| Mon 31 Jul 2006, 9:00 | | Anglo Platinum - Abridged Interim Financial Result |
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AMS AMSP
ANANP
Anglo Platinum - Abridged Interim Financial Results For The Six Months
Ended 30 June 2006
Anglo Platinum Limited and its Subsidiaries
(Incorporated in the Republic of South Africa)
(Registration number 1946/022452/06)
JSE Codes: AMS; AMSP
ISIN: ZAE000013181; ZAE000054474
("Anglo Platinum")
A member of the Anglo American plc group
MAIN FEATURES
- Refined Pt production increased by 6%
- Attributable headline earnings per ordinary share up 117%
- Dividend per ordinary share up 192%
ABRIDGED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006
Consolidated Income Statement
Reviewed Reviewed Audited
Six months Six months Year
ended ended ended
30 June 30 June % 31 December
R millions 2006 2005 Change 2005
Gross sales 16 656 10 795 23 108
revenue
Mined 14 882 9 998 21 197
Purchased metals 1 774 797 1 911
in concentrate
Commissions paid (143) (88) (170)
NET SALES REVENUE 16 513 10 707 54 22 938
COST OF SALES (10 429) (8 127) (28) (17 100)
GROSS PROFIT ON 6 084 2 580 136 5 838
METAL SALES
Mined 5 921 2 558 5 751
Purchased metals 163 22 87
in concentrate
Other net income 160 262 322
Market (129) (102) (214)
development and
promotional
expenditure
Operating profit 6 115 2 740 123 5 946
Interest expensed (103) (141) (273)
Interest received 74 58 135
Net income from 131 49 134
associates
Profit before 6 217 2 706 130 5 942
taxation
Taxation (1 713) (571) (200) (1 452)
Net profit 4 504 2 135 111 4 490
Reconciliation
between net
profit and
headline earnings
Net profit 4 504 2 135 4 490
Less: Declared (127) (127) (255)
and undeclared
cumulative
preference share
dividends and
related STC
Basic earnings 4 377 2 008 4 235
attributable to
ordinary
shareholders
Adjustments
(after tax where
applicable):
Profit on - - (117)
disposal of
conversion rights
Impact of assets - - (140)
exchanged
Property, plant - - (67)
and equipment
Mineral rights - - (73)
Profit on - - (2)
disposal and
scrapping of
property, plant
and equipment
Headline earnings 4 377 2 008 118 3 976
attributable to
ordinary
shareholders
Add: Declared and 127 127 255
undeclared
cumulative
preference share
dividends and
related STC
Headline earnings 4 504 2 135 4 231
Number of 219,0 217,6 218,3
ordinary shares
in issue
(millions)
Weighted average 218,6 217,4 217,5
number of
ordinary shares
in issue
(millions)
Attributable
earnings per
ordinary share
(cents)
- Basic 2 002 924 117 1 947
- Diluted 1 989 920 1 935
Attributable
headline earnings
per ordinary
share (cents)
- Headline 2 002 924 117 1 828
- Diluted 1 989 920 1 824
Dividends per 1 400 480 1 180
ordinary share
(cents)
- Interim 1 400* 480 192 480
- Final 700
Dividends per 318,0 318,0 638
preference share
(cents)
Dividend cover 1,4 1,9 1,5
per ordinary
share (headline
earnings)
* Proposed ordinary dividend
Group statement of recognised income and expense
Reviewed Reviewed Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
R millions 2006 2005 2005
Income and expense
recognised directly in
the income statement
Net profit for the 4 504 2 135 4 490
period/year
Total recognised 4 504 2 135 4 490
income and expense for
the period/year
Effect of changes in
accounting
policies/restatement:
IFRS 3 - Negative - 173 173
goodwill on associate
reversed
Total recognised income and expense is attributable to the equity holders of
Anglo Platinum Limited since there are no minority interests.
