ASA LIMITED 36 WIERDA ROAD WEST
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA) WIERDA VALLEY, SANDTON
SOUTH AFRICA
TO THE SHAREHOLDERS:
At August 31, 2000 the Company's net assets were equivalent to R144.93
($20.80) per share. This compares with R138.62 ($22.51) per share at November
30, 1999 the end of the Company's previous fiscal year. Net asset values are
computed in terms of rand, the currency of the Republic of South Africa, and
then converted to United States dollars at the rand exchange rate as described
in Note (1)B, on page 7. The most recent net asset value similarly calculated
was R135.14 ($18.52) per share at September 21, 2000 at which date our shares
sold at a market price of $16.63 per share, a discount of 10.2% to the net asset
value.
Net investment income for the nine months ended August 31, 2000 was
equivalent to $.45 per share vs. $.46 for the same period last year. The Board
of Directors declared a dividend of $.15 per share on July 27, 2000 payable
August 24, 2000 to shareholders of record on August 17, 2000.
With the exception of a short-lived rally up to $293 per ounce in mid June,
gold has traded quietly in the $270-$280 range throughout the three months ended
August 31, 2000. Gold mining stocks have generally drifted lower during this
period, reflecting the lackluster market for gold bullion. With the dollar
strong against the Euro and Asian currencies and financial markets remaining
relatively calm, there is little in the current economic environment to create
interest among investors in the gold sector.
There are, however, several developments which could contribute to a
firming in the gold price. These developments include: (1) Forward selling of
gold by the mining companies appears to have leveled off. (2) Gold sales by
central banks in Switzerland, United Kingdom, and more recently Uruguay and
Chile, which continue to impact the market. (3) A $35 per barrel oil price, up
three and one-half times since last year's low. This is resulting in strikes in
France and has caused President Clinton to warn that high oil prices could
trigger a recession in the United States. (4) Other commodities have been moving
higher, copper recently has been quoted at over $0.90 per pound, up fifty
percent since last year. (5) The euro has resumed its decline and at
approximately $0.87 to the U.S. dollar is about 25% below the price it was at
the time of its creation in January 1999. Because of the weakness in the euro,
increases in oil, gold, copper and other commodities have been even more
pronounced in Euroland.
In spite of the sluggish market for gold and gold stocks, ASA's net asset
value rose from $18.43 per share on May 31, 2000 to $20.80 per share on August
31, 2000 an increase of 12.9% reflecting strength in the price of DeBeers and
our two platinum stocks. DeBeers has been benefiting from continued strong
diamond demand, albeit reduced from the exuberant buying in anticipation of the
millennium a year ago. Earnings of the platinum mines have benefited from a
weaker rand and a firm dollar price for the platinum group metals.
In South Africa recent trends in economic growth continue to be
disappointing. The year on year rise in GDP for twelve months ended June 2000,
was only 2.4%, significantly below the 3% projected in the March 2000 budget. It
now appears that 2.4% is likely to be the figure for this calendar year. In
addition, both foreign and domestic direct investment continues sluggish. This
combination of disappointing growth and sluggish investment could place more
downward pressure on the rand.
1
<PAGE>
I would like to call to your attention the availability of the Dividend
Reinvestment Plan. Any inquiries in regard to the plan should be directed to
EquiServe-First Chicago Trust Division ("FCTD"), Dividend Reinvestment Plan,
P.O. Box 2598, Jersey City, NJ, 07303-2598, U.S.A. Also FCTD is now able to
communicate with shareholders through the Internet. The only requirement for
shareholder participation is use of a personal computer and access to an
electronic mail package. The FCTD address is "[email protected]", and access is
available 24-hours a day. In addition, FCTD has established a Response Center to
respond to shareholders' questions in a timely manner. The telephone number is
201-324-0498. The Response Center is available Monday through Friday between
8:30 a.m. and 7 p.m. (Eastern Standard Time).
