| Mon 12 Feb 2001, 0:00 | | Anglo American Platinum Corporation Limited Result |
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Anglo American Platinum Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/022452/06)
A member of the Anglo American plc group
PRELIMINARY Report
for the year ended 31 December 2000
Highlights for the year ended 31 December 2000
Net profit attributable to
ordinary shareholders totalled
R6,9 billion which exceeds US$ 1 billion
Gross profit on metal sales + 178,7%
Net profit attributable to
ordinary shareholders + 165,6%
Headline earnings per share + 159,9%
Dividends per share
(interim, final and special) + 244,3%
Consolidated income statement
Year Year
ended ended
31 December 31 December %
R millions 2000 1999 Change
Gross sales revenue 16 185,6 8 794,9 84,0
Commissions paid 648,6 276,9 134,2
Net sales revenue 15 537,0 8 518,0 82,4
Cost of sales 6 675,8 5 338,7 25,0
Cash operating costs 5 871,4 5 056,3 16,1
On-mine costs 4 934,6 4 187,5 17,8
Smelting costs 336,9 330,7 1,9
Treatment and refining costs 599,9 538,1 11,5
Amortisation of operating assets 395,8 304,5 30,0
Increase in metal inventories (100,0) (239,7) (58,3)
Transfer from metal lease
liability - (64,4) (100,0)
Other costs 508,6 282,0 80,4
Gross profit on metal sales 8 861,2 3 179,3 178,7
Other net income 593,5 56,0 959,8
Net profit on disposal of
mineral rights and investments 122,7 - 100,0
Market development and
promotional expenditure (180,2) (139,1) 29,5
Operating profit 9 397,2 3 096,2 203,5
Net investment income 295,6 120,6 145,1
Income from associate 157,6 - 100,0
Profit before taxation 9 850,4 3 216,8 206,2
Taxation 2 932,4 612,3 378,9
- Current 2 319,3 566,8 309,2
- Deferred - provision 613,1 256,8 138,7
- rate change - (211,3) (100,0)
Net profit attributable
to ordinary shareholders 6 918,0 2 604,5 165,6
Headline earnings 6 795,3 2 604,5 160,9
Number of ordinary
shares in issue (millions) 217,0 216,1 0,4
Weighted average number of
ordinary shares in issue
(millions) 216,3 215,5 0,4
Earnings per share (cents)
- Attributable (basic) 3 198,3 1 208,6 164,6
- Headline 3 141,6 1 208,6 159,9
- Diluted (attributable) 3 141,7 1 186,0 164,9
- Diluted (headline) 3 086,0 1 186,0 160,2
Dividends per share (cents) 2 410,0 700,0 244,3
- Interim 710,0 275,0 158,2
- Proposed/final 1 100,0 425,0 158,8
- Proposed special 600,0 - 100,0
Dividend cover (headline
earnings before special
dividend) 1,7 1,7 -
Dividend cover (headline
earnings after special dividend) 1,3 1,7 (23,5)
Reconciliation between attributable
and headline earnings
Net profit attributable to
ordinary shareholders 6 918,0 2 604,5 165,6
Adjustment:
Net profit on disposal of
mineral rights and investments (122,7) - (100,0)
Headline earnings 6 795,3 2 604,5 160,9
Consolidated balance sheet
As at As at
31 December 31 December
R millions 2000 1999
ASSETS
Non-current assets
Property, plant and equipment 6 045,1 4 794,8
Capital work-in-progress 1 845,0 1 633,0
Platinum Producers' Environmental Trust 53,3 39,4
Investment in associate 277,1 -
Investments 4,4 1,0
Non-current receivable 193,2 -
8 418,1 6 468,2
Current assets 9 084,7 4 203,3
Inventories 1 350,8 1 228,7
Accounts receivable 1 611,1 760,1
Cash and cash equivalents 6 122,8 2 214,5
Total assets 17 502,8 10 671,5
Equity and Liabilities
Share capital and reserves
Share capital 21,7 21,6
Share premium 1 836,4 1 779,3
Non-distributable reserve - 8,9
Accumulated profits before
proposed dividends 9 856,0 5 386,5
Accumulated profits after
proposed dividends 6 166,8 4 468,1
Proposed ordinary dividend
payable (No. 96) (1999: No. 94) 2 387,1 918,4
Proposed special dividend 1 302,1 -
Shareholders' equity 11 714,1 7 196,3
Non-current liabilities 2 825,2 2 168,5
Borrowings 19,3 34,0
Deferred taxation 2 097,0 1 524,8
Environmental rehabilitation
obligation 148,8 127,9
Employees' service benefits 560,1 481,8
Current liabilities 2 963,5 1 306,7
Accounts payable 1 146,9 838,6
Taxation 1 816,6 468,1
Total equity and liabilities 17 502,8 10 671,5
Group statement of change in shareholders' equity
Non-
Share Share distribu- Accumu-
table lated
R millions capital premium reserve profits Total
Balance
previously
reported
at 31 December
1998 21,5 1 726,2 8,9 3 367,0 5 123,6
Change in
accounting
policy
in respect of
- Proposal for
