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AMS AMSP
ANANP
AMS / AMSP - Anglo Platinum - Abridged Interim Financial Results For The Six
Months Ended 30 June 2009
Anglo Platinum Limited
Anglo Platinum Limited and its Subsidiaries
("Anglo Platinum") (Incorporated in the Republic of South Africa)
(Registration number 1946/022452/06)
JSE Codes: AMS; AMSP ISIN: ZAE000013181; ZAE000054474
A member of the Anglo American plc group
ABRIDGED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
KEY FEATURES
- MAJOR RESTRUCTURING OF RUSTENBURG AND AMANDELBULT COMPLETED
- HEADLINE EARNINGS OF R405 MILLION, DOWN 95%
- INCREASE IN NET DEBT TO R17.957 BILLION
- CASH OPERATING COSTS PER EQUIVALENT REFINED PLATINUM OZ DOWN 6.4% ON SECOND
HALF OF 2008
- SALES OF PLATINUM OUNCES UP 9% FROM 2008
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Reviewed
Six Six Audited
months months Year
ended ended ended
30 June 30 June % 31 Dec
R millions Notes 2009 2008 Change 2008
Gross sales revenue 17 182 27 559 51 118
Mined 14 123 22 159 40 183
Purchased metals 3 059 5 400 10 935
Commissions paid (116) (189) (353)
Net sales revenue 17 066 27 370 (38) 50 765
COST OF SALES (16 389) (16 081) (2) (33 682)
GROSS PROFIT ON METAL 677 11 289 (94) 17 083
SALES
Mined 1 173 11 354 15 401
Purchased metals (496) (65) 1 682
Other net income 3 27 365 949
Market development and (179) (195) (378)
promotional expenditure
Operating profit 525 11 459 (95) 17 654
Profit on disposal of - - 1 141
investment in Northam
Platinum Limited
Profit on disposal of 1 982 - -
investment in Booysendal
joint venture
Profit on disposal of 51% 336 - -
in Lebowa Platinum Mines
Interest expensed (170) (67) (159)
Interest received 68 130 277
Dividends received 68 - 55
(Loss)/income from (13) 77 161
associates
Profit before taxation 2 796 11 599 (76) 19 129
Taxation (5) (2 749) 100 (4 470)
profit FOR THE 2 791 8 850 (69) 14 659
period/year
OTHER COMPREHENSIVE
INCOME
Deferred foreign exchange (71) - 4
translation
(losses)/gains
TOTAL COMPREHENSIVE 2 720 8 850 (69) 14 663
INCOME FOR THE
period/year
Profit attributable to:
Owners of the Company 2 726 8 400 (68) 14 243
Minority interests 65 450 416
2 791 8 850 14 659
Total comprehensive
income attributable to:
Owners of the Company 2 655 8 400 (68) 14 247
Minority interests 65 450 416
2 720 8 850 14 663
Reconciliation between
profit and headline
earnings
Profit attributable to 2 726 8 400 14 243
owners of the company
Less: Deemed dividend to - (5) (5)
preference shareholders
Less: Declared and (3) (4) (7)
undeclared cumulative
preference share
dividends and related STC
Basic earnings 2 723 8 391 14 231
attributable to ordinary
shareholders
Adjustments:
Profit on disposal of - - (1 141)
investment in Northam
Platinum Limited
Profit on disposal of (1 982) - -
investment in Booysendal
joint venture
Profit on disposal of 51% (336) - -
of Lebowa Platinum Mines
Net (profit)/loss on (2) 54 70
disposal and scrapping of
property, plant and
equipment
Profit on disposal of (2) - -
mineral rights
Tax effect of adjustments 1 (15) 120
Headline earnings 402 8 430 13 280
attributable to ordinary
shareholders
Add: Deemed dividend to - 5 5
preference shareholders
Add: Declared and 3 4 7
undeclared cumulative
preference share
dividends and related STC
Headline earnings 405 8 439 13 292
Number of ordinary shares 238.2 237.0 237.1
in issue (millions)
Weighted average number 238.1 236.6 236.8
of ordinary shares in
issue (millions)
Attributable earnings per
ordinary share (cents)
- Basic 1 144 3 547 (68) 6 011
- Diluted (basic) 1 141 3 531 (68) 5 985
Attributable headline
earnings per ordinary
share (cents)
- Headline 169 3 563 (95) 5 609
- Diluted 169 3 548 5 586
SEGMENTAL INFORMATION
Net sales revenue Operating contribution
Reviewed Reviewed Audited Reviewed Reviewed Audited
Six Six Year Six Six Year
months months months months
ended ended ended ended ended ended
30 June 30 June 31 Dec 30 June 30 June 31 Dec
R millions 2009 2008 2008 2009 2008 2008
OPERATIONS
Khomanani 675 911 1 657 59 429 497
Mine*
Bathopele 887 1 223 2 346 167 806 1 177
Mine*
Siphumelele 827 1 154 2 337 (112) 357 452
Mine*
Thembelani 492 838 1 476 (2) 420 460
Mine*
Khuseleka 1 149 1 788 3 385 113 987 1 363
Mine*
Tumela Mine+ 1 898 3 443 6 212 591 2 135 3 557
Dishaba Mine+ 920 1 601 2 772 202 935 1 427
Union Mine 1 925 3 512 6 171 495 2 084 3 063
Mogalakwena 2 080 1 756 3 755 335 976 1 070
Mine
Lebowa 403 921 1 519 (124) 547 481
Bafokeng- 541 994 1 587 88 535 728
Rasimone (BRPM
joint venture)
Modikwa joint 444 869 1 530 (92) 358 451
venture
Kroondal 753 1 266 2 191 193 900 1 277
pooling-and-
sharing
agreement
Twickenham 59 114 220 (43) (13) (92)
Marikana 345 512 678 101 250 83
pooling-and-
sharing
agreement
Mototolo joint 307 508 873 82 314 463
venture
13 705 21 410 38 709 2 053 12 020 16 457
Western Limb 234 434 725 26 247 313
Tailings
Retreatment
(WLTR)
MASA Chrome 92 164 467 84 159 452
Total - mined 14 031 22 008 39 901 2 163 12 426 17 222
Purchased 3 035 5 362 10 864 (491) (58) 1 695
metals
17 066 27 370 50 765 1 672 12 368 18 917
Other costs (995) (1 079) (1 834)
Gross profit 677 11 289 17 083
on metal sales
* Previously part of Rustenburg Section
+ Previously part of Amandelbult Section
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Reviewed Audited
as at as at as at
30 June 30 June 31 Dec
R millions Notes 2009 2008 2008
ASSETS
Non-current assets 55 135 40 970 47 400
Property, plant and equipment 32 425 21 282 28 435
Capital work-in-progress 19 371 18 961 18 136
Investment in associates 2 368 463 530
Investments held by 73 67 66
environmental trusts
Other financial assets 826 120 158
Other non-current assets 72 77 75
Current assets 16 619 19 283 18 715
Inventories 11 151 8 996 10 064
Trade and other receivables 3 772 5 653 3 941
Other assets 92 166 225
Other current financial assets 1 2 1 615
Cash and cash equivalents 1 603 4 466 2 870
Assets classified as held for - 2 720 2 553
sale
Total assets 71 754 62 973 68 668
EQUITY AND LIABILITIES
Share capital and reserves
Share capital - ordinary and 24 24 24
preference
Share premium - ordinary and 9 200 9 368 9 373
preference
Foreign currency translation (124) (57) (53)
reserve
Accumulated profits 22 630 21 996 19 691
Minority shareholders` 468 676 461
interest
Shareholders` equity 32 198 32 007 29 496
Non-current liabilities 27 516 14 649 23 098