Robert J.A. Irwin
September 22, 2000 CHAIRMAN OF THE BOARD
2
<PAGE>
SCHEDULE OF INVESTMENTS
(NOTE 1)
August 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Number of South African United States Percent of
Name of Company Shares Rand Dollars Net Assets
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ORDINARY SHARES OF GOLD MINING COMPANIES
South African Gold Mines
Anglogold Limited 1 194 947 R 325 025 584 23.4%
Gold Fields Limited 10 794 979 277 430 960 19.9
Western Areas Gold Mining Company Limited 600 300 9 364 680 .7
Harmony Gold Mining Company Limited 1 336 49 699 --
Harmony Gold Mining Company Limited - ADRs 510 400 18 768 257 1.3
------------------------------------------------------------------------------------------------------------------------------------
630 639 180 $ 90 479 079 45.3
------------------------------------------------------------------------------------------------------------------------------------
CANADIAN GOLD MINES
Barrick Gold Corporation 282 000 31 369 680 2.3
Franco-Nevada Mining Corporation Limited 306 460 22 524 810 1.6
Placer Dome Incorporated 365 312 22 634 731 1.6
------------------------------------------------------------------------------------------------------------------------------------
76 529 221 10 979 802 5.5
------------------------------------------------------------------------------------------------------------------------------------
707 168 401 101 458 881 50.8
------------------------------------------------------------------------------------------------------------------------------------
ORDINARY SHARES OF OTHER COMPANIES
Anglo American Platinum Corporation Limited 1 014 800 276 634 480 19.9
Anglo American Corporation PLC 320 000 124 800 000 9.0
De Beers Consolidated Mines Limited/Centenary AG 701 300 136 052 200 9.8
Impala Platinum Holdings Limited 262 700 86 691 000 6.2
------------------------------------------------------------------------------------------------------------------------------------
624 177 680 89 552 034 44.9
------------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Market Value 1 331 346 081 191 010 915 95.7
CASH AND OTHER ASSETS LESS PAYABLES 60 001 439 8 631 359 4.3
------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets R1 391 347 520 $199 642 274 100.0%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The Company's accounts are maintained in rand, the currency of the Republic of
South Africa. United States dollar amounts are shown solely for the convenience
of United States shareholders. There is no assurance that the valuations at
which the Company's investments are carried could be realized upon sale.
The notes to the financial statements form an integral part of these statements.
3
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
(Unaudited)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2000 August 31, 1999
South African United States South African United States
ASSETS Rand Dollars Rand Dollars
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investments, at market value (Note 1)
Gold mining companies--
Cost R 207 910 436 $93 257 075 in 2000
R 203 930 373 $93 278 995 in 1999 R 707 168 401 $101 458 881 R 698 716 785 $114 920 524
Other companies--
Cost R 79 793 992 $33 982 019 in 2000
R 80 132 354 $34 342 056 in 1999 624 177 680 89 552 034 465 026 620 76 484 641
------------------------------------------------------------------------------------------------------------------------------------
1 331 346 081 191 010 915 1 163 743 405 191 405 165
Cash in banks 46 443 640 6 663 363 8 406 246 1 382 603
Bank time deposits 12 197 500 1 750 000 -- --
Dividends and interest receivable 11 911 875 1 709 021 10 956 591 1 802 071
Other assets 546 590 101 251 475 526 93 403
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1 402 445 686 201 234 550 1 183 581 768 194 683 242
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
------------------------------------------------------------------------------------------------------------------------------------
Accounts payable and accrued liabilities 914 550 131 212 414 650 68 199
Payable for securities purchased 10 183 616 1 461 064 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 11 098 166 1 592 276 414 650 68 199
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (SHAREHOLDERS' INVESTMENT)
------------------------------------------------------------------------------------------------------------------------------------
Ordinary (common) shares R0.25 nominal (par) value
Authorized: 24,000,000 shares
Issued & Outstanding: 9,600,000 shares 2 400 000 3 360 000 2 400 000 3 360 000
Share premium (capital surplus) 19 636 586 27 489 156 19 636 586 27 489 156
Undistributed net investment income 18 320 789 56 223 304 21 188 416 56 479 569
Undistributed net realized gain (loss) from
foreign currency transactions 5 509 962 (28 955 522) 3 830 432 (28 778 177)
Undistributed net realized gain on investment 293 839 875 78 489 199 249 184 977 72 844 552
Net unrealized appreciation
on investments 1 043 681 920 63 771 753 879 690 947 63 784 046
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currency 7 958 388 (735 616) 7 235 760 (564 103)
------------------------------------------------------------------------------------------------------------------------------------
Net assets R 1 391 347 520 $199 642 274 R 1 183 167 118 $194 615 043
------------------------------------------------------------------------------------------------------------------------------------
Net assets per share R 144.93 $20.80 R 123.25 $20.27
====================================================================================================================================
</TABLE>
The notes to the financial statements form an integral part of these
statements.
