ASA LIMITED 36 WIERDA ROAD WEST
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA) WIERDA VALLEY, SANDTON
SOUTH AFRICA
TO THE SHAREHOLDERS:
At February 29, 2000 the Company's net assets were equivalent to R135.18
($21.36) 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 R133.04 ($20.53) per share at March 23, 2000 at which date our shares sold
at a market price of $17.4375 per share, a discount of 15.1% to the net asset
value.
Net investment income for the three months ended February 29, 2000 was
equivalent to $.20 per share vs. $.26 for the same period last year. The Board
of Directors declared a dividend of $.15 per share on February 4, 2000 payable
February 25, 2000 to shareholders of record on February 18, 2000.
On February 17th the World Gold Council announced that gold demand in the
27 countries they monitor rose by more than 20% in 1999 to reach a new record
level of 3278 tons. This growth was derived primarily from strong demand in
India, Pakistan and the United States. Contributing to the record results was a
23% increase in jewelry demand year over year, and an 8% increase in investment
demand.
In recent months there have been several important developments affecting
the gold market. These developments encourage us to believe that much of the
downward pressure on the gold lies in the past. The reasons for this view
include the following:
o Central Bank sales have become more predictable and controlled. The
Washington agreement in September between fifteen Central Banks, representing
85% of official gold holdings, placed a limit for five years on official sales
and lending activities. Official sales can and will continue but will be subject
to these constraints. The Bank of the Netherlands announced, on March 1st, that
it had sold 100 tons of gold since December. They further stated that, depending
on conditions, they will be back in the market in September to sell an
additional 200 tons of gold over the next four years. This amount should be
easily absorbed over that period of time.
The Bank of England will offer 25 tons for sale at auction on March 21st,
completing the sale of the first tranche of 125 tons of the 415 tons scheduled
for sale. Starting in May they will again commence bi-monthly auctions of 25
tons each until 150 more tons have been sold.
The Swiss National Bank is planning sales of 1300 tons which they promise
to bring to market over the next few years in an orderly fashion.
o In early February, Placer Dome announced a planned hedge reduction of
over 2 million ounces. Hedge reduction by other important mines should combine
to reduce supply from this source by an estimated 200 tons. These hedge
reductions should reduce the supply of gold to the market and enhance gold's
already favorable supply and demand ratio.
o Most commodity prices have been rising. Gold has not been keeping up. The
price of an ounce of gold is now at a record low relative to the price of a
barrel of oil.
Platinum and palladium reached panic highs in February at $581 and $800 per
ounce respectively. Now with the prospect of Russian supplies coming back into
the market after a long delay, the price has backed off but is still very
volatile. Although the stocks of our platinum mining companies are down from
their highs, their upward trend over the past few years has contributed
positively to our investment results.
De Beers released its financial results for 1999 on March 8th. Headline
earnings were 40% higher in rand terms than in 1998, rising from 919c to 1291c.
During the year the company improved its cash flow from current operations to $2
billion from $70 million, while reducing its debt. This will make it possible to
internally finance future acquisitions. The company stated that its strong
balance sheet makes it highly unlikely that it will wind down
1
<PAGE>
its 35% Anglo American stake which now makes up about 93% of DeBeer's
non-diamond business. In addition, the company has shed a number of noncore
businesses during the past year and, as a result, has come a long way in
simplifying its formerly complex business structure.
In recent weeks the rand declined from 6.16 to about 6.5 to the U.S.
dollar. The decline has been attributed to: concern over rising oil prices, the
dollar's strength against the Euro, the effect of the flood in Mozambique and in
northwest South Africa, and uncertainty as to South African monetary policy in
response to these concerns. Recent recovery in the rand has been prompted by the
International Monetary Fund's favorable report on South Africa's financial
sector.