dividend
no. 92 419,4 419,4
- Provision for
taxation (STC) 8,9 8,9
Restated
balance at
31 December
1998 21,5 1 726,2 8,9 3 795,3 5 551,9
Net profit
attributable
to ordinary
shareholders 2 604,5 2 604,5
Dividends paid in cash (1 013,3) (1 013,3)
Share capital
issued 0,1 53,1 53,2
Restated balance
at 31 December
1999 21,6 1 779,3 8,9 5 386,5 7 196,3
Net profit
attributable
to ordinary
shareholders 6 918,0 6 918,0
Dividends paid in cash (2 457,4) (2 457,4)
Share capital
issued 0,1 57,1 57,2
Transfer (8,9) 8,9 -
Balance at
31 December
2000 21,7 1 836,4 - 9 856,0 11 714,1
Consolidated cash flow statement
Year Year
ended ended
31 December 31 December
R millions 2000 1999
Cash flows from operating activities
Cash receipts from customers 14 787,4 8 435,0
Cash paid to suppliers and employees (5 869,1) (5 200,1)
Cash from operations 8 918,3 3 234,9
Interest paid (6,8) (18,9)
Taxation paid (962,7) (243,4)
Net cash from operating activities 7 948,8 2 972,6
Cash flows used in investing activities
Purchase of property, plant and
equipment (1 919,7) (1 472,9)
To maintain operations (569,3) (472,6)
To expand operations (1 350,4) (1 000,3)
Proceeds from sale of plant and
equipment 31,0 24,7
Other investments acquired (3,1) -
Investment in associate (107,0) -
Interest received 302,7 132,9
Growth in Platinum Producers'
Environmental Trust 4,6 4,0
Dividends received from associate 60,9 -
Dividends received 3,9 9,2
Net cash used in investing
activities (1 626,7) (1 302,1)
Cash flows used in financing activities
Proceeds from issuance of
share capital 0,1 0,1
Increase in share premium 57,1 53,1
Decrease in borrowings (13,6) (25,4)
Payment of long-term borrowings (13,6) (10,4)
Payment of finance lease liability - (15,0)
Dividends paid (2 457,4) (1 013,3)
Net cash used in financing
activities (2 413,8) (985,5)
Net increase in cash and
cash equivalents 3 908,3 685,0
Cash and cash equivalents at
beginning of year 2 214,5 1 529,5
Cash and cash equivalents
at end of year 6 122,8 2 214,5
Supplementary information
Year Year
ended ended
31 December 31 December %
R millions 2000 1999 Change
Investments
Listed investment in associate
- Carrying value 277,1 - -
- Market valuation 812,1 - -
Unlisted - at cost 4,4 1,0 340,0
- Directors' valuation 4,4 1,0 340,0
Capital expenditure for
the year 1 919,7 1 472,9 30,3
Commitments
Mining property, plant and equipment
Contracted for 486,3 501,3 (3,0)
Not yet contracted for 3 494,0 1 323,3 164,0
Authorised by the directors 3 980,3 1 824,6 118,1
Allocated for:
Expansion of capacity 3 040,4 926,9 228,0
- within one year 1 623,1 689,4 135,4
- thereafter 1 417,3 237,5 496,8
Maintenance of capacity 939,9 897,7 4,7
- within one year 421,0 489,0 (13,9)
- thereafter 518,9 408,7 27,0
Other
Operating lease rentals - premises 54,4 63,4 (14,2)
- due within one year 10,3 9,2 12,0
- due within two to
five years 44,1 49,2 (10,4)
- thereafter - 5,0 (100,0)
Information Technology
Service Providers 259,5 366,9 (29,3)
- due within one year 58,6 67,4 (13,1)
- due within two to five years 156,4 217,6 (28,1)
- thereafter 44,5 81,9 (45,7)
Amortisation and depreciation of
plant and equipment 436,8 346,7 26,0
Amortisation of operating assets 395,8 304,5 30,0
Mining 323,9 239,8 35,1
Smelting 31,9 28,4 12,3
Treatment and refining 37,5 33,9 10,6
Decommissioning asset 2,5 2,4 4,2
Depreciation - non-mining assets 41,0 42,2 (2,8)
Profit on sale of plant
and equipment 4,1 2,7 51,9
Notes to the supplementary information
1. The preliminary report has been prepared using accounting policies which are
in accordance with the standards issued by the International Accounting
Standards Committee and the South African Institute of Chartered Accountants.
These policies are consistent with those applied in the financial statements
for the year ended 31 December 1999 with the exception of:
- The Group adopted IAS 28 (AC 110) "Accounting for investments in associates"
as a result of acquiring a 22,5% interest in Northam Platinum Limited. The
effect of the adoption of IAS 28 (AC 110) is evident in the income statement
and balance sheet as reflected in respect of Income from associate and
Investment in associate. As this Investment in associate was acquired during
the year ended 31 December 2000, there was no impact on past earnings.
