| Mon 6 Aug 2001, 0:00 | | Anglo Platinum - Interim Report For The Six Months |
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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
Interim Report for the six months ended 30 June 2001
Highlights for the six months ended 30 June 2001
Headline earnings per share + 55,6%
Dividends per share + 54,9%
Steady state operations* cost per refined Pt oz + 1,8 %
Refined Pt oz production + 14,8%
Expansion to 3,5m Pt oz by 2006 confirmed
* Includes all operations except Bafokeng-Rasimone Platinum Mine, which is
in a production ramp-up phase.
Consolidated income statement
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 June 30 June % 31 December
R millions 2001 2000 Change 2000
Gross sales revenue 9 919,8 7 132,5 16 185,6
Commissions paid 441,8 264,9 648,6
Net sales revenue 9 478,0 6 867,6 38,0 15 537,0
Cost of sales 3 745,4 3 356,5 11,6 6 675,8
Cash operating costs 3 342,6 2 770,2 5 871,4
On-mine costs 2 835,3 2 323,1 4 934,6
Smelting costs 208,6 162,9 336,9
Treatment and
refining costs 298,7 284,2 599,9
Amortisation 252,6 198,8 395,8
(Increase)/decrease
in metal inventories (125,7) 148,5 (100,0)
Other costs 275,9 239,0 508,6
Gross profit on
metal sales 5 732,6 3 511,1 63,3 8 861,2
Other net income 321,1 209,8 593,5
Net profit on disposal
of mineral rights and
investments - 111,0 122,7
Market development
and promotional
expenditure (102,4) (91,4) (180,2)
Operating profit 5 951,3 3 740,5 59,1 9 397,2
Net investment income 231,3 101,2 295,6
Income from associate 108,7 61,3 157,6
Profit before taxation 6 291,3 3 903,0 61,2 9 850,4
Taxation 2 207,4 1 180,1 87,1 2 932,4
Current 2 074,8 924,8 2 319,3
Deferred 132,6 255,3 613,1
Net profit
attributable to
ordinary shareholders 4 083,9 2 722,9 50,0 6 918,0
Headline earnings 4 083,9 2 611,9 56,4 6 795,3
Number of ordinary
shares in issue
(millions) 217,5 216,4 217,0
Weighted average
number of ordinary
shares in issue
(millions) 217,2 216,2 216,3
Earnings per
share (cents)
- Attributable (basic) 1 880,2 1 259,4 49,3 3 198,3
- Headline 1 880,2 1 208,1 55,6 3 141,6
- Diluted
(attributable) 1 848,8 1 235,4 49,7 3 141,7
- Diluted (headline) 1 848,8 1 186,1 55,9 3 086,0
Proposed dividends
per share (cents) 1 100,0 710,0 54,9 2 410,0
- Interim 1 100,0 710,0 710,0
- Final - - 1 100,0
- Special - - 600,0
Dividend cover
(headline earnings
before special dividend) 1,7 1,7 1,7
Dividend cover
(headline earnings
after special dividend) 1,7 1,7 1,3
Reconciliation between
attributable and
headline earnings
Net profit attributable
to ordinary
shareholders 4 083,9 2 722,9 50,0 6 918,0
Adjustment:
Net profit on disposal
of mineral rights
and investments - (111,0) (122,7)
Headline earnings 4 083,9 2 611,9 56,4 6 795,3
Consolidated balance sheet
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
R millions 2001 2000 2000
ASSETS
Non-current assets
Property, plant
and equipment 7 233,7 6 239,6 6 045,1
Capital work-in-progress 1 376,4 716,0 1 845,0
Platinum Producers'
Environmental Trust 56,0 41,5 53,3
Investment in associate 295,8 265,7 277,1
Investments 4,5 1,6 4,4
Non-current receivable 198,6 - 193,2
9 165,0 7 264,4 8 418,1
Current assets 9 027,8 6 006,3 9 084,7
Inventories 1 490,4 1 070,3 1 350,8
Accounts receivable 1 963,0 1 356,9 1 611,1
Cash and cash
equivalents 5 574,4 3 579,1 6 122,8
Total assets 18 192,8 13 270,7 17 502,8
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 21,8 21,6 21,7
Share premium 1 867,4 1 796,6 1 836,4
Accumulated profits
before proposed
dividends 10 245,6 7 199,5 9 856,0
Accumulated profits
after proposed dividends 7 853,1 5 663,1 6 166,8
Proposed ordinary
dividend No. 97
(No. 95/No. 96) 2 392,5 1 536,4 2 387,1
Proposed special dividend - - 1 302,1
Shareholders' equity 12 134,8 9 017,7 11 714,1
Non-current liabilities 2 943,1 2 444,4 2 825,2
Borrowings 8,0 26,3 19,3
Deferred taxation 2 199,9 1 763,4 2 097,0
Environmental
rehabilitation obligation 162,9 136,3 148,8
Employees' service benefits 572,3 518,4 560,1
Current liabilities 3 114,9 1 808,6 2 963,5
Accounts payable 1 164,0 884,3 1 146,9
Taxation 1 950,9 924,3 1 816,6
Total equity