The closing price of the Company's shares on the New York Stock Exchange
was $16.94 on August 31, 2000 and $18.06 per share on August 31, 1999.
4
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
(Unaudited) Nine months ended
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2000 August 31, 1999
South African United States South African United States
Rand Dollars Rand Dollars
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income
Dividends R 37 544 195 $ 5 745 783 R 34 174 145 $ 5 560 140
Interest 1 169 130 173 753 1 743 464 284 965
------------------------------------------------------------------------------------------------------------------------------------
38 713 325 5 919 536 35 917 609 5 845 105
------------------------------------------------------------------------------------------------------------------------------------
Expenses
Shareholders' report and proxy expenses 779 783 118 791 532 147 88 877
Directors' fees and expenses 2 493 742 370 092 1 902 909 312 425
Salaries 1 651 257 250 225 1 439 637 237 675
Other administrative expenses 1 710 178 260 297 1 573 193 260 269
Transfer agent, registrar and custodian 638 081 93 839 461 179 75 311
Professional fees and expenses 987 408 149 188 718 977 117 914
Insurance 411 838 62 999 431 728 71 007
Other 1 826 154 276 054 1 739 885 285 756
------------------------------------------------------------------------------------------------------------------------------------
10 498 441 1 581 485 8 799 655 1 449 234
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 28 214 884 4 338 051 27 117 954 4 395 871
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) from
investments and foreign currency transactions
Net realized gain from investments
Proceeds from sales 50 678 601 7 283 982 68 941 656 11 393 080
Cost of securities sold 338 361 48 534 27 128 438 3 820 019
------------------------------------------------------------------------------------------------------------------------------------
Net realized gain from investments 50 340 240 7 235 448 41 813 218 7 573 061
------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from foreign currency transactions
Investments -- (311 498) -- (9 634 327)
Foreign currency transactions (95 606) (396 736) (397 773) (47 289)
------------------------------------------------------------------------------------------------------------------------------------
Net realized (loss) from foreign currency transactions (95 606) (708 234) (397 773) (9 681 616)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in unrealized appreciation
on investments
Balance, beginning of period 1 034 686 836 86 494 686 778 778 375 49 646 548
Balance, end of period 1 043 681 920 63 771 753 879 690 947 63 784 046
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in unrealized appreciation 8 995 084 (22 722 933) 100 912 572 14 137 498
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on translation
of assets and liabilities in foreign currency 2 432 775 (231 506) 1 796 956 (19 308)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) from
investments and foreign currency 61 672 493 (16 427 225) 144 124 973 12 009 635
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations R 89 887 377 $(12 089 174) R 171 242 927 $ 16 405 506
====================================================================================================================================
</TABLE>
The notes to the financial statements form an integral part of these
statements.