- In order to comply with the revised requirements of IAS 10 (AC 107) "Events
after the balance sheet date", the Group changed the treatment of dividends
proposed, whereby dividends and secondary taxation on companies (STC) thereon,
are recorded when the dividend is declared. The adoption of this treatment has
the effect that the related taxation charge (STC) is decreased by R411,2
million for the year ended 31 December 2000 (R24,9 million - for the year ended
31 December 1999). The cumulative effect on Accumulated profits as a result of
this treatment is reflected in the Group Statement of Change in Shareholders'
Equity.
- During the year the Group changed its accounting policy with reference to
"Environmental rehabilitation - Restoration costs". The effect of time value of
money is now accounted for in respect of provisions pertaining to Restoration
costs. The change in this accounting policy had no material effect on past
earnings.
- The Group has adopted IAS 39 (AC 133) "Financial Instruments: Recognition and
Measurement" ahead of its effective date. In terms of this accounting standard,
reporting enterprises should apply hedge accounting when and only when all
requirements set by the standard have been met, otherwise financial instruments
should be accounted for on a fair value basis. The fair value basis of
accounting was adopted. The early adoption of this standard had no effect on
past earnings.
2. The commitments will be funded from existing cash resources and future cash
flows.
3. Where appropriate, comparative figures have been restated.
Consolidated statistics
Year Year
ended ended
31 December 31 December %
2000 1999 Change
Production statistics
Tons mined
- PPRust
(opencast) (thousands) 30 183 34 730 (13,1)
Tons broken
- Underground
mines (thousands) 19 613 20 824 (5,8)
Tons milled
- Merensky
Reef (thousands) 13 729 13 582 1,1
- UG2 (thousands) 6 311 5 212 21,1
- Platreef (thousands) 4 177 4 059 2,9
- Other (thousands) 358 - 100,0
Total tons milled 24 575 22 853 7,5
% UG2 mined to total output 26 23 13,0
Built-up head
grade (g/ton) 5,05 5,40 (6,5)
Immediately
available
ore reserves (months) 14,0 16,1 (13,0)
Average number of
mine employees
- Underground mines 33 160 32 457 2,2
- Opencast mine (PPRust) 1 172 1 044 12,3
- Projects 1 589 543 192,6
Total average number
of employees 35 921 34 044 5,5
Efficiency measures
Refined platinum
ounces per total
employee 45,0 52,3 (14,0)
Metres face
advance (per month) 8,4 9,4 (10,6)
Square metres per stoping and
cleaning
employee (per month) 35,9 40,0 (10,3)
Tons broken per
total employee
- Underground
mines 564 634 (11,0)
Tons mined per
total employee
- PPRust 25 753 29 583 (12,9)
Refined production
Platinum (thousands) (oz) 1 871,7 2 022,7 (7,5)
Palladium (thousands) (oz) 946,6 1 017,2 (6,9)
Rhodium (thousands) (oz) 165,1 171,7 (3,8)
Gold (thousands) (oz) 97,9 106,9 (8,4)
Nickel (thousands) (tons) 19,2 19,6 (2,0)
Copper (thousands) (tons) 10,8 10,7 0,9
Marketing statistics
Average market prices achieved
Platinum (US $/oz) 544 377 44,3
Palladium (US $/oz) 675 358 88,5
Rhodium (US $/oz) 1 847 894 106,6
Nickel (US $/lb) 3,86 2,58 49,6
Net sales
revenue per
Pt ounce sold (US $) 1 198 716 67,4
Average Pt R/US
$ exchange rate 6,9977 6,1547 13,7
Platinum (R/oz) 3 804 2 317 64,2
Palladium (R/oz) 4 739 2 206 114,8
Rhodium (R/oz) 12 864 5 553 131,7
Nickel (R/lb) 26,63 15,82 68,3
Net sales
revenue per
Pt ounce sold (R) 8 287 4 366 89,8
Profitability
and cost statistics
Gross sales revenue
per ton milled (R/ton) 659 385 71,2
Return on average
shareholders'
equity (%) 73,2 40,9 79,0
Gross profit margin (%) 54,7 36,1 51,5
Operating profit
to average
operating assets (%) 114,9 49,2 133,5
Operating performance
Cash operating
costs per Pt
ounce refined (R) 3 137 2 500 25,5
Cash operating
costs per 4E
kilogram refined (R) 61 263 48 987 25,1
Consolidated
operating
income
statement (R millions)
Net sales revenue 15 537,0 8 518,0 82,4
Operating cost
of sales* (6 167,2) (5 056,7) 22,0
Operating contribution 9 369,8 3 461,3 170,7
Operating margin (%) 60,3 40,6 48,5
Analysis of operating
contribution by mine
Rustenburg Section 2 700,3 1 114,6 142,3
Union Section 1 534,1 543,3 182,4
Amandelbult Section 3 200,8 1 324,0 141,8
Bafokeng-Rasimone
Platinum Mine 374,0 4,3 8 597,7
Potgietersrust Platinums 1 318,1 414,2 218,2
Lebowa Platinum Mines 242,5 60,9 298,2
Consolidated
operating
contribution 9 369,8 3 461,3 170,7
Other costs 508,6 282,0 80,4
Gross profit on
metal sales 8 861,2 3 179,3 178,7
* Cost of sales excluding other costs.
