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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Goalie who wrote (1360)	6/3/1998 9:23:00 AM
From: Goalie	Read Replies (2) \| Respond to of 7235

03 June 1998 Anglo's eventful year ends with poor results Hilary Joffe ANGLO American Corporation capped an eventful year with a 1,4% increase in headline earnings to R5bn for the year to March, in line with analysts' expectations. Although chairman Julian Ogilvie Thompson announced no new moves, he outlined progress made in simplifying the structure of the group, in line with its strategic review process. During the year the group announced the creation of Anglogold as a focused gold company; the merger of its financial services interests with those of Rand Merchant Bank Holdings to form FirstRand; the "bundling" of Amplats, which now wholly owns its three platinum mines; the restructuring of holdings in Anamint and De Beers; and progress by Anglo American Industrial Corporation, which agreed to sell its stake in AECI to Sasol, in implementing its "fix, close or sell" philosophy. Ogilvie Thompson listed moves to tidy up the group's portfolio, including the sale of its stake in Lonrho, but said there was still unfinished business. It is understood the next major step in the restructuring will be a redistribution of assets between the group and London-listed Minorco, its offshore natural resources arm. Market talk has focused on the need to integrate paper group Mondi with offshore arm Mondi Minorco Paper, as well as on the possibility that Amcoal might go into Minorco, which could become a more focused base metals group. But Ogilvie Thompson said a decision on Minorco had not yet been made. Finance director Rupert Pardoe cited weak commodity prices and the instability in world markets as reasons for Anglo's poor performance. Net pretax income was 7,8% lower at R10,2bn and total net earnings fell 18% to R5,8bn, reflecting a lower net surplus on the realisation of investments. A R1,3bn surplus on the disposal of the JCI stake was offset by a R526m loss on the sale of Anglo's stake in Lonrho. The group changed the way it reported headline earnings and has restated the 1997 comparative figures. Diamonds remained the largest contributor to headline earnings, accounting for 21,6% (1997: 21,4%). Contributions from platinum, financial services and coal also rose, as did earnings from corporate services, reflecting interest on the larger cash balances held after the sale of investments. The contribution from mining finance dropped due to reduced earnings at Minorco and because the group cut its stake in JCI from 39% to 1,5% during the year. Gold, base metals and industrial earnings were also lower. Anglo's net asset value was R275 at end-March, when the share was trading at R230,80, a discount of 16%. This has since narrowed: Pardoe said Monday's close of R246 represented a discount of 11% to net asset value of R277. The hikes in the share prices of Southern Life and First National Bank ahead of their absorption into FirstRand meant Anglo's financial services interests accounted for 18% of market value at end-March, up from 8%. Traditional core mining interests together accounted for 39% (42%).