Consolidated Balance Sheet
Reviewed Reviewed Audited
as at as at as at
30 June 30 June 31 December
R millions 2006 2005 2005
ASSETS
Non-current assets 27 784 25 502 26 984
Property, plant and 21 282 20 731 19 744
equipment
Capital work-in-progress 5 389 3 689 6 132
Investment in associates 745 639 683
Cash deposits held by 216 154 205
Platinum Producers"
Environmental Trust
Non-current accounts 152 289 220
receivable
Current assets 10 130 7 398 8 805
Inventories 4 882 3 503 4 412
Accounts receivable 3 304 2 592 2 418
Cash and cash equivalents 1 944 1 303 1 975
Total assets 37 914 32 900 35 789
EQUITY AND LIABILITIES
Shareholders" equity 23 807 19 476 20 802
Non-current liabilities 7 573 6 364 6 952
Deferred taxation 6 405 5 431 5 948
Environmental obligations 484 383 425
Employees" service benefit 61 50 30
obligations
Share based payment 152 43 86
provision
Obligations due under 471 457 463
finance leases
Current liabilities 6 534 7 060 8 035
Interest-bearing borrowings 779 3 848 3 805
Accounts payable 4 031 2 712 3 595
Share based payment 240 59 102
provision
Taxation 1 484 441 519
Derivative financial - - 14
liabilities
Total equity and liabilities 37 914 32 900 35 789
Consolidated Cash Flow Statement
Reviewed Reviewed Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
R millions 2006 2005 2005
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash from operations 6 513 3 058 7 649
Interest paid (net of (72) (103) (263)
interest capitalised)
Taxation paid (241) (284) (555)
Net cash from operating 6 200 2 671 6 831
activities
CASH FLOWS USED IN
INVESTING ACTIVITIES
Purchase of property, (1 835) (1 539) (4 097)
plant and equipment
(including interest
capitalised)
Proceeds from sale of 67 13 124
plant, equipment and
mineral rights
Interest received 74 59 136
Other 37 7 (35)
Net cash used in investing (1 657) (1 460) (3 872)
activities
CASH FLOWS USED IN
FINANCING ACTIVITIES
Proceeds from the issue of 125 20 163
ordinary and preference
share capital
Repayment of interest- (3 042) (1 498) (1 543)
bearing borrowings
Ordinary and preference (1 657) (855) (2 029)
dividends paid
Net cash used in financing (4 574) (2 333) (3 409)
activities
Net decrease in cash and (31) (1 122) (450)
cash equivalents
Cash and cash equivalents 1 975 2 425 2 425
at beginning of
period/year
Cash and cash equivalents 1 944 1 303 1 975
at end of period/year
MOVEMENT IN NET
CASH/(DEBT)**
Net debt at beginning of (2 293) (3 429) (3 429)
year
Net cash from operating 6 200 2 671 6 831
activities
Net cash used in investing (1 657) (1 460) (3 872)
activities
Other (1 556) (784) (1 823)
694 (3 002) (2 293)
** Net cash/(debt) comprises interest-bearing liabilities and obligations under
finance leases net of cash and cash equivalents.
Notes to the interim results
1. This abridged report has been extracted from the interim report which
complies with International Accounting Standard 34 - Interim Financial Reporting
and South African Statement of Generally Accepted Accounting Practice, AC127,
with the same title as well as with Schedule 4 of the South African Companies
Act and the disclosure requirements of the JSE Limited"s listings requirements.
2. The interim report has been prepared using accounting policies that comply
with International Financial Reporting Standards and South African Statements of
Generally Accepted Accounting Practice. The accounting policies are consistent
with those applied in the financial statements for the year ended 31 December
2005, except for the changes described in note 5.
Reviewed Reviewed Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
R millions 2006 2005 2005
3. Commitments
Mining and process
property, plant and
equipment
Contracted for 1 353 1 168 1 443
Not yet contracted for 11 435 7 652 6 259
Authorised by the 12 788 8 820 7 702
directors
Other
Operating lease rentals - 612 678 590
buildings
- within remainder of 45 46 41
year/one year
- within two to five 192 181 163
years
- thereafter 375 451 386
Information Technology 130 66 144
Service Providers
- within remainder of 55 16 62
year/one year
- thereafter 75 50 82
4. Contingent liabilities
The Group is the subject of various claims, which are individually immaterial.
