value
total return of -15.8% compared with the benchmark's total return of -11.2%.
About half of this underperformance is due to the effect of our long term
borrowings.  In rising stock markets our investment performance is enhanced by
this gearing whereas in the recent downturn the fall in the value of the
portfolio has been magnified.

Within the portfolio no one specific sector was responsible.  Half of the
fund's underperformance arose from the UK which represents about 70% of
assets. In certain cases performance has been impaired by sharp reductions in
the values of companies which have been core holdings within the portfolio for
many years.  Pearson is one such holding, which was very much a positive
contributor before the current downturn and will, we believe, be so again in
the future.

The US portfolio's performance was neutral compared with the benchmark, with
losses in technology-related areas being balanced by gains elsewhere.  Both
the US portfolio and the whole fund remained underweight in technology
throughout the entire period.  The European portfolio accounted for about a
quarter of the fund's underperformance due to holdings in a range of sectors
including pharmaceuticals, German industrials and technology.  In Japan the
portfolio was hurt by the value of the funds held falling more than the
market.



Portfolio

During the period holdings in interest rate sensitive sectors including
construction and banking were increased.  Elsewhere engineering stocks with a
strong global franchise were added including Rolls Royce and an increased
weighting in Smiths Group.  Changes were made to our holdings in
pharmaceuticals and insurance sectors in Europe - introducing Aventis and Axa
which both have a strong earnings outlook in their respective sectors.

In the 2000 annual report we said we would take advantage of market volatility
and increase our holdings in technology-related stocks.  However due to the
nature of the downturn experienced over the last six months we have not done
so - and indeed weightings have been reduced in telecoms and
technology-related areas.  Given the poor continuing outlook for the Japanese
economy and stock market we further reduced our already underweight holdings
in Japan.



Outlook

US interest rates have been lowered rapidly and substantially by the Federal
Reserve Board since November in response to the sharp economic downturn. The
Bank of England and the European Central Bank have also responded by reducing
interest rates. Japan has reverted to a zero interest rate policy but still
needs to restructure fundamentally its banking debts and deal with deflation
in the domestic economy.  In contrast western companies are tackling their
cost structures in the face of lower growth.

Therefore despite the economic downturn emanating from the US, we expect that
the continued easing of monetary policy globally and the proposed easing of
fiscal policy in the US will help the major economies to adjust to a lower
growth environment more easily than previously envisaged.



Henry S Barlow  Chairman

23 May 2001



For further information please contact Robert Clarke on 020 7626 1243;
E-mail: [e-mail]



UNAUDITED CONSOLIDATED STATEMENT OF TOTAL RETURN
for the half year ended 31 March 2001


                  Half year ended       Half year ended         Year ended
                   31 March 2001         31 March 2000       30 September 2000

               Revenue Capital Total Revenue Capital Total Revenue Capital Total

                  £000   £000   £000    £000    £000  £000    £000   £000   £000

Total capital         (37,327)(37,327)        37,720 37,720        36,222 36,222
(loss)/gain on
investments

Dividends and   2,696           2,696  2,657          2,657  5,328         5,328
interest

Other income       26              26     42             42     64            64


Gross revenue   2,722 (37,327)(34,605) 2,699  37,720 40,419  5,392 36,222 41,614
and capital
(loss)/gain

Administrative   (385)   (549)  (934)   (400)   (623)(1,023) (870)(1,207)(2,077)
expenses

Return on       2,337 (37,876)(35,539) 2,299  37,097 39,396 4,522 35,015  39,537
ordinary
activities
before finance
costs and taxation

Debenture        (406) (1,217) (1,623)  (179)   (536) (715)  (515)(1,546)(2,061)
stock interest
payable

Return on       1,931 (39,093)(37,162) 2,120  36,561 38,681 4,007 33,469  37,476
ordinary
activities
before taxation

Taxation on      (122)     81   (41)   (135)    106   (29)   (312)   238    (74)
ordinary
activities

Return on       1,809 (39,012)(37,203) 1,985 36,667 38,652  3,695 33,707  37,402
ordinary
activities
after taxation
attributable
to equity
shareholders

Dividends
Interim        (1,629)         (1,629)(1,634)       (1,634) (1,634)      (1,634)
ordinary 3.1p
(2000: 3.1p)*

Final ordinary                                              (2,399)      (2,399)
of 4.55p

Transfer to/      180 (39,012)(38,832)   351 36,667 37,018    (338)33,707 33,369
(from) reserves

Basic return     3.43p(73.99p)(70.56p)  3.77p 69.65p 73.42p  7.01p 63.99p 71.00p
per ordinary 
share**

Diluted return      **     **    **     3.77p 69.64p 73.41p  7.01p 63.99p 71.00p
per ordinary
share


The revenue column of this statement is the consolidated profit and loss
account of the Group.

The results for the first six months should not be taken as a guide to the
results for the full year.

All revenue and capital items in the above statement derive from continuing
operations.

These accounts have been prepared using accounting standards and policies
adopted at the year end.

*  see note 1.

