ASA LIMITED 36 WIERDA ROAD WEST
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA) WIERDA VALLEY, SANDTON
SOUTH AFRICA
TO THE SHAREHOLDERS:
At May 31, 2002 the company's net assets were equivalent to $41.51 per
share. This compares with $21.97 per share at November 30, 2001 the end of the
Company's previous fiscal year. The most recent net asset value similarly
calculated was $38.71 per share at june 20, 2002 at which date our shares sold
at market price of $35.70 per share, a discount of 7.8% to the net asset value.
Net investment income for the six months ended May 31, 2002 was equivalent
to $.30 per share vs. $.65 for the same period last year that included special
dividends received from our platinum holdings. The Board of Directors declared a
second quarter dividend of $.15 per share on May 9, 2002 payable May 24, 2002 to
shareholders of record on May 17, 2002.
As noted in the November 30, 2001 annual report to shareholders, effective
October 1, 2001 the Company is subject to a capital gains tax on the gains
realized on the disposal of South African and foreign securities. The capital
gains tax will be levied on realized gains based on the appreciation in value of
the securities based on a "time apportionment" method considering the total
holding period before and after October 31, 2001 of each security. Only that
portion of the total appreciation (gain) apportioned to the period after October
31 will be taxable.
At May 31, 2002, this liability is approximately $6,400,000 or $.67 per
share and is included as a deferred liability in the accompanying financial
statements. We are continuing our efforts to seek exemption from capital gains
tax and will advise our shareholders when final resolution is reached with the
South African government.
Gold has come a long way since the dismal day on April 2, 2001 when its
price based on the afternoon London fix bottomed at $255.95. By May 31st of this
year gold reached a price of $327.05 then subsequently traded back to $322.10 on
Friday, June 14th, for a net gain to June from April 2, 2001 of 25.8%. Since
April 2, 2001 gold has been outperforming the Dow Jones Industrial Stock
Average. The Philadelphia Gold and Silver Index (XAU) has in turn been
outperforming gold, rising 60% from 47.55 on April 2, 2001 to 75.50 on June 14,
2002. In January, 2001 the ratio of the XAU to the gold price was at a record
low of .16 but on June 14 it stood at .23 considerably higher, but much lower
then the ratio of .38 it reached in 1996.
Central Bank gold sales have become subdued. The Bank of England is out of
the market and the only major seller, the Swiss National Bank has been selling
gold carefully. De-hedging by the miners, such as Anglo Gold and Newmonth has
added significantly to demand offsetting a contraction in fabrication,
traditionally the biggest single source of gold demand. Gold appears to be
responding to a weaker dollar and tensions in the Near East and Kashmir. The
weaker dollar in turn seems to reflect a disappointing United States stock
market and a record negative trade balance. As long as the dollar remains weak
it should support the gold price.
The South African rand bottomed at 13.6 rand to the dollar on December 20th
and is currently trading at 10.3 rand to the dollar, an improvement of 24%. A
stronger rand places pressure on gold mining profits. This pressure should be
more than offset by the firmer gold price.
A Mineral and Petroleum Resources Development Bill will be tabled soon in
the South African Parliament. The mining industry and investors are concerned
regarding the interpretation and application of this bill, which basically
forces the mining companies to exploit their mineral resources promptly or lose
them. This threatens the ability of mines to undertake long term planning with
respect to their development. The Platinum mining companies are particularly
threatened by its provisions. We are watching the bills' terms as it moves into
final form
1
and encouraged by media reports that the Parliamentary committee overseeing the
bill, prior to its passing into law, will give serious consideration to the
concerns of the mining industry and investors.
In 2002 we added Newcrest Mining to our portfolio. Newcrest operates
established gold operations in Western Australia and Indonesia. It also produces
both copper and gold in New South Wales. Additional property in New South Wales
and southwestern Australia is currently under development. These developments
should eventually push annual production from its present level of 645,000
ounces to over 1 million ounces.
