Anglo Platinum Final Results
Anglo American PLC
11 February 2003
News Release
11 February 2003
Anglo American plc ("Anglo American") notification:
Anglo Platinum annual results 2002
Anglo American wishes to draw attention to Anglo Platinum's announcement of
their results for the 12 months to 31 December 2002, attached hereto.
Anglo American Platinum Corporation Limited
("Anglo Platinum")
(Incorporated in the Republic of South Africa)
(Registration number 1946/022452/06)
JSE Code: AMS
ISIN: ZAE000013181
Highlights for the year ended 31 December 2002
Earnings per share (cents) 2 676,0
Final dividend per share (cents) 900,0
Refined Pt oz production + 6,7%
Expansion to 3,5 m Pt oz by end 2006
Rustenburg UG2 Phase 1 and Modikwa Platinum Mine projects commissioned
Rustenburg Tailings Re-treatment and Rustenburg UG2 Phase 2 projects announced
Consolidated income statement
Audited Audited
Year ended Year ended
31 December 31 December %
R millions Notes 2002 2001 Change
Gross sales revenue 20 285,7 18 690,9
Commissions paid 733,0 812,0
Net sales revenue 19 552,7 17 878,9 9,4
Cost of sales 10 129,9 8 262,9 22,6
Cash operating costs 8 883,9 7 044,5
On-mine 7 369,4 5 948,6
Purchase of metals in concentrate 121,9 -
Smelting 640,6 441,9
Treatment and refining 752,0 654,0
Amortisation of operating assets 9 763,8 498,8
(Increase)/decrease in metal inventories (109,1) 45,1
Other costs 591,3 674,5
Gross profit on metal sales 5 9 422,8 9 616,0 (2,0)
Other net (expenditure)/income + (754,7) 2 452,7
Market development and promotional (266,5) (251,0)
expenditure
Operating profit 8 401,6 11 817,7 (28,9)
Net investment income 155,7 340,3
Income from associates 181,6 170,6
Profit before taxation 8 738,9 12 328,6 (29,1)
Taxation 2 998,9 4 308,8 (30,4)
Normal 2 319,7 3 562,0
Current 1 084,8 3 054,0
Deferred 1 234,9 508,0
Secondary tax on companies (STC) 679,2 746,8
Net profit 5 740,0 8 019,8 (28,4)
Headline earnings 2 5 630,4 8 008,2 (29,7)
Number of ordinary shares in issue 214,9 214,1
(millions)
Weighted average number of ordinary shares
in issue (millions) 214,5 217,0
Earnings per share (cents)
- Basic 2 676,0 3 695,8 (27,6)
- Headline 2 624,9 3 690,4 (28,9)
- Diluted (basic) 2 671,0 3 692,4 (27,7)
- Diluted (headline) 2 620,0 3 687,0 (28,9)
Dividends per share (cents) 1 800,0 2 200,0 (18,2)
- Interim 900,0 1 100,0
- Final 900,0* 1 100,0
- Special dividend (cents) - 500,0
Dividend cover (headline earnings before 1,5 1,7 (11,8)
special dividend)
+ Mainly relates to foreign exchange gains and losses
* Proposed dividend
Consolidated balance sheet
Audited Audited
as at as at
31 December 31 December
R millions Note 2002 2001
ASSETS
Non-current assets 16 192,3 11 468,5
Property, plant and equipment 10 503,1 7 008,3
Capital work-in-progress 4 941,5 3 912,9
Platinum Producers' Environmental Trust 89,3 69,5
Investment in associates 6 557,6 265,7
Non-current accounts receivable 100,8 212,1
Current assets 4 695,5 9 059,6
Inventories 1 497,8 1 326,4
Accounts receivable 1 617,7 1 946,8
Cash and cash equivalents 1 580,0 5 786,4
Total assets 20 887,8 20 528,1
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 21,5 21,4
Share premium 754,0 1 203,6
Accumulated profits before proposed dividends and related 12 193,2 11 296,6
secondary tax on companies (STC)
Accumulated profits after proposed dividends and related 10 017,3 7 449,0
STC
Proposed ordinary dividends 1 934,1 2 354,0
Proposed special dividend - 1 070,0
STC in respect of proposed dividends 241,8 423,6
Shareholders' equity 12 968,7 12 521,6
Non-current liabilities 4 580,8 3 266,3
Deferred taxation 3 763,3 2 562,3
Environmental obligations 192,8 174,3
Employees' service benefit obligations 488,3 529,7
Obligations due under finance leases 136,4 -
Current liabilities 3 338,3 4 740,2
Accounts payable 1 893,7 1 731,6
Taxation 1 444,6 3 008,6
Total equity and liabilities 20 887,8 20 528,1
Group statement of changes in equity (audited)
Share Share Accumulated
R millions capital premium profits Total
Balance as at 31 December 2000 21,7 1 836,4 9 856,0 11 714,1
Net profit 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 (0,4) (703,5) (491,8) (1 195,7)
Company 2 228 267 shares at cost (0,2) (701,4) (701,6)
(cancelled)
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
Net profit 5 740,0 5 740,0
Dividends paid in cash (5 362,9) (5 362,9)
Share capital issued 0,1 74,8 74,9
Repurchase of ordinary shares - (524,4) 519,5 (4,9)
Cost of shares sold by wholly-owned 0,2 491,8 492,0
subsidiary to parent company
Unrealised after tax Group profit on 27,7 27,7
disposal of holding company shares to
parent company
Shares repurchased by parent company (0,2) (524,4) (524,6)
from wholly-owned subsidiary (cancelled)
Balance as at 31 December 2002 21,5 754,0 12 193,2 12 968,7
Consolidated cash flow statement
Audited Audited
Year ended Year ended
31 December 31 December
R millions 2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 20 004,9 17 700,8
Cash paid to suppliers and employees + (10 399,6) (5 122,3)
Cash from operations 9 605,3 12 578,5
Interest paid (35,4) (19,9)
Taxation paid (3 304,1) (2 588,7)
Net cash from operating activities 6 265,8 9 969,9
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property, plant and equipment (5 994,1) (3 586,1)
To maintain operations (2 140,9) (1 117,7)
To expand operations (3 853,2) (2 468,4)
Proceeds from sale of property, plant, equipment and mineral rights 778,4 31,7
Associates acquired (300,3) (2,4)
Interest received 203,1 373,9
Capital reduction by Northam Platinum Limited 39,0 -
Dividends received 89,7 122,8
Net cash used in investing activities (5 184,2) (3 060,1)
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from the issue of share capital 0,1 0,1
Increase in share premium 74,8 70,7
Own shares purchased - (1 195,7)
Payment of long-term borrowings - (33,9)
Dividends paid (5 362,9) (6 087,4)
Net cash used in financing activities (5 288,0) (7 246,2)
Net decrease in cash and cash equivalents (4 206,4) (336,4)
Cash and cash equivalents at beginning of year 5 786,4 6 122,8
Cash and cash equivalents at end of year 1 580,0 5 786,4
+ Includes foreign exchange gains and losses
Notes to the preliminary report
1. Accounting policies
The preliminary report is prepared on the historical cost basis, except for the
revaluation of certain financial instruments that are fairly valued, using
accounting policies that comply with International Financial Reporting Standards
of the International Accounting Standards Board, as well as South African
Statements of Generally Accepted Accounting Practice and the requirements of the
South African Companies Act. These accounting policies are consistent with those
applied in the previous year. An accounting policy has been added for the
accounting treatment of joint ventures as the group entered into a joint venture
for the first time during this year. The policy is as follows:
Joint ventures
The Group's interest in jointly controlled entities is accounted for through
proportionate consolidation. Under this method the Group includes its share of
the joint ventures' individual income and expenses, assets and liabilities in
the relevant components of its financial statements on a line-by-line basis.
