| Tue 19 Feb 2002, 0:00 | | Anglo American Platinum Corporation Limited - Prel |
|
Year Ended 31 December 2001
anglo american platinum corporation limited
(Incorporated in the Republic of South Africa)
Registration Number 1946/022452/06)
JSE Code: AMS
ISIN: ZAE000013181
A member of the Anglo American plc group
Preliminary Report
for the year ended 31 december 2001 (Audited)
Highlights for the year ended 31 December 2001
Headline earnings per share increased
despite lower US$ metal prices + 17,6%
Dividends per share (excluding special dividend) + 21,5%
Special dividend (cents) 500,0
Steady state operations* cost per refined Pt oz + 4,4%
Refined Pt oz production + 12,7%
Expansion to 3,5m Pt oz by 2006 on track
Consolidated income statement
Year ended Year ended
31-Dec 31-Dec %
R millions 2001 2000 Change
Gross sales revenue 18 690,9 16 185,6
Commissions paid 812,0 648,6
Net sales revenue 17 878,9 15 537,0 15,1
Cost of sales 8 262,9 6 675,8 23,8
Cash operating costs 7 044,5 5 871,4
On-mine costs 5 948,6 4 934,6
Smelting costs 441,9 336,9
Treatment and refining costs 654,0 599,9
Amortisation of operating assets 498,8 395,8
Decrease/(increase) in metal inventories 45,1 (100,0)
Other costs 674,5 508,6
Gross profit on metal sales 9 616,0 8 861,2 8,5
Other net income 2 452,7 593,5
Net profit on disposal of mineral rights
and investments - 122,7
Market development and promotional
expenditure (251,0) (180,2)
Operating profit 11 817,7 9 397,2 25,8
Net investment income 340,3 295,6
Income from associate 170,6 157,6
Profit before taxation 12 328,6 9 850,4 25,2
Taxation 4 308,8 2 932,4 46,9
Current 3 800,8 2 319,3
Deferred 508,0 613,1
Net profit attributable to ordinary
shareholders 8 019,8 6 918,0 15,9
Headline earnings 8 019,8 6 795,3 18,0
Number of ordinary shares in issue (millions) 214,1 217,0 (1,3)
Weighted average number of ordinary shares
in issue (millions) 217,0 216,3 0,3
Earnings per share (cents)
- Attributable 3 695,8 3 198,3 15,6
- Headline 3 695,8 3 141,6 17,6
- Diluted (attributable) 3 637,1 3 141,7 15,8
- Diluted (headline) 3 637,1 3 086,0 17,9
Dividends per share (cents) 2 200,0 1 810,0 21,5
- Interim 1 100,0 710,0
- Final 1 100,0* 1 100,0
Dividend cover (headline earnings before
special dividend) 1,7 1,7 -
Special dividend 500,0* 600,0 (16,7)
Reconciliation between attributable and
headline earnings
Net profit attributable to ordinary 8 019,8 6 918,0 15,9
shareholders
Adjustment:
Net profit on disposal of mineral rights and - (122,7)
investments
Headline earnings 8 019,8 6 795,3 18,0
*Proposed dividends
Consolidated balance sheet
As at As at
31-Dec 31-Dec
R millions 2001 2000
ASSETS
Non-current assets
Property, plant and equipment 7 008,3 6 045,1
Capital work-in-progress 3 912,9 1 845,0
Platinum Producers' Environmental Trust 69,5 53,3
Investment in associate 265,7 277,1
Non-current receivable 212,1 193,2
11 468,5 8 413,7
Current assets 9 059,6 9 089,1
Inventories 1 326,4 1 350,8
Accounts receivable 1 946,8 1 615,5
Cash and cash equivalents 5 786,4 6 122,8
Total assets 20 528,1 17 502,8
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 21,4 21,7
Share premium 1 203,6 1 836,4
Accumulated profits before proposed dividends 11 296,6 9 856,0
Accumulated profits after proposed dividends
and secondary tax on companies 7 449,0 5 721,8
Proposed ordinary dividend payable 2 354,0 2 387,1
Proposed special dividend payable 1 070,0 1 302,1
Secondary tax on companies in respect
of proposed dividends 423,6 445,0
Shareholders' equity 12 521,6 11 714,1
Non-current liabilities 3 266,3 2 825,2
Borrowings - 19,3
Deferred taxation 2 562,3 2 097,0
Environmental rehabilitation obligation 174,3 148,8
Employees' service benefits 529,7 560,1
Current liabilities 4 740,2 2 963,5
Accounts payable 1 731,6 1 146,9
Taxation 3 008,6 1 816,6
Total equity and liabilities 20 528,1 17 502,8
Group statement of change in shareholders' equity
Non-
Share Share distribu Accumulate
table d
R millions capital premium reserve profits Total
Balance as at
31 December 1999 21,6 1 779,3 8,9 5 395,4 7 205,2
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 as at
31 December 2000 21,7 1 836,4 - 9 856,0 11 714,1
Net profit attributable to
ordinary shareholders 8 019 8 8 019,8
Dividends paid in cash (6 087,4) (6 087,4)
Share capital issued 0,1 70,7 70,8
Repurchase of ordinary
shares
Company 2 228 267 shares
at cost (cancelled) (0,2) (701,4) (701,6)