Rustenburg Section
Production statistics and
efficiency measures
Tons broken (thousands) 7 734 8 837 (12,5)
Tons milled (thousands) 7 215 7 701 (6,3)
Built-up
head grade (g/ton) 5,32 5,65 (5,8)
Immediately
available
ore reserves (months) 16,1 15,9 1,3
Metres face
advance (per month) 8,6 9,2 (6,5)
Square metres
per stoping
and cleaning
employee (per month) 36,7 41,0 (10,5)
Tons broken
per total
employee 476 536 (11,2)
Average number of mine
employees
- excluding projects 16 256 16 481 (1,4)
- projects - -
Total average number
of mine employees 16 256 16 481 (1,4)
% UG2 mined to
total output 15 9 66,7
Platinum
ounces
refined (thousands) 630,8 767,8 (17,8)
Profitability
and cost
statistics
Net sales
revenue per Pt
ounce sold (R) 8 019 4 225 89,8
Operating performance
Cash operating
costs per Pt
ounce refined (R) 3 580 2 708 32,2
Cash operating
costs per
4E kilogram
refined (R) 73 261 56 079 30,6
Operating income
statement (R millions)
Net sales revenue 5 060,6 3 128,1 61,8
Operating cost
of sales* (2 360,3) (2 013,5) 17,2
Operating contribution 2 700,3 1 114,6 142,3
Operating margin (%) 53,4 35,6 50,0
* Cost of sales
excluding other
costs.
Union section
Production statistics and
efficiency measures
Tons broken (thousands) 3 497 3 982 (12,2)
Tons milled (thousands) 4 159 3 749 10,9
Built-up
head grade (g/ton) 4,89 5,38 (9,1)
Immediately available
ore reserves (months) 13,4 14,5 (7,6)
Metres face
advance (per month) 7,0 7,4 (5,4)
Square metres
per stoping
and cleaning
employee (per month) 36,9 35,1 5,1
Tons broken per total
employee 576 677 (14,9)
Average number of mine
employees
- excluding projects 6 071 5 878 3,3
- projects - -
Total average number
of mine employees 6 071 5 878 3,3
% UG2 mined to
total output 69 75 (8,0)
Platinum
ounces
refined (thousands) 288,8 333,1 (13,3)
Profitability and cost statistics
Net sales revenue per Pt
ounce sold (R) 8 503 4 320 96,8
Operating performance
Cash operating
costs per Pt
ounce refined (R) 3 182 2 562 24,2
Cash operating
costs per
4E kilogram
refined (R) 62 341 50 623 23,1
Operating
income
statement (R millions)
Net sales revenue 2 491,5 1 383,6 80,1
Operating cost of sales* (957,4) (840,3) 13,9
Operating contribution 1 534,1 543,3 182,4
Operating margin (%) 61,6 39,3 56,7
* Cost of sales
excluding other costs.
Amandelbult Section
Production statistics and
efficiency measures
Tons broken (thousands) 6 505 6 708 (3,0)
Tons milled (thousands) 6 412 6 222 3,1
Built-up
head grade (g/ton) 5,56 5,86 (5,1)
Immediately available
ore reserves (months) 19,0 21,1 (10,0)
Metres face
advance (per month) 8,9 9,4 (5,3)
Square metres
per stoping
and cleaning
employee (per month) 36,2 41,3 (12,3)
Tons broken per total
employee 742 811 (8,5)
Average number of mine
employees
- excluding projects 8 614 8 036 7,2
- projects 148 231 (35,9)
Total average number
of mine employees 8 762 8 267 6,0
% UG2 mined to
total output 32 29 10,3
Platinum
ounces
refined (thousands) 570,8 637,7 (10,5)
Profitability and cost statistics
Net sales revenue per Pt
ounce sold (R) 8 077 4 151 94,6
Operating performance
Cash operating
costs per
Pt ounce refined (R) 2 252 1 859 21,1
Cash operating
costs per
4E kilogram
refined (R) 45 354 37 780 20,0
Operating
income
statement (R millions)
Net sales revenue 4 603,0 2 518,0 82,8
Operating
cost of sales* (1 402,2) (1 194,0) 17,4
Operating contribution 3 200,8 1 324,0 141,8
Operating margin (%) 69,5 52,6 32,2
* Cost of sales
excluding other costs.