and liabilities 18 192,8 13 270,7 17 502,8
Group statement of change in shareholders' equity
Non-
distri- Accumu-
Share Share butable lated
R millions capital Premium reserve profits Total
Balance as at
31 December 1999 21,6 1 779,3 8,9 5 386,5 7 196,3
Net profit
attributable to
ordinary
shareholders 2 722,9 2 722,9
Dividend paid in cash (918,8) (918,8)
Share capital issued - 17,3 17,3
Transfer (8,9) 8,9 -
Balance as at
30 June 2000 21,6 1 796,6 - 7 199,5 9 017,7
Net profit
attributable to
ordinary shareholders 4 195,1 4 195,1
Dividend paid in cash (1 538,6) (1 538,6)
Share capital issued 0,1 39,8 39,9
Balance as at
31 December 2000 21,7 1 836,4 - 9 856,0 11 714,1
Net profit
attributable to
ordinary shareholders 4 083,9 4 083,9
Dividends paid in cash (3 694,3) (3 694,3)
Share capital issued 0,1 31,0 31,1
Balance as at
30 June 2001 21,8 1 867,4 - 10 245,6 12 134,8
Consolidated cash flow statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
R millions 2001 2000 2000
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash receipts
from customers 9 225,0 6 300,7 14 787,4
Cash paid to suppliers
and employees (3 477,5) (2 798,6) (5 869,1)
Cash from operations 5 747,5 3 502,1 8 918,3
Interest paid (2,7) (3,6) (6,8)
Taxation paid (1 932,0) (468,6) (962,7)
Net cash from
operating activities 3 812,8 3 029,9 7 948,8
CASH FLOWS USED IN
INVESTING ACTIVITIES
Purchase of property,
plant and equipment (1 002,2) (756,5) (1 919,7)
To maintain operations (343,5) (300,8) (569,3)
To expand operations (658,7) (455,7) (1 350,4)
Proceeds from sale
of plant and equipment 15,0 8,9 31,0
Other investments acquired (0,1) - (3,1)
Investment in associate - (126,8) (107,0)
Interest received 240,4 103,0 302,7
Growth in Platinum
Producers' Environmental
Trust 2,7 2,1 4,6
Dividends received
from associate 51,8 9,2 60,9
Dividends received 0,6 2,8 3,9
Net cash used in
investing activities (691,8) (757,3) (1 626,7)
CASH FLOWS USED IN
FINANCING ACTIVITIES
Proceeds from issuance
of share capital 0,1 -* 0,1
Increase in share premium 31,0 17,3 57,1
Decrease in
long-term borrowings (6,2) (6,5) (13,6)
Dividends paid (3 694,3) (918,8) (2 457,4)
Net cash used in
financing activities (3 669,4) (908,0) (2 413,8)
Net (decrease)/increase
in cash and cash
equivalents (548,4) 1 364,6 3 908,3
Cash and cash
equivalents at
beginning of year 6 122,8 2 214,5 2 214,5
Cash and cash
equivalents at end
of period/year 5 574,4 3 579,1 6 122,8
* = Less than R50 000.
Consolidated income statement
UNITED STATES DOLLAR EQUIVALENT
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
US$ millions 2001 2000 2000
Gross sales revenue 1 251,0 1 084,1 2 340,8
Commissions paid 55,7 40,3 93,8
Net sales revenue 1 195,3 1 043,8 2 247,0
Cost of sales 472,4 510,1 965,5
Cash operating costs 421,6 421,1 849,2
On-mine costs 357,6 353,1 713,7
Smelting costs 26,3 24,8 48,7
Treatment and
refining costs 37,7 43,2 86,8
Amortisation 31,9 30,2 57,2
(Increase)/decrease
in metal inventories (15,9) 22,6 (14,5)
Other costs 34,8 36,2 73,6
Gross profit on
metal sales 722,9 533,7 1 281,5
Other net income 40,5 31,9 85,8
Net profit on disposal of
mineral rights
and investments - 16,9 17,7
Market development and
promotional expenditure (12,9) (13,9) (26,1)
Operating profit 750,5 568,6 1 358,9
Net investment income 29,2 15,4 42,8
Income from associate 13,7 9,3 22,8
Profit before taxation 793,4 593,3 1 424,5
Taxation 278,4 179,4 424,1
Current 261,7 140,6 335,4
Deferred 16,7 38,8 88,7
Net profit attributable
to ordinary shareholders 515,0 413,9 1 000,4
Dividends (465,9) (139,7) (355,4)
Exchange rate
translation adjustment (76,7) (89,9) (219,1)
Accumulated profits at
beginning of year 1 301,1 875,2 875,2
Accumulated profits at
end of period/year 1 273,5 1 059,5 1 301,1
Average Rand/US$
exchange rate 7,9298 6,5790 6,9145
Weighted average
number of ordinary
shares in issue (millions) 217,2 216,2 216,3
Earnings per share (cents)
- Attributable (basic) 237,1 191,4 462,5
- Headline 237,1 183,6 454,3
- Diluted (attributable) 233,2 187,8 454,4
- Diluted (headline) 233,2 180,3 446,3
Income statement items were translated at the average exchange rate for the
period/year.
