NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996 ? (Continued)
(In millions, except share information)

		1998	1997	1996
		R	R	R

6.	Deferred income and mining taxes
	Current ? Income and mining taxes	484	17	72
	Deferred ? Income and mining taxes	(338)	(47)	93
	Change in taxation rate affecting the deferred tax provision	?	?	(224)

	Total income and mining taxes expensed/(benefit)	146	(30)	(59)

	Mining tax on mining income is determined according to a formula
	which varies the tax rate in accordance with the ratio of profit to
	revenue from mining operations. This formula also allows an initial
	portion of mining income to be free of tax. Non-mining income is
	taxed at a standard rate. Deferred tax is provided at the current
	mining cost formula rate of 51 percent for temporary differences
	relating to mining operations.
	Non-mining income does not give rise to temporary differences. Major
	items causing the Company's income tax provision to differ from the
	maximum mining tax rate of 48.45 percent and the non-mining tax rate
	of 42 percent were as follows:
	South African Corporate income tax at statutory rate	587	103	290
	Formula variation in mining taxation rate for current period	(404)	(121)	(79)
	Disallowable expenditure	45	15	1
	Non-taxable income	(70)	(35)	(28)
	Change in taxation rate affecting the deferred tax provision	?	?	(224)
	Other, net	(12)	8	(19)

	Total income and mining taxes (expensed)/benefit	146	(30)	(59)

	Deferred income and mining tax liabilities and assets on the
	balance sheet as of December 31, 1998 and 1997, relate to the following:
	Mining tax liabilities:
	Depreciation, depletion and amortization	7 693	1 725
	Product inventory not taxed	150	61
	Derivatives	288	?
	Other	_	71
	Mining tax assets:
	Unredeemed capital expenditure	(574)	(16)
	Provisions, including rehabilitation accruals	(630)	(106)

	Net deferred income and mining tax liabilities	6 927	1 735
	Refer to Note 12 for disclosure of the short term portion of the liability	438	132
	The classification of deferred income and mining tax assets is based on the
	related asset or liability creating the deferred tax. Deferred taxes not related	6,489	1,603
	to a specific asset or liability are classified based on the estimated period of
	reversal. As of December 31, 1998, the Company has unredeemed capital
	expenditure available for deduction against future mining income. This future
	deduction is utilizable against mining income generated only from the
	Company's current mining operations and does not expire unless the
	Company ceases to operate for a period of longer than one year
	Gross unredeemed capital expenditure	1 432	32
	Valuation allowance	(305)	?

	Net temporary differences relating to unredeemed capital expenditure	1 127	32

	Tax effect at 51 percent	574	16

		1998	1997	1996
		R	R	R

7.	Earnings per common share
	The following table sets forth the computation of basic and
	diluted earnings per common share (in thousands, except
	per share data):
	Numerator
	Net income ? applicable to common stockholders	977	220	657

	Denominator for basic earnings per share
	Weighted average number of shares	58,739,809	19,428,679	19,114,643
	Basic earnings per common share (cents)	1 663	1 132	3 437

	Dilutive potential common shares
	Weighted average number of shares	58,739,809	19,428,679	19,114,643
	Dilutive potential of stock incentive options	166,714	?	?
	Dilutive potential of debenture incentive options	86,335	?	?

	Denominator for diluted earnings per share
	Adjusted weighted average number of shares and
	assumed conversions	58,992,858	19,428,679	19,114,643

	Diluted earnings per common share (cents)	1 656	1 132	3 437

8.	Inventories
	Gold in-process	287	91
	Gold on hand	?	54
	Uranium oxide and sulphuric acid	121	158
	Supplies	271	70

		679	373

9.	Property, plant and equipment
	Mine development	10,080	4,167
	Mine infrastructure	3,451	1,249
	Mineral rights	373	531
	Land	35	4

		13,939	5,951
	Accumulated depreciation, depletion and amortization	(2,744)	(2,214)

	Net book value December 31	11,195	3,737

10.	Mineral reserves
	Mineral reserves, at fair value	11,505	?
	Accumulated amortization	(376)	?

	Net book value December 31	11,129	?

		1998	1997
		R	R

11.	Other long-term assets
	Investments in affiliates
	Listed
	Driefontein Consolidated Limited, equity method (net of amortization
	of goodwill of R42 million)	1 379	?
	Eastvaal Gold Holdings Limited, equity method	?	235
	Southvaal Holdings Limited, equity method	?	65
	Unlisted
	Semos, equity method (net of amortization of goodwill of R48 million)	1 009	?