Bafokeng-Rasimone Platinum Mine
Production statistics and
efficiency measures
Tons broken (thousands) 610 - -
Tons milled (thousands) 1 533 101 1 417,8
Built-up
head grade (g/ton) 4,61 - -
Immediately
available
ore reserves (months) 3,0 - -
Metres face
advance (per month) 5,4 - -
Square metres
per stoping
and cleaning
employee (per month) 15,4 - -
Tons broken per total
employee 426 - -
Average number of mine
employees
- excluding projects - - -
- projects 1 433 178 705,1
Total average
number of mine
employees 1 433 178 705,1
% UG2 mined to
total output 9 - -
Platinum
ounces
refined (thousands) 115,0 4,2 2 638,1
Profitability
and cost
statistics
Net sales
revenue per Pt
ounce sold (R) 6 533 4 359 49,9
Operating
performance
Cash operating
costs per
Pt ounce refined (R) 3 458 3 643 (5,1)
Cash operating costs per
4E kilogram
refined (R) 81 442 79 340 2,6
Operating
income
statement (R millions)
Net sales revenue 748,0 17,0 4 300,0
Operating cost of sales* (374,0) (12,7) 2 844,9
Operating contribution 374,0 4,3 8 597,7
Operating margin (%) 50,0 25,3 97,6
* Cost of sales excluding other costs.
Potgietersrust platinums
Production statistics and
efficiency measures
Tons mined (thousands) 30 183 34 730 (13,1)
Tons milled (thousands) 4 177 4 059 2,9
Built-up
head grade (g/ton) 4,33 4,59 (5,7)
Stripping ratio 8,7 7,9 10,1
Immediately
available ore
reserves
within the
pit (months) 6,7 1,3 415,4
Tons mined per total
employee 25 753 29 583 (12,9)
Tons milled per total
employee 3 564 3 457 3,1
Average number of mine
employees
- excluding projects 1 172 1 044 12,3
- projects - 130 (100,0)
Total average number
of mine employees 1 172 1 174 (0,2)
Platinum
ounces refined (thousands) 194,1 201,1 (3,5)
Profitability and cost statistics
Net sales revenue per Pt
ounce sold (R) 10 745 5 627 91,0
Operating performance
Cash operating costs per
Pt ounce refined (R) 3 654 3 228 13,2
Cash operating
costs per
4E kilogram
refined (R) 52 874 46 802 13,0
Operating income
statement (R millions)
Net sales revenue 2 085,7 1 131,5 84,3
Operating cost of sales* (767,6) (717,3) 7,0
Operating contribution 1 318,1 414,2 218,2
Operating margin (%) 63,2 36,6 72,7
* Cost of sales excluding other costs.
Lebowa Platinum Mines
Production statistics and
efficiency measures
Tons broken (thousands) 1 267 1 297 (2,3)
Tons milled (thousands) 1 079 1 021 5,7
Built-up
head grade (g/ton) 4,26 4,56 (6,6)
Immediately
available
ore reserves (months) 24,1 15,2 58,6
Metres face
advance (per month) 9,0 9,0 -
Square metres
per stoping
and cleaning
employee (per month) 35,0 38,4 (8,9)
Tons broken per total
employee 569 628 (9,4)
Average number of mine
employees
- excluding projects 2 219 2 062 7,6
- projects 8 4 100,0
Total average number
of mine employees 2 227 2 066 7,8
% UG2 mined to total output 18 - -
Platinum ounces
refined (thousands) 72,2 78,8 (8,4)
Profitability and cost statistics
Net sales revenue per Pt
ounce sold (R) 7 593 4 312 76,1
Operating performance
Cash operating costs per
Pt ounce refined (R) 4 179 3 475 20,3
Cash operating
costs per
4E kilogram
refined (R) 83 047 71 221 16,6
Operating
income
statement (R millions)
Net sales revenue 548,2 339,8 61,3
Operating cost of sales* (305,7) (278,9) 9,6
Operating contribution 242,5 60,9 298,2
Operating margin (%) 44,2 17,9 146,9
* Cost of sales excluding other costs.
Commentary
Financial Results
The Group achieved record financial results for the year, far exceeding its
performance in any preceding year. Net profit attributable to ordinary
shareholders amounted to R6,92 billion which was R4,31 billion or 165,6% higher
than last year's figure and translates into a little over US$1 billion at the
average exchange rate for the year.
Gross sales revenue rose by R7,39 billion or 84,0% to R16,19 billion (1999:
R8,80 billion), mainly due to higher US dollar metal prices for platinum group
metals. The average price of US$544 per ounce realised for platinum in 2000 was
US$167 higher than in 1999. The realised prices for palladium and rhodium were
also significantly higher than those achieved in 1999; palladium realised
US$675 per ounce compared with US$358 and rhodium US$1 847 per ounce compared
with US$894 per ounce. The higher metal prices increased gross sales revenue by
R6,01 billion, while the 13,5% weakening of the rand against the US dollar
contributed R1,18 billion. Higher rhodium sales volumes, offset by lower
platinum and palladium sales, resulted in an additional R204,8 million in gross
sales revenue.
Cost of sales increased by R1,34 billion or 25,0%. The increase was largely due
to expansionary activity, higher operating costs, the non-recurrence of a metal
lease settlement and a lower increase in the value of metal inventories and in
other costs - to higher royalty payments consequent upon larger profits, to
higher exploration costs, a more extensive operations research and development
programme and larger contributions to social investment projects.