Interest-bearing borrowings 4 15 176 3 505 10 313
Obligations due under finance 4 498 509
leases
Other financial liabilities 142 - 152
Deferred taxation 11 040 9 749 11 101
Environmental obligations 1 148 884 1 019
Employees` service benefit 6 13 4
obligations
Current liabilities 12 040 15 560 15 328
Current interest-bearing 4 4 380 6 370 5 507
borrowings
Trade and other payables 5 017 6 454 4 956
Other liabilities 2 011 1 556 1 807
Other current financial 355 - 2 388
liabilities
Share based payment provision 105 429 97
Taxation 172 751 573
Liabilities directly - 757 746
associated with assets
classified as held for sale
Total equity and liabilities 71 754 62 973 68 668
* Less than R500 000
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Foreign
currency
trans-
Share Share lation
R millions capital premium reserve
Balance as at 31 December 2007 (audited) 24 9 295 (57)
Total comprehensive income for the period
Cash distribution to minorities
Ordinary and preference dividends paid
Ordinary share capital issued -* 166
Conversion of preference shares -* (93)
Equity-settled share based compensation
Shares purchased for employees
Balance as at 30 June 2008 (reviewed) 24 9 368 (57)
Total comprehensive income for the period 4
Cash distribution to minorities
Ordinary and preference dividends paid in
cash
Ordinary share capital issued -* 26
Conversion of preference shares -* (21)
Equity-settled share-based compensation
Issue of shares in respect of Employee 1 954
Share Participation
Scheme shares reflected as treasury shares (1 954)
Balance as at 31 December 2008 (audited) 24 9 373 (53)
Total comprehensive income for the period (71)
Excess of net asset value over purchase
price on transaction with fellow subsidiary
Cash distribution to minorities
Preference dividends paid in cash
Ordinary share capital issued -* 18
Conversion of preference shares -* (6)
Shares acquired in terms of Bonus Share -* (185)
Plan - treated as treasury shares
Equity-settled share-based compensation
Shares purchased for employees
Balance as at 30 June 2009 (reviewed) 24 9 200 (124)
Accumulated Minority
R millions profits interests Total
Balance as at 31 December 19 045 466 28 773
2007 (audited)
Total comprehensive income 8 400 450 8 850
for the period
Cash distribution to (240) (240)
minorities
Ordinary and preference (5 448) (5 448)
dividends paid
Ordinary share capital issued 166
Conversion of preference (93)
shares
Equity-settled share based 42 42
compensation
Shares purchased for (43) (43)
employees
Balance as at 30 June 2008 21 996 676 32 007
(reviewed)
Total comprehensive income 5 843 (34) 5 813
for the period
Cash distribution to (181) (181)
minorities
Ordinary and preference (8 368) (8 368)
dividends paid in cash
Ordinary share capital issued 26
Conversion of preference (21)
shares
Equity-settled share-based 220 220
compensation
Issue of shares in respect of 1 954
Employee Share Participation
Scheme shares reflected as (1 954)
treasury shares
Balance as at 31 December 19 691 461 29 496
2008 (audited)
Total comprehensive income 2 726 65 2 720
for the period
Excess of net asset value 69 69
over purchase price on
transaction with fellow
subsidiary
Cash distribution to (58) (58)
minorities
Preference dividends paid in (3) (3)
cash
Ordinary share capital issued 18
Conversion of preference (6)
shares
Shares acquired in terms of (185)
Bonus Share Plan - treated as
treasury shares
Equity-settled share-based 157 157
compensation
Shares purchased for (10) (10)
employees
Balance as at 30 June 2009 22 630 468 32 198
(reviewed)
* Less than R500 000
CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Reviewed
Six Six Audited
months months Year
ended ended ended
30 June 30 June 31 Dec
R millions 2009 2008 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 15 999 26 818 52 855
Cash paid to suppliers and employees (14 832) (15 559) (33 612)
Cash from operations 1 167 11 259 19 243
Interest paid (net of interest (53) (40) (99)
capitalised)
Taxation paid (472) (1 244) (1 799)
Net cash from operating activities 642 9 975 17 345
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property, plant and (6 267) (5 810) (14 388)
equipment
To maintain operations (1 892) (2 079) (7 941)
To expand operations (3 354) (3 286) (5 138)
Interest capitalised (1 021) (445) (1 309)
Proceeds from sale of plant and 16 3 26
equipment
Investment in associates - - (22)
Disposal of subsidiary interest in 23 - (17)
Lebowa Platinum Mines (net of cash
disposed)
Acquisition of interest in subsidiary - (174) - -
Unki Mines (net of cash acquired)
Proceeds on sale of investment in - - 1 572
Northam Platinum Limited
Investment of funds in escrow on - - (542)
Booysendal transaction
Proceeds on/(investment in) rights in 1 610 - (1 610)
preference shares
(Increase)/decrease in investments held (6) (2) 54
by environmental trusts
Interest received 45 113 233
Growth in environmental trusts 23 17 36
Dividends received 110 77 132
Advances made - - (30)
Net cash used in investing activities (4 620) (5 602) (14 556)
CASH FLOWS FROM/(USED IN) FINANCING
ACTIVITIES
Proceeds from the issue of ordinary share 12 73 78
capital
Purchase of treasury shares for Bonus (185) - -
Share Plan
Loan from Khumama Platinum (Proprietary) - - 2 356
Limited
Proceeds on interest-bearing borrowings 2 945 2 201 8 145
Cash distributions to minorities (58) (240) (421)
Ordinary and preference dividends paid (3) (5 448) (13 816)
Net cash from/(used in) financing 2 711 (3 414) (3 658)
activities
Net (decrease)/ increase in cash and cash (1 267) 959 (869)
equivalents
Cash and cash equivalents at beginning of 2 870 4 079 4 079
period/year
Transfer to assets held for sale - (572) (340)
Cash and cash equivalents at end of 1 603 4 466 2 870
period/year
MOVEMENT IN NET DEBT
Net debt at beginning of period/year (13 (4 086) (4 086)
459)
Net cash from operating activities 642 9 975 17 345
Net cash used in investing activities (4 620) (5 602) (14 556)
Other (520) (6 194) (12 162)
Net debt at end of period/year (17 (5 907) (13 459)
957)
Notes to the interim results
1. This interim report complies with International Accounting Standard 34 -
Interim Financial Reporting and South African Statement of Generally Accepted
Accounting Practice, AC127, with the same title, as well as with Schedule 4 of
the South African Companies Act and the disclosure requirements of the JSE
Limited`s listings requirements.