Consolidated balance sheet
UNITED STATES DOLLAR EQUIVALENT
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
US$ millions 2001 2000 2000
ASSETS
Non-current assets
Property, plant
and equipment 899,1 918,3 798,0
Capital work-in-progress 171,1 105,4 243,6
Platinum Producers'
Environmental Trust 6,9 6,1 7,0
Investment in associate 36,8 39,1 36,6
Investments 0,6 0,2 0,6
Non-current receivable 24,7 - 25,5
1 139,2 1 069,1 1 111,3
Current assets 1 122,2 883,9 1 199,2
Inventories 185,3 157,5 178,3
Accounts receivable 244,0 199,7 212,6
Cash and cash equivalents 692,9 526,7 808,3
Total assets 2 261,4 1 953,0 2 310,5
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 2,7 3,2 2,9
Share premium 232,1 264,4 242,4
Accumulated profits
before proposed dividends 1 273,5 1 059,5 1 301,1
Accumulated profits
after proposed dividends 976,1 833,4 814,1
Proposed ordinary dividend
No. 97 (No. 95/No. 96) 297.4 226,1 315,1
Proposed special dividend - - 171,9
Shareholders' equity 1 508,3 1 327,1 1 546,4
Non-current liabilities 365,9 359,8 372,8
Borrowings 1,0 3,9 2,5
Deferred taxation 273,5 259,5 276,8
Environmental
rehabilitation obligation 20,3 20,1 19,6
Employees' service benefits 71,1 76,3 73,9
Current liabilities 387,2 266,1 391,3
Accounts payable 144,7 130,1 151,5
Taxation 242,5 136,0 239,8
Total equity and
liabilities 2 261,4 1 953,0 2 310,5
Closing Rand/US$
exchange rate 8,0450 6,7950 7,5750
Balance sheet items have been translated at the closing rate.
Consolidated cash flow statement
UNITED STATES DOLLAR EQUIVALENT
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
US$ millions 2001 2000 2000
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash receipts
from customers 1 163,3 957,7 2 138,6
Cash paid to
suppliers and employees (438,6) (425,4) (848,8)
Cash from operations 724,7 532,3 1 289,8
Interest paid (0,3) (0,5) (1,0)
Taxation paid (243,6) (71,2) (139,2)
Net cash from
operating activities 480,8 460,6 1 149,6
CASH FLOWS USED IN
INVESTING ACTIVITIES
Purchase of property,
plant and equipment (126,4) (115,0) (277,6)
To maintain operations (43,3) (45,7) (82,3)
To expand operations (83,1) (69,3) (195,3)
Proceeds from sale of
plant and equipment 1,9 1,4 4,5
Other investments acquired -* - (0,4)
Investment in associate - (19,3) (15,5)
Interest received 30,3 15,7 43,8
Growth in Platinum
Producers' Environmental
Trust 0,3 0,3 0,7
Dividends received
from associate 6,5 1,4 8,8
Dividends received 0,1 0,4 0,6
Net cash used in
investing activities (87,3) (115,1) (235,1)
CASH FLOWS USED IN
FINANCING ACTIVITIES
Proceeds from issuance of
share capital -* -* -*
Increase in share premium 3,9 2,6 8,3
Decrease in
long-term borrowings (0,8) (1,0) (2,0)
Dividends paid (465,9) (139,7) (355,4)
Net cash used in
financing activities (462,8) (138,1) (349,1)
Net (decrease)/increase
in cash and cash
equivalents (69,3) 207,4 565,4
Exchange difference (46,1) (40,5) (116,9)
Cash and cash equivalents
at beginning of year 808,3 359,8 359,8
Cash and cash equivalents
at end of period/year 692,9 526,7 808,3
* = Less than US$50 000
Cash flow items were translated at the average exchange rate for the
period/year.
Supplementary information
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
R millions 2001 2000 2000
Investments
Listed investment
in associate
- Carrying value 295,8 265,7 277,1
- Market valuation 796,6 455,1 812,1
Unlisted - At cost 4,5 1,6 4,4
- Directors' valuation 4,5 1,6 4,4
Capital expenditure
for the period/year 1 002,2 756,5 1 919,7
Commitments
Mining property,
plant and equipment
Contracted for 1 646,1 645,7 486,3
Not yet contracted for 5 445,2 1 175,6 3 494,0
Authorised by
the directors 7 091,3 1 821,3 3 980,3
Allocated for:
