| Mon 27 Jul 2009, 8:01 | | AMS / AMSP - Anglo Platinum Interim Results For The Six Months Ended |
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AMS / AMSP - Anglo Platinum Interim Results For The Six Months Ended
30 June 2009
Anglo Platinum Limited
Issuer Long Name : Anglo Platinum Limited
Registration No. : 1946/022452/06
Instrument Alpha Code/Ticker Symbol : AMS; AMSP
ISIN : ZAE000013181; ZAE000054474
ANGLO PLATINUM INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
Anglo Platinum reports headline earnings of R405 million for the half-year ended
June 2009. This represents a decrease of 95% when compared with the first half
of 2008. Headline earnings per share, attributable to ordinary shareholders,
decreased 95% to 169 cents. Headline earnings exclude profits of R2.3 billion
realised on the conclusion of Anglo Platinum`s BEE transactions with Anooraq
Resources Corporation and Mvelaphanda Resources Limited. Basic earnings per
share, which include the profits on the transactions, amounted to 1,144 cents,
down 68% on 1H 2008.
Factors contributing to the lower earnings were a 51% fall in the US dollar
price realised on the basket of metals sold, offset by higher sales volumes,
proceeds received from the Amandelbult business interruption insurance claim of
R488m and the Rand weakening by 18% against the US Dollar over the period.
CEO Neville Nicolau said, "Despite the steep decline in earnings for the period,
due to significantly lower metal prices, we are pleased to report substantial
progress on our safety performance, as measured by our Lost Time Injury
Frequency Rate; our cost management initiatives including our headcount
reduction target; our drive for increased productivity and the successful
completion of our announced restructuring at Rustenburg and Amandelbult".
Equivalent refined platinum production (equivalent ounces are mined ounces
expressed as refined ounces) from the mines managed by Anglo Platinum and its
joint venture partners for the first half of 2009 was 1.244 million ounces, an
increase of 10.3% compared to the first half of 2008.
While production in the first half of 2008 was impacted by numerous "abnormal"
events such as flooding and electricity constraints, production in the first
half of 2009 was managed, in line with our lower annual production target as
planned. Anglo Platinum is pleased with the strong production performance, while
implementing the restructuring, productivity and cost improvement plans.
Refined platinum production at 1,056,400 ounces for the first half of 2009
represents an increase of 6% when compared to the same period in 2008. The
target of 2.4 million ounces of refined platinum production for the full year
remains in place. Refined platinum sales for the six months ended 30 June 2009
amounted to 1.22 million ounces compared to 1.11 million ounces in 1H 2008.
Anglo Platinum expects the platinum price to move above current levels during
the second half of the year due to continuing jewellery and investment interest
and a probable positive volume adjustment in vehicle production. As an increase
in price could temper the rate of increase in jewellery and investment demand we
expect the market to remain balanced during the second half of 2009.
Neville Nicolau commented: "Given a continuation of robust platinum jewellery
sales in China, firm platinum investment demand and a probable increase in
demand for platinum from the autocatalyst sector, Anglo Platinum believes that
the platinum price should find support above $1 200 per ounce during the
remainder of the year, and although the current strength of the rand, which is
depressing the rand revenue basket at present, is of concern, the expectation is
that the rand should trade weaker towards year-end. Anglo Platinum continues to
target refined platinum production of 2.4 million ounces but will utilise
process pipeline inventory stocks as required to meet market demand. Based on
Anglo Platinum`s mining production forecast, process pipeline stocks and high
smelter availability it is likely that Anglo Platinum could supply up to 2.6
million ounces should market demand increase during the second half of 2009.
Our Strategic Plan, based on our current view, ensures that the market will be
adequately supplied and should improve our cost position from the upper half to
the lower half of the cost curve. We are in the process of improving the
reliability of our production capacity and entrenching cost management as a long
term and sustainable culture in Anglo Platinum. This will ensure that we are
well positioned to extract full value from our assets as the market recovers.
Our safety improvement plan will ensure that we continue to demonstrate
improvements on our journey to zero harm".
Commenting on the successful completion of Anglo Platinum`s BEE transactions,
Neville Nicolau said: "We are pleased to report the successful conclusion of the
transactions, which facilitate our BEE partners` strategies of becoming major
HDSA managed and controlled PGM producers and illustrate Anglo Platinum`s
commitment to broad-based BEE as a strategic transformation initiative."
Johannesburg, South Africa
27 July 2009
For further information please contact:
Anna Poulter
+27(0)11 373 6683
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 27/07/2009 08:01:01 Produced by the JSE SENS Department.
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