Robert J.A. Irwin
March 24, 2000 CHAIRMAN OF THE BOARD
2
<PAGE>
SCHEDULE OF INVESTMENTS
(Note 1)
February 29, 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 R393 137 563 30.3%
Gold Fields Limited 10 794 979 317 372 382 24.5
Western Areas Gold Mining Company Limited 600 300 12 486 240 1.0
Harmony Gold Mining Company Limited 152 000 6 004 000 .5
- -------------------------------------------------------------------------------------------------------------
729 000 185 $ 115 165 906 56.3
- -------------------------------------------------------------------------------------------------------------
Canadian Gold Mines
Barrick Gold Corporation 282 000 29 119 320 2.2
Franco-Nevada Mining Corporation Limited 306 460 22 475 776 1.7
Placer Dome Incorporated 365 312 20 234 631 1.6
- -------------------------------------------------------------------------------------------------------------
71 829 727 11 347 508 5.5
- -------------------------------------------------------------------------------------------------------------
800 829 912 126 513 414 61.8
- -------------------------------------------------------------------------------------------------------------
OPTIONS
Randfontein Estates 16 700 50 100 7 915 --
- -------------------------------------------------------------------------------------------------------------
ORDINARY SHARES OF OTHER COMPANIES
Anglo American Platinum
Corporation Limited 1 014 800 182 664 000 14.1
Anglo American Corporation PLC 320 000 91 008 000 7.0
De Beers Consolidated Mines
Limited/Centenary AG 1 001 300 139 180 700 10.7
Impala Platinum Holdings Limited 262 700 59 370 200 4.6
- -------------------------------------------------------------------------------------------------------------
472 222 900 74 600 774 36.4
- -------------------------------------------------------------------------------------------------------------
Total Investments, at Market Value 1 273 102 912 201 122 103 98.2
CASH AND OTHER ASSETS LESS PAYABLES 24 646 528 3 913 755 1.8
- -------------------------------------------------------------------------------------------------------------
Total Net Assets R 1 297 749 440 $ 205 035 858 100.0%
- -------------------------------------------------------------------------------------------------------------
</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>
- -------------------------------------------------------------------------------------------------------------------------
February 29, 2000 February 28, 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 194 834 006 $ 91 377 489 in 2000
R 152 101 364 $ 84 770 394 in 1999 R 800 880 012 $126 521 329 R574 815 430 $ 93 162 955
Other companies--
Cost R 80 132 354 $ 34 342 056 in 2000
R 80 132 354 $ 34 342 056 in 1999 472 222 900 74 600 774 301 281 720 48 830 100
- -------------------------------------------------------------------------------------------------------------------------
1 273 102 912 201 122 103 876 097 150 141 993 055
Cash in banks 5 805 499 917 141 20 387 236 3 304 251
Bank time deposits -- -- 3 085 000 500 000
Receivable for securities sold -- -- 51 970 884 8 423 158
Dividends and interest receivable 15 458 088 2 442 036 16 884 424 2 736 535
Other assets 4 148 861 675 577 813 839 147 855
- -------------------------------------------------------------------------------------------------------------------------
Total assets 1 298 515 360 205 156 857 969 238 533 157 104 854
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------------------------
Accounts payable and accrued liabilities 765 920 120 999 528 760 85 699
Payable for securities purchased -- -- 15 241 637 2 470 282
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 765 920 120 999 15 770 397 2 555 981
- -------------------------------------------------------------------------------------------------------------------------
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 22 570 199 56 705 039 26 989 555 57 422 166
Undistributed net realized gain (loss)
from foreign currency transactions 5 876 576 (28 645 271) 4 253 064 (36 555 133)
Undistributed net realized gain on
investments 243 499 635 71 253 751 249 152 049 80 474 837
Net unrealized appreciation on
investments 998 176 821 75 402 490 643 903 700 22 880 536
Net unrealized appreciation
(depreciation) on translation
of assets and liabilities in
foreign currency 5 589 623 (529 307) 7 133 182 (522 689)
- -------------------------------------------------------------------------------------------------------------------------
Net assets R1 297 749 440 $205 035 858 R953 468 136 $154 548 873
- -------------------------------------------------------------------------------------------------------------------------
Net asset value per share R135.18 $21.36 R 99.32 $16.10
=========================================================================================================================
</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 $18.375 per share on February 29, 2000 and $15.625 per share on
February 28, 1999.