In respect of its interests in jointly controlled operations, the Group
recognises the assets that it controls and the liabilities that it incurs, as
well as its share of the income that it earns and the expenses that it incurs
from the jointly controlled operation.
2002 2001
Rm Rm
2. Reconciliation between net profit and headline earnings
Net profit 5 740,0 8 019,8
Adjustments:
Profit on disposal of mineral rights (98,0) -
Negative goodwill amortisation (11,6) (11,6)
Headline earnings 5 630,4 8 008,2
3. Contingent liabilities
Guarantees and suretyships
Loans granted to employees in respect of housing loans 3,9 5,2
Environmental obligations in respect of uncommissioned expansion projects 9,1 1,3
Letters of comfort have been issued to financial institutions to cover certain
banking facilities. There are no encumbrances of Group assets, other than the
houses held under finance leases by the Group.
The Group provided guarantees in favour of Changing Tides 166 (Proprietary)
Limited, a wholly-owned subsidiary of Group 5 Construction Limited ("Group 5").
The guarantee provides security for lease payments to Group 5 by the Anglo
Platinum Housing Trust ("APHT"). The probability of any obligation arising under
this guarantee is considered remote.
The Group provided a guarantee in favour of BoE Merchant Bank Limited ("BoE")
for financing provided by BoE to Salene Mining (Proprietary) Limited ("Salene").
The Group provided the guarantee to enable Salene to put mining infrastructure
in place. The guarantee is valid until
1 July 2006 or if earlier, on repayment by Salene of the loan. Salene will sell
all ore production from the mine to the Group. The facility granted by BoE to
Salene is for a maximum amount of R120 million. In the event that BoE calls up
the guarantee, the Group holds bonds over sufficient assets of Salene to make
good any obligations that may be incurred. It is unlikely that the Group will
incur obligations under this guarantee.
4. Capital commitments
Commitments will be funded from existing cash resources, future cash flows and
borrowings.
Purchase of
metals in
R millions Mined concentrate Total
2002 (audited)
5. Gross profit on metal sales - Segmental information
Gross sales revenue 20 194,4 91,3 20 285,7
Commissions paid 723,3 9,7 733,0
Net sales revenue 19 471,1 81,6 19 552,7
Cost of sales 10 049,2 80,7 10 129,9
Cash operating costs 8 753,2 130,7 8 883,9
On-mine 7 369,4 - 7 369,4
Purchase of metals in concentrate - 121,9 121,9
Smelting 633,6 7,0 640,6
Treatment and refining 750,2 1,8 752,0
Amortisation of operating assets 762,8 1,0 763,8
Increase in metal inventories (55,4) (53,7) (109,1)
Other costs 588,6 2,7 591,3
9 421,9 0,9 9 422,8
2001 (audited)
Gross sales revenue 18 690,9 - 18 690,9
Commissions paid 812,0 - 812,0
Net sales revenue 17 878,9 - 17 878,9
Cost of sales 8 262,9 - 8 262,9
Cash operating costs 7 044,5 - 7 044,5
On-mine 5 948,6 - 5 948,6
Smelting 441,9 - 441,9
Treatment and refining 654,0 - 654,0
Amortisation of operating assets 498,8 - 498,8
Decrease in metal inventories 45,1 - 45,1
Other costs 674,5 - 674,5
9 616,0 - 9 616,0
6. Investments in associates
Unlisted investment in associate
- Carrying amount 298,3 -
- Directors' valuation: R298,3 million (2001: R nil)
Listed investment in associate
- Carrying amount 259,3 265,7
- Market value: R972,8 million (2001: R869,5 million)
557,6 265,7
7. Capital expenditure for the year 5 994,1 3 586,1
8. Commitments
Mining property, plant and equipment
Contracted for 2 094,3 1 849,0
Not yet contracted for 14 850,6 9 591,7
Authorised by the directors 16 944,9 11 440,7
Allocated for:
Expansion of capacity 13 913,9 9 345,0
- within one year 5 013,9 2 987,9
- within two to five years 8 900,0 6 357,1
Maintenance of capacity 3 031,0 2 095,7
- within one year 1 570,1 1 073,6
- within two to five years 1 460,9 1 022,1
Other
Operating lease rentals - premises 38,1 50,6
- within one year 15,2 13,4
- within two to five years 22,9 37,2
Information Technology Service Providers 139,4 209,6
- within one year 42,9 56,0
- within two to five years 96,5 137,7
- thereafter - 15,9
9. Amortisation and depreciation of property, plant and 797,2 532,8
equipment
Amortisation of operating assets 763,8 498,8
Mining 646,1 409,4
Smelting 57,0 38,9
Treatment and refining 57,9 47,7
Decommissioning asset 2,8 2,8
Depreciation - non-mining assets 33,4 34,0
10. Profit on sale of plant, equipment and mineral rights 102,4 9,5
11. Comparative figures
Where appropriate, comparative figures have been reformatted to facilitate
comparability.
Supplementary information for convenience of users
Consolidated income statement
UNITED STATES DOLLAR EQUIVALENT
Audited Audited
Year ended Year ended
31 December 31 December %
US$ millions 2002 2001 Change
Gross sales revenue 1 936,1 2 168,8
Commissions paid 70,0 94,2
Net sales revenue 1 866,1 2 074,6 (10,1)
Cost of sales 966,7 958,8 0,8
Cash operating costs 847,8 817,4
On-mine 703,3 690,2
Purchase of metals in concentrate 11,6 -
Smelting 61,1 51,3
Treatment and refining 71,8 75,9
Amortisation of operating assets 72,9 57,9
(Increase)/decrease in metal inventories (10,4) 5,2
Other costs 56,4 78,3
Gross profit on metal sales 899,4 1 115,8 (19,4)
Other net (expenditure)/income+ (72,0) 284,6
Market development and promotional expenditure (25,4) (29,1)
Operating profit 802,0 1 371,3 (41,5)
Net investment income 14,9 39,5
Income from associates 17,3 19,8
Profit before taxation 834,2 1 430,6 (41,7)
Taxation 286,1 499,9
Normal 221,3 413,2
Current 103,5 354,3
Deferred 117,8 58,9
Secondary tax on companies (STC) 64,8 86,7
Net profit 548,1 930,7 (41,1)
Dividends paid in cash (511,8) (706,3) (27,5)
Exchange rate translation adjustment 391,1 (523,9) (174,7)
Repurchase of shares by holding company from 49,6 (57,1)
wholly-owned subsidiary/(Own shares repurchased)
Accumulated profits at beginning of year 944,5 1 301,1 (27,4)
Accumulated profits at end of year 1 421,5 944,5 50,5
Average Rand/US$ exchange rate 10,4778 8,6182
Weighted average number of ordinary shares in issue 214,5 217,0 (1,2)
(millions)
Earnings per share (cents)
- Basic 255,5 428,9 (40,4)
- Headline 250,5 428,2 (41,5)
- Diluted (basic) 254,9 428,4 (40,5)
- Diluted (headline) 250,1 427,8 (41,5)
Dividends per share (cents) 171,8 255,2
- Interim 85,9 127,6
- Final 85,9* 127,6
Special dividend (cents) - 58,0
Income statement items were translated at the average exchange rate for the
year.