The expected outcomes of these claims are varied, but on a probability
weighting, the amount is estimated at R92 million. There have been no other
material changes to the contingent liabilities as disclosed in the annual report
for the year ended 31 December 2005.
5. New accounting policies adopted
IFRS 6 - Exploration for and Evaluation of Mineral Resources.
On 1 January 2006, the Group adopted the requirements of IFRS 6 Exploration for
and Evaluation of Mineral Resources. The standard requires disclosure of
exploration and evaluation assets and sets out the requirements to test these
assets for impairment. This disclosure will be presented in the December 2006
financial statements. The Standard has no impact on the measurement of assets in
the financial statements.
IFRIC 7 - Applying the Restatement Approach under IAS 29 Financial Reporting in
Hyperinflationary Economies.
On 1 January 2006, the Group adopted the requirements of IFRIC 7 Applying the
Restatement Aproach under IAS 29 Financial Reporting in Hyperinflationary
Economies. This has no impact on the financial results.
IFRIC 8 - Scope of IFRS 2
On 1 January 2006, the Group adopted the requirements of IFRIC 8 Scope of IFRS
2. The issue addressed in the interpretation is whether IFRS 2 applies to
transactions in which the entity cannot identify specifically some or all of the
goods of services received. This new policy has no impact on the financial
results.
IFRIC 9 - Reassessment of Embedded Derivatives
On 1 January 2006, the Group adopted the requirements of IFRIC 9 Reassessment of
Embedded Derivatives. An entity shall assess whether an embedded derivative is
required to be separated from the host contract and accounted for as a
derivative when the entity first becomes a party to the contract. Subsequent
reassessment is prohibited unless there is a change in the terms of the contract
that significantly modifies the cash flows that otherwise would be required
under the contract, in which case reassessment is required. This new policy has
no impact on the financial results.
AC 503 - Accounting for Black Economic Empowerment (BEE) Transactions
The cost of entering into a BEE transaction that contains a share-based payment
transaction, which is not a business combination, is expensed unless the cost
can be directly attributed to the acquisition or protection of mining or similar
tangible assets. This new policy has had no impact on the financial results.
6. Derivatives - no fair value
The Group holds a call option over a 22,5% stake in Northam Platinum Limited,
which option is conditional upon the current owner achieving certain ownership
thresholds by historically disadvantaged persons on or before 30 July 2007,
which has been extended on two occasions. The call option is exerciseable at
R8,60 per share. No fair value is attributed to this option as it is contingent
upon the event explained above.
7. Reclassification - transactions giving rise to adjustments to
revenue/purchases
During the period, the Group complied with the requirements of Circular 9/2006
Transactions giving rise to Adjustments to Revenue/Purchases, issued by the
South African Institute of Chartered Accountants. Previously the Group included
certain trade discounts in commissions paid. This change resulted in revenue and
commissions paid for the period ended 30 June 2005 decreasing by R84 million (31
December 2005: R200 million).
Reclassification - apportionment of share based payment provision between
current and non-current
During the period, the Group classified the current portion of R240 million (30
June 2005: R59 million, 31 December 2005: R102 million) of the share based
provision to "Current liabilities." This had no impact on the financial results.
Reclassification - cash held by insurance captives
Cash held in insurance captives was previously disclosed separately on the face
of the balance sheet. This line item is now aggregated with cash and cash
equivalents and prior periods were reclassified accordingly. The amount of cash
held by insurance captives is R220 million (30 June 2005: R61 million, 31
December 2005: R167 million).
8. Change in accounting estimate
During the period, the Group changed its estimate of the quantities of inventory
based on the outcome of a physical count of in process metals. The Group runs a
theoretical metal inventory system based on inputs, the results of previous
physical counts and outputs. Due to the nature of in process inventories being
contained in weirs, pipes and other vessels, physical counts take place only
once per annum.