4
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
(Unaudited) Three months ended
- -----------------------------------------------------------------------------------------------------------------------
February 29, 2000 February 28, 1999
South African United States South African United States
Rand Dollars Rand Dollars
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income
Dividends R 15 379 413 $ 2 439 922 R 17 549 629 $ 2 850 313
Interest 228 333 36 664 708 677 117 512
- -----------------------------------------------------------------------------------------------------------------------
15 607 746 2 476 586 18 258 306 2 967 825
- -----------------------------------------------------------------------------------------------------------------------
Expenses
Shareholders' report and proxy expenses 431 335 68 520 453 058 75 435
Directors' fees and expenses 821 353 130 805 588 976 97 965
Salaries 493 830 79 754 450 370 76 372
Other administrative expenses 538 540 87 011 507 727 86 697
Transfer agent, registrar and custodian 130 618 20 635 140 410 23 220
Professional fees and expenses 300 801 48 635 194 099 32 708
Insurance 140 232 22 632 139 376 23 315
Other 489 943 78 808 562 797 93 645
- -----------------------------------------------------------------------------------------------------------------------
3 346 652 536 800 3 036 813 509 357
- -----------------------------------------------------------------------------------------------------------------------
Net investment income 12 261 094 1 939 786 15 221 493 2 458 468
=======================================================================================================================
Net realized and unrealized gain (loss) from
investments and foreign currency transactions
Net realized gain from investments
Proceeds from sales -- -- 68 886 627 11 384 059
Cost of securities sold -- -- 27 106 337 3 819 287
- -----------------------------------------------------------------------------------------------------------------------
Net realized gain from investments -- -- 41 780 290 7 564 772
- -----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from foreign
currency transactions
Investments -- -- -- (9 630 594)
Foreign currency transactions 271 008 (397 983) 24 859 (189 404)
- -----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from foreign
currency transactions 271 008 (397 983) 24 859 (9 819 998)
- -----------------------------------------------------------------------------------------------------------------------
Net (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 998 176 821 75 402 490 643 903 700 22 880 536
- -----------------------------------------------------------------------------------------------------------------------
Net (decrease) in unrealized appreciation (36 510 015) (11 092 196) (134 874 675) (26 766 012)
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
in foreign currency 64 010 (25 197) 1 694 378 22 106
- -----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized (loss) from
investments and foreign currency (36 174 997) (11 515 376) (91 375 148) (28 999 132)
- -----------------------------------------------------------------------------------------------------------------------
Net (decrease) in net assets resulting
from operations R (23 913 903) $(9 575 590) R (76 153 655) $(26 540 664)
=======================================================================================================================
</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
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
- -----------------------------------------------------------------------------------------------------------------------
February 29, 2000 February 28, 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 12 261 094 1 939 786 15 221 493 2 458 468
- -----------------------------------------------------------------------------------------------------------------------
31 685 399 58 145 039 35 903 155 58 862 166
Dividends paid (9 115 200) (1 440 000) (8 913 600) (1 440 000)
- -----------------------------------------------------------------------------------------------------------------------
Balance, end of period R 22 570 199 $56 705 039 R 26 989 555 $ 57 422 166
- -----------------------------------------------------------------------------------------------------------------------
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 gain (loss) for the period 271 008 (397 983) 24 859 (9 819 998)
- -----------------------------------------------------------------------------------------------------------------------
Balance, end of period R 5 876 576 $(28 645 271) R 4 253 064 $(28 916 559)
- -----------------------------------------------------------------------------------------------------------------------
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 -- -- 41 780 290 7 564 772
- -----------------------------------------------------------------------------------------------------------------------
Balance, end of period R 243 499 635 $71 253 751 R 249 152 049 $ 72 836 263
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
on investments
Balance, beginning of period R 1 034 686 836 $86 494 686 R 778 778 375 $ 49 646 548
(Decrease) for the period (36 510 015) (11 092 196) (134 874 675) (26 766 012)
- -----------------------------------------------------------------------------------------------------------------------
Balance, end of period R 998 176 821 $75 402 490 R 643 903 700 $ 22 880 536
- -----------------------------------------------------------------------------------------------------------------------
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 64 010 (25 197) 1 694 378 22 106
- -----------------------------------------------------------------------------------------------------------------------
Balance, end of period R 5 589 623 $ (529 307) R 7 133 182 $ (522 689)
=======================================================================================================================
<CAPTION>
Three months ended
- -----------------------------------------------------------------------------------------------------------------------
February 29, 2000 February 28, 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 12 261 094 $ 1 939 786 R 15 221 493 $ 2 458 468
Net realized gain from investments -- -- 41 780 290 7 564 772
Net realized gain (loss) from foreign currency
transactions 271 008 (397 983) 24 859 (9 819 998)
Net (decrease) in unrealized appreciation
on investments (36 510 015) (11 092 196) (134 874 675) (26 766 012)
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currency 64 010 (25 197) 1 694 378 22 106
- -----------------------------------------------------------------------------------------------------------------------
(23 913 903) (9 575 590) (76 153 655) (26 540 664)
Dividends paid from net investment income (9 115 200) (1 440 000) (8 913 600) (1 440 000)
- -----------------------------------------------------------------------------------------------------------------------
Total (decrease) (33 029 103) (11 015 590) (85 067 255) (27 980 664)
Net assets, beginning of period 1 330 778 543 216 051 448 1 038 535 391 182 529 537
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period R1 297 749 440 $205 035 858 R 953 468 136 $154 548 873
=======================================================================================================================
</TABLE>
The notes to the financial statements form an integral part of these
statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 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 (depreciation) 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 February 29, 2000, the rand exchange rate was approximately
R6.33 to the dollar ($.16 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
There were no purchases or sales of securities for the three months ended
February 29, 2000. During the three months ended February 28, 1999 sales of
securities amounted to $11,384,059 and purchases of securities amounted to
$2,470,282. Security 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 sale
of securities, provided, as has been the Company's practice, that its purchases
of securities are made for investment purposes. Effective June 1992, the Company
is no longer subject to tax on interest income. Exemption has been granted to
the Company 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 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 three months
ended February 29, 2000, there was no retirement plan expense and in the three
months ended February 28, 1999, retirement plan expense aggregated R2,160
($421). 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 $25,000 per year
for five years.
