Anglo American Platinum Corporation Limited - Trad
Issuer Long Name: Anglo American Platinum Corporation Limited
Registration No.: 1946/022452/06
Instrument Alpha Code/Ticker Symbol: AMS
ISIN: ZAE000013181
Anglo Platinum: Trading Update
4 July 2003
On 10 February 2003 Anglo Platinum advised shareholders that if US Dollar metal
prices and the Rand / US Dollar exchange rate remained at levels prevailing at
that time, earnings and dividends for 2003 would be lower than those for 2002.
Since that announcement the Rand has strengthened further against the US Dollar
and despite a small improvement in the average US Dollar price of the basket of
metals sold by Anglo Platinum from the levels achieved in 2002, the average Rand
price of that basket in 2003 has declined by 17% when compared to the average
achieved in 2002.
During the first half of 2003 the increase in contained metal output from mining
operations was, 9% higher than the first half of 2002. This was 3% below the
announced expansion programme primarily because of a slower than planned ramp up
at the new Waterval and Modikwa mines. The simultaneous commissioning of the
ACP converter, the slag cleaning furnace and the Polokwane smelter caused a
higher than planned temporary increase in pipeline stock levels resulting in
reduced production of refined metal at the half year.
As a consequence of the above Anglo Platinum forecasts headline earnings for
the half year ending 30 June 2003 of approximately R1,05 billion.
Included in the earnings is an amount of approximately R 290 million which
resulted from the increase in pipeline stocks. The inventories accounting
policy was changed to recognize concentrate purchased from JV partners and
movements in concentrate stock. The effect of the change in policy is to more
closely match cost of sales with revenue.
Production at ramp up operations continues to improve but it is not expected
that the shortfall on plan for the half year will be made up by the year-end.
Although not completely eliminated, the temporary lock up of metal in the newly
commissioned metallurgical facilities will be reduced by year-end resulting in
substantially higher refined production for the second half. It is anticipated
that the factors mentioned above will result in refined platinum production for
the full year being in the region of 2,3 million ounces.
Notwithstanding the increase in volumes forecast for the second half of the
year, should US Dollar metal prices and the Rand / US Dollar exchange rate
remain at current levels then earnings for the second half of 2003 will be
significantly higher than those for the first half. Earnings for the full year
ending December 2003 will nevertheless be significantly lower than for the year
ended December 2002.
The Company will release its results for the half year ending 30 June 2003 on
Wednesday 30 July 2003.
Sponsor
Merrill Lynch South Africa (Pty) Limited
For further information, please contact
Mike Mtakati
(011) 373-6865
083 455 6887
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