5
<PAGE>
STATEMENTS OF SURPLUS AND STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Unaudited) Nine months ended
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2000 August 31, 1999
South African United States South African United States
STATEMENTS OF SURPLUS Rand Dollars Rand Dollars
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Share premium (capital surplus)
Balance, beginning and end of period R 19 636 586 $ 27 489 156 R 19 636 586 $ 27 489 156
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income
Balance, beginning of period R 19 424 305 $ 56 205 253 R 20 681 662 $ 56 403 698
Net investment income for the period 28 214 884 4 338 051 27 117 954 4 395 871
------------------------------------------------------------------------------------------------------------------------------------
47 639 189 60 543 304 47 799 616 60 799 569
Dividends paid (29 318 400) (4 320 000) (26 611 200) (4 320 000)
------------------------------------------------------------------------------------------------------------------------------------
Balance, end of period R 18 320 789 $ 56 223 304 R 21 188 416 $ 56 479 569
====================================================================================================================================
Undistributed net realized gain (loss) from
foreign currency transactions
Balance, beginning of period R 5 605 568 $(28 247 288) R 4 228 205 $ (19 096 561)
Net realized (loss) for the period (95 606) (708 234) (397 773) (9 681 616)
------------------------------------------------------------------------------------------------------------------------------------
Balance, end of period R 5 509 962 $(28 955 522) R 3 830 432 $ (28 778 177)
====================================================================================================================================
Undistributed net realized gain on investments
(Computed on identified cost basis)
Balance, beginning of period R 243 499 635 $71 253 751 R 207 371 759 $ 65 271 491
Net realized gain for the period 50 340 240 7 235 448 41 813 218 7 573 061
------------------------------------------------------------------------------------------------------------------------------------
Balance, end of period R 293 839 875 $78 489 199 R 249 184 977 $ 72 844 552
====================================================================================================================================
Net unrealized appreciation on investments
Balance, beginning of period R 1 034 686 836 $86 494 686 R 778 778 375 $ 49 646 548
Increase (Decrease) for the period 8 995 084 (22 722 933) 100 912 572 14 137 498
------------------------------------------------------------------------------------------------------------------------------------
Balance, end of period R 1 043 681 920 $ 63 771 753 R 879 690 947 $ 63 784 046
====================================================================================================================================
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currency
Balance, beginning of period R 5 525 613 $ (504 110) R 5 438 804 $ (544 795)
Net unrealized appreciation (depreciation)
for the period 2 432 775 (231 506) 1 796 956 (19 308)
------------------------------------------------------------------------------------------------------------------------------------
Balance, end of period R 7 958 388 $ (735 616) R 7 235 760 $ (564 103)
====================================================================================================================================
<CAPTION>
Nine months ended
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2000 August 31, 1999
South African United States South African United States
STATEMENTS OF CHANGES IN NET ASSETS Rand Dollars Rand Dollars
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income R 28 214 884 $ 4 338 051 R 27 117 954 $ 4 395 871
Net realized gain from investments 50 340 240 7 235 448 41 813 218 7 573 061
Net realized (loss) from foreign currency
transactions (95 606) (708 234) (397 773) (9 681 616)
Net increase (decrease) in unrealized appreciation
on investments 8 995 084 (22 722 933) 100 912 572 14 137 498
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currency 2 432 775 (231 506) 1 796 956 (19 308)
------------------------------------------------------------------------------------------------------------------------------------
89 887 377 (12 089 174) 171 242 927 16 405 506
Dividends paid from net investment income (29 318 400) (4 320 000) (26 611 200) (4 320 000)
------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) 60 568 977 (16 409 174) 144 631 727 12 085 506
Net assets, beginning of period 1 330 778 543 216 051 448 1 038 535 391 182 529 537
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period R 1 391 347 520 $199 642 274 R 1 183 167 118 $194 615 043
====================================================================================================================================
</TABLE>
The notes to the financial statements form an integral part of these
statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--The following is a
summary of the Company's significant accounting policies:
A. INVESTMENTS
Security transactions are recorded on the respective trade dates.
Securities owned are reflected in the accompanying financial statements at
quoted market value. The difference between cost and current market value
is reflected separately as net unrealized appreciation on investments. The
net realized gain or loss from the sale of securities is determined for
accounting purposes on the basis of the cost of specific certificates.
Substantially all shares in the Company's portfolio are traded on the
Johannesburg Stock Exchange. The Company cannot trade in securities
markets other than the Johannesburg Stock Exchange without permission of
the South African Exchange Control Authorities.