+ Mainly relates to foreign exchange gains and losses.
* Proposed dividend
Supplementary information for convenience of users
Consolidated balance sheet
UNITED STATES DOLLAR EQUIVALENT
Audited Audited
as at as at
31 December 31 December
US$ millions 2002 2001
ASSETS
Non-current assets 1 887,8 958,7
Property, plant and equipment 1 224,5 585,9
Capital work-in-progress 576,1 327,1
Platinum Producers' Environmental Trust 10,4 5,8
Investment in associates 65,0 22,2
Non-current accounts receivable 11,8 17,7
Current assets 547,4 757,5
Inventories 174,6 110,9
Accounts receivable 188,6 162,8
Cash and cash equivalents 184,2 483,8
Total assets 2 435,2 1 716,2
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 2,5 1,8
Share premium 87,9 100,6
Accumulated profits before proposed dividends and related secondary 1 421,5 944,5
tax on companies (STC)
Accumulated profits after proposed dividends and related STC 1 167,8 622,8
Proposed ordinary dividends 225,5 196,8
Proposed special dividend - 89,5
STC in respect of proposed dividends 28,2 35,4
Shareholders' equity 1 511,9 1 046,9
Non-current liabilities 534,0 273,1
Deferred taxation 438,7 214,2
Environmental obligations 22,5 14,6
Employees' service benefit obligations 56,9 44,3
Obligations due under finance leases 15,9 -
Current liabilities 389,3 396,2
Accounts payable 220,9 144,7
Taxation 168,4 251,5
Total equity and liabilities 2 435,2 1 716,2
Closing Rand/US$ exchange rate 8,5775 11,9610
Balance sheet items have been translated at the closing rate.
Supplementary information for convenience of users
Consolidated cash flow statement
UNITED STATES DOLLAR EQUIVALENT
Audited Audited
year ended year ended
31 December 31 December
US$ millions 2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 1 909,3 2 053,9
Cash paid to suppliers and employees + (992,6) (594,4)
Cash from operations 916,7 1 459,5
Interest paid (3,4) (2,3)
Taxation paid (315,2) (300,3)
Net cash from operating activities 598,1 1 156,9
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property, plant and equipment (572,0) (416,1)
To maintain operations (204,3) (129,7)
To expand operations (367,7) (286,4)
Proceeds from sale of property, plant, equipment and mineral rights 74,3 3,7
Associates acquired (28,7) (0,3)
Interest received 19,4 43,4
Capital reduction by Northam Platinum Limited 3,7 -
Dividends received 8,6 14,2
Net cash used in investing activities (494,7) (355,1)
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from the issue of share capital -* -*
Increase in share premium 7,1 8,2
Own shares purchased - (138,7)
Payment of long-term borrowings - (3,9)
Dividends paid (511,8) (706,3)
Net cash used in financing activities (504,7) (840,7)
Net decrease in cash and cash equivalents (401,3) (38,9)
Exchange rate translation adjustment 101,7 (285,6)
Cash and cash equivalents at beginning of year 483,8 808,3
Cash and cash equivalents at end of year 184,2 483,8
Average Rand/US$ exchange rate 10,4778 8,6182
Cash flow items were translated at the average exchange rate for the year.
+ Includes foreign exchange gains and losses.
* Less than US$50 000
Supplementary information
Consolidated statistics (Unaudited)
31 December 31 December %
Total operations 2002 2001 Change
Marketing statistics
Average market prices
achieved
Platinum (US$/oz) 544 526 3,4
Palladium (US$/oz) 329 582 (43,5)
Rhodium (US$/oz) 831 1 610 (48,4)
Nickel (US$/lb) 3,03 2,65 14,3
Net sales revenue per Pt (US$) 829 1 004 (17,4)
ounce sold
Platinum (R/oz) 5 567 4 531 22,9
Palladium (R/oz) 3 403 4 936 (31,1)
Rhodium (R/oz) 8 683 13 410 (35,2)
Nickel (R/lb) 31,92 23,14 37,9
Net sales revenue per Pt (R) 8 690 8 654 0,4
ounce sold
Average Pt exchange rates (R : $) 10,2422 8,6184 18,8
achieved
Exchange rates at end of (R : $) 8,5775 11,9610 (28,3)
period
Profitability statistics
Gross sales revenue per ton (R) 703 696 1,0
milled
Gross profit margin (%) 46,5 51,4 (9,5)
Earnings before interest, (R millions) 9 368,4 12 507,4 (25,1)
taxation, depreciation and
amortisation (EBITDA)
Operating profit to average (%) 66,3 120,0 (44,7)
operating assets
Return on average (%) 45,0 66,2 (32,0)
shareholders' equity
Return on capital employed (%) 43,4 64,0 (32,2)
Refined production for
mining operations
Platinum (thousands) (oz) 2 238,5 2 109,2 6,1
Palladium (thousands) (oz) 1 103,1 1 049,0 5,2
Rhodium (thousands) (oz) 210,0 200,4 4,8
Gold (thousands) (oz) 106,7 102,2 4,4
Nickel (thousands) (tons) 19,4 19,5 (0,5)
Copper (thousands) (tons) 10,5 10,8 (2,8)
PGM's (thousands) (oz) 3 920,6 3 673,6 6,7
Refined production from
purchased metals in
concentrate
Platinum (thousands) (oz) 12,6
Palladium (thousands) (oz) 12,2
Rhodium (thousands) (oz) 1,7
Gold (thousands) (oz) 0,4
PGM's (thousands) (oz) 27,0
Total refined production
Platinum (thousands) (oz) 2 251,1 2 109,2 6,7
Palladium (thousands) (oz) 1 115,3 1 049,0 6,3
Rhodium (thousands) (oz) 211,7 200,4 5,6
Gold (thousands) (oz) 107,1 102,2 4,8
Nickel (thousands) (tons) 19,4 19,5 (0,5)
Copper (thousands) (tons) 10,5 10,8 (2,8)
PGM's (thousands) (oz) 3 947,6 3 673,6 7,5
Analysis of operating (R millions)
contribution by mine
Rustenburg Section 2 794,2 2 993,6 (6,7)
Union Section 1 059,3 1 190,9 (11,1)
Amandelbult Section 3 886,2 3 742,6 3,8
Potgietersrust Platinums 926,1 1 680,5 (44,9)
Lebowa Platinum Mines 450,1 407,7 10,4
