Anglo Platinum annual results
Anglo American PLC
19 February 2002
News Release
19 February 2002
Anglo American plc ('Anglo American') notification:
Anglo American wishes to draw attention to Anglo Platinum's announcement of
their results for the 12 months to 31 December 2001, attached hereto.
End
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 shareholders 8 019,8 6 918,0 15,9
Adjustment:
Net profit on disposal of mineral rights and investments - (122,7)
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 distributable Accumulated
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 ended Year 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 investments - 17,7
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 shareholders 930,7 1 000,4 (7,0)
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 sold (US$) 1 004 1 198 (16,2)
Platinum (R/oz) 4 531 3 804 19,1
Palladium (R/oz) 4 936 4 739 4,2
Rhodium (R/oz) 13 410 12 864 4,2
Nickel (R/lb) 23,14 26,63 (13,1)
Net sales revenue per Pt ounce sold (R) 8 654 8 287 4,4
Average Pt exchange rates achieved (R : US$) 86,184 69,977 23,2
Exchange rates at end of year (R : US$) 11,9610 7,5750 57,9
Profitability statistics
Gross sales revenue per ton milled (R) 696 659 5,6
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' equity (%) 66,2 73,2 (9,6)
Return on capital employed (%) 64,0 59,0 8,5
Refined production
Platinum (thousands) (oz) 2 109,2 1 871,7 12,7
Palladium (thousands) (oz) 1 049,0 946,6 10,8
Rhodium (thousands) (oz) 200,4 165,1 21,4
Gold (thousands) (oz) 102,2 97,9 4,4
Nickel (thousands) (tons) 19,5 19,2 1,6
Copper (thousands) (tons) 10,8 10,8 -
PGM's (thousands) (oz) 3 673,6 3 255,4 12,8
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 state 10 015,3 8 995,8 11,3
Bafokeng-Rasimone Platinum Mine - Project 275,2 374,0 (26,4)
Consolidated operating contribution 10 290,5 9 369,8 9,8
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 refined (R) 3 254 3 116 4,4
Cash operating costs per Pt ounce refined (US$) 378 451 (16,2)
Cash operating costs per PGM ounce refined (R) 1 852 1 776 4,3
Cash operating costs per PGM ounce refined (US$) 215 257 (16,3)
Operating income statement (R millions)
Net sales revenue 16 971,8 14 789,0 14,8
Operating cost of sales + (6 956,5) (5 793,2) 20,1
Operating contribution 10 015,3 8 995,8 11,3
Operating margin (%) 59,0 60,8 (3,0)
+ Cost of sales excluding other costs
* Includes all operations except Bafokeng-Rasimone Platinum Mine,
which is in a production ramp-up phase.
Operating statistics by mine
Year ended Year ended
31-Dec 31-Dec %
STEADY STATE OPERATIONS 2001 2000 Change
RUSTENBURG SECTION
Production statistics and efficiency
measures
Tons broken (thousands) 8 550 7 734 10,6
Tons milled (thousands) 7 733 7 215 7,2
Built-up head grade (g/ton) 5,38 5,32 1,1
Immediately available ore reserves (months) 15,0 16,1 (6,8)
Metres face advance (per month) 8,9 8,6 3,5
Square metres per employee (per month) 10,7 9,4 13,8
Square metres per stoping and
cleaning employee (per month) 38,8 36,7 5,7
Tons broken per employee 493 436 13,1
Average number of mine employees 17 346 17 719 (2,1)
UG2 mined to total output (%) 16 15 6,7
Platinum ounces refined (thousands) 719,1 630,8 14,0
Refined Pt ounces per employee 41,5 35,6 16,6
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 273 8 019 3,2
Operating performance
Cash operating costs per Pt ounce
refined (R) 3 650 3 580 2,0
Cash operating costs per Pt ounce
refined (US$) 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) Ltd,
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
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