We are pleased to announce that on June 14, 2002 the Company completed the
development of its website. It can be accessed on the Internet at www.asaltd.com
and contains a wealth of information about the Company, including current NAV
and market price data as well as historical dividend payments, financial
reports, notices and press releases. Shareholders who would like to receive more
detailed financial information should contact LGN Associates, P.O. Box 269,
Florham Park, NJ, (973-377-3535).
I would also 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 Trust Company, N.A., Dividend Reinvestment Plan, P.O. Box
43081, Providence, R.I., 02940-3081, U.S.A. Equiserve 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 Equiserve address is equiserve@equiserve.com and access is
available 24-hours a day. In addition, Equiserve has estalished a Response
Center to respond to shareholders' questions in a timely manner. The telephone
number is 781-575-2723. The Response Center is available Monday through Friday
between 8:30 a.m. and 7 p.m. (Eastern Standard Time).
Robert J.A. Irwin
June 24, 2002 CHAIRMAN OF THE BOARD
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SCHEDULE OF INVESTMENTS
(NOTE 1)
May 31, 2002
(Unaudited)
--------------------------------------------------------------------------------
Number of United States Percent of
Name of Company Shares Dollars Net Assets
--------------------------------------------------------------------------------
ORDINARY SHARES OF GOLD MINING COMPANIES
AUSTRALIAN GOLD MINES
Newcrest Mining - ADRs 3 000 000 $ 13 950 000 3.5%
--------------------------------------------------------------------------------
13 950 000 3.5
--------------------------------------------------------------------------------
NORTH AMERICAN GOLD MINES
Newmont Mining Corp. 520 368 16 240 685 4.1
--------------------------------------------------------------------------------
16 240 685 4.1
--------------------------------------------------------------------------------
SOUTH AFRICAN GOLD MINES
Anglogold Limited 1 194 947 76 439 987 19.2
Gold Fields Limited 10 794 979 142 171 927 35.7
Harmony Gold Mining Company Limited 1 336 20 924 --
Harmony Gold Mining Company
Limited - ADRs 2 166 400 35 074 016 8.8
--------------------------------------------------------------------------------
253 706 854 63.7
--------------------------------------------------------------------------------
CANADIAN GOLD MINES
Barrick Gold Corporation 382 000 8 327 600 2.1
Placer Dome Incorporated 915 312 12 448 243 3.1
--------------------------------------------------------------------------------
20 775 843 5.2
--------------------------------------------------------------------------------
SOUTH AMERICAN GOLD MINES
Minas Buenaventura - ADRs 450 000 13 432 500 3.4
--------------------------------------------------------------------------------
318 105 882 3.4
--------------------------------------------------------------------------------
ORDINARY SHARES OF OTHER COMPANIES
Anglo American PLC 1 280 000 23 366 592 5.9
Anglo American Platinum
Corporation Limited 820 500 39 636 305 9.9
Impala Platinum Holdings Limited 262 700 17 087 931 4.3
--------------------------------------------------------------------------------
80 090 828 20.1
--------------------------------------------------------------------------------
Total Investments, at Market Value 398 196 710 100.0%
--------------------------------------------------------------------------------
CASH AND OTHER ASSETS LESS LIABILITIES 6 695 706 1.7
Deferred South African tax liability (6 422 581) -1.7
--------------------------------------------------------------------------------
Total Net Assets $398 469 835 100.0%
--------------------------------------------------------------------------------
3
STATEMENTS OF ASSETS AND LIABILITIES
(Unaudited)
--------------------------------------------------------------------------------
May 31, 2002 May 31, 2001
United States United States
ASSETS Dollars Dollars
--------------------------------------------------------------------------------
Investments, at market
value - cost $148 071 949 in 2002
$124 441 305 in 2001 $398 196 710 $196 444 738
Cash 754 729 36 408 264
Bank time deposits 6 000 000 --
Dividends and interest receivable 140 435 214 893
Other assets 124 839 107 532
--------------------------------------------------------------------------------
Total assets $405 216 713 $233 175 427
--------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