Steady state operating 9 115,9 10 015,3 (9,0)
contribution
Bafokeng-Rasimone Platinum 433,9 275,2 57,7
Mine
Rustenburg UG2 Phase I 451,4
Project
Modikwa Platinum Mine 12,9
Consolidated operating 10 014,1 10 290,5 (2,7)
contribution - all
operations
Other costs 591,3 674,5 (12,3)
Gross profit on metal sales 9 422,8 9 616,0 (2,0)
Production statistics and
efficiency measures
Tons mined - PPRust (thousands) 39 672 29 631 33,9
(opencast)
Tons broken - underground (thousands) 20 179 21 519 (6,2)
mines
Tons milled (thousands) 24 587 24 952 (1,5)
Built-up head grade (g/ton) 4,91 5,06 (3,0)
Immediately available ore (months) 15,4 14,2 8,5
reserves
Metres face advance (per month) 11,0 8,8 25,0
Square metres per employee (per month) 11,0 10,7 2,8
Square metres per stoping (per month) 37,2 37,6 (1,1)
and cleaning employee
Tons broken per employee - 604 593 1,9
underground mines
Tons mined per employee - 35 676 27 060 31,8
PPRust
Total average number of mine 34 527 37 396 (7,7)
employees
Average number of mine 33 415 36 301 (8,0)
employees - underground
mines
- opencast mine (PPRust) 1 112 1 095 1,6
UG2 mined to total output (%) 28 28 -
Platinum ounces refined (thousands) 1 918,5 1 979,0 (3,1)
Refined Pt ounces per 55,6 52,9 5,1
employee
Profitability and cost
statistics
Net sales revenue per Pt (R) 8 697 8 744 (0,5)
ounce sold
Operating performance
Cash-on-mine cost per Pt (R) 2 988 2 733 9,3
ounce refined
Cash-on-mine cost per Pt (US$) 285 317 (10,1)
ounce refined
Cash operating costs per Pt (R) 3 599 3 254 10,6
ounce refined
Cash operating costs per Pt (US$) 343 378 (9,3)
ounce refined
Cash operating costs per PGM (R) 2 053 1 852 10,9
ounce refined
Cash operating costs per PGM (US$) 196 215 (8,8)
ounce refined
Operating income statement (R millions)
Net sales revenue 16 724,4 16 971,8 (1,5)
Operating cost of sales + (7 608,5) (6 956,5) 9,4
Operating contribution 9 115,9 10 015,3 (9,0)
Operating margin (%) 54,5 59,0 (7,6)
* Includes all operations except Bafokeng-Rasimone Platinum Mine, Rustenburg UG2
Phase I Project and Modikwa Platinum Mine all of which are in a production
ramp-up phase.
+ Cost of sales excluding other costs
RUSTENBURG SECTION
2002 excludes portions of the Brakspruit, Bleskop and Paardekraal shafts that
are being expanded as part of the Rustenburg UG2 Phase I Project. These shafts,
at a lower level of output, are included in the steady state information for
2001.
Production statistics and efficiency measures
Tons broken (thousands) 7 014 8 550 (18,0)
Tons milled (thousands) 7 031 7 733 (9,1)
Built-up head grade (g/ton) 5,31 5,38 (1,3)
Immediately available ore reserves (months) 17,0 15,0 13,3
Metres face advance (per month) 10,7 8,9 20,2
Square metres per employee (per month) 10,2 10,7 (4,7)
Square metres per stoping and (per month) 39,9 38,8 2,8
cleaning employee
Tons broken per employee 475 493 (3,7)
Average number of mine employees 14 780 17 346 (14,8)
UG2 mined to total output (%) 2 16 (87,5)
Platinum ounces refined (thousands) 655,5 719,1 (8,8)
Refined Pt ounces per employee 44,4 41,5 7,0
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 438 8 273 2,0
Operating performance
Cash-on-mine cost per Pt ounce (R) 3 172 3 076 3,1
refined
Cash-on-mine cost per Pt ounce (US$) 303 357 (15,1)
refined
Cash operating costs per Pt ounce (R) 3 822 3 650 4,7
refined
Cash operating costs per Pt ounce (US$) 365 424 (13,9)
refined
Cash operating costs per PGM ounce (R) 2 325 2 233 4,1
refined
Cash operating costs per PGM ounce (US$) 222 259 (14,3)
refined
Operating income statement (R millions)
Net sales revenue 5 504,2 5 780,6 (4,8)
Operating cost of sales + (2 710,0) (2 787,0) (2,8)
Operating contribution 2 794,2 2 993,6 (6,7)
Operating margin % 50,8 51,8 (1,9)
+ Cost of sales excluding other costs
UNION SECTION
Production statistics and efficiency
measures
Tons broken (thousands) 3 707 3 694 0,4
Tons milled (thousands) 4 562 4 466 2,1
Built-up head grade (g/ton) 4,34 4,40 (1,4)
Immediately available ore reserves (months) 20,0 16,1 24,2
Metres face advance (per month) 8,5 7,1 19,7
Square metres per employee (per month) 7,7 7,8 (1,3)
Square metres per stoping and (per month) 29,1 29,9 (2,7)
cleaning employee
Tons broken per employee 594 582 2,1
Average number of mine employees 6 240 6 342 (1,6)
UG2 mined to total output (%) 64 60 6,7
Platinum ounces refined (thousands) 284,7 280,4 1,5
Refined Pt ounces per employee 45,6 44,2 3,2
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 327 8 497 (2,0)
Operating performance
Cash-on-mine cost per Pt ounce (R) 3 767 3 353 12,3
refined
Cash-on-mine cost per Pt ounce (US$) 360 389 (7,5)
refined
Cash operating costs per Pt ounce (R) 4 246 3 787 12,1
refined
Cash operating costs per Pt ounce (US$) 405 439 (7,7)
refined
Cash operating costs per PGM ounce (R) 2 349 2 102 11,8
refined
Cash operating costs per PGM ounce (US$) 224 244 (8,2)
refined
Operating income statement (R millions)
Net sales revenue 2 385,7 2 326,6 2,5
Operating cost of sales + (1 326,4) (1 135,7) 16,8
Operating contribution 1,059,3 1 190,9 (11,1)
Operating margin (%) 44,4 51,2 (13,3)
+ Cost of sales excluding other costs
AMANDELBULT SECTION
Production statistics and efficiency
measures
Tons broken (thousands) 7 539 7 621 (1,1)
Tons milled (thousands) 7 072 7 086 (0,2)
Built-up head grade (g/ton) 5,86 5,68 3,2