Operations were affected by several factors. Extensive flooding during
February, March and April resulted in a loss of 67 000 ounces of refined
platinum production, and a further 55 000 ounces were lost owing to the strike
during September and October. In addition, the development and staffing of new
mining operations which have not yet attained targeted capacity, resulted in a
deterioration in efficiencies. Notwithstanding these events, tons milled
increased by 7,5%. The average built-up head grade declined by 6,5% as a result
of the processing of Bafokeng Rasimone opencast ore, lower grade development
material processed during the commissioning of the Amandelbult UG2 and
Middelpunt Hill plants, and an increase in the proportion of UG2 ore milled.
The above factors, combined with inflationary pressures and the cost in
efficiencies normally experienced during the early stages of bringing
expansions to production, adversely affected unit costs. The cash operating
cost per ton milled increased by 8,0%, and the cash operating cost per platinum
refined ounce by 25,5%. Despite the increase in tons milled, output of platinum
refined ounces declined 7,5% as a result of a reduction in built-up head grade
and lower recoveries in the process division. Other metal revenue per platinum
refined ounce exceeded the cash operating cost of platinum production by R1 700
per platinum refined ounce.
Other net income rose by R537,5 million, due to a higher gain on translation of
foreign operations and higher gains achieved on the repatriation of dollar
revenues.
The Group's share in earnings in Northam Platinum Limited, which contributed to
profit before taxation for the first time this year, amounted to R157,6 million
The increase in the tax charge was primarily attributable to higher taxable
income, to the write-back of deferred taxation in 1999 following the change in
the company tax rate from 35% to 30%, and to increases in the State's share of
profit and secondary tax on companies.
Cash Reserves
Cash generated by operating activities amounted to R7,95 billion compared with
R2,97 billion in 1999. Net cash applied in respect of investing activities,
primarily capital expenditure, amounted to R1,63 billion (1999: R1,30 billion).
Net cash applied in financing activities and the payment of dividends amounted
to R2,41 billion (1999: R985,5 million). Cash and cash equivalents at the end
of 2000 amounted to R6,12 billion.
Capital Expenditure
Capital expenditure for the year amounted to R1,92 billion (1999: R1,47
billion). Expenditure for expansion was R1,35 billion (1999: R1,00 billion),
while that for maintaining operations was R569,3 million (1999: R472,6 million)
Expansion Projects
Shareholders are aware that on 16 May 2000 the Group announced that it would
expand operations from the 1999 calendar year base of some 2 million ounces to
produce 3,5 million ounces of refined platinum by 2006 at an estimated cost of
R12,6 billion (in 2000 money terms). To date expansion projects, accounting for
some 1 million ounces, have been announced.
The Bafokeng Rasimone Platinum Mine accounted for R370,7 million of the
expansion expenditure for the year. The development of the underground
operations was delayed by the excessive flooding in the first half of 2000.
However, the designed milling rate of 200 000 tons per month will be achieved
by October 2001, and refined platinum production is expected to exceed 190 000
ounces in 2001. Designed underground output of 250 000 ounces per annum is
expected to be achieved in 2002.
Capital expenditure for Amandelbult's UG2 and Lebowa's Middelpunt Hill projects
amounted to R153,7 million and R83,1 million respectively. The projects were
commissioned on time and within budget and are producing at the planned rate of
107 000 ounces per annum.
Work commenced on the Maandagshoek project, which is planned to produce 162 000
ounces of platinum per annum from 1 March 2002 and to cost R1,35 billion in
2000 money terms. Mining authorisation for the South Shaft area was received on
6 November 2000 and the first blast was carried out on 9 November 2000.
Authorisation for the North Shaft is expected to be granted in early 2001.
Discussions with the African Rainbow Minerals-led Black Economic Empowerment
Consortium in terms whereof they will acquire a 50% interest in the project and
be responsible for 50% of the capital expenditure, are continuing.
Construction commenced during the year on the Anglo Platinum Converting
Project, which is designed to significantly reduce sulphur dioxide emissions
from the Waterval Smelter complex in Rustenburg. The total project is estimated
to cost R1,45 billion in July 2000 money terms and is scheduled for completion
by 2004.
During the year the Group announced expansion projects at Rustenburg (Waterval)
and Union Sections to produce 395 000 and 94 000 ounces of platinum per annum
at capital costs of R1,40 billion and R453,0 million in July 2000 money terms,
respectively. Both projects are scheduled for completion in 2002.
In addition, approval was granted for the construction of a new smelting
complex on the Eastern Limb of the Bushveld Complex. The approved capital
expenditure is R1,31 billion and the project is scheduled for completion in
2002. Furnace matte produced at the complex will be transported to Rustenburg
for treatment.
Further project announcements will be made in due course.
The Joint Venture between Kroondal Platinum Mines Limited (KPM), Aquarius
Platinum Limited (Aquarius) and Rustenburg Platinum Mines Limited, a
wholly-owned subsidiary of Anglo Platinum, which was announced in August 2000,
was subject to a number of suspensive conditions including the approval by the
Boards of KPM and Aquarius of the development programme for the Joint Venture.