Subsidiary 1 673 400
shares at cost (0,2) (490,2) (490,4)
Associated expenditure (2,1) (1,6) (3,7)
Balance as at
31 December 2001 21,4 1 203,6 - 11 296,6 12 521,6
Consolidated cash flow statement
Year Year ended
ended
31-Dec 31-Dec
R millions 2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 17 700,8 14 787,4
Cash paid to suppliers and employees (5 122,3) (5 872,2)
Cash from operations 12 578,5 8 915,2
Interest paid (19,9) (6,8)
Taxation paid (2 588,7) (962,7)
Net cash from operating activities 9 969,9 7 945,7
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property, plant and equipment (3 586,1) (1 919,7)
To maintain operations (1 117,7) (569,3)
To expand operations (2 468,4) (1 350,4)
Proceeds from sale of plant and equipment 31,7 31,0
Investment in associate (2,4) (107,0)
Interest received 368,3 302,7
Growth in Platinum Producers' Environmental Trust 5,6 4,6
Dividends received from associate 121,6 60,9
Dividends received 1,2 3,9
Net cash used in investing activities (3 060,1) (1 623,6)
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from issuance of share capital 0,1 0,1
Increase in share premium 70,7 57,1
Own shares purchased (1 195,7)
Decrease in long-term borrowings (33,9) (13,6)
Dividends paid (6 087,4) (2 457,4)
Net cash used in financing activities (7 246,2) (2 413,8)
Net (decrease)/increase in cash and cash equivalents (336,4) 3 908,3
Cash and cash equivalents at beginning of year 6 122,8 2 214,5
Cash and cash equivalents at end of year 5 786,4 6 122,8
Consolidated income statement
UNITED STATES DOLLAR EQUIVALENT
Year ended Year ended
31-Dec 31-Dec %
US$ millions 2001 2000 Change
Gross sales revenue 2 168,8 2 340,8
Commissions paid 94,2 93,8
Net sales revenue 2 074,6 2 247,0 (7,7)
Cost of sales 958,8 965,5 (0,7)
Cash operating costs 817,4 849,2
On-mine costs 690,2 713,7
Smelting costs 51,3 48,7
Treatment and refining costs 75,9 86,8
Amortisation of operating assets 57,9 57,2
Decrease/(increase) in metal inventories 5,2 (14,5)
Other costs 78,3 73,6
Gross profit on metal sales 1 115,8 1 281,5 (12,9)
Other net income 284,6 85,8
Net profit on disposal of mineral rights and - 17,7
investments
Market development and promotional expenditure (29,1) (26,1)
Operating profit 1 371,3 1 358,9 0,9
Net investment income 39,5 42,8
Income from associate 19,8 22,8
Profit before taxation 1 430,6 1 424,5 0,4
Taxation 499,9 424,1 17,9
Current 441,0 335,4
Deferred 58,9 88,7
Net profit attributable to ordinary 930,7 1 000,4 (7,0)
shareholders
Dividends (706,3) (355,4) 98,7
Exchange rate translation adjustment (581,0) (219,1) 165,2
Accumulated profits at beginning of year 1 301,1 875,2 48,7
Accumulated profits at end of year 944,5 1 301,1 (27,4)
Average rand/US$ exchange rate 8,6182 6,9145
Weighted average number of ordinary shares
in issue (millions) 217,0 216,3 0,3
Earnings per share (cents)
- Attributable 428,9 462,5 (7,3)
- Headline 428,9 454,3 (5,6)
- Diluted (attributable) 422,0 454,4 (7,1)
- Diluted (headline) 422,0 446,3 (5,4)
Income statement items were translated at the average exchange rate
for the year.
Consolidated balance sheet
UNITED STATES DOLLAR EQUIVALENT
As at As at
31-Dec 31-Dec
US$ millions 2001 2000
ASSETS
Non-current assets
Property, plant and equipment 585,9 798,0
Capital work-in-progress 327,1 243,6
Platinum Producers' Environmental Trust 5,8 7,0
Investment in associate 22,2 36,6
Non-current receivable 17,7 25,5
958,7 1 110,7
Current assets 757,5 1 199,8
Inventories 110,9 178,3
Accounts receivable 162,8 213,2
Cash and cash equivalents 483,8 808,3
Total assets 1 716,2 2 310,5
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 1,8 2,9
Share premium 100,6 242,4
Accumulated profits before proposed dividends 944,5 1 301,1
Accumulated profits after proposed dividends and
secondary tax on companies 622,8 629,4
Proposed ordinary dividend payable 196,8 387,8
Proposed special dividend payable 89,5 211,6
Secondary tax on companies in respect of
proposed dividends 35,4 72,3
Shareholders' equity 1 046,9 1 546,4
Non-current liabilities 273,1 372,8
Borrowings - 2,5
Deferred taxation 214,2 276,8
Environmental rehabilitation obligation 14,6 19,6
Employees' service benefits 44,3 73,9
Current liabilities 396,2 391,3
Accounts payable 144,7 151,5
Taxation 251,5 239,8
Total equity and liabilities 1 716,2 2 310,5
Closing rand/US$ exchange rate 11,9610 7,5750
Balance sheet items have been translated at the closing rate.