Immediately available ore reserves (months) 18,0 18,0 -
Metres face advance (per month) 10,7 9,3 15,1
Square metres per employee (per month) 12,7 12,0 5,8
Square metres per stoping and (per month) 37,5 39,1 (4,1)
cleaning employee
Tons broken per employee 785 771 1,8
Average number of mine employees 9 607 9 890 (2,9)
UG2 mined to total output (%) 44 36 22,2
Platinum ounces refined (thousands) 711,0 679,3 4,7
Refined Pt ounces per employee 74,0 68,7 7,7
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 305 8 189 1,4
Operating performance
Cash-on-mine cost per Pt ounce (R) 2 106 1 920 9,7
refined
Cash-on-mine cost per Pt ounce (US$) 201 223 (9,9)
refined
Cash operating costs per Pt ounce (R) 2 533 2 312 9,6
refined
Cash operating costs per Pt ounce (US$) 242 268 (9,7)
refined
Cash operating costs per PGM ounce (R) 1 466 1 340 9,4
refined
Cash operating costs per PGM ounce (US$) 140 155 (9,7)
refined
Operating income statement (R millions)
Net sales revenue 5 954,0 5 473,0 8,8
Operating cost of sales + (2 067,8) (1 730,4) 19,5
Operating contribution 3 886,2 3 742,6 3,8
Operating margin (%) 65,3 68,4 (4,6)
+ Cost of sales excluding other costs
POTGIETERSRUST PLATINUMS
Production statistics and efficiency
measures
Tons mined (thousands) 39 672 29 631 33,9
Tons milled (thousands) 4 375 4 270 2,5
Built-up head grade (g/ton) 3,53 4,38 (19,4)
Stripping ratio 17,7 10,9 62,4
Immediately available ore reserves (months) 6,1 3,5 74,3
within the pit
Tons mined per employee 35 676 27 060 31,8
Average number of mine employees 1 112 1 095 1,6
Platinum ounces refined (thousands) 165,3 211,1 (21,7)
Refined Pt ounces per employee 148,7 192,8 (22,9)
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 11 449 12 120 (5,5)
Operating performance
Cash-on-mine cost per Pt ounce (R) 3 890 2 819 38,0
refined
Cash-on-mine cost per Pt ounce (US$) 371 327 13,5
refined
Cash operating costs per Pt ounce (R) 5 298 3 688 43,7
refined
Cash operating costs per Pt ounce (US$) 506 428 18,2
refined
Cash operating costs per PGM ounce (R) 2 507 1 682 49,0
refined
Cash operating costs per PGM ounce (US$) 239 195 22,6
refined
Operating income statement (R millions)
Net sales revenue 1 892,6 2 558,6 (26,0)
Operating cost of sales + (966,5) (878,1) 10,1
Operating contribution 926,1 1 680,5 (44,9)
Operating margin (%) 48,9 65,7 (25,5)
+ Cost of sales excluding other costs
LEBOWA PLATINUM MINES
Production statistics and efficiency
measures
Tons broken (thousands) 1 919 1 654 16,0
Tons milled (thousands) 1 547 1 397 10,7
Built-up head grade (g/ton) 4,46 4,26 4,7
Immediately available ore reserves (months) 15,6 13,8 13,0
Metres face advance (per month) 16,2 9,4 72,3
Square metres per employee (per month) 14,9 13,0 14,6
Square metres per stoping and (per month) 39,4 39,7 (0,8)
cleaning employee
Tons broken per employee 688 607 13,3
Average number of mine employees 2 788 2 723 2,4
UG2 mined to total output (%) 38 38 -
Platinum ounces refined (thousands) 102,0 89,1 14,5
Refined Pt ounces per employee 36,6 32,7 11,9
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 9 685 9 349 3,6
Operating performance
Cash-on-mine cost per Pt ounce (R) 4 326 4 021 7,6
refined
Cash-on-mine cost per Pt ounce (US$) 413 467 (11,6)
refined
Cash operating costs per Pt ounce (R) 5 027 4 540 10,7
refined
Cash operating costs per Pt ounce (US$) 480 527 (8,9)
refined
Cash operating costs per PGM ounce (R) 2 663 2 498 6,6
refined
Cash operating costs per PGM ounce (US$) 254 290 (12,4)
refined
Operating income statement (R millions)
Net sales revenue 987,9 833,0 18,6
Operating cost of sales + (537,8) (425,3) 26,5
Operating contribution 450,1 407,7 10,4
Operating margin (%) 45,6 48,9 (6,7)
+ Cost of sales excluding other costs
BAFOKENG-RASIMONE PLATINUM MINE
Production statistics and efficiency
measures
Tons broken (thousands) 2 159 1 256 71,9
Tons milled (thousands) 2 491 1 892 31,7
Built-up head grade (g/ton) 4,22 4,42 (4,5)
Immediately available ore reserves (months) 6,7 7,3 (8,2)
Metres face advance (per month) 8,9 7,2 23,6
Square metres per employee (per month) 10,6 7,0 51,4
Square metres per stoping and (per month) 45,3 29,8 52,0
cleaning employee
Tons broken per employee 661 492 34,3
Average number of mine employees 3 267 2 554 27,9
UG2 mined to total output (%) 13 24 (45,8)
Platinum ounces refined (thousands) 162,1 130,2 24,5
Refined Pt ounces per employee 49,6 51,0 (2,7)
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 318 7 257 14,6
Operating performance
Cash-on-mine cost per Pt ounce (R) 4 365 4 142 5,4
refined
Cash-on-mine cost per Pt ounce (US$) 417 481 (13,3)
refined
Cash operating costs per Pt ounce (R) 5 045 4 638 8,8
refined
Cash operating costs per Pt ounce (US$) 481 538 (10,6)
refined
Cash operating costs per PGM ounce (R) 3 127 3 087 1,3
refined
Cash operating costs per PGM ounce (US$) 298 358 (16,8)
refined
Operating income statement (R millions)
Net sales revenue 1 358,4 907,1 49,8
Operating cost of sales + (924,5) (631,9) 46,3
Operating contribution 433,9 275,2 57,7
Operating margin (%) 31,9 30,3 5,3
+ Cost of sales excluding other costs
RUSTENBURG UG2 PHASE I PROJECT
The project includes output from the
Brakspruit, Bleskop and Paardekraal,
as well as the new Waterval shafts,
feeding the new 400 ktpm Waterval
Concentrator. Milling at the new
concentrator commenced in February
2002.