2. The interim report has been prepared using accounting policies that comply
with International Financial Reporting Standards and South African Statements of
Generally Accepted Accounting Practice. The accounting policies are consistent
with those applied in the financial statements for the year ended 31 December
2008, except for the following changes:
- Adoption of IFRS 8 - Operating Segments
- Adoption of Annual Improvements to IFRS`s.
For full impact of these changes please refer to the interim report.
Reviewed Reviewed Audited
Six months Six Year
months
ended ended ended
30 June 30 June 31 Dec
2009 2008 2008
R R R
millions millions millions
3. Other net income
Other net income/(expenditure)
consists of the following
principal categories:
Amandelbult insurance claim payout 488 - -
Net realised and unrealised (449) 482 1 356
foreign exchange (losses)/gains
Losses on commodity sales (27) - (188)
contracts at fair value
Project maintenance costs (29) (5) (223)
Restructuring costs (3) (110) (104)
(Loss)/profit on - (47) 4
disposal/scrapping of property,
plant and equipment
Other - net 47 45 104
27 365 949
4. Interest-bearing borrowings
The Group has the following
borrowing facilities:
Committed facilities 26 417 16 407 18 907
Uncommitted facilities 4 587 2 092 2 165
Total facilities 31 004 18 499 21 072
Less: Facilities utilised (19 556) (9 875) (15 820)
Interest bearing borrowings (15 176) (3 505) (10 313)
Current interest bearing (4 380) (6 370) (5 507)
borrowings
Available 11 448 8 624 5 252
Weighted average borrowing rate 9.2149 12.9595 12.4150
(%)
Subsequent to 30 June 2009, Anglo American plc has increased its committed
facility to the Group by R7.1 billion to R20.6 billion. The Group`s forecasts
and projections, taking into account reasonable possible changes in the expected
trading performance, indicate that the Group should be able to operate within
the level of its facilities for the next twelve months. The Group is currently
reviewing its funding needs and facilities with the aim of restructuring its
existing borrowings. Anglo American plc has indicated its support for this
process.
The Board is satisfied that the Group and Company will have adequate resources
to continue in operational existence for the next financial year. For this
reason, the Group continues to adopt the going concern basis in preparing its
financial statements.
5. Contingent liabilities
Letters of comfort have been issued to financial institutions to cover certain
banking facilities. There are no encumbrances over Group assets, other than
houses held under finance leases by the Group.
Aquarius Platinum (South Africa) (Proprietary) Limited holds an option to put
its interest in the Kroondal pooling and sharing arrangement to the Group in the
case of termination of that relationship. The probability of the option being
exercised is considered remote. The amount of such an obligation is dependent on
a discounted cash flow valuation of its interest at that point in time.
The Group has, in the case of some of its mines, provided the Department of
Minerals and Energy with guarantees that cover the difference between the
closure costs and amounts held in the environmental trusts. At 30 June 2009,
these guarantees amounted to R2 360 million (30 June 2008: R1 990 million, 31
December 2008: R2 030 million).
The Group is the subject of various claims, the expected outcomes of which are
varied, but on a probability weighting the amount is estimated at R81 million
(30 June 2008: R76 million, 31 December 2008: R82 million).
6. Commitments
The Group has provided Plateau Resources (Proprietary) Limited ("Plateau"), a
company owned by Anooraq Resources Corporation ("Anooraq"), with a facility that
covers their senior debt repayments should Plateau not be able to meet its
repayments. The facility is limited to 29% of 49% of Lebowa`s free cash flows,
and call on this facility is considered a remote possibility.
The Group has provided Plateau with a facility to enable it to meet its
obligations in respect of operating and capital expenditure for Lebowa Platinum
Mines. The facility is limited up to R778 million excluding interest and fees,
and is available to Plateau for a period of three years from the closing date.
The Group has provided Lexshell 36 General Trading (Proprietary) Limited, a
company owned by the Bakgatla-Ba-Kgafela traditional community, with a facility
that covers their outstanding hedge exposures. The facility is limited to Union
Section`s cash flows, and call on this facility is considered a remote
possibility.
Rustenburg Platinum Mines Limited ("RPM") has granted a R1.79 billion loan
facility to Royal Bafokeng Resources (Proprietary) Limited ("RBR") for the
purpose of funding its contributions to the BRPM joint venture. The loan is
repayable in full on 11 August 2012. The RBR has ceded and pledged its interest
in the BRPM joint venture to RPM as security for the loan. RPM also has the
right to register a notarial bond and a mortgage bond over RBR`s undivided share
of the assets of the BRPM joint venture.
7. Assets held for sale (BEE transactions)
Disposal of investment in associate - Northam and disposal of 50% interest in
Booysendal joint venture
In September 2007, the Board approved the disposal of Anglo Platinum`s 22.4%
interest in Northam and 50% of the Booysendal joint venture and a portion of the
Der Brochen project in a BEE transaction with Mvelaphanda Resources Limited
(Mvela) for a net consideration of R3.7 billion. The parties implemented the
Northam part of the transaction on 20 August 2008 and the Booysendal part on 24
June 2009. Consequently, the R1.6 billion invested in the rights to the
preference shares in relation to the Booysendal part was released on 30 June
2009 and the profit on the sale of Booysendal was recognised in profit for the
period. Anglo Platinum has received R3.2 billion of a total of R3.7 billion in
proceeds to date. R542 million remains in escrow until the registration and
transfer of the rights on the portion of Der Brochen.