Consolidated cash flow statement
UNITED STATES DOLLAR EQUIVALENT
Year ended Year ended
31-Dec 31-Dec
US$ millions 2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 2 053,9 2 138,6
Cash paid to suppliers and employees (594,4) (849,3)
Cash from operations 1 459,5 1 289,3
Interest paid (2,3) (1,0)
Taxation paid (300,3) (139,2)
Net cash from operating activities 1 156,9 1 149,1
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property, plant and equipment (416,1) (277,6)
To maintain operations (129,7) (82,3)
To expand operations (286,4) (195,3)
Proceeds from sale of plant and equipment 3,7 4,5
Investment in associate (0,3) (15,5)
Interest received 42,7 43,8
Growth in Platinum Producers' Environmental Trust 0,6 0,7
Dividends received from associate 14,1 8,8
Dividends received 0,1 0,6
Net cash used in investing activities (355,2) (234,7)
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from issuance of share capital -* -*
Increase in share premium 8,2 8,3
Own shares purchased (138,7)
Decrease in long-term borrowings (3,9) (2,0)
Dividends paid (706,3) (355,4)
Net cash used in financing activities (840,7) (349,1)
Net (decrease)/increase in cash and cash equivalents (39,0) 565,3
Exchange rate translation adjustment (285,5) (116,8)
Cash and cash equivalents at beginning of year 808,3 359,8
Cash and cash equivalents at end of year 483,8 808,3
* Less than US$ 50 000
Cash flow items were translated at the average exchange rate for the year.
Supplementary information
Year ended Year ended
31-Dec 31-Dec
R millions 2001 2000
Investment
Listed investment in associate
- Carrying value 265,7 277,1
- Market value 869,5 812,1
Capital expenditure for the year 3 586,1 1 919,7
Commitments
Mining property, plant and equipment
Contracted for 1 849,0 486,3
Not yet contracted for 9 591,7 3 494,0
Authorised by the directors 11 440,7 3 980,3
Allocated for:
Expansion of capacity 9 345,0 3 040,4
- within current financial year 2 987,9 1 623,1
- thereafter 6 357,1 1 417,3
Maintenance of capacity 2 095,7 939,9
- within current financial year 1 073,6 421,0
- thereafter 1 022,1 518,9
Other
Operating lease rentals - premises 50,6 54,4
- due within current financial year 13,4 10,3
- due within two to five years 37,2 44,1
Information Technology Outsource Service Providers 209,6 259,5
- due within current financial year 56,0 58,6
- due within two to five years 137,7 156,4
- thereafter 15,9 44,5
Amortisation and depreciation of property,
plant and equipment 532,8 436,8
Amortisation of operating assets 498,8 395,8
Mining 409,4 323,9
Smelting 38,9 31,9
Treatment and refining 47,7 37,5
Decommissioning asset 2,8 2,5
Depreciation - non-mining assets 34,0 41,0
Profit on sale of plant and equipment 9,5 4,1
Notes to the supplementary information
1. The Preliminary 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. The commitments will be funded from existing cash resources, future cash
flows and borrowings.