Production statistics and efficiency
measures
Tons broken (thousands) 3 951
Tons milled (thousands) 3 786
Built-up head grade (g/ton) 3,24
Immediately available ore reserves (months) 12,3
Metres face advance (per month) 54,5
Square metres per employee (per month) 15,8
Square metres per stoping and (per month) 41,7
cleaning employee
Tons broken per employee 1 155
Average number of mine employees 3 422
UG2 mined to total output (%) 92
Platinum ounces refined (thousands) 145,4
Refined Pt ounces per employee 42,5
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 9 030
Operating performance
Cash-on-mine cost per Pt ounce refined (R) 5 767
Cash-on-mine cost per Pt ounce refined (US$) 550
Cash operating costs per Pt ounce (R) 6 415
refined
Cash operating costs per Pt ounce (US$) 612
refined
Cash operating costs per PGM ounce (R) 3 462
refined
Cash operating costs per PGM ounce (US$) 330
refined
Operating income statement (R millions)
Net sales revenue 1 306,6
Operating cost of sales + (855,2)
Operating contribution 451,4
Operating margin (%) 34,5
+ Cost of sales excluding other costs
MODIKWA PLATINUM MINE*
Production statistics and efficiency
measures
Tons broken (thousands) 459
Tons milled (thousands) 488
Built-up head grade (g/ton) 2,52
Immediately available ore reserves (months) 4,0
Metres face advance (per month) 11,2
Square metres per employee (per month) 5,7
Square metres per stoping and cleaning (per month) 18,0
employee
Tons broken per employee 540
Total average number of mine employees 850
UG2 mined to total output (%) 100
Platinum ounces refined (thousands) 25,1
Refined Pt ounces per employee 29,5
Profitability and cost statistics
Net sales revenue per Pt ounce sold (R) 8 550
Operating performance
Cash-on-mine cost per Pt ounce refined (R) 7 179
Cash-on-mine cost per Pt ounce refined (US$) 685
Cash operating costs per Pt ounce (R) 7 880
refined
Cash operating costs per Pt ounce (US$) 752
refined
Cash operating costs per PGM ounce (R) 3 683
refined
Cash operating costs per PGM ounce (US$) 352
refined
Operating income statement (R millions)
Net sales revenue 163,3
Operating cost of sales + (150,4)
Operating contribution 12,9
Operating margin (%) 7,9
+ Cost of sales excluding other costs
* Represents half of the Modikwa Platinum Mine operation plus the purchase,
conversion and sale of 50% of the metals in concentrate
COMMENTARY - 12 months ended December 2002
SAFETY
Under the guidance of the Group's Safety, Health and Environment ("SHE")
committee, a sub-committee of the Board, the Group embarked this past year on
the most intense and focussed safety programmes in its history. The success of
these programmes is evident in a marked reduction in the reported lost-time
injury frequency rate per 200 000 hours worked ("LTIFR"), which now stands at
1,2; an improvement of 54% on 2001. Notwithstanding the improvement, the Board
regrets to report the death of 26 employees at managed operations during the
year. Management will continue to implement and apply all safety programmes in a
determined manner.
RESULTS SUMMARY
Refined platinum production for the year of 2,251 million ounces was 6,7 %
higher than in the previous year. The bulk of the increase came in the second
half of the year when 15,8% more ounces were produced than in the first half.
Gross sales revenue increased as a result of higher sales volumes flowing from
the abovementioned increase in production. A lower US dollar price for the
basket of metals sold was offset by a weaker average exchange rate over the
period. Notwithstanding an increase in the cost of sales for the year, the level
of profit achieved by the operations was much the same as for 2001. Profit on
metal sales of R9,42 billion declined only marginally from the R9,62 billion
achieved in 2001. The weakening of the rand against the US dollar during 2001,
and the very weak closing of the rand on 31 December 2001 resulted in
translation and revenue repatriation gains in 2001 amounting to R2,44 billion.
The much firmer rand at the end of 2002 and its firming trend through the year
yielded a translation and revenue repatriation loss of R0,88 billion. This R3,32
billion negative swing is the principal reason for the 29,7% reduction in
headline earnings from R8,01 billion in 2001 to R5,63 billion in 2002.
FINANCIAL RESULTS
Gross sales revenue increased by R1,59 billion to R20,29 billion. The increase
was the net result of a weaker rand during the year (R3,89 billion increase), an
increase in sales volumes following increased production (R1,47 billion
increase), offset by a reduction in US dollar revenues for metals sold (R3,77
billion decrease). While the average price for platinum of US$ 544 per ounce was
slightly higher than the US$ 526 per ounce achieved in 2001, palladium and
rhodium prices achieved were significantly lower at US$ 329 per ounce for
palladium (2001: US$ 582) and US$ 831 per ounce for rhodium (2001: US$ 1 610).
The US dollar revenue of all metals, expressed per platinum ounce sold, declined
17,4 % to US$ 829 from US$ 1 004 in 2001.
Cost of sales rose by R1,87 billion to R10,13 billion as a combined result of
cost increases associated with the existing production base and the increase in
production at ramp-up operations.
Costs at steady state operations were well controlled; the cost of sales rose by
R0,56 billion, or 7,4 %, to R8,15 billion. It was reported at the interim stage
that Potgietersrust was negatively impacted by a low grade ore intrusion,
resulting in a very significant reduction in built-up head grade and a 38,0%
increase in the cash on-mine cost per refined platinum ounce. Despite this, the
average cash on-mine cost per refined platinum ounce across steady-state
operations increased by 9,3%, well below the rate of inflation. This was
achieved through stringent cost control, improvements in mining efficiencies and
higher concentrator recoveries.
Smelting, treatment and refining costs increased as a result of higher
production volumes and the hiring of an additional furnace to treat high chrome
slag arising from the increased volume of UG2 smelted. While the hiring of the
additional smelter added R112,1 million to costs, causing the cash smelting,
treatment and refining cost per refined platinum ounce to rise by 19,1%, the
increased production volumes generated by higher metal recoveries contributed
revenues which far outweighed these costs.
Including the impact of the lower grade at Potgietersrust and the additional
smelting costs, the cash operating cost per refined platinum ounce at
steady-state operations ("unit cost") increased by 10,6%, in line with
inflation.
The Rustenburg UG2 Phase 1 and Modikwa Platinum projects both commenced
operations during the year. Bafokeng-Rasimone increased its production volumes
materially, tons milled rising by 31,7%. Together, these operations accounted
for R1,31 billion of the increase in the cost of sales. Despite the relatively
high unit costs at these operations as they build up to full production, they
nevertheless contributed R849,6 million to the profit on metal sales, up from
R235,0 million in 2001.
For the first time the Group reflects the cost of purchasing metals in
concentrate from joint venture partners. The R121,9 million shown in the income
statement relates to the purchase of the African Rainbow Minerals ("ARM") led
consortium's share of production from the Modikwa Platinum mine. In 2003 the
volume of metal purchased will increase substantially with increased output from
Modikwa Platinum and the expected commencement of the Bafokeng-Rasimone Joint
Venture.
The increase in the amortisation charge directly reflects the bringing to
production of new operating assets.
Gross profit on metal sales fell marginally by 2,0% to R9,42 billion.
Net investment income declined by R184,6 million to R155,7 million as a result
of lower cash holdings.