8
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Three months ended Year ended November 30
- -----------------------------------------------------------------------------------------------------------------------------------
February 29 February 28
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 1.28 1.59 3.56 3.59 4.43 4.52 5.17
Net realized gain (loss) from investments -- 4.35 3.76 1.91 -- 1.50 2.39
Net realized gain (loss) from foreign
currency transactions .03 -- .14 .19 .11 (.12) .10
Net increase (decrease) in net unrealized
appreciation on investments (3.80) (14.05) 26.66 7.61 (61.40) 34.03 (54.67)
Net unrealized appreciation (depreciation)
on translation of assets and
liabilities in foreign currency -- .18 .01 (.09) .02 .62 .01
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (2.49) (7.93) 34.13 13.21 (56.84) 40.55 (47.00)
Less dividends and distributions (.95) (.93) (3.69) (4.41) (5.55) (5.97) (7.23)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period R 135.18 R 99.32 R 138.62 R 108.18 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 .20 .26 .58 .66 .97 1.10 1.43
Net realized gain (loss) from investments -- .79 .62 .32 -- 0 .39 .65
Net realized (loss) from foreign
currency transactions (.04) (1.02) (.95) (.11) -- (.71) (.93)
Increase (decrease) in net unrealized
appreciation on investments (1.16) (2.79) 3.84 (1.49) (14.41) 1.05 (15.58)
Net unrealized appreciation (depreciation)
on translation of assets and
liabilities in foreign currency -- -- .01 (.02) -- -- (.01)
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (1.00) (2.76) 4.10 (.64) (13.44) 1.83 (14.44)
Less dividends and distributions (.15) (.15) (.60) (.80) (1.20) (1.40) (2.00)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.36 $ 16.10 $ 22.51 $ 19.01 $ 20.45 $ 35.09 $ 34.66
===================================================================================================================================
Market value per share, end of period $ 19.130 $ 15.625 $ 19.125 $ 19.125 $ 20.625 $ 37.625 $ 39.000
TOTAL INVESTMENT RETURN(1)
Based on market value per share (3.15%) (17.53%) 3.44% (3.30%) (42.86%) (.28%) (6.36%)
RATIOS TO AVERAGE NET ASSETS(1)
Expenses .25% .31% 1.13% 1.15% .71% .49% .53%
Net investment income .91% 1.52% 3.02% 3.34% 3.25% 2.72% 3.47%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $205 036 $154 549 $216 051 $182 530 $196 301 $336 882 $332 691
Portfolio turnover rate -- 1.60% 6.66% 1.06% -- 1.79% 2.40%
</TABLE>
Per share calculations are based on the 9,600,000 shares outstanding.
(1) Determined in dollar terms.
SUPPLEMENTARY INFORMATION
Three months ended February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
South African Rand
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Certain fees incurred by the company
Directors' fees R 356 468
Officers' salaries 305 163
Arthur Andersen (Auditors) 114 985
Ranquin Associates (South African Secretary) 142 500
</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 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 PFIC as a qualified electing fund ("QEF") with respect to
his interest therein, or for taxable years of such United States shareholder
beginning after December 31, 1997, to "mark-to-market" his PFIC shares as of the
close of each taxable year.
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 it were sold on thc first day of thc 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 not 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 interest 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 thc
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 regularly-traded PFIC stock for taxable years beginning
on or after January 1, 1998, such electing United States shareholder would be
required annually to report any unrealized gain with respect to such
shareholder's stock 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 the PFIC stock 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 PFIC stock 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.) (Great Britain)
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
HENRY R. BRECK, ASSISTANT TREASURER
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.
=====================================
A S A L I M I T E D
[GRAPHIC OMITTED]
I N T E R I M
R E P O R T
FOR THE
THREE MONTHS
ENDED
FEBRUARY 29, 2000