3. Where appropriate, comparative figures have been restated.
Consolidated statistics
Year ended Year
ended
31-Dec 31-Dec %
TOTAL OPERATIONS 2001 2000 Change
Marketing statistics
Average market prices achieved
Platinum (US$/oz) 526 544 (3,3)
Palladium (US$/oz) 582 675 (13,8)
Rhodium (US$/oz) 1 610 1 847 (12,8)
Nickel (US$/lb) 2,65 3,86 (31,3)
Net sales revenue per Pt ounce (US$) 1 004 1 198 (16,2)
sold
Platinum (R/oz) 4 531 3 804 19,1
Palladium (R/oz) 4 936 4 739 4,2
Rhodium (R/oz) 13 410 12 864 4,2
Nickel (R/lb) 23,14 26,63 (13,1)
Net sales revenue per Pt ounce (R) 8 654 8 287 4,4
sold
Average Pt exchange rates (R : US$) 86,184 69,977 23,2
achieved
Exchange rates at end of year (R : US$) 11,9610 7,5750 57,9
Profitability statistics
Gross sales revenue per ton (R) 696 659 5,6
milled
Gross profit margin (%) 51,4 54,7 (6,0)
Earnings before interest,
taxation,
depreciation and amortisation
(EBITDA) (R millions) 10 148,8 9 298,0 9,2
Operating profit to average
operating assets (%) 120,0 117,6 2,0
Return on average shareholders' (%) 66,2 73,2 (9,6)
equity
Return on capital employed (%) 64,0 59,0 8,5
Refined production
Platinum (thousands) 2 109,2 1 871,7 12,7
(oz)
Palladium (thousands) 1 049,0 946,6 10,8
(oz)
Rhodium (thousands) 200,4 165,1 21,4
(oz)
Gold (thousands) 102,2 97,9 4,4
(oz)
Nickel (thousands) 19,5 19,2 1,6
(tons)
Copper (thousands) 10,8 10,8 -
(tons)
PGM's (thousands) 3 673,6 3 255,4 12,8
(oz)
Analysis of operating
contribution by mine (R millions)
Rustenburg Section 2 993,6 2 700,3 10,9
Union Section 1 190,9 1 534,1 (22,4)
Amandelbult Section 3 742,6 3 200,8 16,9
Potgietersrust Platinums 1 680,5 1 318,1 27,5
Lebowa Platinum Mines 407,7 242,5 68,1
Operating contribution - Steady 10 015,3 8 995,8 11,3
state
Bafokeng-Rasimone Platinum Mine - 275,2 374,0 (26,4)
Project
Consolidated operating 10 290,5 9 369,8 9,8
contribution
Other costs 674,5 508,6 32,6
Gross profit on metal sales 9 616,0 8 861,2 8,5
Consolidated statistics
Year ended Year
ended
31-Dec 31-Dec %
Total steady state operations 2001 2000 Change
Production statistics and efficiency
measures
Tons mined - PPRust (opencast) (thousands) 29 631 30 183 (1,8)
Tons broken - underground mines (thousands) 21 519 19 003 13,2
Tons milled (thousands) 24 952 23 042 8,3
Built-up head grade (g/ton) 5,06 5,08 (0,4)
Immediately available ore reserves (months) 14,2 14,5 (2,1)
Metres face advance (per month) 8,8 8,5 3,5
Square metres per employee (per month) 10,7 9,6 11,5
Square metres per stoping and
cleaning employee (per month) 37,6 36,4 3,3
Tons broken per employee
- underground mine 593 513 15,6
Tons mined per employee - PPRust 27 060 25 753 5,1
Average number of mine employees
- underground mines 36 301 37 066 (2,1)
- opencast mine (PPRust) 1 095 1 172 (6,6)
Average number of mine employees 37 396 38 238 (2,2)
UG2 mined to total output (%) 28 27 3,7
Platinum ounces refined (thousands) 1 979,0 1 756,7 12,7
Refined Pt ounces per employee 52,9 45,9 15,2
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 744 8 401 4,1
Operating performance
Cash operating costs per Pt ounce (R) 3 254 3 116 4,4
refined
Cash operating costs per Pt ounce (US$) 378 451 (16,2)
refined
Cash operating costs per PGM ounce (R) 1 852 1 776 4,3
refined
Cash operating costs per PGM ounce (US$) 215 257 (16,3)
refined
Operating income statement (R millions)
Net sales revenue 16 971,8 14 789,0 14,8
Operating cost of sales + (6 956,5) (5 793,2) 20,1
Operating contribution 10 015,3 8 995,8 11,3
Operating margin (%) 59,0 60,8 (3,0)
+ Cost of sales excluding other costs
* Includes all operations except Bafokeng-Rasimone Platinum Mine,
which is in a production ramp-up phase.
Operating statistics by mine
Year ended Year ended
31-Dec 31-Dec %
STEADY STATE OPERATIONS 2001 2000 Chang
RUSTENBURG SECTION
Production statistics and efficiency
measures
Tons broken (thousands) 8 550 7 734 10,6
Tons milled (thousands) 7 733 7 215 7,2
Built-up head grade (g/ton) 5,38 5,32 1,1
Immediately available ore reserves (months) 15,0 16,1 (6,8)
Metres face advance (per month) 8,9 8,6 3,5
Square metres per employee (per month) 10,7 9,4 13,8
Square metres per stoping and
cleaning employee (per month) 38,8 36,7 5,7
Tons broken per employee 493 436 13,1
Average number of mine employees 17 346 17 719 (2,1)
UG2 mined to total output (%) 16 15 6,7
Platinum ounces refined (thousands) 719,1 630,8 14,0
Refined Pt ounces per employee 41,5 35,6 16,6
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 273 8 019 3,2
Operating performance
Cash operating costs per Pt ounce
refined (R) 3 650 3 580 2,0
Cash operating costs per Pt ounce
refined (US$) 424 518 (18,1
