AGLD Allied Gold

RNS No 1363u
ANGLO AMERICAN GOLD INVESTMENT COMPANY LIMITED
9th October 1998


Interim Results and Dividend


AMGOLD

Anglo American Gold Investment Company Limited
Incorporated in the Republic of South Africa
Registration No. 05 09084 06

- Headline earnings of R175 million (723 cents per share)
- Total net earnings of R172 million (713 cents per share)
- Interim dividend of 720 cents per share

Interim results and dividend announcement
for the six months ended 30 September 1998
(unaudited)

ABRIDGED CONSOLIDATED INCOME STATEMENT

                               Six months  Six months        Year
Figures in R million,               ended       ended       ended
unless otherwise stated           30.9.98     30.9.97     31.3.98
Investment income                     174         157         312
Interest earned less
administration expenses                12          10          24
Cost of prospecting                   (10)        (25)        (55)
Grants - educational
and welfare                            (1)         (4)         (4)
Net income before 
taxation                              175         138         277
Taxation                                -          (2)          -
Headline earnings                     175         136         277
(Loss)/surplus on 
realisation of 
investments                            (3)         21         112
Total net earnings                    172         157         389
Earnings per share - cents
Headline earnings                     723         565       1 148
Total net earnings                    713         652       1 609
Dividends per share 
- cents                               720         565       1 145

ABRIDGED CONSOLIDATED BALANCE SHEET
Figures in R million,                  At          At          At
unless otherwise stated           30.9.98     30.9.97     31.3.98
Shareholders' equity                7 761       6 672       5 871
Current liabilities                   183         154         158
                                    7 944       6 826       6 029
Represented by:
Investments and loans               7 692       6 566       5 771
Mineral rights                          -          30          30
Cash resources                        244         213         210
Other current assets                    8          17          18
                                    7 944       6 826       6 029
Market and directors'
valuations of investments
Listed - market value               7 418       6 220       5 140
Unlisted - directors'
valuation                             219         294         567
Loans                                  55          52          64
                                    7 692       6 566       5 771
Number of shares
in issue - 000                     24 147      24 147      24 147
Net asset value per share - 
cents (after providing for 
the dividend and based on 
the market value of listed 
investments at 30 September 
1998 and the directors' 
valuation of unlisted 
investments at 
31 March 1998)                     32 141      27 630      24 447


STATEMENT OF SHAREHOLDERS' EQUITY

                                       At          At          At
Figures in R million              30.9.98     30.9.97     31.3.98
Shareholders' equity 
- opening                           5 871       7 698       7 698
Movement in earnings                   (1)         21           -
Increase (decrease) in market 
value of investments*               1 891      (1 047)     (1 827)
                                    7 761       6 672       5 871

*In accordance with recent developments in International Accounting Standards,
Amgold has restated its investments to market value with any difference being
reflected in the non-distributable reserve as part of shareholders' equity.
investment income
comment

Investment income for the six months to 30 September 1998 amounted to R174
million, an increase of R17 million or 11% over the corresponding period in
1997. Interest earned less administration expenses increased by R2 million to
R12 million and prospecting costs decreased by 60% from R25 million to R10
million in 1998 due largely to reduced prospecting expenditure in South Africa
and Tanzania. No tax was payable in the six months under review (1997: R2
million) as the company had a computed tax loss. Total net earnings, including
loss on realisation of investments amounting to R3 million (1997: R21 million
surplus), at R172 million or 713 cents per share, are 9% higher than the R157
million or 652 cents per share achieved in the first half of 1997. Headline
earnings of R175 million (723 cents per share), which exclude the loss on
realisation of investments, reflected an improvement of 28% over the R136
million (565 cents per share) reported in the comparable period of the
previous year. A dividend of 720 cents per share has been declared, an
increase of 27% over the interim dividend of 565 cents declared last year.