This change in estimate has had the effect of increasing the value of inventory
disclosed in the financial statements by R102 million (31 December 2005; R336
million) (no physical count of in process inventory was undertaken for the
comparative period). This results in the recognition of an after tax gain of R72
million.
The amount of the effect in future periods cannot be disclosed because
estimation is impracticable.
9. Corporate governance
The Board is of the view that the Company and its subsidiaries are compliant
with the recommendations as set out in the Code of Corporate Practices and
Conduct contained in King 2.
10. Auditors" review
The interim results have been reviewed by the Company"s auditors, Deloitte &
Touche. Their unqualified review report is available for inspection at the
Company"s registered office.
COMMENTARY
1. FINANCIAL RESULTS
The Group achieved a significant improvement in headline earnings when compared
to those for the first six months of 2005. Factors contributing to the increase
were mainly higher US dollar prices realised on metals sold and increased sales
volumes.
Headline earnings and headline earnings attributable to ordinary shareholders
more than doubled to R4,50 billion and R4,38 billion respectively. Headline
earnings per ordinary share rose 117% to 2 002 cents. An interim dividend of 1
400 cents per ordinary share has been declared.
Net sales revenue rose by R5,81 billion to R16,5 billion. The increase was
primarily the result of higher US dollar metal prices achieved on all metals
sold, contributing R5,03 billion of the increase and higher volumes of metals
sold, mainly platinum and rhodium, which contributed a further R462 million. The
average rand/US dollar exchange rate was slightly weaker at R6,34, when compared
to the rate of R6,26 achieved in the first half of 2005, contributing an
increase in revenue of R313 million.
As a result of existing long term confidential contractual arrangements with
some customers entered into to support and develop the rhodium market, the
average price achieved on sales of rhodium metal for the period was US$3 419 per
ounce.
Cost of sales rose by R2,30 billion to R10,4 billion, principally as a result of
the following:
- Purchases of metal in concentrate more than doubled from R815 million to R1,68
billion due to higher US dollar prices paid for metals in concentrate and an
increase in the volume of metals in concentrate arising from the Kroondal and
Marikana Pooling and Sharing agreements and the Bafokeng-Rasimone and Modikwa
joint ventures.
- Cash mining, smelting and refining costs rose 14% to R7,10 billion with cash
operating unit costs rising by 11%. The increase was primarily due to inflation,
additional costs associated with increased mines" production which for the first
time includes the costs associated with the Marikana mine, 2006 once-off
extensive ground support work at the Union UG2 declines and costs associated
with the well advanced turnaround programmes to establish a sustainable base for
future production at Rustenburg and Amandelbult. Above inflation cost increases
in diesel and steel also contributed to the increase. Cost savings of some R101
million, arising from specific procurement projects and other cost savings
initiatives, were realised during the first half of 2006.
- Other costs increased by R448 million or 101%, including an increase of R235
million in the cost associated with share based payments mainly as a result of a
higher share price on 30 June 2006 when compared to 30 June 2005, higher
royalties and increased research and exploration costs.
- Amortisation rose by 22% or R219 million as a result of the re-estimation of
the expected useful lives of components of property, plant and equipment
conducted during the second half of 2005, the capital expenditure programme and
increased utilisation of new operating assets.
- The value of metals in inventory increased by R424 million during the first
half of 2006. Notwithstanding a net decrease in pipeline stock following the
processing of concentrate built up at the Polokwane smelter at the end of 2005,
offset by an increase in metal identified during the annual stock take, the
value of metal in stock increased as a result of refined metal stocks returning
to normal levels and the increase in the unit cost at which metal inventories
are valued.
Other net income for the period amounted to R160 million and comprised mainly of
foreign exchange gains of R306 million offset by restructuring and project
maintenance costs of R164 million.
2. SAFETY
Improving the safety performance of our employees and contractors remains Anglo
Platinum"s highest priority and a drop in the fatal incident rate was recorded
for the first half of 2006 when compared to the same period last year. The Group
continues to invest significant resources in a comprehensive suite of safety
initiatives to ensure a sustainable step change in safety performance. It is
however with deep regret that management reports the loss of the lives of 7
employees at managed operations and 1 employee at the Modikwa Joint Venture as a
result of mine related accidents in the first half of 2006. Management and the
Board extend their condolences to the families, friends and colleagues of the
deceased.