Quoted market value of those shares traded on the Johannesburg Stock
Exchange or other stock exchanges, as applicable, represents the last
recorded sales price on the financial statement date, or the mean between
the closing bid and asked prices of those securities not traded on that
date. In the event that a mean price cannot be computed due to the absence
of either a bid or an asked price, then the bid price plus 1% or the ask
price less 1%, as applicable, is used.
There is no assurance that the valuation at which the Company's
investments are carried could be realized upon sale.
B. TRANSLATION OF SOUTH AFRICAN RAND INTO UNITED STATES DOLLARS
The Company's accounts are maintained in rand, the currency of the
Republic of South Africa. United States dollar amounts are shown solely
for the convenience of United States shareholders. The Company translates
rand into U.S. dollars at the current rand exchange rate in computing its
net asset values. At August 31, 2000, the rand exchange rate was
approximately R6.95 to the dollar ($.14 to the rand).
United States dollar equivalents have been determined at appropriate rates
of exchange as follows:
(i) Purchases, sales, receipts and expenditures are
translated at the approximate official rates of exchange in effect
at the respective dates of such transactions.
(ii) Assets, including investment securities, at quoted
market value (Note (1) A), and liabilities at each reporting date
are translated at the official exchange rate in effect at such date.
(iii) Ordinary shares outstanding and share premium (capital
surplus) accounts are translated at historical rates, averaging
$1.40 to the rand.
C. EXCHANGE GAINS AND LOSSES
The Company records exchange gains and losses in accordance with the
provisions of the American Institute of Certified Public Accountants
Statement of Position 93-4, Foreign Currency Accounting and Financial
Statement Presentation for Investment Companies ("SOP"). The SOP requires
separate disclosure in the accompanying financial statements of net
realized gain (loss) from foreign currency transactions, and inclusion of
unrealized gain (loss) on the translation of currency as part of net
unrealized appreciation (depreciation) on translation of assets and
liabilities in foreign currency.
7
<PAGE>
D. SECURITY TRANSACTIONS AND INVESTMENT INCOME
During the nine months ended August 31, 2000 sales of securities amounted
to R 50,678,601 ($7,283,982) and purchases of securities amounted to
R 13,027,578 ($1,879,586). During the nine months ended August 31, 1999
sales of securities amounted to R 68,941,656 ($11,393,080) and purchases
of securities amounted to R 167,246,260 ($10,983,353). Securities
transactions are accounted for on the date the securities are purchased or
sold. Dividend income is recorded on the ex-dividend date (the date on
which the securities would be sold ex-dividend). Interest income is
recognized on the accrual basis.
E. DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders are recorded on the ex-dividend date.
F. USE OF ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to
make estimates and assumptions that effect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses for the period. Actual results could
differ from those estimates.
(2) TAX STATUS OF THE COMPANY--There is no South African tax on
dividends received by the Company and it is exempt from tax on gains realized on
the disposition of securities, provided, as has been the Company's practice,
that its purchases of securities are made for investment purposes. Effective
June 1996, the Company is no longer subject to tax on interest income and was
also granted exemption from the payment of a Secondary Tax on Companies. The
Company (a South African corporation) intends to conduct its business in a
manner that will not subject it to United States income or capital gain taxes.
The South African Minister of Finance has recently announced proposed
amendments to the South African ("SA") tax system in the 2000 National Budget.
If enacted into law, certain of the Company's income might be subject to
taxation. Due to the uncertainty surrounding these proposed changes to the SA
tax system and their applicability to the Company, management has not assessed
the ultimate impact on the Company's financial position.
The reporting for financial statement purposes of distributions made
during the period from net investment income or net realized gains may differ
from their ultimate reporting for U.S. federal income tax purposes. These
differences primarily are caused by the separate line item reporting for
financial statement purposes of foreign exchange gains or losses. See page 10
for additional tax information for United States shareholders.