CAPITAL EXPENDITURE
Capital expenditure totalled R5,99 billion (2001: R3,59 billion). Of this,
expansion capital expenditure was R3,85 billion (2001: R2,47 billion) and
expenditure to maintain operations was R2,14 billion (2001: R1,12 billion). The
implementation of the Modikwa Platinum Joint Venture with ARM during the period
resulted in ARM refunding the Group an amount of R704 million. The refund was in
respect of its share of capital expenditure and interest incurred by the Group
on ARM's behalf until alternative finance was arranged by ARM. The financing
arrangement facilitated the entry of ARM as a Historically Disadvantaged South
African ("HDSA") empowerment party in the joint venture.
CASH RESERVES
Cash and cash equivalents declined R4,21 billion to R1,58 billion. Cash
generated by operations amounted to R9,61 billion (2001: R12,58 billion).
Payments consisted of dividends totalling R5,36 billion, taxation of R3,30
billion and net investing activities of R5,18 billion. Net investing activities
include capital expenditure of R 5,99 billion and a R298,3 million investment in
Johnson Matthey Fuel Cells Limited. Receipts included ARM's R704 million
reimbursement of its share of expenditure and interest incurred up to the
effective date of the Modikwa Platinum Joint Venture.
SHARE BUY-BACK
The Group did not purchase any of its own shares during the twelve months to 31
December 2002.
OPERATIONS
An operating margin of 54,5% was achieved on steady-state operations.
Amandelbult Section performed solidly. Head grade and concentrator recovery both
improved and the unit cost increase was contained to 9,6%. Lebowa also performed
well in 2002 and raised it's production, head grade and concentrator recovery.
Unit costs rose by 10,7%. Union Section maintained production levels despite
losing shifts associated with the evaluation of a new employee shift system in
co-operation with unions and associations. The mine focussed on upgrading
infrastructure and increasing available ore reserves. Unit costs rose by 12,1%.
Rustenburg Section's reported production declined principally as a result of the
incorporation of the Brakspruit, Bleskop and Paardekraal shafts in the
Rustenburg UG2 Phase 1 project. Costs on the smaller base were well controlled.
In the first half of the year Potgietersrust was negatively affected by a drop
in mill head grade resulting from a low-grade intrusion in the south pit. An
accelerated stripping programme, additional production from a new mini-pit and
completion of the Ga-Pila village relocation during the year resulted in an
increase in available ore reserves by year end, enhancing future mining
flexibility. Costs were well controlled; the cash cost per ton mined fell 16,0%
compared to 2001. However, the unit cost per refined ounce increased by 43,7% as
a result of the lower grade.
The smelting, treatment and refining operations delivered an excellent
performance in terms of throughput, recoveries and pipeline stock management
during 2002. The hiring of the additional furnace to treat high chrome slag
arisings will cease on commissioning of a new slag cleaning furnace in the
second quarter of 2003.
NEW MINERALS LEGISLATION AND EMPOWERMENT OF HISTORICALY DISADVANTAGED SOUTH
AFRICANS
As a result of difficulties experienced with the Department of Minerals and
Energy in processing applications for mining authorisations, the planned
build-up of production to a rate of 3,5 million refined platinum ounces by the
end of 2006 was delayed. After re-planning a new production profile was
announced in November 2002. Providing no further delays are experienced in the
processing of applications, an annual production rate equivalent to 3,5 million
refined platinum ounces can still be achieved by the end of 2006.
An agreement has been signed with the Department of Minerals and Energy which
will both secure the granting of the mining authorisations necessary to achieve
the planned build-up and satisfy the requirements of the Mineral and Petroleum
Resources Development Act ("Mineral Resources Act") and Broad Based Economic
Empowerment Charter ("Charter"). Anglo Platinum looks forward to the speedy and
efficient implementation of the terms of this agreement.
Significant progress has been made in including empowerment groupings in new
projects and Anglo Platinum is well on the way to meeting the requisite
ownership and attributable production requirements as envisaged by the Mineral
Resources Act and Charter. The following transactions have been entered into:
• facilitating the purchase of 22,5% of Northam Platinum by
Mvelaphanda Platinum;
• a 50:50 joint venture with a consortium led by ARM in respect of the
Modikwa Platinum project; and
• a 50:50 joint venture with the Royal Bafokeng Nation in respect of
the Bafokeng-Rasimone Platinum Mine and the Styldrift project, now known as the
Bafokeng-Rasimone Joint Venture. Certain suspensive conditions remain
outstanding.
Negotiations are in progress with prospective HDSA partners in respect of new
mines at Paschaskraal, Booysendal and Pandora.
Anglo Platinum has for many years invested heavily in social upliftment
programmes, benefitting the communities around its operations. A total of R74,6
million was spent in 2002, mainly on education and health care programs.
Regarding health care, the Anglo American has announced that Group companies
will make anti-retroviral treatment ("ART") for AIDS available to employees.
Anglo Platinum will be providing ART from 1 March 2003.
The Group is furthermore very active in supporting the development of small and
medium enterprises, spending a total of R502 million in 2002.
The Group continues to maintain very close contact with government departments
at all levels to enable it to timeously discharge the obligations thus far
published in terms of the new Mineral Resources Act and Charter.
NEW PROJECTS ANNOUNCED DURING 2002
Anglo Platinum remains committed to the expansion programme to produce at the
rate of 3,5 million ounces of refined platinum per year by the end of 2006 in
response to projected market demand. The following major projects were announced
in 2002:
• Rustenburg Tailings Retreatment: This entails the construction of a
concentrator at Rustenburg to treat tailings from dams in the Klipfontein and
Waterval areas. Construction has commenced and operations will start in the
first half of 2004. By 2006 steady-state production will be achieved at an
average annual rate of 120 000 platinum ounces and 38 000 palladium ounces.
Capital expenditure is estimated at R1,6 billion in 2003 money terms. The
resource base is sufficient to sustain the operation for 15 years at the planned
production rate.
• Rustenburg UG2 Phase 2: This replacement project will exploit the UG2
reef at Rustenburg Section using existing infrastructure at the Frank and
Townlands shafts, and two new decline shafts at Boschfontein. In addition the
recently completed UG2 Waterval concentrator will be expanded to process the
additional 400 000 tons per month of UG2 ore. Full production will amount to 306
000 ounces of refined platinum and 167 000 ounces of refined palladium per year.
Capital expenditure is estimated at R3,7 billion in 2003 money terms. The
project will commence production in the second half of 2004, and reach full
production in 2008.
Projects building up to steady state production are:
• Rustenburg UG2 Phase 1: The project consists of a 400 000 tons per
month concentrator processing ore from the new Waterval mine as well as the
Brakspruit, Bleskop and Paardekraal shafts. Operations commenced in February
2002. The concentrator was successfully commissioned, achieving a rapid build-up
in throughput and exceeding design recoveries. The production build-up from the
Waterval mine has been steep, but was slower than expected due to delays in
development caused by congestion underground. Stoping widths in the UG2 areas of
the Brakspruit, Bleskop and Paardekraal shafts were increased to include the
leader seam and reduce the risk of falls of ground, causing a reduction in head
grade. Test work has been done to prove methods of improving the mill feed
grade, with implementation to take place during 2003. The project added R451,4
million to the Group's operating contribution for the year under review.