Expansion of capacity 5 866,9 942,9 3 040,4
- within current
financial year 2 198,8 459,3 1 623,1
- thereafter 3 668,1 483,6 1 417,3
Maintenance of capacity 1 224,4 878,4 939,9
- within current
financial year 719,8 248,4 421,0
- thereafter 504,6 630,0 518,9
Other
Operating lease
rentals - premises 56,8 61,9 56,9
- due within current
financial year 6,2 5,0 10,8
- due within two
to five years 50,6 51,6 46,1
- thereafter - 5,3 -
Information Technology
Service Providers 230,4 291,8 259,5
- due within
current financial year 29,5 31,8 58,6
- due within two
to five years 156,4 186,2 156,4
- thereafter 44,5 73,8 44,5
Amortisation and
depreciation of property,
plant and equipment 270,9 221,5 436,8
Amortisation of
operating assets 252,6 198,8 395,8
Mining 205,9 162,9 323,9
Smelting 19,3 15,9 31,9
Treatment and refining 26,0 18,8 37,5
Decommissioning asset 1,4 1,2 2,5
Depreciation -
non-mining assets 18,3 22,7 41,0
Profit on sale of
plant and equipment 3,7 1,7 4,1
Notes to the supplementary information
1. The interim report has been prepared using accounting policies which are
in accordance with South African Statements of Generally Accepted Accounting
Practice and International Accounting Standards. These policies are
consistent with those applied in the financial statements for the year ended
31 December 2000.
2. Where appropriate, comparative figures have been restated.
Consolidated statistics
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
Total operations 2001 2000 2000
Marketing statistics
Average market prices achieved
Platinum (US$/oz) 600 500 544
Palladium (US$/oz) 784 586 675
Rhodium (US$/oz) 1 976 1 701 1 847
Nickel (US$/lb) 2,99 4,18 3,86
Net sales revenue
per Pt ounce sold (US$) 1 233 1 116 1 198
Platinum (R/oz) 4 754 3 306 3 804
Palladium (R/oz) 6 197 3 880 4 739
Rhodium (R/oz) 15 623 11 302 12 864
Nickel (R/lb) 23,69 27,26 26,63
Net sales revenue
per Pt ounce sold (R) 9 776 7 343 8 287
Average Pt exchange
rates achieved (R : $) 7,9196 6,6129 6,9977
Exchange rates at
end of period (R : $) 8,0450 6,7950 7,5750
Profitability statistics
Gross sales revenue
per ton milled (R) 751 612 659
Gross profit margin (%) 57,8 49,2 54,7
Earnings before
interest, taxation
depreciation and
amortisation
(EBITDA) (R millions) 6 003,5 3 732,6 9 298,0
Operating profit
to average
operating assets (%) 121,8 96,0 117,6
Return on average
shareholders' equity (%) 77,2 71,3 73,2
Return on capital employed (%) 67,3 60,2 59,0
Refined production
Platinum (thousands) (oz) 1 000,6 871,9 1 871,7
Palladium (thousands) (oz) 478,8 436,5 946,6
Rhodium (thousands) (oz) 94,2 73,7 165,1
Gold (thousands) (oz) 46,0 48,5 97,9
Nickel (thousands) (tons) 9,2 9,0 19,2
Copper (thousands) (tons) 5,1 5,0 10,8
PGM's (thousands) (oz) 1 720,3 1 521,0 3 255,4
Analysis of operating
contribution by mine
Rustenburg Section 1 761,0 998,1 2 700,3
Union Section 703,0 700,7 1 534,1
Amandelbult Section 2 067,2 1 348,9 3 200,8
Potgietersrust Platinums 1 055,3 437,1 1 318,1
Lebowa Platinum Mines 229,2 87,3 242,5
Operating contribution
- Steady state 5 815,7 3 572,1 8 995,8
Bafokeng-Rasimone
Platinum Mine - Project 192,8 178,0 374,0
Consolidated
operating contribution 6 008,5 3 750,1 9 369,8
Other costs 275,9 239,0 508,6
Gross profit on metal sales 5 732,6 3 511,1 8 861,2
Total steady state operations
Production statistics
and efficiency measures
Tons mined
- PPRust (opencast) (thousands) 16 632 17 752 30 183
Tons broken
- underground mines (thousands) 10 282 9 224 19 003
Tons milled (thousands) 12 207 10 950 23 042
Built-up head grade (g/ton) 5,06 5,14 5,08
Immediately available
ore reserves (months) 14,2 14,7 14,5
Metres face advance (per month) 8,8 8,5 8,5
Square metres per
stoping and
cleaning employee (per month) 38,5 36,1 36,4
Tons broken per
total employee
- underground mine 283 250 513
Tons mined per total employee
- PPRust 15 106 15 396 25 753
Average number of mine
employees - underground mines 36 311 36 603 36 816
- opencast mine (PPRust) 1 101 1 153 1 172
- projects - 242 250
Total average number of mine
employees 37 412 37 998 38 238
UG2 mined to total output (%) 27 26 27
Platinum
ounces refined (thousands) 936,8 821,0 1 756,7
Refined Pt ounce per employee 25,0 21,6 45,9
Profitability
and cost statistics
Net sales revenue
per Pt ounce sold (R) 9 897 7 447 8 401
Operating performance
Cash operating costs per
Pt ounce refined (R) 3 262 3 204 3 116
Cash operating costs per
Pt ounce refined (US$) 411 487 451
Cash operating costs per
PGM ounce refined (R) 1 876 1 819 1 776
Cash operating costs per
PGM ounce refined (US$) 237 276 257
Operating income
statement (R millions)
Net sales revenue 9 000,1 6 557,5 14 789,0
Operating cost of sales (3 184,4) (2 985,4) (5 793,2)
Operating contribution 5 815,7 3 572,1 8 995,8
Operating margin (%) 64,6 54,5 60,8
- Cost of sales excluding other costs
* Includes all operations except Bafokeng-Rasimone Platinum Mine, which is
in a production ramp-up phase.