Disposal of 51% in Lebowa Platinum Mines ("LPM") and 1% interest in Ga - Phasha,
Boikgantsho and Kwanda joint ventures
In September 2007, the Board approved the disposal of an effective 51% of LPM
(Richtrau 177 (Proprietary) Limited), a wholly owned subsidiary of Anglo
Platinum and an additional 1% of its interest in the Ga-Phasha, Boikgantsho and
Kwanda joint venture (50:50) projects, to Anooraq for a cash purchase
consideration of R3.6 billion. In April 2008, a suite of definitive legal
agreements was entered into, which remained subject to various suspensive
conditions, including the raising of debt and equity finance by Anooraq to fund
the purchase consideration. During the third quarter of 2008, the significant
deterioration in global market conditions, coupled with a material decline in
platinum group metal prices and constrained debt and equity capital markets,
limited the availability of funds. Due to this deterioration of market
conditions, a complete review of the Lebowa long term plan and project pipeline,
including the key commercial terms of the transaction, was initiated jointly by
the parties in the fourth quarter of 2008.
On 14 May 2009, the revised terms of the transaction were announced. To ensure
the sustainability of the transaction, the renegotiated transaction
consideration was reduced from R3.6 billion to R2.6 billion, with Anglo Platinum
agreeing to re-invest a portion of the consideration (R1.1 billion), through the
subscription for a convertible preference share instrument, which once
converted, gives Anglo Platinum full equity upside on 115.8 million Anooraq
shares. In addition, Anglo Platinum subscribed for R1.2 billion of preference
shares in Plateau. The purchase consideration received of R2.6 billion was
accounted for at the fair value of the consideration received which amounted to
R1.7 billion. The fair value of the "A" preference shares was determined by
discounting the anticipated cash flows using a market related rate of interest.
Anglo Platinum also advanced funds of R149 million to assist the Anooraq
Community Participation Trust and the Lebowa Employee Share Option Trust in
acquiring Anooraq shares. The transaction agreements entered into in April 2008
were amended to incorporate the revised terms and the funding agreements were
concluded in June 2009. All the significant conditions precedent were fulfilled
on 30 June 2009. Consequently, the transaction was accounted for on this
effective date.
8. Comparative figures
The interest bearing borrowings have been reclassified between current and non-
current at 30 June 2008. As a result, the long term portion of R3 505 million
has been reclassified to non-current liabilities. In addition, an amount of R271
million has been reclassified from liabilities directly related to assets held
for sale to current interest bearing borrowings at 30 June 2008. As a result of
both reclassifications, current interest bearing borrowings are reflected at R6
370 million.
R487 million of accruals has been reallocated from other liabilities to trade
and other payables.
9. Corporate Governance
The Board considers that the Company and its subsidiaries complied during the
period with the principles of the Code of Corporate Practices and Conduct
contained in the 2002 King Committee Report on Corporate governance (King III),
and that these have been applied appropriately and consistently, except with
regard to the composition of the Remuneration and Nomination committees that
comprise non-executive directors, not all of whom are independent non-executive
directors.
10. Auditors` review
The interim report from which the abridged interim results have been extracted
has been reviewed by the Company`s auditors, Deloitte & Touche. Their
unqualified review report is available for inspection at the Company`s
registered office.
COMMENTARY
1. OVERVIEW
Key features for the six months to 30 June 2009 include:
- Major restructuring of Rustenburg and Amandelbult completed - high cost shafts
to be put on care & maintenance;
- Equivalent refined platinum production of 1.24 million ounces, up 10% and
sales of 1.22 million platinum ounces, up 9% on 1H 2008;
- Productivity measured as square metres mined per total operating employee per
month up 12% to 6.04m? per employee in 1H 2009 compared to 5.38m? in 1H 2008;
- Cash operating costs per equivalent refined platinum ounce at R10 775, down
6.4% on the second half of 2008;
- Total labour complement reduced by 8 903 since the end of December 2008;
- Tragically 10 fatalities occurred in the first half of 2009 (10 in 2H 2008);
- The lost-time injury frequency rate per 200 000 hours worked improved by 12%
to 1.43 compared with 1.62 for 2H 2008;
- Headline earnings of R405 million, down 95% on 1H 2008, in line with
significantly lower metal prices;
- Increase in net debt to R17.957 billion; and
- Successful conclusion of BEE transactions.
2. OPERATIONS
In February 2009 we announced a major restructuring of our mining operations
into more efficient stand-alone units. This involved splitting our largest mines
into smaller new mine entities to ensure a sustainable reduction in the unit
cost of production and to underpin our commitment to extracting maximum value
from our assets. Rustenburg Section has been restructured into five new mines
namely: Khomanani, Bathopele, Siphumelele, Thembelani and Khuseleka while
Amandelbult Section was restructured into Tumela and Dishaba mines. As part of
the restructuring process we have optimised the source of ounces to ensure
optimal long term value. This included placing the high cost Bleskop shaft on
care and maintenance and a process is currently underway that could lead to two
further shafts in the Rustenburg complex also being put on care and maintenance,
a process we intend to complete over the coming months. Clearly, an important
part of this project is the adjustment and elimination of the overhead costs
associated with these shafts. These efforts will improve the cost of our
Rustenburg mines and effectively move them from Q4 to Q3 on the cost curve. The
moves described above should result in a total of 140 000ozs of high cost
production being removed.
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% when 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.
The overall 4E built-up head grade for the first half of 2009 was up 3% at
3.43g/t compared to the same period in 2008. Concentrator recoveries at managed
concentrators were 1% lower at 78.4% principally due to the treatment of
stockpile ore with lower recovery potential at Mogalakwena.