Owing to the fact that the Boards of KPM and Aquarius did not approve the
aforementioned development programme, the Joint Venture lapsed. This
development will not affect the expansion programme.
Mineral rights
On 19 December 2000 an announcement was made that Anglo Platinum had reached
agreement with the Minister of Minerals and Energy concerning the granting of
mineral leases. The agreement secured for Anglo Platinum on the Eastern Limb of
the Bushveld Complex, the mineral resource required for its production and
expansions for the foreseeable future.
Safety
The Board regrets that despite concerted efforts at improving safety across its
operations, the Group's safety performance deteriorated during the year.
Notwithstanding this deterioration, both Union Section and Amandelbult recorded
3 million consecutive fatality-free shifts early in 2000, a record for both
Anglo Platinum and the industry.
The Anglo Platinum Zero Tolerance campaign, launched in August 1999, is being
constructively and collectively implemented with the object of eliminating
unsafe acts and conditions in the workplace.
Dividends
The Board has declared a final cash dividend of 1 100 cents (1999: 425 cents)
per ordinary share, which represents an increase of 158,8% over the same period
last year and brings the total for the year to 1 810 cents per share (1999: 700
cents), an increase of 158,6%. The dividend cover of 1,7 has been maintained.
The Group has accumulated large cash reserves and it is anticipated that these
reserves will continue to grow despite the extensive capital expenditure
programme referred to above. Therefore, in addition to the final dividend (No.
96) a special dividend in respect of the year ended 31 December 2000 of 600
cents per ordinary share has been declared.
The Board is satisfied that the capital remaining after the payment of both the
final and special dividends is sufficient to support the current operations and
facilitate future development of the business.
Furthermore, at the forthcoming Annual General Meeting, the Group intends to
seek a general authority from shareholders to repurchase a portion of its
shares.
Prospects
Provided the restrained Russian selling pattern and a sound global economic
climate persist, platinum group metal markets are expected to remain firm.
Should PGM prices and the Rand/US dollar exchange rate remain at current
levels, it is expected that earnings for 2001 will show a significant
improvement over those achieved during 2000.
For and on behalf of the Board
L Boyd (Chairman) Johannesburg
B E Davison (Managing Director) 12 February 2001
Consolidated income statement
UNITED STATES DOLLAR EQUIVALENT
Year Year
ended ended
31 December 31 December %
US$ millions 2000 1999 Change
Gross sales revenue 2 340,8 1 443,3 62,2
Commissions paid 93,8 45,4 106,6
Net sales revenue 2 247,0 1 397,9 60,7
Cost of sales 965,5 876,2 10,2
Cash operating costs 849,2 829,8 2,3
On-mine costs 713,7 687,2 3,9
Smelting costs 48,7 54,3 (10,3)
Treatment and
refining costs 86,8 88,3 (1,7)
Amortisation of
operating assets 57,2 50,0 14,4
Increase in metal
inventories (14,5) (39,3) (63,1)
Transfer from metal
lease liability - (10,6) (100,0)
Other costs 73,6 46,3 59,0
Gross profit on
metal sales 1 281,5 521,7 145,6
Other net income 85,8 9,2 832,6
Net profit on
disposal of mineral
rights and investments 17,7 - 100,0
Market development and
promotional expenditure (26,1) (22,8) 14,5
Operating profit 1 358,9 508,1 167,4
Net investment income 42,8 19,8 116,2
Income from associate 22,8 - 100,0
Profit before taxation 1 424,5 527,9 169,8
Taxation 424,1 100,5 322,0
Net profit attributable to
ordinary shareholders 1 000,4 427,4 134,1
Dividends (355,4) (166,3) 113,7
Exchange rate
translation adjustment (219,1) (31,2) 601,6
Accumulated profits
at beginning of year 875,2 645,3 35,6
Accumulated profits
at end of year 1 301,1 875,2 48,7
Average Rand/US$
exchange rate 6,9145 6,0936
Weighted average
number of ordinary
shares in issue (millions) 216,3 215,5 0,4
Earnings per share (cents)
- Attributable 462,5 198,3 133,2
- Headline 454,3 198,3 129,1
Income statement items
were converted at the
average exchange rate for the year.