(3) CURRENCY EXCHANGE--There are exchange control regulations restricting
the transfer of funds from South Africa. In 1958 the South African Reserve Bank,
in the exercise of its powers under such regulations, advised the Company that
the exchange control authorities would permit the Company to transfer to the
United States in dollars both the Company's capital and its gross income,
whether received as dividends or as profits on the sale of investments, at the
current official exchange rate prevailing from time to time. Future
implementation of exchange control policies could be influenced by national
monetary considerations that may prevail at any given time.
(4) RETIREMENT PLAN--Effective April 1, 1989, the Company established a
defined contribution plan (the "Plan") to replace its previous pension plan. The
Plan covers all full-time employees. The Company will contribute 15% of each
covered employee's salary to the Plan. The Plan provides for immediate vesting
by the employee without regard to length of service. During the nine months
ended August 31, 2000, there was no retirement plan expense, and in the nine
months ended August 31, 1999, retirement plan expense aggregated R3,995 ($699).
In addition, in 1998 the Company renewed an annuity policy owned by the Company,
for the benefit of the Chairman, at an annual cost of $28,125 per year for five
years.
8
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Nine months ended Year ended November 30
------------------------------------------------------------------------------------------------------------------------------------
August 31 August 31
2000 1999
(Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
South African Rand
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period R 138.62 R 108.18 R 108.18 R 99.38 R 161.77 R 127.19 R 181.42
====================================================================================================================================
Net investment income 2.94 2.82 3.56 3.59 4.43 4.52 5.17
Net realized gain from investments 5.24 4.36 3.76 1.91 -- 1.50 2.39
Net realized gain(loss) from foreign
currency transactions (.01) (.04) .14 .19 .11 (.12) .10
Net increase(decrease) in unrealized
appreciation on investments .94 10.51 26.66 7.61 (61.40) 34.03 (54.67)
Net unrealized appreciation (depreciation)
on translation of assets and
liabilities in foreign currency .25 .19 .01 (.09) .02 .62 .01
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 9.36 17.84 34.13 13.21 (56.84) 40.55 (47.00)
Less dividends (3.05) (2.77) (3.69) (4.41) (5.55) (5.97) (7.23)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period R 144.93 R 123.25 R 138.62 R 108. R 99.38 R 161.77 R 127.19
====================================================================================================================================
United States Dollars
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 22.51 $ 19.01 $ 19.01 $ 20.45 $ 35.09 $ 34.66 $ 51.10
------------------------------------------------------------------------------------------------------------------------------------
Net investment income .45 .46 .58 .66 .97 1.10 1.43
Net realized gain from investments .75 .79 .62 .32 -- .39 .65
Net realized (loss) from foreign
currency transactions (.07) (1.01) (.95) (.11) -- (.71) (.93)
Net increase(decrease) in unrealized
appreciation on investments (2.37) 1.47 3.84 (1.49) (14.41) 1.05 (15.58)
Net unrealized appreciation (depreciation)
on translation of assets and
liabilities in foreign currency (.02) -- .01 (.02) -- -- (.01)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (1.26) 1.71 4.10 (.64) (13.44) 1.83 (14.44)
Less dividends (.45) (.45) (.60) (.80) (1.20) (1.40) (2.00)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.80 $ 20.27 $ 22.51 $ 19.01 $ 20.45 $ 35.09 $ 34.66
====================================================================================================================================
Market value per share, end of period $ 16.94 $ 18.06 $ 19.125 $ 19.13 $ 20.63 $ 37.63 $ 39.00
TOTAL INVESTMENT RETURN(1)
Based on market value per share (9.04%) (3.01%) 3.44% (3.30%) (42.86%) (.28%) (6.36%)
RATIOS TO AVERAGE NET ASSETS(1)
Expenses .81% .84% 1.13% 1.15% .71% .49% .53%
Net investment income 2.22% 2.56% 3.02% 3.34% 3.25% 2.72% 3.47%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $199,642 $194,615 $216 051 $182 530 $196 301 $336 882 $332 691
Portfolio turnover rate .98% 6.66% 6.66% 1.06% -- 1.79% 2.40%
------------------------------------------------------------------------------------------------------------------------------------
Per share calculations are based on the 9,600,000 shares outstanding.