In the six months to 30 June 2009 purchases of platinum in concentrate increased
by 12 796 ounces or 6% to 222 327 equivalent refined ounces. Production of
equivalent refined platinum ounces for each of the mining operating units was as
follows:
Operation 1H 2009 1H 2008 Varianc %
e Variance
Khomanani Mine1 52 142 46 557 5 585 12.0%
Bathopele Mine1 66 011 56 768 9 243 16.3%
Siphumelele Mine1 63 004 55 192 7 812 14.2%
Thembelani Mine1 36 264 38 343 (2 079) (5.4%)
Khuseleka Mine1 86 301 85 740 561 0.7%
Tumela Mine? 146 556 132 483 14 073 10.6%
Dishaba Mine? 71 350 62 702 8 648 13.8%
Union Mine 151 503 152 682 (1 179) (0.8%)
Twickenham Mine 4 076 3 697 379 10.3%
Mogalakwena Mine 131 853 71 765 60 088 83.7%
Western Limb Tailings 15 525 22 028 (6 503) (29.5%)
Retreatment
Total own mines 824 585 727 957 96 628 13.3%
Bafokeng Rasimone 85 256 85 456 (200) 0.2%
Platinum Mine
Modikwa Platinum Mine 64 539 65 840 (1 301) (2.0%)
Mototolo Platinum Mine 51 281 42 762 8 519 19.9%
Kroondal Platinum Mine 121 986 92 550 29 436 31.8%
Marikana Platinum Mine 13 544 14 451 (907) (6.3%)
Total JV mines 336 606 301 059 35 547 11.8%
Lebowa Platinum Mine 28 573 40 118 (11 (28.8%)
545)
Third parties 54 024 59 002 (4 979) (8.4%)
Total Lebowa & Third 82 597 99 120 (16 (16.7%)
parties 523)
Total Anglo Platinum 1 243 1 128 115 652 10.3%
788 136
1 Previously part of Rustenburg Section
2 Previously part of Amandelbult Section
Furnace maintenance at the Polokwane and Waterval smelters was carried out
during the first quarter of 2009. The complete set of furnace lower copper
coolers, in service since 2005, was replaced at the Polokwane smelter. Furnace
number 2 at Waterval smelter was shut down for a complete re-build. Both
smelters resumed normal operations during the second quarter of 2009
contributing to tonnes smelted being 22% higher in the first half of 2009
compared to the first half of 2008. Higher than normal refined metal stocks at
the start of the period provided the flexibility to carry out furnace
maintenance.
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.
3. SAFETY
Anglo Platinum remains committed to the principle of zero harm. The
implementation of a 3-year Enhanced Safety Improvement Programme, developed
during the 3rd quarter of 2007 to deliver an improved safety performance across
Anglo Platinum, is continuing at all operations. The four components of this
plan are: (i) a complete Safety Management System, (ii) a behaviour based safety
program, (iii) a risk based program to engineer out risk and (iv) a wellness in
the workplace program. To develop proactive behaviour, an integrated risk
management system is being developed to direct supervisor and management action
to areas of increased or changing risk.
Anglo Platinum believes the positive impact of the programme is evidenced with
the significant improvement of the lost time injury frequency rate which reduced
by 23%, from 1.86 per 200 000 hours worked in the first half of 2008 and 12%
from 1.62 for 2H 2008, to 1.43 for the first half of 2009.
Regrettably ten employees lost their lives in the first half of this year. Of
particular concern is the fact that five employees died between the middle of
May and the middle of June, and four of these where in Rustenburg. The safety
initiatives where thoroughly review by management and labour leadership
internally, and by external experts, resulting the development of a special
action plan.
A number of operations achieved significant milestones during the first half of
2009, most notably:
- Tumela Mine (previously part of Amandelbult Section): 2.4 million fatality
free shifts from 18 September 2008 to June 2009;
- Khomanani Mine (previously part of Rustenburg Section): 2.0 million fatality
free shifts from 16 May 2007 to June 2009;
- RBMR: fatality free since 17 January 2002 with 2.1 million shifts;
- PMR: achieved 20 years fatality free shifts on 18 February 2009
- Union Mine: 7.0 million fatality free shifts from 24 January 2007, regrettably
recording a fatality in June 2009; and
- Bathopele Mine (previously part of Rustenburg Section): 2.0 million fatality
free shifts from 10 March 2005, regrettably recording a fatality in June 2009.
4. FINANCIAL RESULTS
Anglo Platinum`s earnings were lower for the six months ended 30 June 2009 in
line with significantly lower metal prices achieved on all products with the
exception of gold. Headline earnings of R405 million were 95% lower than the
same period in 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 R488 million and the Rand weakening by 18% against the US
Dollar over the period.
Headline earnings per ordinary share 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.
Gross sales revenue decreased by R10.4 billion to R17.2 billion. The decrease
was the result of lower US dollar metal prices achieved on metals sold, which
accounted for R17.4 billion: the weaker average rand / US dollar exchange rate
achieved of R9.08, compared to R7.70 in 2008, offset the impact of the lower
prices by R2.6 billion, while higher volumes of metals sold increased revenue by
R4.4 billion. 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.
The average US dollar price achieved for platinum was US$1 085 per ounce for the
period, 43% down compared to US$1 906 in 1H 2008. The average prices achieved
for palladium and nickel sales for the half year were US$212 per ounce (1H 2008:
US$436) and US$5.14 per pound (1H 2008: US$12.14) respectively. The average
price achieved on rhodium sales in the first six months of 2009 was US$1 255 per
ounce (1H 2008: US$5 833). The overall rand basket price achieved for 1H 2009
was 42% lower compared to the R23 989 achieved in 1H 2008 at R13 826 per
platinum ounce sold.
Cost of sales rose 2% or R308 million to R16.4 billion compared to 1H 2008 due
to an increase in cash mining, smelting and refining costs of 15% to R11.4
billion and an increase in depreciation by 30% to R1.9 billion. These increases
were offset by a 50% or R3.1 billion decrease in cost of purchased metal,
primarily due to lower rand prices paid for the metal purchased and a reduction
in other costs by 8% to R995 million. The cash operating costs per equivalent
refined platinum ounce increased marginally by 1.7% compared to 1H 2008.
More significantly, cost of sales reduced by 6.9% or R1.2 billion compared to 2H
2008 with the cash mining, smelting and refining component reducing by 12% or
R1.6 billion. The cash operating costs per equivalent refined platinum ounce
reduced by 6.4% compared to the second half of 2008.
The cost reductions were achieved through improved productivity and numerous
cost management initiatives including:
- Placing the high cost Bleskop shaft on "care and maintenance";
- Early re-negotiation with suppliers for reduced prices on key input
commodities such as diesel, steel tyres and reagents;
- Making full use of the centralised procurement facilities provided by the One-
Anglo Supply Chain Project;
- Changing Mogalakwena mining production levels;
- Completing the restructuring processes at Rustenburg and Amandelbult;
- Significant productivity improvements; and
- Reducing overhead headcount at the Corporate and Regional Offices.
