Annual Financial Statements


Financial Statements for the year ended 31 December 2004


Statutory Report

The directors have pleasure in submitting the annual financial statements of the company and of the Group for the year ended 31 December 2004.

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 earnings of the Group for the year ended 31 December 2004 amounted to R226 million (2003 - loss of R41 million). This translates into a headline earnings per share of 210,4 cents (2003 - headline loss per share of 91,7 cents) based on the increased weighted average number of shares in issue during the year.

DIVIDENDS

An interim dividend No. 154 of 50 cents per share was paid on 2 September 2004 and a final dividend No. 155 of 120 cents per share has been declared and is payable on 24 March 2005 to shareholders registered at the close of business on 18 March 2005.

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

Last date to trade ordinary           
shares "CUM" dividendFriday 11 March 2005
Ordinary shares trade
"EX" dividend Monday 14 March 2005
Record date Friday 18 March 2005
Payment date Thursday 24 March 2005

Share certificates may not be dematerialised or re-materialised, nor may transfers between registers take place between Monday 14 March 2005 and Friday 18 March 2005, both days inclusive.

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 11 March 2005.

SHARE CAPITAL

There was no change in the authorised share capital of the company. During the year 780 524 shares were allotted (including 125 000 shares to directors) in respect of options exercised in terms of the Group's employee share incentive scheme for a total consideration of R30 million. Details of the unissued ordinary shares, share options granted and exercised and the Group's share incentive schemes are set out in notes 10 and 25.

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 with the proviso that the number of ordinary shares acquired in any one financial year may not exceed 5 percent of the ordinary shares in issue at the date on which this resolution is passed.

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.

Further, in terms of the listings requirements of the JSE, 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:
 

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 18 February 2005;
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 18 February 2005. 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;
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 18 February 2005;
the working capital of the company and the Group for a period of 12 months from 18 February 2005 will be adequate for the company's and the Group's requirements.

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 2004 is as follows:
 

 2004 2003
In the aggregate amount of:
 Net earnings – (Rmillion) 310212
 Net losses – (Rmillion) 45132

DIRECTORATE

The names of the directors and alternate directors of the company in office at the date of this report are reflected under directorate.

Mr I Botha was appointed as a director on 23 February 2004 and Mr BE Davison was appointed as a director on 3 May 2004. Mr DG Aitken resigned as a director on 29 February 2004.

Directors retiring at the annual general meeting in accordance with the articles of association are:
Messrs L Boyd, BE Davison, GR Hibbert, MW King, JB Magwaza and M Serfontein. These directors are all eligible and offer themselves for re-election. Details of each of these retiring directors are set out under directorate.

DIRECTORS' SHAREHOLDINGS

At 31 December 2004, the present directors and alternate directors of the company beneficially held a total of 1 029 685 ordinary shares equivalent to one percent in the company (2003 – 1 022 285 shares equivalent to one percent) and held unexercised options to acquire a total of 1 469 300 ordinary shares in the company (2003 – 1 433 700). They also held, in a non-beneficial capacity, a total of 508 310 ordinary shares equivalent to 0,5 percent in the company (2003 – 508 310 shares equivalent to 0,5 percent). Details of the directors' shareholdings are provided in note 26. There has been no material change in these holdings between 31 December 2004 and 18 February 2005.

POST BALANCE SHEET EVENTS

There were no material events between the balance sheet date and the date of this report.