** see note 2.



UNAUDITED CONSOLIDATED BALANCE SHEET

                                   31 March        31 March       30 September
                                       2001            2000               2000
                                       £000            £000               £000

Tangible fixed assets                   105             178                141
Fixed asset investments *           233,605         250,479            275,487
Cash at bank and on deposit           4,309           3,615              2,836
Dividends                            (1,629)         (1,634)            (2,399)
Other assets and liabilities           (600)          1,052             (1,445)
Debenture stock                     (39,353)        (14,813)           (39,351)

Total net assets                    196,437         238,877            235,629



Called up share capital               5,272           5,270              5,272
Share premium account                   785             746                785
Capital reserve - realised          106,158          96,066             95,915
Capital reserve - unrealised         58,280         110,344            107,535
Capital redemption reserve               37              37                 37
Revenue reserve                      25,905          26,414             25,725

Shareholders funds                  196,437         238,877            235,269


Net asset value per share **          372.8p          453.3p             446.3p
Market price                          310.0p          346.0p             358.5p



*  see note 3.

** see note 4.



SUMMARISED UNAUDITED CONSOLIDATED

CASH FLOW STATEMENT


                                      31 March       31 March     30 September
                                          2001           2000             2000
                                          £000           £000             £000

Net cash inflow from operating             814          1,282            3,568
activities

Servicing of finance
Interest paid                           (2,582)          (570)            (570)
Debenture issue costs                       (2)                           (238)

Net cash outflow from servicing of      (2,584)          (570)            (808)
finance

Taxation

Tax paid                                   (39)          (135)            (271)

Capital expenditure and financial
investment

Purchases of investments               (31,395)       (16,499)         (57,386)
Sales of investments                    37,074         11,568           26,541
Purchases of tangible assets               (20)           (37)             (37)
Sales of tangible assets                    22             20               22

Net cash inflow/(outflow) from capital   5,681         (4,948)         (30,860)
expenditure and financial investment

Equity dividends paid                   (2,399)        (2,263)          (3,854)


Cash inflow/(outflow) before financing   1,473         (6,634)         (32,225)

Financing

Issue of £25m 7.25% debenture stock                                     24,771
Issue of ordinary share capital                           151              192

Net cash inflow from financing                            151           24,963


Increase/(decrease) in cash in the       1,473         (6,483)          (7,262)
period



NOTES

1     Dividends

Following the granting of share options to RE Clarke and GM Leates on 14
February 2001 under the new discretionary share option scheme, the Company's
employee incentive trust acquired 169,151 shares on 30 March 2001.  The shares
will be held by the trust until the relevant options are exercised and are
included on the balance sheet as an asset of the Company.  The trust has
waived its rights to receive dividends from the Company and therefore the
total interim dividend included in the Statement of Total Return has been
reduced accordingly.


2     Calculation of Returns per Ordinary Share

Basic and diluted returns per ordinary share in each period are based on the
return on ordinary activities after taxation attributable to equity
shareholders.  Basic return per ordinary share is based on 52,718,141 shares,
being the weighted average number of shares in issue having adjusted for the
shares held by the employee incentive trust referred to above (half year ended
31 March 2000: 52,646,885 shares; year ended 30 September 2000: 52,674,372).

No diluted return per ordinary share is shown for the half year to 31 March
2001 since the share options referred to above would, if exercised, be
satisfied by the shares already held by the employee incentive trust.
Furthermore there are no longer any other share options or LTIP awards
outstanding under other incentive schemes.  Diluted return per ordinary share
for the half year to 31 March 2000 is based on 52,655,341 shares, being the
weighted average number of shares in issue (year ended 30 September 2000:
52,674,372 shares).


3     Fixed Asset Investments

Fixed asset investments are stated at market value and include £524,000 in
respect of shares held in the employee incentive trust as referred to above.


4     Net Asset Value per Ordinary Share

The net asset value per share has been calculated in accordance with the
principles of FRS 14 i.e after deducting the carrying value of the shares held
by the employee incentive trust from net assets and the number of shares in
question from the shares held at the period end.


5     Financial Information for the year ended 30 September 2000

The figures and the financial information for the year ended 30 September 2000
have been compiled from an extract of the latest published accounts and do not
constitute the statutory accounts for the year. Those accounts have been
delivered to the Registrar of Companies and included the report of the
auditors which was unqualified and did not contain a statement under either
Section 237(2) or Section 237(3) of the Companies Act 1985.



INTERIM REPORT

The Interim Report will be sent to shareholders on 4 June 2001 from which time
copies will be available to the public at the Company's registered office: 1
Minster Court, Mincing Lane, London EC3R 7ZZ.



DIVIDEND

The dividend of 3.1p per share will be paid on 6 July 2001 to shareholders on
the register at the close of business on 22 June 2001.



NOTES FOR EDITORS

Majedie Investments PLC is an investment trust with total assets under
management of over £230 million. The Company's objective is to maximise total
shareholder return over the long term whilst increasing dividends by more than
the rate of inflation. The Company's benchmark is 70% FTSE All-Share Index and
30% FTSE World ex UK Index (sterling) on a total return basis.

The Majedie Share Plan is a straightforward and low cost way of investing in
Majedie shares with a minimum lump sum of £250, or on a regular monthly basis
with £25 or more. The Majedie Corporate ISA provides a tax efficient way of
investing or saving in Majedie shares at extremely low cost. There is no
initial or annual management fee. Both maxi and mini ISAs are available with a
minimum lump sum investment of £500 or £50 per month for direct debit
subscribers.