Cash operating costs per PGM
ounce refined (R) 2 233 2 196 1,7
Cash operating costs per PGM
ounce refined (US$) 259 318 (18,6
Operating income statement (R millions)
Net sales revenue 5 780,6 5 060,6 14,2
Operating cost of sales + (2 787,0) (2 360,3) 18,1
Operating contribution 2 993,6 2 700,3 10,9
Operating margin (%) 51,8 53,4 (3,0)
+ Cost of sales excluding other costs
Year ended Year
ended
31-Dec 31-Dec %
STEADY STATE OPERATIONS 2001 2000 Change
UNION SECTION
Production statistics and efficiency
measures
Tons broken (thousands) 3 694 3 497 5,6
Tons milled (thousands) 4 466 4 159 7,4
Built-up head grade (g/ton) 4,40 4,89 (10,0)
Immediately available ore reserves (months) 16,1 13,4 20,1
Metres face advance (per month) 7,1 7,0 1,4
Square metres per employee (per month) 7,8 7,5 4,0
Square metres per stoping and
cleaning employee (per month) 29,9 36,9 (19,0)
Tons broken per employee 582 485 20,0
Average number of mine employees 6 342 7 212 (12,1)
UG2 mined to total output % 60 69 (13,0)
Platinum ounces refined (thousands) 280,4 288,8 (2,9)
Refined Pt ounces per employee 44,2 40,0 10,5
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 497 8 503 (0,1)
Operating performance
Cash operating costs per Pt ounce
refined (R) 3 787 3 182 19,0
Cash operating costs per Pt ounce
refined (US$) 439 460 (4,6)
Cash operating costs per PGM
ounce refined (R) 2 102 1 739 20,9
Cash operating costs per PGM
ounce refined (US$) 244 252 (3,2)
Operating income statement (R millions)
Net sales revenue 2 326,6 2 491,5 (6,6)
Operating cost of sales + (1 135,7) (957,4) 18,6
Operating contribution 1 190,9 1 534,1 (22,4)
Operating margin (%) 51,2 61,6 (16,9)
+ Cost of sales excluding other costs
Year ended Year
ended
31-Dec 31-Dec %
STEADY STATE OPERATIONS 2001 2000 Change
AMANDELBULT SECTION
Production statistics and efficiency
measures
Tons broken (thousands) 7 621 6 505 17,2
Tons milled (thousands) 7 086 6 412 10,5
Built-up head grade (g/ton) 5,68 5,56 2,2
Immediately available ore reserves (months) 18,0 19,0 (5,3)
Metres face advance (per month) 9,3 8,9 4,5
Square metres per employee (per month) 12,0 10,6 13,2
Square metres per stoping and
cleaning employee (per month) 39,1 36,2 8,0
Tons broken per employee 771 657 17,4
Average number of mine employees 9 890 9 908 (0,2)
UG2 mined to total output (%) 36 32 12,5
Platinum ounces refined (thousands) 679,3 570,8 19,0
Refined Pt ounces per employee 68,7 57,6 19,3
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 189 8 077 1,4
Operating performance
Cash operating costs per Pt ounce
refined (R) 2 312 2 252 2,7
Cash operating costs per Pt ounce
refined (US$) 268 326 (17,8)
Cash operating costs per PGM
ounce refined (R) 1 340 1 309 2,4
Cash operating costs per PGM
ounce refined (US$) 155 189 (18,0)
Operating income statement (R millions)
Net sales revenue 5 473,0 4 603,0 18,9
Operating cost of sales + (1 730,4) (1 402,2) 23,4
Operating contribution 3 742,6 3 200,8 16,9
Operating margin (%) 68,4 69,5 (1,7)
+ Cost of sales excluding other costs
Year ended Year
ended
31-Dec 31-Dec %
STEADY STATE OPERATIONS 2001 2000 Change
POTGIETERSRUST PLATINUMS
Production statistics and efficiency
measures
Tons mined (thousands) 29 631 30 183 (1,8)
Tons milled (thousands) 4 270 4 177 2,2
Built-up head grade (g/ton) 4,38 4,33 1,2
Stripping ratio 10,9 8,7 24,7
Immediately available ore reserves
within the pit (months) 3,5 6,7 (47,8)
Tons mined per employee 27 060 25 753 5,1
Average number of mine employees 1 095 1 172 (6,6)
Platinum ounces refined (thousands) 211,1 194,1 8,8
Refined Pt ounces per employee 192,8 165,6 16,4
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 12 120 10 745 12,8
Operating performance
Cash operating costs per Pt ounce
refined (R) 3 688 3 654 0,9
Cash operating costs per Pt ounce
refined (US$) 428 528 (18,9)
Cash operating costs per PGM
ounce refined (R) 1 682 1 673 0,5
Cash operating costs per PGM
ounce refined (US$) 195 242 (19,4)
Operating income statement (R millions)
Net sales revenue 2 558,6 2 085,7 22,7
Operating cost of sales + (878,1) (767,6) 14,4
Operating contribution 1 680,5 1 318,1 27,5
Operating margin (%) 65,7 63,2 3,9
+ Cost of sales excluding other costs
Year ended Year
ended
31-Dec 31-Dec %
STEADY STATE OPERATIONS 2001 2000 Change
LEBOWA PLATINUM MINES
Production statistics and efficiency
measures
Tons broken (thousands) 1 654 1 267 30,5
Tons milled (thousands) 1 397 1 079 29,5
Built-up head grade (g/ton) 4,26 4,26 -
Immediately available ore reserves (months) 13,8 12,4 11,3
Metres face advance (per month) 9,4 9,0 4,4
Square metres per employee (per month) 13,0 13,7 (5,1)
Square metres per stoping and