(1) Determined in dollar terms.
<CAPTION>
SUPPLEMENTARY INFORMATION
Nine months ended August 31, 2000 (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
South African Rand
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Certain fees incurred by the company
Directors' fees R 1 189 468
Officers' salaries 1 086 701
Arthur Andersen (Auditors) 306 604
Ranquin Associates (South African Secretary) 440 325
</TABLE>
9
<PAGE>
CERTAIN TAX INFORMATION FOR UNITED STATES SHAREHOLDERS
From December 1, 1963 through November 30, 1987, the Company was treated
as a "foreign investment company" for United States federal income tax purposes
pursuant to Section 1246 of the Internal Revenue Code (the "Code"). Under
Section 1246 of the Code, a United States shareholder who has held his shares of
the Company for more than one year is subject to tax at ordinary income tax
rates on his profit (if any) on a sale of his shares to the extent of his
"ratable share" of the Company's earnings and profits accumulated for the period
during which be held those shares between December 1, 1963 and November 30,
1987. If such shareholder's profit on the sale of his shares exceeds such
ratable share and he held his shares for more than one year, then, subject to
the discussion below regarding the United States federal income tax rules
applicable to taxable years of the Company beginning after November 30, 1987, he
is subject to tax at long term capital gain rates on the excess.
The Company's per share earnings and profits accumulated (undistributed)
in each of the fiscal years from 1964 through 1987 is given below in United
States currency. All the per share amounts give effect to the two-for-one stock
splits that became effective on May 10, 1966, May 10, 1973 and May 9, 1975. All
the per share amounts reflect distributions through November 30, 1999.
YEAR ENDED NOVEMBER 30 PER YEAR PER DAY
---------------------- -------- -------
1964 .............. $ .042 $.00012
1965 .............. .067 .00019
1966 .............. .105 .00029
1967 .............. .277 .00076
1968 .............. .241 .00066
1969 .............. .461 .00126
1970 .............. .218 .00060
1971 .............. .203 .00056
1972 .............. .445 .00122
1973 .............. .497 .00136
1974 .............. 1.151 .00316
1975 .............. .851 .00233
1976 .............. .370 .00101
1977 .............. .083 .00023
1978 .............. .357 .00098
1979 .............. .219 .00060
1980 .............. 1.962 .00538
1981 .............. .954 .00261
1982 .............. .102 .00028
1983 .............. -0- -0-
1984 .............. -0- -0-
1985 .............. (.151) (.00041)
1986 .............. -0- -0-
1987 .............. -0- -0-
Under rules enacted by the Tax Reform Act of 1986, the Company became a
"passive foreign investment company" (a "PFIC") on December 1, 1987. The manner
in which these rules apply depends on whether a United States shareholder elects
either to treat the Company as a qualified electing fund ("QEF") with respect to
Company shares, or for taxable years of such United States shareholder beginning
after December 31, 1997, to "mark-to-market" his Company shares as of the close
of each taxable year, or make neither of these elections.
10
<PAGE>
In general, if a United States shareholder of the Company does not make
either such election, any gain realized on the direct or indirect disposition of
Company stock by the United States shareholder will be treated as ordinary
income. In addition, such non-electing United States shareholder will be subject
to an "interest charge" on part of his tax liability with respect to such gain,
as well as with respect to certain "excess distributions" made by the Company.
Furthermore, shares held by such non-electing United States shareholder may be
denied the benefit of any otherwise applicable increase in tax basis at death.
Under proposed regulations, a "disposition" would immune a U.S. taxpayer
becoming a nonresident alien.