Operating statistics by mine
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
STEADY STATE OPERATIONS 2001 2000 2000
RUSTENBURG SECTION
Production statistics and
efficiency measures
Tons broken (thousands) 4 218 3 648 7 734
Tons milled (thousands) 3 756 3 473 7 215
Built-up head grade (g/ton) 5,45 5,27 5,32
Immediately available
ore reserves (months) 16,3 16,4 16,1
Metres face advance (per month) 8,8 8,7 8,6
Square metres per
stoping and cleaning
employee (per month) 40,7 35,9 36,7
Tons broken per total employee 244 204 436
Average number of
mine employees
- excluding projects 17 281 17 854 17 719
- projects - - -
Total average number of
mine employees 17 281 17 854 17 719
UG2 mined to total output (%) 14 15 15
Platinum
ounces refined (thousands) 340,9 285,7 630,8
Refined Pt ounce per employee 19,7 16,0 35,6
Profitability and cost statistics
Net sales revenue
per Pt ounce sold (R) 9 216 7 225 8 019
Operating performance
Cash operating costs per
*Pt ounce refined (R) 3 635 3 793 3 580
Cash operating costs per
*Pt ounce refined (US$) 458 577 518
Cash operating costs per
*PGM ounce refined (R) 2 260 2 319 2 196
Cash operating costs per
*PGM ounce refined (US$) 285 352 318
Operating
income statement (R millions)
Net sales revenue 3 014,4 2 234,7 5 060,6
Operating cost of sales + (1 253,4) (1 236,6) (2 360,3)
Operating contribution 1 761,0 998,1 2 700,3
Operating margin (%) 58,4 44,7 53,4
+ Cost of sales excluding other costs
Steady state operations
UNION SECTION
Production statistics and
efficiency measures
Tons broken (thousands) 1 754 1 771 3 497
Tons milled (thousands) 2 238 1 939 4 159
Built-up head grade (g/ton) 4,34 5,19 4,89
Immediately
available ore reserves (months) 14,8 14,0 13,4
Metres face advance (per month) 6,7 7,2 7,0
Square metres per
stoping and
cleaning employee (per month) 32,6 36,0 36,9
Tons broken per
total employee 271 248 485
Average number of
mine employees
- excluding projects 6 471 7 139 7 212
- projects - - -
Total average number of
mine employees 6 471 7 139 7 212
UG2 mined to total output (%) 60 75 69
Platinum
ounces refined (thousands) 130,9 143,6 288,8
Refined Pt ounce per employee 20,2 20,1 40,0
Profitability and cost statistics
Net sales revenue
per Pt ounce sold (R) 9 756 7 619 8 503
Operating performance
Cash operating costs per
*Pt ounce refined (R) 3 986 2 997 3 182
Cash operating costs per
*Pt ounce refined (US$) 503 456 460
Cash operating costs per
PGM ounce refined (R) 2 240 1 620 1 739
Cash operating costs per
PGM ounce refined (US$) 282 246 252
Operating
income statement (R millions)
Net sales revenue 1 237,1 1 187,8 2 491,5
Operating cost of sales + (534,1) (487,1) (957,4)
Operating contribution 703,0 700,7 1 534,1
Operating margin (%) 56,8 59,0 61,6
+ Cost of sales excluding other costs
Steady state operations
AMANDELBULT SECTION
Production statistics and
efficiency measures
Tons broken (thousands) 3 539 3 192 6 505
Tons milled (thousands) 3 409 3 104 6 412
Built-up head grade (g/ton) 5,69 5,70 5,56
Immediately
available ore reserves (months) 17,0 20,0 19,0
Metres face advance (per month) 9,4 8,5 8,9
Square metres per
stoping and
cleaning employee (per month) 38,3 36,9 36,2
Tons broken per total employee 352 327 657
Average number of mine
employees - excluding projects 10 056 9 537 9 666
- projects - 239 242
Total average number of
mine employees 10 056 9 776 9 908
UG2 mined to total output (%) 35 29 32
Platinum
ounces refined (thousands) 314,7 267,1 570,8
Refined Pt ounce per employee 31,3 27,3 57,6
Profitability
and cost statistics
Net sales revenue
per Pt ounce sold (R) 9 247 7 141 8 077
Operating performance
Cash operating costs per
Pt ounce refined (R) 2 314 2 292 2 252
Cash operating costs per
Pt ounce refined (US$) 292 348 326
Cash operating costs per
PGM ounce refined (R) 1 365 1 329 1 309
Cash operating costs per
PGM ounce refined (US$) 172 202 189
Operating
income statement (R millions)
Net sales revenue 2 822,2 2 075,9 4 603,0
Operating cost of sales + (755,0) (727,0) (1 402,2)
Operating contribution 2 067,2 1 348,9 3 200,8
Operating margin (%) 73,2 65,0 69,5
+ Cost of sales excluding other costs
Steady state operations
POTGIETERSRUST PLATINUMS
Production statistics and
efficiency measures
Tons mined (thousands) 16 632 17 752 30 183
Tons milled (thousands) 2 100 1 952 4 177
Built-up head grade (g/ton) 4,48 4,18 4,33
Stripping ratio 11,6 7,6 8,7