3. OPERATIONS
Refined platinum production for the first half of 2006 rose by 6% to 1 344 900
ounces, primarily due to increased mining production and the release of metal
from pipeline stocks. The cash operating cost per equivalent refined platinum
ounce (equivalent ounces are mined ounces converted to expected refined ounces)
increased by 11%. Once-off additional ground support work during 2006 at Union,
equipping and development programmes to establish a sustainable base for future
production at Amandelbult and Rustenburg, wage settlements in excess of
inflation and the effect of lower grades as a consequence of a higher percentage
of UG2 ore mined, are the principal reasons for the above inflation unit cost
increase.
Mining and retreatment operations
Equivalent refined production from the mines managed by Anglo Platinum and its
joint venture partners for the first half of 2006 increased by 61 200 ounces or
by 5% when compared to the same period in 2005.
Increased production volumes were recorded primarily at:
- Kroondal: Equivalent refined platinum production increased by 33 800 ounces to
64 800 ounces. The increase is mainly due to increased mining production
processed through the Kroondal K-2 plant which was commissioned during the
second quarter of 2005. Despite the increase, production was hampered by a
number of geological features, more complex than anticipated, that were
encountered at No. 3 Shaft.
- Amandelbult: Equivalent refined platinum production increased by 23 600 ounces
or by 9% as a result of the measures taken to address the significantly more
complex underground conditions first encountered in the second half of 2004. The
mine continues to increase the rate of development and equipping to establish
the level of immediately available ore reserves and its key sub-component of
immediately stopeable reserves necessary to match the working conditions.
Fluctuating reef widths in the transition zone continued to negatively affect
grade at the No. 1 shaft.
- Bafokeng-Rasimone: Equivalent refined platinum production increased by 12 400
ounces or 13% mainly due to the processing of a surface stockpile built-up in
2005.
- Rustenburg: Rustenburg continues to increase production volumes and
efficiencies as part of its turnaround programme. Equivalent refined platinum
production increased by 11 600 ounces or 3%. Increasing the level of immediately
available and immediately stopeable ore reserves remains a high priority and the
intensive equipping programme underway should achieve the required reserve
position by the end of 2006. The UG2 ore proportion of tons milled increased
again from 55% to 62%.
Lower production was recorded at:
- Union: Equivalent refined platinum production decreased by 11 800 ounces or 8%
as a result of the ongoing installation of additional and permanent ground
support at the UG2 decline operations which activity limited access to mining
areas. Re-development of access ways and installation of extensive support in
disturbed areas continued. The mine expects to return to full production during
the fourth quarter of 2006.
- Western Limb Tailings Retreatment: Equivalent refined platinum production was
8 700 ounces lower than last year mainly as a result of lower grades processed.
- Potgietersrust: Equivalent refined platinum production decreased by 4 700
ounces or 5% mainly due to above normal rainfall in the first quarter which
temporarily restricted access to the lower benches, and mechanical failures of a
crusher and a mill.
Process operations
Smelting and refining operations recorded good performances in the first half of
2006 with improved metal recoveries and the Waterval smelter complex sulphur
emissions being below the permit and target levels. High levels of concentrate
stocks at the beginning of the year, arising from the Polokwane furnace shut
down in September 2005, were reduced to normal working levels by the end of the
period.
Higher volumes and continued focus on cost containment and savings, limited the
increase in smelting and refining cash cost per refined platinum ounce to 1%
compared to the same period last year.
4. PROJECTS
Anglo Platinum remains confident of the robustness of demand for platinum and is
continuing with its expansion programme. The rate of expansion is reviewed on an
ongoing basis and currently supports the Company"s stated average compound
growth target of 5% per annum. The long term outlook for metal prices remains
positive and consequently studies evaluating the ramping up of various projects
are currently being conducted.