• Modikwa Platinum Mine: The concentrator was commissioned in the second
half of the year, and achieved the design throughput of 200 000 tons per month
in September 2002. Recoveries were better than planned. The initial stoping
performance has been pleasing, and the build-up in ounces produced is in line
with the very high targets set for this project.
• Bafokeng-Rasimone: The mine continued to increase development and
improve mining efficiencies during 2002, despite difficult geological conditions
at South Shaft. Tons milled from underground operations were increased by 81,9%
to 1,85 million tons. Refined production rose by 24,5% compared to 2001, and the
mine added R433,9 million to the Group's operating contribution.
• The Anglo Platinum Converting Process ("ACP") Project, which will set a
new benchmark for the control of sulphur emissions, started its commissioning
programme in March 2002. Commissioning has progressed well and at year end the
new plant was ready to commence matte converting operations. The existing
convertors and acid plant will be retained on standby during the construction of
the second ACP reactor, which is scheduled to be commissioned during 2004.
• Polokwane Smelter: construction is complete and commissioning of the
control system and plant has commenced. The furnace is planned to start
producing matte for despatch to the ACP in May 2003.
• Milling at the expanded Mortimer UG2 concentrator at Union Section
commenced in July 2002 and design throughput was achieved in October 2002.
DOWNSTREAM INVESTMENT
In the second half of the year Anglo Platinum acquired a 17,5% stake in Johnson
Matthey Fuel Cells Limited, the fuel cells component subsidiary of Johnson
Matthey plc. This investment enables the Group to pursue its strategy of
stimulating demand and growing the market for platinum group metals while at the
same time sharing in the returns that are expected to arise from the
commercialisation of fuel cells.
DIVIDEND
The Board has declared a final cash dividend of 900 cents (2001: 1 100 cents)
per ordinary share. This brings the total dividend for the year to 1 800 cents
per share, a decrease of 18,2% compared to the 2 200 cents per share declared in
2001 (excluding the special dividend).
The Group's cash flows may vary considerably during the implementation of the
balance of the expansion programme. While Anglo Platinum has historically
maintained a dividend cover ratio of 1,7 excluding special dividends, this cover
ratio may need to be varied.
PROSPECTS
Continuing strong demand has resulted in thin liquidity in the platinum market,
with the price firming as a consequence. With growing demand for diesel
vehicles, ever-tightening emissions legislation and China's continuing appetite
for platinum jewellery, these conditions are expected to continue for 2003.
Despite reduced Russian shipments of palladium, its price has softened
considerably. Reduced demand from the electronics sector coupled with the
automotive industry's utilisation of inventory weighed heavily on the palladium
price over the past twelve months. These conditions are likely to continue,
making a sustained palladium price recovery unlikely.
Refined platinum production is planned to increase to 2,4 million ounces in
2003. Consequent on a planned pipeline increase in the first half of the year
resulting from increased production levels, the continuing ramp-up of the ACP
and the commissioning of the Polokwane Smelter, the bulk of the increase is
expected to arise in the second half of the year.
Notwithstanding the planned increase in production, should US dollar metal
prices and the rand remain at current levels, then earnings and dividends for
2003 will be lower than those for 2002.
Report of the independent auditors
To the members of
Anglo American Platinum Corporation Limited
We have audited the summarised consolidated preliminary report of Anglo American
Platinum Corporation Limited and its subsidiaries, set out on pages 2 to 11 for
the year ended 31 December 2002. This preliminary report is the responsibility
of the Company's Directors. Our responsibility is to express an opinion on the
financial statements based on our audit.
Scope
We conducted our audit in accordance with the Statements of South African
Auditing Standards. These standards require that we plan and perform the audit
to obtain reasonable assurance that the financial statements are free of
material misstatement. An audit includes:
• examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements,
• assessing the accounting principals used and significant estimates made by
management, and
• evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
Audit opinion
In our opinion the preliminary report fairly present, in all material respects,
the financial position of the Group at 31 December 2002, and the results of its
operations and cash flows for the year then ended, in accordance with the South
African Statements of Generally Accepted Accounting Practice and International
Financial Reporting Standards, and in the manner required by the Companies Act
in South Africa.
Deloitte & Touche
Registered Accountants and Auditors
Chartered Accountants (SA)
Johannesburg
10 February 2003
Declaration of final ordinary dividend (No. 100)
Notice is hereby given that a final dividend of 900 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 2002. The dividend is payable to
shareholders recorded in the books of the Company at the close of business on
Friday 7 March 2003.
The salient dates for the final ordinary dividend are as follows:
Salient Dates for South Africa and United Kingdom 2003
Last day to trade (cum dividend) Friday, 28 February
First day of trading (ex dividend) Monday, 3 March
Currency conversion date
(for sterling payments from London) Tuesday, 4 March
Record date Friday, 7 March
Date of payment Wednesday, 12 March
Share certificates may not be dematerialised or re-materialised between Monday 3
March 2003 and Friday 7 March 2003, both days inclusive, nor may transfers take
place between the South African and United Kingdom share registers during this
period.
On Wednesday 12 March 2003, 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 12 March 2003 will be posted on that date. Shareholders who have
dematerialised their share certificates will have their accounts at their CSDP
or broker credited on 12 March 2003.
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
Tuesday 4 March 2003.
A further announcement stating the rand/sterling conversion rate will be
released through the relevant South African and United Kingdom news services on
Wednesday 5 March 2003.
The dividend is payable subject to the customary conditions which may be
inspected at or obtained from the Company's registered Johannesburg office or
from its London Secretaries.
By order of the Board
C Mutzuris
Company Secretary
Johannesburg
10 February 2003
Administration
EXECUTIVE DIRECTORS
B E Davison (Chairman and Managing Director),
J A Dreyer, D T G Emmett, B E Ngubane,
R H H van Kerckhoven (Belgian), A I Wood (British)
NON-EXECUTIVE DIRECTORS
L Boyd, M W King, W A Nairn, A J Trahar
INDEPENDENT NON-EXECUTIVE DIRECTORS
T A Wixley (Deputy Chairman), C B Brayshaw, T H Nyasulu
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
C Mutzuris
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 Limited,
(Registration No. 1958/003546/06),
70 Marshall Street
Johannesburg, 2001
(P.O. Box 61051, Marshalltown, 2107)
Facsimile +27 11 836-0792/6145
Telephone +27 11 370-7700
LONDON SECRETARIES
Anglo American Services (UK) Limited,
20 Carlton House Terrace, London,
SW1Y 5AN, England
Facsimile +44 207 698-8755
Telephone +44 207 698-8888
UNITED KINGDOM REGISTRARS
Capita IRG plc, Balfour House,
390-398 High Road,
Ilford, Essex IG1 1NQ, England
Facsimile +44 207 478-7717
Telephone +44 207 478-8241
This information is provided by RNS
The company news service from the London Stock Exchange
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