During the period good progress was made on improving productivity by reducing
the number of employees at Anglo Platinum`s managed operations in line with
lower production targets. The reduction in labour, mostly contract employees
totalled 8 903 since December 2008 which measures favourably against the target
of 8 000 set for June 2009 and 10 000 for the full year of 2009.
The reduction in labour when compared to 30 September 2008, when Anglo Platinum
initiated its labour reduction programme, totalled 11 931. Johannesburg based
employees have been reduced from 701 to 583 since December 2008.
Net debt increased to R17.957 billion from R13.459 billion at the end of
December 2008 and R5.907 billion at the end of June 2008. Whilst operating
activities produced a positive cash flow of R642 million, this was down 94%
compared to the first six months of 2008 and funding of some R6.3 billion of
capital expenditure was largely through increased debt which was mitigated by
the proceeds from the successful conclusion of the BEE transactions with
Mvelaphanda Resources Limited and Anooraq Resources Corporation. An increase in
process pipeline stocks to June 2009 (reasons explained under the Operations
section below) partly offset by a reduction in refined stocks contributed to the
increase in net debt.
At the metal prices that Anglo Platinum anticipates will prevail, net debt is
expected to continue to increase as margins remain depressed and funding of
capital projects continues. Cost management initiatives and the suspension of
production areas where a return to profitability is unlikely in the medium term
will maximise margins. However, until cash flow improves, the Board considers it
prudent to continue to suspend dividend payments. Anglo Platinum is confident
that its current short-term debt facilities are adequate to meet its near-term
funding requirements.
5. CAPITAL EXPENDITURE AND PROJECTS
Capital expenditure for the first half of 2009, excluding capitalised interest,
amounted to R5.3 billion of which
R3.4 billion was spend on projects and R1.9 billion on stay in business capital.
Capital expenditure for the year, excluding capitalised interest, is expected to
be R9.6 billion. This is R3.5 billion lower than the expenditure in 2008 due to
the actions taken to reduce the rate of capital expenditure following the global
economic downturn experienced since the last quarter of 2008.
The following projects have been delayed as a result of the global economic
downturn:
- Amandelbult Number 4 Shaft (R16.0 billion): Preparation for shaft sinking was
started but the project has since been delayed by 4 years;
- Twickenham Platinum Mine (R7.1 billion): The project has been slowed down with
completion delayed by 2 years. At steady state the Twickenham mine will
contribute an additional 180,000 ounces of refined platinum from 2018;
- Styldrift Merensky Phase 1 Project (R6.1 billion attributable) has been
delayed by 18 months;
- Base Metals Refinery project (R1.9 billion): The project has been delayed by
one year. The project will expand the capacity of the existing plant to 33ktpa
of contained nickel to deliver by the end of 2011; and
- Number 2 Slag Cleaning Furnace (R1.0 billion): The project construction has
been delayed for a period of one year. As a result, the converter slag stockpile
will continue to increase and depletion is expected from 2011 onward. The
existing converter slag smelting capacity will be doubled by this project in
line with Anglo Platinum`s production strategy.
The following major projects are progressing without delay:
- The Rustenburg Paardekraal 2 shaft replacement project (R2.3 billion), which
will produce 120 000 ounces of refined platinum per annum by 2015. Revised
sinking cycles to improve safety of people in the shaft bottom, as well as
increased incidence of methane gas intersections, resulted in slower sinking
rates;
- The Amandelbult East Upper UG2 project (R1.5 billion), which will contribute
100 000 ounces of refined platinum per annum by 2012. The planned ore reserve
development will be completed on schedule at the end of 2009;
- The Mainstream Inert Grind (MIG) projects (R1.4 billion) approved in November
2007 to improve mineral liberation and PGM recovery is on schedule. The
Amandelbult Merensky and UG2 MIG projects were successfully handed over to
operations in April 2009;
- The Rustenburg Townlands Ore Replacement project (R1.0 billion) will
contribute 70 000 refined platinum ounces per annum from 2014 from the new
Merensky and UG2 areas;
- The MC Plant capacity expansion (R0.7 billion): Phase 1 of the project will
increase the current MC Plant capacity from 64ktpa Waterval Converter Matte to
75ktpa during 2009. Commissioning is on schedule for completion in the last
quarter of 2009.
- Development of the Unki Mine (R2.9 billion) in Zimbabwe continues as planned.
6. MINERALS LEGISLATION, TRANSFORMATION AND COMMUNITIES
Anglo Platinum is fully committed to the Minerals and Petroleum Resources
Development Act and the mining charter and to achieving the associated
sustainable economic and social transformation.
During the first six months of the year, the previously announced Anglo
Platinum, Anooraq Resources Corporation and Mvelaphanda Resources Limited
transactions progressed towards completion, with both transactions being
finalised during June 2009.
Anglo Platinum has made significant progress towards achieving its
transformation objectives as envisaged by the MPRD Act and the Mining Charter.
Noteworthy milestones achieved in support of Anglo Platinum`s social and labour
plan include:
- 10% women in mining;
- 49% historically disadvantaged South Africans in management positions; and
- Continued investment in housing and community projects - all hostels have been
converted into single accommodation villages catering for two employees per
room. A low-cost housing strategy is being rolled out, with the project
delivering the first 100 units at the Rustenburg mines currently in build phase.
A total of 889 families have been resettled at the Mogalakwena Mine. The
remaining 67 families are not opposed to relocation but to the terms of
relocation. This delay is currently not impacting on any of the Mogalakwena
mining activities due to the actions taken in January 2009 to reduce mining
activities at this mine. Anglo Platinum continues to engage with the community
to seek an amicable solution.
7. MARKETS
The platinum market remained in balance during the first six months of 2009 as
jewellery and investment metal off take increased, as expected, at lower price
levels and as investor sentiment improved. These increases in demand offset the
depressed autocatalyst and other industrial demand.
Autocatalysts
The decline in global vehicle production appears to have reached a `floor` with
vehicle stocks approaching levels deemed appropriate by automakers for the
reduced rate of sales. However rates of new vehicle sales, supported by a number
of highly successful scrap and tax incentive schemes, appear higher than initial
automaker forecasts. Vehicle inventories are expected to reduce below acceptable
operating levels during the second half of 2009 resulting in a probable rebound
in vehicle production. The increase in PGM demand from the automotive segment is
likely to be higher than the increase in vehicle production as Anglo Platinum
believes that automaker PGM pipeline stocks are at or below levels that match
anticipated production volumes.