--------------------------------------------------------------------------------
LIABILITIES
Accounts payable and accrued liabilities $ 256 075 $ 280 543
Current year South African tax liability 68 222 --
Deferred South African tax liability 6 422 581 --
--------------------------------------------------------------------------------
Total liabilities 6 746 878 280 543
--------------------------------------------------------------------------------
NET ASSETS $398 469 835 $232 894 884
--------------------------------------------------------------------------------
NET ASSETS CONSIST OF THE FOLLOWING:
Ordinary (common) shares R0.25 nominal (par) value
Authorized: 24,000,000 shares
Issued & Outstanding: 9,600,000 shares $ 3 360 000 $ 3 360 000
Share premium (capital surplus) 27 489 156 27 489 156
Undistributed net investment income 58 210 402 59 676 780
Undistributed net realized gains from
foreign currency transactions (41 611 118) (38 885 703)
Undistributed net realized gains on investments 108 262 527 110 174 594
Net unrealized appreciation on investments 243 702 180 72 003 365
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
in foreign currency (943 312) (923 308)
--------------------------------------------------------------------------------
Total net assets $398 469 835 $232 894 884
--------------------------------------------------------------------------------
Net assets per share $41.51 $24.26
--------------------------------------------------------------------------------
The closing price of the Company's shares on the New York Stock Exchange
was $37.50 and $19.71 on May 31, 2002 and 2001, respectively.
4
STATEMENTS OF OPERATIONS
(Unaudited) Six months ended
--------------------------------------------------------------------------------
May 31, 2002 May 31, 2001
United States United States
Dollars Dollars
--------------------------------------------------------------------------------
Investment income
Dividend income $ 4 102 819 $ 7 079 186
Interest income 273 591 412 958
--------------------------------------------------------------------------------
4 376 410 7 492 144
--------------------------------------------------------------------------------
Expenses
Shareholders' report and proxy expenses 85 506 177 712
Directors' fees and expenses 197 627 239 749
Salaries 132 471 111 346
Other administrative expenses 188 035 167 562
Transfer agent, registrar and custodian 68 087 71 016
Professional fees and expenses 304 847 234 189
Insurance 51 133 36 696
South African tax 290 573 --
Other 193 087 196 068
--------------------------------------------------------------------------------
1 511 366 1 234 338
--------------------------------------------------------------------------------
Net investment income 2 865 044 6 257 806
--------------------------------------------------------------------------------
Net realized and unrealized gain (loss) from
investments and foreign currency transactions
Net realized gain (loss) from investments
Proceeds from sales 7 396 211 29 385 423
Cost of securities sold 9 308 278 60 724
--------------------------------------------------------------------------------
Net realized gain (loss) from investments (1 912 067) 29 324 699
--------------------------------------------------------------------------------
Net realized gain (loss) from foreign
currency transactions
Investments (1 563 550) (602 612)
Foreign currency transactions 330 589 (217 377)
--------------------------------------------------------------------------------
Net realized gain (loss) from foreign
currency transactions (1 232 961) (819 989)
--------------------------------------------------------------------------------
Net increase in unrealized appreciation
on investments
Balance, beginning of period 53 028 160 39 591 696
Balance, end of period 250 124 761 72 003 433
--------------------------------------------------------------------------------
Increase (decrease) 197 096 601 32 411 737
Deferred South African tax liability (6 422 581) --
--------------------------------------------------------------------------------
Net increase in unrealized appreciation 190 674 020 32 411 737
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
in foreign currency 11 276 (125 133)
--------------------------------------------------------------------------------
Net realized and unrealized gain from
investments and foreign currency 187 540 268 60 791 314
--------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $190 405 312 $ 67 049 120