The Board approved projects totaling R5,7 billion, in 2006 money terms, during
the first half of 2006. Included in these approvals is some R3,8 billion for the
PPRust North expansion project which will mill an additional 600 000 tons of ore
per month and produce an additional 230 000 platinum ounces per annum in 2009.
The Paardekraal 2 shaft project is in the final stages of the approval process
and an announcement is expected shortly. The vertical Paardekraal 2 shaft will
access deeper Merensky reserves at a rate of 100 000 tons per month, replacing
120 000 ounces of platinum per annum by 2015 at a capital cost of R 2 billion in
2006 money terms.
The implementation of Anglo Platinum"s extensive suite of mining and processing
projects to maintain and expand production continues on schedule and within
budget. Projects that continue to increase production include Modikwa, BRPM,
Kroondal and for the first time in 2006, the Marikana venture. The Amandelbult 1
shaft optimisation project was completed on time during the period and the
75ktpm UG2 plant is fully utilised and performing well. The deepening of the
BRPM and sinking of the Lebowa Merensky declines is well advanced and the PPRust
North project has commenced. The Mototolo Joint Venture is on track with
commissioning of the concentrator planned for quarter 4 of 2006.
5. CAPITAL EXPENDITURE
Total capital expenditure amounted to R1,84 billion (2005: R1,54 billion).
Expansion expenditure amounted to R635 million (2005: R550 million) and
expenditure to maintain operations increased to R1,14 billion (2005: R926
million). Interest of R64 million was capitalised (2005: R63 million).
It is anticipated that capital expenditure for 2006 will be between R5,5 billion
and R6,0 billion.
6. CASH FLOWS
The Group"s net cash position at 30 June 2006 amounted to R694 million, a
significant turnaround from the R2,29 billion net debt position at the end of
2005. Cash generated by operations amounted to R6,51 billion. Cash outflows
consisted mainly of capital expenditure of R1,84 billion (2005: R1,54 billion),
taxation payments amounting to R241 million (2005: R284 million) and dividend
payments of R1,66 billion (2005: R855 million) of which R1,53 billion were
ordinary dividends and R127 million preference dividends.
7. NEW MINERALS LEGISLATION AND EMPOWERMENT OF HISTORICALLY DISADVANTAGED SOUTH
AFRICANS
The Department of Minerals and Energy (DME) invited the Company to a 3 day
conversion application review early in July. The review enhanced the
understanding by both parties of submissions already made in respect of the
requirements of the Mineral and Petroleum Resources Development Act and the
Broad-Based Socio-Economic Empowerment Charter for the SA Mining Industry for
conversion of "old order rights" to "new order rights". The review confirmed
both the DME"s and the Company"s commitment to a successful conversion process.
Discussions to finalise the applications already lodged will continue. We look
forward to a speedy and satisfactory outcome.
8. SOCIAL RESPONSIBILITY AND HIV/AIDS
Anglo Platinum remains committed to contributing towards social projects in the
communities in which its operations are located. The Group continues to make
significant contributions towards education, health, social services, arts and
culture, and small business development projects during the first half of 2006.
Anglo Platinum has continued to fight against the HIV/AIDS epidemic and
associated infections, particularly sexually transmitted infections and
tuberculosis. In the first six months of 2006, the Company spent R25 million on
education, training, community based organisation support and a full wellness
programme which includes free anti-retroviral treatment, counselling and
voluntary testing.
This social investment has achieved success as a result of the increased
partnerships and support from government departments, civil society,
international development agencies and unions.
9. DIVIDENDS
Ordinary dividends are declared after consideration of current and future
funding requirements and are paid out of cash generated from operations.
The Board has declared an interim ordinary dividend of 1 400 cents per share.
This results in a dividend cover ratio of 1,4 on headline earnings and
represents an increase of 192% on the 2005 interim dividend.
A preference dividend of 318 cents per preference share was declared and paid in
May 2006.
10. PROSPECTS
Refined platinum production for the year is expected to be between 2,7 and 2,8
million ounces. Management continues to vigorously address unit costs. The
emphasis on increasing volumes and improving operating efficiencies remains the
driver of performance at operations.