cleaning employee (per month) 39,7 35,0 13,4
Tons broken per employee 607 569 6,7
Average number of mine employees 2 723 2 227 22,3
UG2 mined to total output (%) 38 18 111,1
Platinum ounces refined (thousands) 89,1 72,2 23,4
Refined Pt ounces per employee 32,7 32,4 0,9
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 9 349 7 593 23,1
Operating performance
Cash operating costs per Pt ounce
refined (R) 4 540 4 179 8,6
Cash operating costs per Pt ounce
refined (US$) 527 604 (12,7)
Cash operating costs per PGM
ounce refined (R) 2 498 2 520 (0,9)
Cash operating costs per PGM
ounce refined (US$) 290 364 (20,3)
Operating income statement (R millions)
Net sales revenue 833,0 548,2 52,0
Operating cost of sales + (425,3) (305,7) 39,1
Operating contribution 407,7 242,5 68,1
Operating margin (%) 48,9 44,2 10,6
+ Cost of sales excluding other costs
PROJECT Year ended Year
ended
31-Dec 31-Dec %
2001 2000 Change
BAFOKENG-RASIMONE PLATINUM MINE
Production statistics and efficiency
measures
Tons broken (thousands) 1 256 610 105,9
Tons milled (thousands) 1 892 1 533 23,4
Built-up head grade (g/ton) 4,42 4,61 (4,1)
Immediately available ore reserves (months) 7,3 3,0 143,3
Metres face advance (per month) 7,2 5,4 33,3
Square metres per employee (per month) 7,0 3,4 105,9
Square metres per stoping and
cleaning employee (per month) 29,8 15,4 93,5
Tons broken per employee 492 426 15,5
Average number of mine employees 2 554 1 433 78,2
UG2 mined to total output (%) 24 9 166,7
Platinum ounces refined (thousands) 130,2 115,0 13,2
Refined Pt ounces per employee 51,0 80,3 (36,5)
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 7 257 6 533 11,1
Operating performance
Cash operating costs per Pt ounce
refined (R) 4 638 3 458 34,1
Cash operating costs per Pt ounce
refined (US$) 538 500 7,6
Cash operating costs per PGM
ounce refined (R) 3 087 2 302 34,1
Cash operating costs per PGM
ounce refined (US$) 358 333 7,5
Operating income statement (R millions)
Net sales revenue 907,1 748,0 21,3
Operating cost of sales + (631,9) (374,0) 69,0
Operating contribution 275,2 374,0 (26,4)
Operating margin (%) 30,3 50,0 (39,4)
+ Cost of sales excluding other costs
Commentary
Safety
The Board deeply regrets the tragic loss of 22 lives at work during the
year. The deaths occurred despite comprehensive reviews of the safety
management systems at all operations and the implementation of new safety
initiatives. Group-wide, a behavioural-based safety initiative is being
rolled out. A sub-committee of the Board was established to overview the
Anglo Platinum safety, health and environmental strategy and practices. A
significant reduction in the year-on-year lost time injury frequency rate
was achieved.
Financial results
The Group is pleased to announce an increase in headline earnings to a
record R8,02 billion, 18,0% higher than the 2000 headline earnings of R6,79
billion. The increase is as a result of both an improvement in operational
performance and gains from the weakening of the rand/US dollar exchange
rate.
Gross sales revenue increased by R2,51 billion. Despite a reduction in the
US dollar price per ounce of metal sold, a weaker rand and an increase in
sales volumes resulted in improved revenues
year-on-year. Net rand revenue per platinum ounce sold increased by 4,4%.
Cost of sales rose to R8,26 billion. The increase in expenditure is
attributable mainly to an increase in production from steady state
operations. Unit costs at these operations benefited from the higher
production levels and the cash operating cost per refined platinum ounce
("unit cost") rose by 4,4% in rand terms (in US dollar terms the unit cost
declined by 16,2%). Costs at these operations were well controlled during
the year with the emphasis on identifying and implementing cost saving
initiatives, including improved labour efficiency. The single most
significant impact on costs was the increase in employment costs, flowing
from the two year wage settlement reached in 2000, together with increased
housing and retirement funding contributions in line with industry norms and
additional incentive payments. The effect of normal inflationary increases
was exacerbated by the weaker rand which, particularly in the case of the
highly mechanised Potgietersrust operation, impacted certain import-related
input costs.
The Group cost of sales per refined platinum ounce sold rose to R3 999
versus net revenue of R8 654 per ounce giving a gross profit margin of 53,8%
(2000: 57,0%). Bafokeng-Rasimone, still in the project ramp-up phase, added
R0,28 billion to the operating contribution despite facing operational
problems during the year.