Consolidated balance sheet
UNITED STATES DOLLAR EQUIVALENT
As at As at
31 December 31 December
US$ millions 2000 1999
ASSETS
Non-current assets
Property, plant and equipment 798,0 779,0
Capital work-in-progress 243,6 265,3
Platinum Producers' Environmental Trust 7,0 6,4
Investment in associate 36,6 -
Investments 0,6 0,2
Non-current receivable 25,5 -
1 111,3 1 050,9
Current assets 1 199,2 682,9
Inventories 178,3 199,6
Accounts receivable 212,6 123,5
Cash and cash equivalents 808,3 359,8
Total assets 2 310,5 1 733,8
Equity and liabilities
Share capital and reserves
Share capital 2,9 3,5
Share premium 242,4 289,1
Non-distributable reserve - 1,4
Accumulated profits before
proposed dividends 1 301,1 875,2
Accumulated profits after
proposed dividends 814,1 726,0
Proposed ordinary dividend
payable (No. 96) (1999: No.94) 315,1 149,2
Proposed special dividend 171,9 -
Shareholders' equity 1 546,4 1 169,2
Non-current liabilities 372,8 352,3
Borrowings 2,5 5,5
Deferred taxation 276,8 247,7
Environmental rehabilitation obligation 19,6 20,8
Employees' service benefits 73,9 78,3
Current liabilities 391,3 212,3
Accounts payable 151,5 136,3
Taxation 239,8 76,0
Total equity and liabilities 2 310,5 1 733,8
Closing Rand/US$ exchange rate 7,5750 6,1547
Balance sheet items have been converted at the closing rate.
Consolidated cash flow statement
UNITED STATES DOLLAR EQUIVALENT
Year Year
ended ended
31 December 31 December
US$ millions 2000 1999
Cash flows from operating activities
Cash receipts from customers 2 138,6 1 384,2
Cash paid to suppliers and employees (848,8) (853,3)
Cash from operations 1 289,8 530,9
Interest paid (1,0) (3,1)
Taxation paid (139,2) (39,9)
Net cash from operating activities 1 149,6 487,9
Cash flows used in investing activities
Purchase of property, plant and equipment (277,6) (241,8)
To maintain operations (82,3) (77,6)
To expand operations (195,3) (164,2)
Proceeds from sale of plant and equipment 4,5 4,1
Other investments acquired (0,4) -
Investment in associate (15,5) -
Interest received 43,8 21,8
Growth in Platinum Producers'
Environmental Trust 0,7 0,7
Dividends received from associate 8,8 -
Dividends received 0,6 1,5
Net cash used in investing activities (235,1) (213,7)
Cash flows used in financing activities
Proceeds from issuance of share capital -* -*
Increase in share premium 8,3 8,7
Decrease in borrowings (2,0) (4,2)
Payment of long-term borrowings (2,0) (1,7)
Payment of finance lease liability - (2,5)
Dividends paid (355,4) (166,3)
Net cash used in financing activities (349,1) (161,8)
Net increase in cash and cash equivalents 565,4 112,4
Exchange difference (116,9) (12,7)
Cash and cash equivalents at
beginning of year 359,8 260,1
Cash and cash equivalents at end of year 808,3 359,8
* = Less than US$50 000
Declaration of final ordinary dividend (No. 96) and special dividend
Notice is hereby given that a final dividend of 1 100 cents per ordinary share,
in the currency of the Republic of South Africa, has been declared in respect
of the financial year ended 31 December 2000. In addition, a special dividend
of 600 cents per ordinary share, in the currency of the Republic of South
Africa, has been declared in respect of the financial year ended 31 December
2000. Payments from London will be made in United Kingdom currency.
2001
Last day for registration Friday, 2 March
Registers close from Monday, 5 March
to (inclusive) Wednesday, 7 March
Currency conversion date
(for payments from London) Thursday, 22 March
Date of payment Monday, 2 April
Both dividends are payable subject to the customary conditions which may be
inspected at or obtained from the Company's Johannesburg office or from the
office of the London Secretaries.
United Kingdom Income Tax will be deducted from the dividends where applicable.
By order of the Board
DA Freemantle
Company Secretary
Johannesburg
12 February 2001
Administration
DIRECTORS
LBoyd (Chairman), BE Davison (Managing Director), CBBrayshaw, Dr J W Campbell,
JADreyer, DTGEmmett, EFord (British), MWKing, W A Nairn, B E Ngubane, G R
Pardoe, PFRetief, AJ Trahar, RHHvan Kerckhoven (Belgian).
ALTERNATE DIRECTORS
A H Calver (British), J M Halhead (British), P J V Kinver (British), R
Pilkington, V P Uren.
REGISTERED OFFICE
28 Harrison Street
Johannesburg, 2001
(P.O. Box 62179
Marshalltown, 2107)
Facsimile (011) 373-5111
Telephone (011) 373-6111
South african transfer secretaries
Computershare Services Limited
(Registration No. 1958/03546/06)
2nd Floor, Edura, 41 Fox Street
Johannesburg, 2001
(P.O. Box 61051, Marshalltown, 2107)
Facsimile (011) 836-0792/6145
Telephone (011) 370-7700
LONDON SECRETARIES
Anglo American Services (UK) Limited
20 Carlton House Terrace
London, SW1Y 5AN, England
Facsimile (0207) 698-8755
Telephone (0207) 698-8888
UNITED KINGDOM REGISTRARS
IRG plc, Balfour House
390-398 High Road
Ilford, Essex IG1 1NQ, England
Facsimile (0207) 478-7717
Telephone (0207) 478-8241
Internet Address: http://www.angloplatinum.com
E-mail enquiries should be directed to: mmtakati@angloplat.com