Demand for platinum is strong and supportive of firm platinum prices. Recent
experience suggests that the resilience of jewellery consumption, particularly
in the Chinese market, continues even at prices over US$1 100 per ounce adding
confidence to our long term view. The growth in demand for platinum for diesel
autocatalyst systems, both oxidation and now heavily loaded particulate traps,
in Europe is strong. Tightening diesel emission legislation and its early
adoption as well as the growing popularity of diesel engine powered vehicles
supports this. Industrial demand remains firm, particularly in the glass and
petroleum sectors. Platinum prices have retreated from record highs of US$1 336
as investment positions were liquidated. The strong physical demand described
above has stemmed the decline and prices are supported above US$1 100. This
market position is expected to continue for some time.
Industrial palladium demand continues to grow encouraged by the relatively low
price. There continues to be interest in palladium jewellery manufacture in
China although at seemingly reduced volumes when compared to 2005. Palladium
prices, off their recent lows brought about by the general correction in
commodity markets, remain susceptible to volatility due to investor and fund
activity.
Refined platinum production for the second half of 2006 is expected to be
slightly higher than that of the first half. While sales volumes are expected to
increase in the second half of 2006, the most significant variable affecting
earnings will be metal prices in rand terms. If the rand basket price remains at
current levels, earnings for the second half of 2006 are likely to be higher
than those of the first half.
B E Davison R Havenstein Johannesburg
(Chairman) (Chief Executive Officer) 28 July 2006
Declaration of interim ordinary dividend (No. 107)
Notice is hereby given that an interim dividend of 1 400 cents per ordinary
share, in the currency of the Republic of South Africa, has been declared in
respect of the six months ended 30 June 2006. The dividend is payable to
shareholders recorded in the books of the Company at the close of business on
Friday, 25 August 2006.
The salient dates for the interim ordinary dividend are as follows:
Salient Dates for South Africa and United 2006
Kingdom
Last day to trade (cum dividend) Friday, 18 August
First day of trading (ex dividend) Monday, 21 August
Currency conversion date (for sterling Tuesday, 22 August
payments from London)
Record date Friday, 25 August
Payment date Monday, 28 August
Share certificates may not be dematerialised or re-materialised and no coversion
of preference shares into ordinary shares will be permitted between Monday, 21
August 2006 and Friday, 25 August 2006, both days inclusive, nor may transfers
take place between the South African and United Kingdom share registers during
this period.
On Monday, 28 August 2006, the dividend will be electronically transferred to
the bank accounts of all certificated shareholders where this facility is
available. Where electronic fund transfer is either not available or not elected
by the shareholder, cheques dated 28 August 2006 will be posted on that date.
Holders of dematerialised shares will have their accounts credited at their CSDP
or broker on 28 August 2006.
Shareholders registered on the United Kingdom register will be paid the dividend
in pounds sterling at the rate of exchange determined on Tuesday, 22 August
2006.
A further announcement stating the rand/sterling conversion rate will be
released through the relevant South African and United Kingdom news services on
Wednesday, 23 August 2006.
The dividend is payable subject to payment conditions which may be inspected at
or obtained from the Company"s Johannesburg Office or from its London
Secretaries.