Other costs rose due to additional research and exploration expenditure and
greater expenditure on social investment projects. During the year the Group
stepped up its research and development programmes focusing specifically on
mining technology and metallurgical recovery processes to further improve
its expertise and facilitate operational improvements in these areas. In the
light of pressing needs and against the background of a further significant
rise in headline earnings, the Group was pleased to be able to make a
further material contribution to social investment projects. During the
year, this contribution more than doubled to R67,2 million.
Other net income rose significantly due to higher income from the weakening
of
the rand against the US dollar. The average rand/US dollar exchange rate for
the year of R8,62 was 24,6% weaker than in 2000, while the exchange rate at
the end of the year of R11,96 was 57,9% weaker than the rate at the end of
the previous year.
The tax charge increased concomitantly with the increase in earnings and
dividends paid during the period.
Cash Reserves
Cash and cash equivalents at the end of the year declined by R336,4 million
to R5,79 billion. Cash flow from operating activities rose by R2,02 billion
to R9,97 billion (2000: R7,95 billion). Expenditure consisted of R3,06
billion on investing activities (mainly capital expenditure), dividends paid
amounting to R6,09 billion and the share buy-back programme which consumed a
further R1,2 billion.
Capital Expenditure
Capital expenditure for the year amounted to R3,59 billion. Expansion
capital expenditure totalled R2,47 billion (2000: R1,35 billion) and
expenditure to maintain operations was R1,12 billion (2000: R0,57 billion).
Notwithstanding lower than planned capital expansion expenditure for the
year, the total expenditure plus contracted commitments of R1,85 billion at
the end of the year is in line with the project programme.
Share Buy-Back
During the second half of 2001, Anglo Platinum purchased 3 901 667 of its
own shares in open market transactions, of which 2 228 267 shares were
cancelled. The balance of 1 673 400 shares is held by a wholly owned
subsidiary.
Operations
Operations reported a much improved performance with additional production
from the Amandelbult UG2, Middelpunt Hill and Bafokeng-Rasimone projects and
an overall reduction in the metal pipeline in the Process Division. Refined
platinum production increased by 12,7% to 2 109 200 ounces. Mill head grades
were maintained despite an increase in the proportion of UG2 ore milled from
26% to 28%.
The strong performances from Rustenburg Section, Amandelbult Section and
Potgietersrust, which together accounted for 76,3% of Group refined platinum
production, were particularly pleasing. The combined unit cost increase at
these operations amounted to only 1,4%. Union Section and Lebowa performed
below expectations for the year but nonetheless added some R1,60 billion to
operating contribution. Union Section experienced difficulty with scaling in
a main ore pass which resulted in a decrease in metal production and a
consequent rise in unit cost. A replacement ore pass has been constructed to
alleviate the problem. Lebowa's refined production increased significantly
despite low plant availability during the year, reflecting the additional
output from the Middelpunt Hill project.
The base and precious metals refineries continued to perform well. Waterval
Smelter experienced some difficulties at the beginning of the year with
higher levels of chrome processed, but recovered quickly and planned smelter
throughput was achieved from the second quarter.
Projects
The expansion programme to produce the Group target of 3,5 million ounces of
refined platinum by 2006 is on track. The scope of this programme includes
the replacement of existing capacity as well as the installation of new
capacity. Four major projects have been announced since the 2000 annual
results were published. They are:
* Polokwane (Pietersburg) Smelter: 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). Site earthworks commenced at the end of 2001
following the Environmental Management Programme Report ("EMPR") approval.
Commissioning is scheduled to commence in the first quarter of 2003.
* Styldrift Joint Venture: a joint venture with the Royal Bafokeng Nation
to produce 250 000 ounces of refined platinum per annum from 2006. Certain
suspensive conditions in the joint venture heads of agreement are still to
be met.
* Pandora Joint Venture: a joint venture with Lonmin Platinum which will
build up to produce 230 000 ounces of refined platinum per annum from 2007
of which Anglo Platinum's share will be 115 000 ounces. This project is in
the detail design and estimating phase and some preliminary site work has
commenced. The EMPR has been submitted.
* Twickenham Platinum Mine: a new mine to be established at a cost of
R2,74 billion (2001 money terms). The project is in the Eastern Bushveld,
close to the previously announced Maandagshoek project. The mine will
consist of two decline shaft systems, an adit hill system, a 250 000 ton per
month concentrator and extensive infrastructure. The project will produce
160 000 ounces of refined platinum and 176 000 ounces of refined palladium
by 2005.
Geo-technical work and the environmental impact assessment are in progress.
Bafokeng-Rasimone experienced a difficult year. The development of
underground operations had fallen behind as a result of flooding in 2000. In
addition difficult geological conditions were encountered. To ameliorate the
impact of lower production from underground operations, opencast mining was
extended and a new Merensky decline section with a life of three years has
been developed. A programme to accelerate ore reserve availability is
continuing.