Immediately available
ore reserves
within the pit (months) 5,2 4,2 6,7
Tons mined per total employee 15 106 15 396 25 753
Average number of mine employees
- excluding projects 1 101 1 153 1 172
- projects - - -
Total average number
mine employees 1 101 1 153 1 172
Platinum
ounces refined (thousands) 110,5 89,3 194,1
Refined Pt ounce per employee 100,4 77,5 165,6
Profitability and cost statistics
Net sales revenue
per Pt ounce sold (R) 13 652 9 272 10 745
Operating performance
Cash operating costs per
Pt ounce refined (R) 3 440 4 100 3 654
Cash operating costs per
Pt ounce refined (US$) 434 623 528
Cash operating costs per
PGM ounce refined (R) 1 568 1 883 1 673
Cash operating costs per
PGM ounce refined (US$) 198 286 242
Operating
income statement (R millions)
Net sales revenue 1 508,6 828,0 2 085,7
Operating cost of sales + (453,3) (390,9) (767,6)
Operating contribution 1 055,3 437,1 1 318,1
Operating margin (%) 70,0 52,8 63,2
+ Cost of sales excluding other costs
Steady state operations
LEBOWA PLATINUM MINES
Production statistics and
efficiency measures
Tons broken (thousands) 771 613 1 267
Tons milled (thousands) 704 482 1 079
Built-up head grade (g/ton) 4,00 4,38 4,26
Immediately available
ore reserves (months) 13,2 15,6 24,1
Metres face advance (per month) 9,7 10,1 9,0
Square metres per stoping and
cleaning employee (per month) 38,5 35,3 35,0
Tons broken per total employee 308 295 569
Average number of mine
employees - excluding projects 2 503 2 073 2 219
- projects - 3 8
Total average number
of mine employees 2 503 2 076 2 227
UG2 mined to total output (%) 38 - 18
Platinum
ounces refined (thousands) 39,8 35,3 72,2
Refined Pt ounce per employee 15,9 17,0 32,4
Profitability and cost statistics
Net sales revenue
per Pt ounce sold (R) 10 497 6 547 7 593
Operating performance
Cash operating costs per
Pt ounce refined (R) 4 678 3 901 4 179
Cash operating costs per
Pt ounce refined (US$) 590 593 604
Cash operating costs per
PGM ounce refined (R) 2 612 2 386 2 520
Cash operating costs per
PGM ounce refined (US$) 329 363 364
Operating
income statement (R millions)
Net sales revenue 417,8 231,1 548,2
Operating cost of sales + (188,6) (143,8) (305,7)
Operating contribution 229,2 87,3 242,5
Operating margin (%) 54,9 37,8 44,2
+ Cost of sales excluding other costs
Projects
BAFOKENG-RASIMONE PLATINUM MINE
Production statistics and
efficiency measures
Tons broken (thousands) 548 204 610
Tons milled (thousands) 1 005 709 1 533
Built-up head grade (g/ton) 4,44 4,31 4,61
Immediately
available ore reserves (months) 6,7 - 3,0
Metres face advance (per month) 7,8 5,5 5,4
Square metres per
stoping and
cleaning employee (per month) 29,1 3,5 15,4
Tons broken per total employee 232 367 426
Total average number
of mine employees 2 367 556 1 433
UG2 mined to total output (%) 28 - 9
Platinum
ounces refined (thousands) 63,8 50,9 115,0
Refined Pt ounce per employee 27,0 91,5 80,3
Profitability and cost statistics
Net sales revenue
per Pt ounce sold (R) 7 952 5 659 6 533
Operating performance
Cash operating costs per
Pt ounce refined (R) 4 498 2 749 3 458
Cash operating costs per
Pt ounce refined (US$) 567 418 500
Cash operating costs per
PGM ounce refined (R) 3 123 1 863 2 302
Cash operating costs per
PGM ounce refined (US$) 394 283 333
Operating
income statement (R millions)
Net sales revenue 477,9 310,1 748,0
Operating cost of sales + (285,1) (132,1) (374,0)
Operating contribution 192,8 178,0 374,0
Operating margin (%) 40,3 57,4 50,0
+ Cost of sales excluding other costs
Commentary
Financial Results
The Group achieved record first half earnings of R4,08 billion exceeding the
earnings for the first half of 2000 by 50%.
Gross sales revenue increased by R2,79 billion to R9,92 billion (2000: R7,13
billion) due to higher average US dollar metal prices achieved for platinum
group metals and the weaker rand. Higher US$ metal prices accounted for
R1,62 billion of the increase and were the result of increases in the
platinum price which rose 20% to US$600 per ounce from US$500 in the
previous period, the palladium price which increased to US$784 per ounce
from US$586 per ounce and the rhodium price which rose to US$1 976 per ounce
from US$1 701 per ounce. The weaker rand/US dollar exchange rate contributed
R1,40 billion. Lower rhodium and ruthenium sales volumes, offset by higher
platinum sales volumes, resulted in a decrease of R0,23 billion.