If the United States shareholder elects to treat the Company as a QEF with
respect to his interest therein for the first year he holds his shares during
which the Company is a PFIC (or who later makes the QEF election and also elects
to treat his interest generally as if they were sold for their fair market value
on the first day of the first taxable year of the Company for which the QEF
election is effective), the rules described in the preceding paragraph generally
will not apply. Instead, the electing United States shareholder would include
annually in his gross income his pro rata share of the Company's ordinary
earnings and net capital gain (his "QEF" inclusion) regardless of whether such
income or gain was actually distributed. A United States shareholder who made
the QEF election for the first year he held his shares during which the Company
was a PFIC (or who later made the election and also elected to treat his shares
generally as if it were sold on the first day of the first taxable year of the
Company for which the QEF election is effective) would recognize capital gain on
any profit from the actual sale of his shares if those shares were held as
capital assets, except to the extent of the shareholder's ratable share of the
earnings and profits of the Company accumulated between December 1, 1963 and
November 30, 1987, as described above.
Alternatively, if the United States shareholder makes the mark-to-market
election with respect to Company shares, such electing United States shareholder
would be required annually to report any unrealized gain with respect to such
shares as an item of ordinary income, and any unrealized loss would be permitted
as an ordinary loss, but only to the extent of previous inclusions of ordinary
income. Any gain subsequently realized by the electing United States shareholder
on a sale or other disposition of Company shares also would be treated as
ordinary income, but such United States shareholder would not be subject to an
interest charge on his resulting tax liability. Special rules would apply to a
United States shareholder that held his Company shares prior to the first
taxable year for which the mark-to-market election was effective.
A more detailed discussion of the United States federal income tax rules
applicable to PFICs, including information relating to the filing of QEF
elections, may be found in the Company's 1999 Annual Report under the heading
"Certain tax information for United States shareholders."
DUE TO THE COMPLEXITY OF THE APPLICABLE TAX RULES, UNITED STATES
SHAREHOLDERS OF THE COMPANY ARE STRONGLY URGED TO CONSULT THEIR OWN TAX ADVISORS
CONCERNING THE IMPACT OF THESE RULES ON THEIR INVESTMENT IN THE COMPANY AND ON
THEIR INDIVIDUAL SITUATIONS.
11
<PAGE>
ASA LIMITED
Incorporated in the
Republic of South Africa
(Registration No. 58/01920/06)
DIRECTORS
HENRY R. BRECK ROBERT J.A. IRWIN
(U.S.A.) (U.S.A.)
HARRY M. CONGER MALCOLM W. MACNAUGHT
(U.S.A.) (U.S.A.)
CHESTER A. CROCKER RONALD L. MCCARTHY
(U.S.A.) (South Africa)
JOSEPH C. FARRELL ROBERT A. PILKINGTON
(U.S.A.) (U.S.A.)
JAMES G. INGLIS A. MICHAEL ROSHOLT
(South Africa) (South Africa)
---------------------------------------------
WESLEY A. STANGER, JR., DIRECTOR EMERITUS
OFFICERS
ROBERT J.A. IRWIN, CHAIRMAN OF THE BOARD AND TREASURER
RONALD L. MCCARTHY, MANAGING DIRECTOR
CHESTER A. CROCKER, UNITED STATES SECRETARY
RANQUIN ASSOCIATES, SOUTH AFRICAN SECRETARY
DANA L. PLATT, ESQ., ASSISTANT SECRETARY
AUDITORS
ARTHUR ANDERSEN & CO., JOHANNESBURG, SOUTH AFRICA
ARTHUR ANDERSEN LLP, NEW YORK, N.Y., U.S.A.
COUNSEL
WERKSMANS, JOHANNESBURG, SOUTH AFRICA,
KIRKPATRICK & LOCKHART LLP, NEW YORK, N.Y., U.S.A.
CUSTODIAN
THE CHASE MANHATTAN BANK, N.A. NEW YORK, N.Y., U.S.A.
SHAREHOLDER SERVICES
LGN ASSOCIATES, FLORHAM PARK, NJ, USA (973) 377-3535
WEBSITE--http://www.asaltd.com
TRANSFER AGENT
EQUISERVE-FIRST CHICAGO TRUST DIVISION, JERSEY CITY, N.J.,
U.S.A.
ASA LIMITED
[GRAPHIC OMITTED]
INTERIM
REPORT
FOR THE
NINE MONTHS
ENDED
AUGUST 31, 2000