The Maandagshoek Project shaft sinking and concentrator construction have
proceeded to schedule and the mine will commence production in the third
quarter of 2002.
The Waterval Project has progressed to plan and the concentrator was ready
for ore feed in February 2002. The development of underground operations is
expected to be completed ahead of schedule in the third quarter of 2002.
The Anglo Platinum Converting Process ("ACP") Project has progressed well
and will commence commissioning in the second quarter of 2002.
Black Economic Empowerment
Anglo Platinum remains committed to supporting and encouraging black
economic empowerment ("BEE"). In furthering the principles of BEE the Group
announced the conclusion of a 50:50 joint venture with an African Rainbow
Minerals led consortium in respect of the Maandagshoek project.
The Heads of Agreement between Anglo Platinum and the Royal Bafokeng Nation
in respect of the Bafokeng-Rasimone Platinum Mine and the Styldrift project
remains subject to the fulfillment of certain suspensive conditions.
Mvelaphanda Platinum (Proprietary) Limited, whose entry into Northam was
facilitated by Anglo Platinum, continues to benefit from its investment in
that company.
The negotiations with Northam in respect of a 10% interest in the Pandora
Joint Venture are continuing.
Strate
The Interim Report for 2001 contained details of the dates pertaining to the
Company's official transfer to the new STRATE (Share Transactions Totally
Electronic) system of electronic settlement on the JSE Securities Exchange
South Africa. On 6 August 2001 the Company released to shareholders a letter
containing details of the Company's Issuer Sponsored Nominee Programme which
outlined the procedures to be followed in connection with the
dematerialisation of Anglo Platinum shares as well as the options available
to shareholders. The transfer to the new STRATE system occurred smoothly on
Monday 8 October 2001.
Electronic trading and settlement commenced on Monday 29 October 2001 and
Monday 5 November 2001 respectively. Shareholders are requested to note that
following the transfer to STRATE the Company's share certificates are no
longer good for delivery and dematerialisation of the Company's share
certificates is now a prerequisite to dealing in its shares.
Dividends
The Board has declared a final cash dividend of 1 100 cents (2000: 1 100
cents) per ordinary share. This brings the total dividends for the year to 2
200 cents per share, an increase of 21,5% compared to the 1 810 cents per
share declared in 2000. The dividend cover of 1,7 has been maintained.
In view of the large cash reserves at year end and the expectation of strong
cash generation from operations, a special dividend of 500 cents (2000: 600
cents) per share for the year ended 31 December 2001 has been declared.
Prospects
After the considerable reduction in PGM market prices in the second half of
last year, platinum and palladium have established trading ranges where
there is support from consumers. The level of Russian sales and the timing
and strength of an expected economic recovery, provide some uncertainty to
the Platinum Group Metal markets.
The Group plans to produce 2,35 million refined platinum ounces in 2002.
Should metal prices and the rand/US dollar exchange rate remain at current
levels then the profit on metal sales for 2002 will exceed that achieved in
2001. Other income is not expected to make as significant a contribution to
earnings as it did in the period under review.
In light of the above and in spite of the expected improvement in profit on
metal sales, the uncertainty in the contribution of other net income makes
earnings for the year difficult to predict.
For and on behalf of the Board
B E Davison
(Chairman and Managing Director)
T A Wixley
(Deputy Chairman)
Johannesburg
18 February 2002
Declaration of final ordinary dividend (No. 98) 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 2001. In addition, a special
dividend of 500 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 2001. These dividends are payable to shareholders recorded in the
books of the Company at the close of business on Friday 15 March 2002.
The salient dates for the final and special dividends are as follows:
Salient Dates for South Africa and United Kingdom
2002
Last day to trade (cum dividend) Friday 8 March
First date of trading (ex dividend) Monday 11 March
Currency conversion date (for sterling
payments from London) Tuesday 12 March
Record date Friday 15 March
Payment date Wednesday 20 March
Share certificates may not be dematerialised or re-materialised between
Monday 4 March 2002 and Friday 15 March 2002, both dates inclusive.
On Wednesday 20 March 2002, the dividends will be electronically transferred
to the bank accounts of all certificated shareholders where this facility is
available. Where electronic fund transfer is not available or desired,
cheques dated 20 March 2002 will be posted on that date. Shareholders who
have dematerialised their share certificates will have their bank accounts,
which are linked to their CSDP or broker's safe custody accounts, credited
on 20 March 2002.
Shareholders registered on the United Kingdom section of the register will
be paid the dividends in pounds sterling at the rate of exchange determined
on 12 March 2002.
Both dividends are payable subject to conditions which may be inspected at
or obtained from the Company's Johannesburg office or from its London
Secretaries.
By order of the Board
D A Freemantle
Company Secretary
Johannesburg
18 February 2002
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, 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
This Preliminary Report is available on the
Company's internet site: http://www.angloplatinum.com
E-mail enquiries should be directed to: mmtakati@angloplat.com