Many customers making use of the scrap incentive schemes typically had not
intended purchasing a new vehicle and consequently are selecting small engine,
entry level gasoline vehicles. This has created a new market segment rather than
a switch from an existing segment or bringing forward sales from future years.
Demand for diesel light duty vehicles remains weak as purchases, largely
postponed until economic circumstances and credit availability improve favour
the lower purchase price of gasoline vehicles. Delayed purchasing of vehicles
reduced PGM supply from recycled autocatalysts and contributed to maintaining
market balance during the period.
Jewellery
Platinum jewellery sales to manufacturers in China increased by over 400 000
ounces when compared to the first half of 2008 largely in response to lower
platinum prices but also given the reduced premium over gold. This response
highlights the strength of platinum jewellery branding and the fundamentally
different nature of Chinese platinum jewellery demand as global economic
conditions continue to depress jewellery sales in most western markets.
The Chinese platinum jewellery market is different to platinum jewellery markets
in the West. The key differentiating features, responsible for the very positive
response to lower prices include:
- A large percentage of platinum jewellery is bought as a self-purchase or a
purchase by women in the 18 to 34 age bracket;
- Over 70% of platinum jewellery is plain metal and most is sold at a price
related to the weight;
- The value of the average plain platinum metal purchase is below US$ 300; and
- The Chinese platinum jewellery market is unsaturated and the number of retail
outlets continues to grow rapidly requiring basic stock establishment.
Sales of platinum jewellery into the bridal segment in all jewellery markets
remain the benchmark and continue to provide important sales underpin.
Investment
Platinum investment demand increased steadily throughout the first half of 2009
as investor sentiment improved due to the favourable characteristics of the
platinum business as jewellery demand responded to low prices and the potential
for more stable vehicle production forecasts increased. Exchange Traded Fund
(ETF) volumes increased by over 200 000 ounces and exceeded 500 000 ounces at
the end of June, above the pre-economic crisis level.
Despite continued economic decline, Japan continued to account for most of the
investment in bars, coins and investment chain with volumes in some months in
the first half of 2009 over 200% up on the corresponding periods in 2008.
Industrial
Industrial demand for platinum decreased, as expected, in the first half of
2009. Production capacity utilisation in the chemical and petroleum industries
is lower which is impacting demand for new metal and demand from the electronic
industry is suffering due to weak consumer demand for electronic goods.
Market outlook
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.
8. OUTLOOK
This year
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.
Anglo Platinum will continue to manage costs as a priority by improving
productivity, increasing efficiency and managing the supply chain and
procurement costs. We expect cost improvements achieved so far to be sustained
and we aim to keep the unit cash costs per equivalent refined platinum ounce for
the year at the same level as in 2008, of R11 096 per platinum ounce.
Productivity is expected to increase to 6.4m2 per month on average per total
operating employee by the end of 2009.
It is expected that funding requirements will continue to increase in the second
half of the year largely due to lower cash from operations and capital
expenditure. Subsequent to 30 June 2009, Anglo Platinum`s largest shareholder,
Anglo American has increased its committed facility to the Group by R7.1 billion
to R20.6 billion. Anglo Platinum`s forecasts and projections, taking into
account reasonable possible changes in the expected trading performance,
indicate that it should be able to operate within the level of its facilities
for the next twelve months. Anglo Platinum is currently reviewing its funding
needs and facilities with the aim of restructuring its existing borrowings.
Long term view
Anglo Platinum bases its longer term strategic plan on a thorough market
analysis and its significant understanding of the platinum business and its
unique drivers. The result of this understanding and Anglo Platinum`s analysis
indicates steady growth in demand for platinum, largely balanced with a slower
increase in supply. Although the market is currently in balance a deficit is
expected to arise in the next few years as global markets and economies recover.
The platinum price is expected to trend to a long-term level of $1350 per ounce,
supported by the global economy recovery. It is therefore our intention to set
up operations to produce around 2.5 million platinum ounces per annum for the
next three years, with a small but steady increase in production thereafter.
Given that it is extremely difficult to forecast and plan for short term market
changes, as we experienced over the past year, it is our intention to establish
flexibility and increase our ability to react to these shifts more efficiently
than was traditionally the case in underground hard rock environments. The main
sources of this flexibility are: Mogalakwena, the large open pit mine that can
practically and cost effectively be ramped up or down: a unique attribute of
Anglo Platinum and the largest open pit platinum mine in the world, our high
volume of production from Anglo Platinum`s large suite of underground mines that
could adjust volume by up to 10% on a short-term basis; and our large process
pipeline. In total this flexibility could amount up to 500 000 platinum ounces,
and allows us to adjust market requirements efficiently.
We have completed a detailed production plan in which we have optimised the
source of ounces to ensure optimal long term value creation. This plan indicated
that there are shafts in Anglo Platinum that cannot be mined efficiently in the
current and forecast environment. As described in Operations above a process is
underway that could lead to these shafts being put on care and maintenance, a
process we intend to complete by the end of this year. Clearly, an important
part of this project is the adjustment and elimination of the overhead costs
associated with these shafts. These efforts will improve the cost of our
Rustenburg mines and effectively move them from Q4 to Q3 on the cost curve. (It
should be noted that although a total of 140 000oz of high cost production is
under threat, and likely to be stopped, we still intend to make up this
shortfall by increasing production from our more efficient mines).
Anglo Platinum`s capital projects have been adjusted so that the long term
production profile can be achieved. Stay in business capital is planned to
ensure proper maintenance and, together, project and SIB capital should remain
at the current level of just below R10 billion real per annum. Our capital
management will achieve these objectives.
Cost management is an important component of Anglo Platinum`s plan. We intend to
maintain our unit cash costs (in nominal terms) per equivalent refined platinum
ounce at, or below, the level of our 2008 costs of R11 096 per platinum ounce
for the next three years. The cost management plan consists of three phases:
Firstly, as has been demonstrated this year, productivity and the elimination of
waste is being addressed. Secondly overhead and regional allocated costs must be
addressed and adjusted to match forecast production. The third and longer term
action is to improve the efficiency of the infrastructure that services the
operations. We are in the process of implementing a cost culture in Anglo
Platinum that is sustainable to ensure benefits are maintained in the improved
business environment that we expect.
The cost improvement strategy has four components:
- Cost Management: This is the inclusion of cost management in our daily
management activities, alongside safety and production management. It requires
the development of systems that provide front line management with regular cost
information so that cost decisions are made proactively, rather than the current
reactive system after the month or quarter end.