--------------------------------------------------------------------------------
5
STATEMENTS OF SURPLUS AND STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited) Six months ended
--------------------------------------------------------------------------------
May 31, 2002 May 31, 2001
United States United States
STATEMENTS OF SURPLUS Dollars Dollars
--------------------------------------------------------------------------------
Share premium (capital surplus)
Balance, beginning and end of period $ 27 489 156 $ 27 489 156
--------------------------------------------------------------------------------
Undistributed net investment income
Balance, beginning of period $ 58 225 358 $ 56 298 974
Net investment income for the period 2 865 044 6 257 806
Dividends paid (2 880 000) (2 880 000)
--------------------------------------------------------------------------------
Balance, end of period $ 58 210 402 $ 59 676 780
--------------------------------------------------------------------------------
Undistributed net realized gain (loss) from
foreign currency transactions
Balance, beginning of period $(40 378 157) $(38 065 714)
Net realized gain (loss) for the period (1 232 961) (819 989)
--------------------------------------------------------------------------------
Balance, end of period $(41 611 118) $(38 885 703)
--------------------------------------------------------------------------------
Undistributed net realized gain (loss)
from investments and foreign
currency transactions
(Computed on identified cost basis)
Balance, beginning of period $110 174 594 $ 80 849 895
Net realized gain (loss) for the period (1 912 067) 29 324 699
--------------------------------------------------------------------------------
Balance, end of period $108 262 527 $110 174 594
--------------------------------------------------------------------------------
Net unrealized appreciation on investments
Balance, beginning of period $ 53 028 160 $ 39 591 628
Net increase for the period 190 674 020 32 411 737
--------------------------------------------------------------------------------
Balance, end of period $243 702 180 $ 72 003 365
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currency
Balance, beginning of period $ (954 588) $ (798 175)
Net unrealized appreciation (depreciation)
for the period 11 276 (125 133)
--------------------------------------------------------------------------------
Balance, end of period $ (943 312) $ (923 308)
--------------------------------------------------------------------------------
Six months ended
--------------------------------------------------------------------------------
May 31, 2002 May 31, 2001
United States United States
STATEMENTS OF CHANGES IN NET ASSETS Dollars Dollars
--------------------------------------------------------------------------------
Increase (decrease) in net assets resulting
from operations
Net investment income $ 2 865 044 $ 6 257 806
Net realized gain (loss) from investments (1 912 067) 29 324 699
Net realized (loss) from foreign
currency transactions (1 232 961) (819 989)
Net increase in unrealized appreciation
on investments 190 674 020 32 411 737
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
in foreign currency 11 276 (125 133)
--------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 190 405 312 67 049 120
Dividends paid (2 880 000) (2 880 000)
--------------------------------------------------------------------------------
Total increase in net assets 187 525 312 64 169 120
Net assets, beginning of period 210 944 523 168 725 764
--------------------------------------------------------------------------------
Net assets, end of period $398 469 835 $232 894 884
--------------------------------------------------------------------------------
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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)
OFFICERS
ROBERT J.A. IRWIN, CHAIRMAN OF THE BOARD AND TREASURER
RONALD L. MCCARTHY, MANAGING DIRECTOR
CHESTER A. CROCKER, UNITED STATES SECRETARY
COUNSEL
WERKSMANS, JOHANNESBURG, SOUTH AFRICA,
KIRKPATRICK & LOCKHART LLP, WASHINGTON, DC, U.S.A.
CUSTODIAN
J.P. MORGAN CHASE, NEW YORK, N.Y., U.S.A.
FUND ACCOUNTANTS
KAUFMAN ROSSIN & CO., PA, MIAMI, FL, U.S.A.
SHAREHOLDER SERVICES
LGN ASSOCIATES, P.O. BOX 269, FLORHAM PARK, NJ, U.S.A.
(973) 377-3535
WEBSITE--HTTP://WWW.ASALTD.COM
TRANSFER AGENT
EQUISERVE TRUST COMPANY, N.A., PROVIDENCE, RI,
U.S.A.
ASA LIMITED
[GRAPHIC OMITTED]
INTERIM
REPORT
FOR THE
SIX MONTHS
ENDED
MAY 31, 2002