Annual Financial Statements

Statutory Report

HOLDING COMPANY
The company's holding company is Anglo South Africa Capital (Pty) Limited and its ultimate holding company is Anglo American plc, a company incorporated in England.

NATURE OF BUSINESS
The Group comprises four operations: African Products, Hulett Aluminium, Moreland, Tongaat-Hulett Sugar. Their activities are dealt with separately in the annual report.

FINANCIAL RESULTS
The total net loss of the Group for the year ended 31 December 2003 amounted to R41 million (2002 - earnings of R388 million). This translates into a headline loss per share of 91,7 cents (2002 - headline earnings per share of 375,2 cents) based on the increased weighted average number of shares in issue during the year.

DIVIDENDS
An interim dividend No. 152 of 40 cents per share was paid on 4 September 2003 and a final dividend No. 153 of 80 cents per share has been declared and is payable on 25 March 2004 to shareholders registered at the close of business on 19 March 2004.

The salient dates of the declaration and payment of this final dividend are as follows:

Last date to trade ordinary

The dividend is declared in the currency of the Republic of South Africa. Dividends paid by the United Kingdom transfer secretaries will be paid in British currency at the rate of exchange ruling at the close of business on Friday 12 March 2004.

SHARE CAPITAL
There was no change in the authorised share capital of the company. During the year 115 620 shares were allotted (including 42 960 shares to directors) in respect of options exercised in terms of the Group's employee share incentive scheme for a total consideration of R2 million. Details of the unissued ordinary shares, share options granted and exercised and the Group's share incentive schemes are set out in note 24.

Shareholders will be asked to consider an ordinary resolution at the forthcoming annual general meeting to place the unissued shares of the company under the control of the directors until the following annual general meeting.

At the previous annual general meeting, a general authority was granted by shareholders for the company to acquire its own shares in terms of the Companies Act. The directors consider that it will be advantageous for the company were this general authority to continue. Such authority will be used if the directors consider that it is in the best interests of the company and shareholders to effect any such acquisitions having regard to prevailing circumstances and the cash resources of the company at the relevant time. Shareholders will be asked to consider a special resolution to this effect at the forthcoming annual general meeting.

In compliance with the listings requirements of the JSE Securities Exchange South Africa ("JSE"), the acquisition of shares or debentures ("securities") pursuant to a general authority may only be made by a company subject to such acquisitions:

• being effected through the order book operated by the JSE trading system;
  
• being authorised thereto by the company's articles of association;
   
• being authorised by the shareholders of the company in terms of a special resolution of the company in general meeting which will be valid only until the next annual general meeting of the company; provided that such authority will not extend beyond 15 months from the date of the resolution;
   
• not being made at a price greater than ten percent above the weighted average of the market value for the securities for the five business days immediately preceding the date on which the transaction is effected. The JSE should be consulted for a ruling if the company's securities have not traded in such five business day period.

• the acquisition by a company of its own securities may not, in the aggregate, in any one financial year exceed 20 percent of that company's issued share capital of that class;
   
• the directors consider that in their opinion, taking into account the effect of the maximum acquisition by the company of shares issued by it as referred to above:

(a)	the company and its subsidiaries (together "the Group") will be able, in the ordinary course of business, to pay its debts for a period of 12 months from 20 February 2004;
(b)	the assets of the company and of the Group will be in excess of the liabilities of the company and the Group for a period of 12 months from 20 February 2004. For this purpose, the assets and liabilities will be recognised and measured in accordance with the accounting policies used in the company's latest audited Group annual financial statements;
(c)	the ordinary capital and reserves of the company and the Group will be sufficient for the company's and the Group's present requirements for 12 months from 20 February 2004;

SUBSIDIARY COMPANIES AND JOINT VENTURES
The principal subsidiaries and joint ventures of the Group are reflected in note 32.

The attributable interest of the company in the results of its consolidated subsidiaries and joint ventures for the year ended 31 December 2003 is as follows:

Messrs PM  Baum and MH Munro were appointed as directors on 23 September 2003 and 1 October 2003 respectively. Mr JB Magwaza retired in his executive capacity on 31 July 2003 and remains on the board as a non-executive director. Mr EK Diack resigned as a director on 26 November 2003. At the board meeting on 20 February 2004 Mr I Botha was appointed as a director with effect from 23 February 2004.

Directors retiring at the annual general meeting in accordance with the articles of association are: Messrs DD Barber, PM Baum, I Botha, BG Dunlop, GPN Kruger, MH Munro, SJ Saunders and Mrs TH Nyasulu. These directors are all eligible and offer themselves for re-election. Details of each of these retiring directors are set out on pages 36 and 37.

DIRECTORS' SHAREHOLDINGS
At 31 December 2003, the present directors and alternate directors of the company beneficially held a total of 1 079 085 ordinary shares equivalent to one percent in the company (2002 - 1 038 725 shares equivalent to one percent) and held unexercised options to acquire a total of 1 548 300 ordinary shares in the company (2002 - 1 381 460). They also held, in a non-beneficial capacity, a total of 508 310 ordinary shares equivalent to 0,5 percent in the company (2002 - 508 310 shares equivalent to 0,5 percent). Details of the directors' shareholdings are provided in note 25. There has been no material change in these holdings between 31 December 2003 and 20 February 2004.

POST BALANCE SHEET EVENTS
There were no material events between the balance sheet date and the date of this report.