| Mon 9 Feb 2009, 9:01 | | AMS - Anglo Platinum Results for the Year Ended 31 December 2008 |
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AMS
ANANP
AMS - Anglo Platinum Results for the Year Ended 31 December 2008
Anglo Platinum Limited
(Incorporated in the Republic of South Africa)
Registration number 1946/022452/06
Share Code: AMS
ISIN Code: ZAE000013181
ANGLO PLATINUM RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
Anglo Platinum is pleased to announce record headline earnings for the year
ended 31 December 2008. Headline earnings attributable to ordinary shareholders
increased by 8% to R13.3 billion with headline earnings per ordinary share
increasing 7% to R56.09. The primary factors contributing to the increased
earnings were higher US dollar prices realised on metals sold, a weaker rand /
US dollar exchange rate and a lower effective tax rate. This was offset by lower
sales volumes on the back of reduced production from processing operations,
higher operating costs and a significant increase in the cost of purchasing
metal from joint venture partners. Anglo Platinum paid an interim ordinary
dividend of R35.00 per share and a preference dividend of R3.20 per preference
share during the second half of 2008. Due to the current uncertainty and
volatility in the global economy, the Board has decided not to declare a final
ordinary divided for 2008 resulting in a dividend cover ratio of 1.6 on the full
year`s headline earnings.
CEO Neville Nicolau said, "Our record financial performance during 2008 was
driven by the high average metal prices over the full year, despite tough
operating conditions and the price deterioration in the second half of the year.
We have taken action to address the impacts of the global economic downturn and
capital expenditure and cost reduction programmes are in place. We are pleased
with the improved safety performance and the sustained efforts of all employees
to assist us in reaching zero harm."
Refined platinum production was 4% lower at 2.39 million ounces due to mixed
operational performances including the increase in production from the
Mogalakwena and Kroondal mines, the loss from flooding at Amandelbult and
increased process pipeline stocks associated with smelter outages. Refined
platinum sales in 2008 amounted to 2.2 million ounces as, due to the smelter
outages, material refined in the latter part of December 2008 was not available
for sale in the financial period to 31 December 2008.
Anglo Platinum has responded to the reduction in short-term demand and will
maintain refined platinum production in 2009 at the same level as that in 2008;
2.4 million ounces. The Company has adapted to the low price environment and has
slowed down the implementation of its capital projects to limit capital
expenditure to R9.1 billion in 2009; and is focussing on managing costs and
improving productivity so as to reduce operating costs. The Company believes
that the wide range of retrenchment avoidance measures it is implementing will
avoid retrenchment of full-time employees. However, should economic conditions
deteriorate this may be unavoidable.
"While we believe that our planned level of refined platinum production of 2.4
million ounces is appropriate for 2009, management will take appropriate action
should economic conditions affecting net platinum demand either deteriorate
further or improve," said Neville. "We will continue to monitor our production
levels against global economic developments and will provide revised production
guidance when appropriate", he added.
Anglo Platinum expects that the reduction in capital expenditure and
implementation of cost-reduction initiatives will reduce the rate of increase in
net debt in 2009. Funding facilities in place are adequate for the Company`s
anticipated funding requirements.
Johannesburg
9 February 2009
For further information, please contact
Trevor Raymond
+27 (0) 11 373-6462
+27 (0) 82 654 8467
Merrill Lynch
Sponsor
Date: 09/02/2009 09:01:01 Produced by the JSE SENS Department.
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