In the period under review there was some encouraging news for the gold market
related to official holdings of the metal. Agreement was reached that an
amount of 15% of the assets of the new European Central Bank will be held in
gold. In addition, any proposal to sell any part of the residual gold holdings
in the national banks of member countries of the European Central Bank will in
future be subject to final decision by the council of the European Central
Bank. In this forum, the Banque de France has made it clear in formal and
public statements that no sales of gold holdings are envisaged by any of the
major European gold holders (France, Germany and Italy). Although the issue of
gold sales by the Swiss National Bank remains to be addressed in the year
ahead, no further announcements of major sales of gold by European central
banks are expected. There remains a possibility that the International
Monetary Fund ("IMF") may sell gold reserves to assist heavily indebted poor
countries. However, any such sales are likely to be conducted in a responsible
manner with minimal impact on the market and in amounts which could be
absorbed comfortably by the market today. Notwithstanding these circumstances,
for much of the period under review the gold price remained weak, as short
selling of gold by speculators dominated the market. However, towards the end
of the third quarter of 1998, there were signs of renewed interest by
investors and speculators in gold as a safe haven from turmoil in global
markets, and the price has firmed since the end of the quarter.

South African gold production declined by 2,8% to 234,9 tons in the first half
of 1998 compared with the same period last year. A fall of almost 15% in the
average US dollar spot price to $296 for the period was offset in part by a
13% depreciation in the rand against the USdollar. Total working revenue
declined slightly to R11,4 billion, compared with R11,7 billion during the
first half of 1997. However, significant progress was made in controlling
working costs in the industry. In spite of substantial restructuring and
retrenchment costs incurred by the industry during the period under review,
total working costs for the half year amounted to R9,6 billion, almost 7%
lower than costs for the same period in 1997. This fall in the total working
costs resulted in a sharp increase in total working profit to R1,8 billion in
the first half of 1998. Capital expenditure declined to R895 million and total
profits increased by 21% to R1,9 billion. Dividends declared within the
industry increased by just over 60% to R895 million for the first six months
of 1998.
The results for the second half of the financial year ending 31 March 1999
will depend largely on productivity, costs and the prevailing rand gold price
during the second half of the calendar year to 31 December 1998.

RESTRUCTURING OF GOLD INTERESTS

Pursuant to the arrangements relating to the merger of the gold interests of,
inter alia, Amgold and Anglo American Corporation of South Africa Limited to
form Anglogold Limited ("Anglogold") as an independent, global gold operating
company, Amgold shareholders approved and ratified, on 3 June 1998, the
disposal by Amgold of its shares in various gold mining companies, certain
mineral rights and share interests to Anglogold in exchange for a 15,44%
interest in the equity of Anglogold. As a further part of the consideration,
in respect of certain of the mineral rights areas, Amgold acquired
participation rights in future profits or equity arising from the exploitation
of these assets and a participation in any profits, should such assets be
disposed of by Anglogold.
The transactions were effective from 1 January 1998.

YEAR 2000 DISCLOSURE

Amgold is an investment holding company with no administrative infrastructure
of its own. The company has been informed by its holding company, Anglo
American Corporation of South Africa Limited ("AAC"), from which it obtains
administrative and technical advisory services, that AAC has implemented a
strategy, in accordance with international best practice, to achieve
acceptable levels of Year 2000 compliance by June 1999.
Based on the assessment and information given by AAC to date, Amgold does not
expect to encounter material operational difficulties and based on a
reasonable examination considers the risk to Amgold of legal liability to be
not material.


NOTICE OF DIVIDEND

Dividend No. 101 of 720 cents per share has been declared payable on Friday, 4
December 1998 to shareholders registered at the close of business on Friday,
23 October 1998. The register of members will be closed from Saturday, 24
October 1998 to Saturday, 31 October 1998. The full conditions relating to the
dividend may be inspected at the Registered and London Offices of the company
and at the offices of its transfer secretaries.


Johannesburg
8 October 1998


The interim report will be posted to shareholders and is available from the
company's transfer secretaries, Consolidated Share Registrars Limited, 1st
Floor Edura, 41 Fox Street, Johannesburg 2001 as well as from the Registered
and London Offices of the company. 

These results are also available on http://www.aac.co.za on the Internet.


Registered Office:                         London Office: 
44 Main Street                             19 Charterhouse Street
Johannesburg 2001                          London ECIN 6QP
South Africa                               England


END

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