- Supply Chain and Procurement: We are managing cost escalation proactively,
leveraging our size and the relationship with the One Anglo Supply Chain project
to ensure attractive input prices, and together with our asset optimisation
efforts, improve the efficiency of the use of purchased commodities.
- Overhead Management: We aim to properly align overhead and allocated costs
directly with production units, ensure the overhead is optimal and efficient and
eliminate costs that do not contribute directly to production.
- Productivity and Efficiency management: This forms the largest part of our
Asset Optimisation projects, as labour is the major component of our costs.
Finally, Anglo Platinum is reinforcing its marketing efforts. We continue to be
involved with the Platinum Guild International in the marketing and promotion of
platinum as a jewellery metal. In collaboration with our customers and others we
continually look for ways to influence and secure continued use of and need for
PGMs. Anglo Platinum has a major and almost unique advantage in that it can
influence the demand for the metal. It is clear from our experience that the
market has huge potential and, in the interests of sustainability, requires an
adequate supply of metal, which is a significant opportunity for Anglo Platinum
given its production strategy outlined above.
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.
T M F Phaswana N F Nicolau Johannesburg
(Chairman) (Chief Executive Officer) 24 July 2009
SUPPLEMENTARY INFORMATION
CONSOLIDATED STATISTICS *
Six Six Year
months months
ended ended ended
30 June 30 June % 31 Dec
Total operations 2009 2008 Change 2008
Marketing
statistics
Average market
prices achieved
Platinum US$/oz 1 085 1 906 (43) 1 570
Palladium US$/oz 212 436 (51) 355
Rhodium US$/oz 1 255 5 833 (78) 5 174
Gold US$/oz 950 911 4 885
Copper US$/lb 1.64 3.53 (54) 3.15
Nickel US$/lb 5.14 12.14 (58) 9.79
US$ Basket price US$/oz Pt 1 522 3 115 (51) 2 764
(Net sales revenue sold
per refined Pt
ounce sold)
US$ Basket price US$/oz PGM 833 1 709 (51) 1 449
(Net sales revenue sold
per PGM oz sold)
Platinum R/oz 9 877 14 678 (33) 12 640
Palladium R/oz 1 904 3 354 (43) 2 887
Rhodium R/oz 11 399 45 005 (75) 42 145
Gold R/oz 8 503 7 007 21 7 580
Copper R/lb 14.84 27.30 (46) 25.85
Nickel R/lb 45.89 92.78 (51) 77.30
R Basket price (Net R/oz Pt sold 13 826 23 989 (42) 22 348
sales revenue per
refined Pt ounce
sold)
R Basket price (Net R/oz PGM sold 7 567 13 163 (43) 11 716
sales revenue per
PGM oz sold)
Average exchange R/US$ 9.0832 7.7004 18 8.0850
rate achieved on
sales
Exchange rate at R/US$ 7.7400 7.8280 (1) 9.2999
end of period/year
Financial
statistics and
ratios
Gross profit margin % 4.0 41.2 (90) 33.7
Earnings before R millions 2 457 13 044 (81) 21 206
interest, taxation,
depreciation and
amortisation
(EBITDA)
Operating profit to % 2.3 65.9 (97) 46.5
average operating
assets
Return on average % 18.1 58.2 (69) 50.3
shareholders`
equity
Return on average % 2.2 65.3 (97) 46.9
capital employed
Interest cover - 2.1 27.4 (92) 15.2
EBITDA
Net debt to total % 35.8 14.8 142 31.2
capital employed
Interest-bearing % 13.6 32.4 (58) 55.4
debt to
shareholders`
equity
Net asset value per R 136.0 135.1 1 124.4
ordinary share
Cost of sales per R 13 289 14 247 7 14 922
total Pt oz sold *
Cash operating cost R 10 775 10 594 (2) 11 096
per equivalent Pt
oz (excluding
ounces from
purchased
concentrate and
associated costs)
Cash operating cost R 12 734 11 979 (6) 11 448
per refined Pt
ounce
Equivalent refined 000 oz 1 243.9 1 128.2 10 2 465.3
platinum production
Pipeline stock 000 oz - 46.8 (100) 46.8
adjustment
Refined platinum (1 056.4) (1 001.1) 6 (2 386.6)
production
Mining (865.8) (810.5) 7 (1 946.8)
Purchase of (190.6) (190.6) - (439.8)
concentrate
Platinum pipeline 187.5 173.9 8 125.5
movement
* Not reviewed or audited
REGISTERED OFFICE
55 Marshall Street, Johannesburg, 2001
(P.O. Box 62179, Marshalltown, 2107)
Facsimile +27 11 373-5111
Telephone +27 11 373-6111
SOUTH AFRICAN REGISTRARS
Computershare Investor Services (Pty) Limited
(Registration No. 2004/003647/07)
70 Marshall Street, Johannesburg, 2001
(P.O. Box 61051, Marshalltown, 2107)
Facsimile +27 11 688-5200
Telephone +27 11 370-5000
LONDON SECRETARIES
Anglo American Services (UK) Ltd,
20 Carlton House Terrace, London,
SW1Y 5AN, England
Facsimile +44 207 968-8755
Telephone +44 207 968-8888
UNITED KINGDOM REGISTRARS
Capita Registrars Limited
The Registry, 34 Beckenham Road,
Beckenham, Kent, BR3 4TU, England
Facsimile +44 208 658-3430
Telephone +44 871 664-0300 (within UK)
+44 208 639-3399 (outside UK)
Detailed results are available on the Internet at: http://www.angloplatinum.com
E-mail enquiries should be directed to:
apoulter@angloplat.com
DIRECTORS AND COMPANY SECRETARY
EXECUTIVE DIRECTORS: N F Nicolau (Chief Executive Officer), B Nqwababa (Chief
Financial Officer).
NON-EXECUTIVE DIRECTORS: T M F Phaswana (Chairman), C B Carroll (American), K D
Dlamini, R J King (British), R Medori (French).
INDEPENDENT NON-EXECUTIVE DIRECTORS: T A Wixley (Deputy Chairman), R M W Dunne
(British), Dr B A Khumalo, W E Lucas-Bull, M V Moosa, S E N Sebotsa.
ALTERNATE DIRECTORS: P G Whitcutt.
GROUP COMPANY SECRETARY: J D Meyer.
27 July 2009
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 27/07/2009 08:00:02 Produced by the JSE SENS Department.
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