By order of the Board
J D Meyer Johannesburg
Group Company Secretary 28 July 2006
Supplementary information
Consolidated Statistics (Unaudited)
Six months Six Year
months
ended ended ended
30 June 30 June 31 December
Total operations 2006 2005 2005
Marketing
statistics
Average market
prices achieved
Platinum (US$/oz) 1 104 867 894
Palladium (US$/oz) 315 191 199
Rhodium (US$/oz) 3 419 1 529 1 966
Nickel (US$/lb) 7,66 7,15 6,77
US$ Basket price (US$) 1 953 1 330 1 388
(Net sales
revenue per
refined Pt ounce
sold)
Platinum (R/oz) 7 018 5 412 5 704
Palladium (R/oz) 2 001 1 196 1 274
Rhodium (R/oz) 21 616 9 601 12 640
Nickel (R/lb) 48,45 44,90 43,00
R Basket price (R) 12 390 8 323 8 871
(Net sales
revenue per
refined Pt ounce
sold)
Average exchange (R : US$) 6,3444 6,2576 6,3915
rate achieved on
sales
Exchange rate at (R : US$) 7,1452 6,6841 6,3450
end of
period/year
Financial
statistics and
ratios
Gross profit (%) 36,8 24,1 25,5
margin
Earnings before (R millions) 7 462 3 785 8 354
interest,
taxation,
depreciation
and
amortisation
(EBITDA)
Operating (%) 43,1 21,6 23,7
profit to
average
operating
assets
Return on (%) 41,6 22,8 23,2
average
shareholders"
equity
Return on (%) 54,8 26,4 27,3
average capital
employed
Interest cover 49,9 20,2 21,6
- EBITDA
Net asset value (R) 108,7 89,5 95,3
per ordinary
share
Net debt to (%) 0,0 13,3 9,9
total capital
employed
Interest- (%) 5,2 22,1 20,5
bearing debt to
shareholders"
equity
Cost of sales (R) 7 832 6 271 6 587
per total Pt oz
sold
Cash operating (R) 6 041 5 426 5 523
cost per
equivalent Pt
oz (excluding
ounces from
purchased
concentrate and
associated
costs)
Cash operating (R) 5 672 5 152 5 670
cost per
refined Pt oz
Equivalent (thousands) 1 257,4 1 196,2 2 503,7
refined (oz)
platinum
production
Gain in (thousands) 39,9 73,1 73,1
smelting and (oz)
refining
pipeline
Refined (thousands) (1 344,9) (1 (2 453,2)
platinum (oz) 268,5)
production
Mining (thousands) (1 199,6) (1 (2 236,1)
(oz) 166,0)
Purchase of (thousands) (145,3) (102,5) (217,1)
concentrate (oz)
Platinum (thousands) (47,6) 0,8 123,6
pipeline (oz)
movement
Registered Office
55 Marshall Street, Johannesburg, 2001
(P.O. Box 62179, Marshalltown, 2107)
Facsimile +27 11 373-5111
Telephone +27 11 373-6111
South African registrars
Computershare Investor Services 2004 (Pty) Limited
(Registration No. 2000/006082/06)
70 Marshall Street, Johannesburg, 2001
(P.O. Box 61051, Marshalltown, 2107)
Facsimile +27 11 836-0792/6145
Telephone +27 11 370-5000
London Secretaries
Anglo American Services (UK) Limited,
20 Carlton House Terrace, London, SW1Y 5AN, England
Facsimile +44 207 968-8755
Telephone +44 207 968-8888
United Kingdom Registrars
Capita IRG plc
The Registry, 34 Beckenham Road
Beckenham, Kent, BR3 4TU, England
Facsimile +44 870 162-3100
Telephone +44 208 639-2342
Detailed results are available on the Internet at: http://www.angloplatinum.com
E-mail enquiries should be directed to:
traymond@angloplat.com
DIRECTORS AND COMPANY SECRETARY
EXECUTIVE DIRECTORS: R Havenstein (Chief Executive Officer), J M Halhead
(British), N B Mbazima (Zambian) R G Mills, A M Thebyane, R H H van Kerckhoven
(Belgian), D G Wanblad, A I Wood (British).
NON-EXECUTIVE DIRECTORS: B E Davison (Chairman), D D Barber, P M Baum, D A
Hathorn, Sir S E Jonah (Ghanaian), W A Nairn, A E Redman (British), A J Trahar.
INDEPENDENT NON-EXECUTIVE DIRECTORS: T A Wixley (Deputy Chairman), C B Brayshaw,
R M W Dunne (British), B A Khumalo, T H Nyasulu.
ALTERNATE DIRECTORS: A H Calver (British), R Pilkington, C B Sheppard, J G
Williams (British).
Company Secretary: J D Meyer.
Date: 31/07/2006 09:00:42 AM Produced by the JSE SENS Department
