| Mon 11 Feb 2008, 9:05 | | AMS - Anglo Platinum Results For The Year Ended 31 December 2007 |
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AMS AMSP
ANANP
AMS - Anglo Platinum Results For The Year Ended 31 December 2007
News Release
Anglo Platinum Limited
("Anglo Platinum" or "the company")
Incorporated in the Republic of South Africa
Registration number: 1946/022452/06
JSE ordinary share code: AMS
ISIN code: ZAE000013181
JSE preference share code: AMSP
ISIN code: ZAE000054474
ANGLO PLATINUM RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
Anglo Platinum is pleased to announce record headline earnings for the year
ended 31 December 2007. Headline earnings and headline earnings attributable to
ordinary shareholders increased to R12.3 billion with headline earnings per
ordinary share decreasing 3% to R52.39 as a result of an increased weighted
average number of shares in issue in 2007. The primary factors contributing to
the increased earnings were higher US dollar prices realised on metals sold
offset by lower sales volumes on the back of reduced production from mining
operations. A final dividend of R23.00 per ordinary share has been declared,
bringing the full-year dividend to R52.00 per share and maintaining a dividend
cover ratio of 1.
Joint acting CEO Norman Mbazima said, "Our record financial performance was
driven by strong demand and record metal prices despite the tough operating
conditions. We are pleased with the progress made on implementing the Mvela
Resources and Anooraq Resources BEE transactions and our employee share
ownership plan, all of which further enhance transformation of the South African
mining sector and further progress our economic and social transformation
objectives."
Platinum production from mining operations decreased by 6% to 2.47 million
ounces in 2007 as a result of reduced labour efficiency and interventions aimed
at achieving a significant improvement in employee safety. The reduction in
refined ounces, also to 2.47 million ounces, was a 12% decrease due to reduced
mining output and movements in process pipeline stocks.
Joint acting CEO Duncan Wanblad commented, "Anglo Platinum remains committed to
the principle of zero harm and we have implemented a major shift in our approach
to safety. The creation of a culture in which safety standards are paramount
remains our overriding priority and is at the heart of our new approach. While
interventions to achieve a significant improvement in employee safety, a
shortage of skilled labour and the unsettled labour situation were the primary
reasons for lower production, we believe that the actions we have taken to
address these challenges are starting to take effect. "
Anglo Platinum remains confident of continued robust demand for platinum and is
committed to increasing production in line with growth in global demand.
"It is pleasing that in 2007 our board approved new capital expenditure to the
value of R10.7 billion in continued support of maintaining existing and
developing additional production capacity. In 2008, a further R5.9 billion to
expand output at our Twickenham mine was approved," said Duncan. "The challenges
encountered in 2007 have been compounded in 2008 by production disruptions
arising from constrained electricity supply by Eskom. We continue to engage
Eskom and the relevant Government departments directly and with the South
African mining industry to address the constraints in the most effective
manner", he added.
Anglo Platinum`s commitment to employee safety, including the principle of zero
harm, will continue to be an area of focus in 2008. The new approach to safety,
alongside the operational difficulties, has had a material impact in 2007, which
is likely to continue in 2008. Production disruptions arising from Eskom`s
inability to supply sufficient power have been experienced in 2008. Consequently
refined platinum production is expected to be 2.4 million ounces.
Johannesburg
11 February 2008
For further information, please contact
Trevor Raymond +27 (0) 11 373-6462, +27 (0) 82 654 8467
Date: 11/02/2008 09:05:01 Produced by the JSE SENS Department.
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