Cost of sales increased by R0,39 billion to R3,75 billion. The increase was
the result of higher volumes of metals produced, increased production at
relatively high cost at Bafokeng-Rasimone during that project's
establishment phase, higher smelter costs incurred in the first quarter in
addressing a chrome build-up problem, inflationary pressures exacerbated by
the negotiated 9% wage settlement and weaker rand and higher other costs
which principally resulted from an increase in royalty payments following
the improvement in pre-tax earnings.
The cash operating cost per platinum refined ounce ("unit cost") for steady
state operations increased by 1,8% compared to the first half of 2000 on a
rand basis and declined by 15,6% on a US dollar basis.
Other net income rose by R111,3 million due to a higher gain on translation
of foreign operations as a consequence of the weaker rand. Net investment
income increased by R130,1 million as a result of higher cash holdings, and
income from associate increased by R47,4 million to R108,7 million due to
higher earnings generated by Northam Platinum Limited ("Northam").
The increase in the tax charge was largely the result of the increase in
profit before tax and higher secondary tax on companies following the high
final and special dividends declared in February 2001 relating to the 2000
financial year.
Cash Reserves
Cash from operations for the period under review amounted to R5,75 billion.
Cash and cash equivalents declined by R548,4 million from 31 December 2000
to R5,57 billion after payments were made to shareholders for dividends
(R3,69 billion), to the taxation authorities (R1,93 billion) and for capital
expenditure (R1,00 billion).
Capital Expenditure
Capital expenditure for the six months to June 2001 amounted to R1,00
billion (2000: R0,76 billion). Expenditure for expansion amounted to R0,66
billion (2000: R0,46 billion) while that for maintaining operations was
R0,34 billion (2000: R0,30 billion).
Operations
Operations performance showed a marked improvement over the first half of
2000; tons milled increased by 13,3% to 13,2 million tons, and refined
platinum production increased by 128 700 ounces, or 14,8% to just over 1
million ounces. Rustenburg Section, the largest of the operations generated
some 29,3% of Group operating contribution ("contribution") and showed a
pleasing improvement in grade, recoveries and efficiencies. The mine's cash
operating cost per refined platinum ounce declined by 4,2% (a decline of
20,6% in US dollar terms). Amandelbult Section, the second largest Group
operation generated 34,4% of contribution, reflecting the benefit of the UG2
expansion completed in 2000 with improved operating efficiencies and
increased metal production. Unit cost increased by 1,0% (a decline of 16,1%
in US dollar terms). Potgietersrust, with a 17,6% contribution, extended a
track record of high quality performance with an increase in grade and tons
milled. As a result, unit costs declined by 16,1% (30,3% in US dollar
terms). Union Section, which made 11,7% of contribution, had its production
severely interrupted following extensive scaling in the ore pass at its
principal Spud Shaft. As a result platinum production fell short of plan by
28 600 ounces. Remedial action is being taken but it is expected to take
another four months before normal production levels are resumed.
Predictably, unit costs suffered with an increase of 33,0% (10,3% in US
dollar terms). Lebowa's UG2 expansion struggled to operate at design
capacity although an improvement in throughput was evident in the second
quarter. Whilst tons milled increased by 46,1% this was well short of plan.
As a result of the production shortfall unit costs rose by an unacceptably
high 19,9% (a decline of 0,5% in US dollar terms). The Group's refineries
continued to perform well. The Waterval Smelter incurred higher costs and
reduced throughput in the first quarter because of circuit changes necessary
to cope with the higher chrome levels arising from increased treatment of
UG2 ore. Second quarter throughput was greatly improved and in line with
plan.
Expansion Projects
The expansion programme to produce 3,5 million ounces of refined platinum by
2006 is confirmed. Projects delivering some 92% of the 1,5 million platinum
ounces increase have been announced and the remainder will follow in due
course. Since the last results were released the Group has announced the
development of a further three major projects: a smelter complex in
Pietersburg with a capacity of 650 000 tons of concentrate per annum at a
cost of R1,306 billion (2001 money terms) to be fully commissioned in
September 2002; the Styldrift Joint Venture with the Royal Bafokeng Nation
(Royal Bafokeng) to produce 250 000 ounces of refined platinum per annum
from 2006 at a cost of R2,24 billion (2001 money terms); and the Pandora
Joint Venture with Lonmin Platinum which will build up to produce 230 000
ounces of refined platinum per annum from 2007 and will cost R1,42 billion
(2001 money terms).
Bafokeng-Rasimone is planned to reach steady state production during the
course of next year. The mine generated 3,2% of contribution, amounting to
R192,8 million. The period under review was a difficult one for the project.
The development of underground operations had fallen behind as a result of
the flooding in 2000 and has not fully recovered due to difficult geological
conditions encountered. To compensate for the resultant lower production
from underground operations, opencast mining has been extended and a new
Merensky decline section with a life of 3 years, is being mined. A
development programme to accelerate ore reserve availability is in place.