	Carrying value of investments in affiliates	2 388	300
	Investment in listed common stock
	Driefontein Consolidated Limited, at fair value	?	136
	Investment in unlisted common stock	65	5
	Long-term loans receivable	747	6
	Loan to AngloGold Limited Employees Share and Debenture Trust	92

		3 292	447

	AngloGold increased their shareholding in the common stock of Driefontein Consolidated Limited during 1998 and the company now holds a 21,47 percent interest.
	On June 29, 1998 with the merger of the gold interests as described in
	Note 2. The company acquired the remaining shares in Eastvaal, Gold Holdings Limited and Southvaal Holdings Limited. From this date,they are therefor accounted for as wholly-owned subsidiaries and all inter company transactions and balances are eliminated on consolidation. During 1997 AngloGold had a 30 percent interest in the voting stock of Eastvaal and a 25 percent interest in the voting stock of Southvaal. Both Eastvaal and Southvaal are investment holding companies.
	AngloGold Offshore Investments Limited hold 100 percent of the shares in Anmercosa Mining West Africa Limited, which in turn holds a 38 percent interest in Societe D' Exploitation des Mines D' or de Sadiola S A ("Semos")
	The difference between the carrying value of the investments in affiliates and the underlying equity in net assets is as follows:
	Carrying value of above affiliates	2 388	300
	Cost of affiliates	2 350	241
	Undistributed earnings since acquisition	38	59
	Market value of listed shares	1 029	1 033

		1998	1997
		R	R

	Summarized financial statements based on the audited financial statements of Driefontein, Semos (income for six months ended December 31, 1998 only) Eastvaal and Southvaal (income for six months ended June 29, 1998 and for the year ended December 31, 1997) are as follows:
	Statements of income
	Operating income	704	423
	Interest and other income, net	89	62

	Income before taxes	793	485
	Taxes	(247)	(192)

	Net income after taxes	546	293
	Dividends	?	(218)

	Net income	546	75

		Driefontein	Eastvaal
		and	and
		Semos	Southvaal
Balance sheets at December 31, 1998
	Investments in AngloGold preferred stock	?	313
	Mining assets	5,274	?
	Net current assets	1,032	233

		6,306	546
	Deferred taxation	(1,819)	?
	Long-term liabilities	(660)	?
	Loans (from)/to shareholders	(605)	330

	Net assets	3,222	876

	Investments in unlisted common stock comprise investments in various companies in South Africa for which a fair value is not readily determinable. The directors of the Company perform independent valuations of the investments on an annual basis to ensure that no permanent diminution in the value of the investment has occurred.
	Long term loans receivable comprise loans to associated companies.
	These loans are denominated in US$ and interest accrues at LIBOR plus 2% per annum. These loans are repayable in eight equal semi-annual installments on May 16 and November 16 with the final installment on May 16, 2002
		667	6
	Other	80	?

	.	747	6

	Loan to AngloGold Limited Employees Share and Debenture Trust	92	?
	Interest is payable annually at the official interest rate per the seventh schedule of the Income Tax Act

		1998	1997
		R	R

12.	Accounts payable and accrued liabilities
	Trade accounts payable	497	84
	Deferred income and mining taxes	438	132
	Related parties	32	41
	Value added taxes	?	1
	Payroll and related benefits	504	240
	Other (including accrued liabilities)	328	225

		1 799	723

13.	Short term debt
	Lines of credit utilized from Anglo American Corporation of
	South Africa Limited	?	105
	Current maturities of long term debt (Refer to Note 14)	4	3

		4	108

	The weighted average interest rate paid on short term debt amounts to 20.05 percent in 1997.
14.	Long-term debt
	Loan from various senior lenders to Semos	590	?
	Interest charged at LIBOR plus 2 percent per annum. Loan is
	repayable in eight half yearly instalments terminating in May 2002
	Loan from Debsam Limited	98	?
	Interest charged at LIBOR plus 2 percent per annum. The payment date
	and terms are not yet determined
	Debentures	92	?
	420 500 unsecured variable rate compulsory convertible debentures issued in terms of the Share Incentive Scheme
	Interest on these debentures is payable annually at the official interest rate per the seventh schedule of the Income Tax Act. The terms and conditions of the debentures are detailed in Note 24.
	Loan from Economic Development Corporation Limited
	Interest charged at LIBOR plus 0.6% per annum repayable in half yearly
	instalments terminating December 2002	11	14
	Interest-free loan to finance capital expenditure in the Moab Lease area	?	330
	acquired as part of the participating companies.
	Unsecured interest-free loan from former stockholders of Weltevreden
	Mines Limited	?	67
	Other	20	4

	Total debt	811	415
	Current maturities included in short term debt (Refer to Note 13)	(4)	(3)

	Long term debt	807	412

While the ultimate amount of rehabilitation cost to be incurred in the future is uncertain, the Company has estimated that the total cost for mine reclamation and closure, in current monetary terms, will be R1004 million.

Certain amounts have been contributed to an irrevocable rehabilitation trust under the Company's control. The monies in the trust are invested primarily in interest bearing debt securities.

The Company intends to finance the ultimate rehabilitation costs from the monies invested with the rehabilitation trust fund as well as the proceeds on sale of assets and gold from plant clean-up at the time of mine closure.

		1998	1997
		R	R

	Scheduled minimum long-term debt repayments are:
	1998 ? R3 million
	1999 ? R4 million
	2000 ? R4 million
	2001 ? R5 million
	2002 ? R4 million.
	Thereafter actual payments may be greater in any one year due to actual
	operating cash flows realised.
15.	Provision for environmental rehabilitation
	Accrued environmental rehabilitation costs	577	156
	Gross accrual	797	196
	Investment in Environmental Trust Fund	(220)	(40)