The Maandagshoek project is proceeding to plan. Construction of the South
Shaft continued, and construction of the North Shaft and concentrator
commenced during the period.
The Waterval project is also progressing as planned. Shaft sinking is in
progress and development at the existing Rustenburg Section shafts forming
part of the project is on schedule. Construction of the concentrator is
progressing well.
Site construction of the Anglo Platinum Converting Project ("ACP") at
Rustenburg, is well advanced and on schedule.
Black Economic Empowerment .
As previously stated Anglo Platinum is committed to supporting and
encouraging black economic empowerment. The Group is pleased to note the
recent performance of Northam and as a consequence the benefit accruing to
Mvelaphanda Platinum (Proprietary) Limited. The Joint Venture Partners are
negotiating with Northam for a 10% participation in the Pandora Joint
Venture.
On 1 August 2001 Anglo Platinum announced the signing of Heads of Agreement
with the Royal Bafokeng in terms of which both parties will participate
equally in the Bafokeng-Rasimone Platinum Mine and Styldrift project. This
arrangement is subject to certain suspensive conditions.
Negotiations continue with African Rainbow Minerals in respect of a 50%
interest in the Maandagshoek project.
Safety
The Board deeply regrets that 12 fatalities occurred during the six months
to June despite concerted efforts to eliminate unsafe acts and conditions at
every workplace. The Board is cautiously optimistic that the significant
improvement in safety performance in the second quarter relative to the
first, signals the trend that our ongoing safety initiatives should deliver.
The Board remains committed to ensuring that the "zero tolerance target
zero" philosophy and principles are both embedded in the Anglo Platinum
culture.
Strate
Shareholders were advised in the annual report for the year ended
31 December 2000 that the Company was provisionally scheduled to be
officially transferred to the new STRATE (Share Transactions Totally
Electronic) system of electronic settlement on the JSE Securities Exchange
South Africa (JSE) with effect from Monday 8 October 2001, with electronic
trading and settlement commencing on Monday 29 October 2001 and Monday 5
November 2001 respectively. These dematerialisation dates have now been
confirmed. Consequently, the Company's share certificates will no longer be
good for delivery in respect of transactions entered into on the JSE on or
after Monday 29 October 2001.
A letter containing further detailed information relating to STRATE and the
dematerialisation process will, in the near future, be posted to
shareholders with registered addresses recorded in the Company's South
African register of members, being the shareholders most likely to trade
their shares on the JSE. Copies of the letter will also be available from
the offices of the Company's Share Registrars in South Africa and the United
Kingdom, and from the London Secretaries.
Dividends
The Board has declared an interim cash dividend of 1 100 cents (2000: 710
cents) per ordinary share, which represents an increase of 54,9% over the
same period last year. The dividend cover of 1,7 has been maintained.
Prospects
Sales of platinum to the autocatalyst sector continue to grow and jewellery
demand is responding favourably to the lower prices.
A lower level of international economic activity could adversely affect
industrial demand and metal prices in the near term with uncertainty
regarding the level of sales from Russia, particularly of palladium, adding
volatility. US dollar prices of platinum, palladium and rhodium are
currently lower than those realised in the first half with declines being
only partially offset by a weaker rand.
Notwithstanding expected higher production and sales volumes during the
second half, should the US dollar prices of the major platinum group metals
and the rand/US dollar exchange rate remain at current levels, earnings for
the second half are likely to be lower.
For and on behalf of the Board
B E Davison
(Chairman and Managing Director)
T A Wixley
(Deputy Chairman)
Johannesburg
6 August 2001
Declaration of interim ordinary dividend (No. 97)
Notice is hereby given that an interim 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 ending 31 December 2001. Payments from London
will be made in United Kingdom currency. Settlement dates in Johannesburg
and London are synchronised.
2001
Last day to trade cum dividend Tuesday 21 August
(Johannesburg and London)
Ex dividend date Wednesday 22 August
(Johannesburg and London)
Last day for registration/record date Friday 24 August
Currency conversion date
(for payments from London) Friday 7 September
Date of payment Monday 17 September
The dividend is 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 dividend where
applicable.
By order of the Board
D A Freemantle
Company Secretary
Johannesburg
6 August 2001
Administration
DIRECTORS
B E Davison (Chairman and Managing Director),
T A Wixley (Deputy Chairman), L Boyd, C B Brayshaw,
J A Dreyer, D T G Emmett, M W King, W A Nairn,
B E Ngubane, G R Pardoe, A J Trahar,
R H H van Kerckhoven (Belgian), A I Wood (British)
ALTERNATE DIRECTORS
A H Calver (British), J M Halhead (British)
P J V Kinver (British), R Pilkington, C B Sheppard, V P Uren
Company Secretary
D A Freemantle
REGISTERED OFFICE
28 Harrison Street, Johannesburg, 2001
(P.O. Box 62179, Marshalltown, 2107)
Facsimile (011) 373-5111
Telephone (011) 373-6111
SOUTH AFRICAN REGISTRARS
Computershare Services Limited,
(Registration No. 1958/003546/06),
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
Capita 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
