ANGLO AMERICAN PLATINUM ANGLO AMERICAN PLATINUM CORPORATION LIMITED - - PowerPoint PPT Presentation

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ANGLO AMERICAN PLATINUM ANGLO AMERICAN PLATINUM CORPORATION LIMITED - - PowerPoint PPT Presentation

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ANGLO AMERICAN PLATINUM ANGLO AMERICAN PLATINUM CORPORATION LIMITED CORPORATION LIMITED 2004 YEAR END RESULTS PRESENTATION 14 February 2005 2004 results presentation 2004 results presentation CEO overview Improved earnings Solid

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SLIDE 1

ANGLO AMERICAN PLATINUM ANGLO AMERICAN PLATINUM CORPORATION LIMITED CORPORATION LIMITED

2004 YEAR END RESULTS PRESENTATION

14 February 2005

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SLIDE 2

2004 results presentation 2004 results presentation

  • Improved earnings
  • Solid fundamental PGM demand
  • Robust business model being implemented
  • BEE compliance on track

CEO overview

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SLIDE 3
  • Headline earnings up 25,1% - R2,62bn
  • Headline earnings per share up 17,1%. R11,38 / share
  • Refined platinum production up 6,3%, 3,9% from mines
  • Overall unit costs up 9,2%
  • Rand basket price up 9,0%
  • Higher US$ metal prices and increased volumes partly
  • ffset by strong rand and higher costs

Improved earnings

2004 results presentation

CEO overview

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SLIDE 4
  • US$ weakness – higher US$ platinum price
  • Solid industrial platinum demand and resilience in

Chinese jewellery market – firm price

  • Sound palladium demand and consumption – flat

price

  • Tight rhodium market – firm price to continue
  • Rand strength continues to dampen supply
  • Platinum market in balance

CEO overview

2004 results presentation

Solid PGM demand

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SLIDE 5
  • New management structure in place
  • Mining and process functions split
  • Operational focus and accountability
  • Well positioned for cost and efficiency improvements

Robust business model

CEO overview

2004 results presentation

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SLIDE 6
  • Rand strength reduced project returns and operational

profitability

  • Expansion implementation adjusted

– 2005 – 2,6 million Pt ounces Capex R6 bn – 2006 – 2,7 to 2,8 million Pt ounces

Robust business model

CEO overview

2004 results presentation

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SLIDE 7
  • Firm commitment to broad based BEE

– Conversion process commenced – Several applications submitted – Partner relationships enhanced – Ongoing Government engagement

BEE on track

CEO overview

2004 results presentation

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SLIDE 8

Results features

  • Sound earnings and profitability
  • Growth in earnings, margins maintained
  • Balance sheet strengthened

2004 results presentation

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SLIDE 9

Financial summary

2004 results presentation

Financial overview

2004 2003 % Profit on metal sales Rbn 4,63 3,91 18,3 Total headline earnings Rbn 2,62 2,09 25,1 Net debt * Rbn 3,43 6,92 50,5 Headline earnings per share cps 1 138 972 17,1 Ordinary dividends cps 735 640 14,8 Refined Pt production 000 oz 2 453,5 2 307,8 6,3 Interest bearing debt to equity % 32,2 60,3 46,6 EBITDA - Interest cover 13,4 12,0 11,7 Year ended December * Borrowings less cash and cash equivalents

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SLIDE 10

Headline earnings (Rm) 2004 vs 2003

2004 results presentation

Financial overview

2 092 2 840 (261) 2 617 (1285) (326) 334 (390) 94 2 359 2003 Exchange Inflation Metal prices Cash costs Amor tisation Interest & Other Volume 2004

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SLIDE 11

Gross profit margin*

* Gross profit on metal sales / Gross sales revenue

  • 10.0

20.0 30.0 40.0 50.0 60.0 2000 2001 2002 2003 2004 %

2004 results presentation

Financial overview

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SLIDE 12

Operating margin and volume per mine

Group average 27,8% AS 46,0% RS 37,1% PPL 29,3% LPM 23,0% US 17,9% BRPM 16,6% RS UG2 Project 0,5% Modikwa 0,3% WLTR 39,5% KPM PSA 31,5% 0. 0.0% 0% 5. 5.0% 0% 10 10.0% 15 15.0% 20 20.0% 25 25.0% 30 30.0% 35 35.0% 40 40.0% 45 45.0% 50 50.0%

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 Equivalent Pt oz (000's)

Operating Margin

2004 results presentation

Financial overview

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SLIDE 13

2004 cash flows

2004 results presentation

Financial overview

3 429 4 260 667 (618) 1 580 (5 459) 6 923 (3 924)

  • 1 000

2 000 3 000 4 000 5 000 6 000 7 000 8 000 Dec 2003 Net Debt Cash from

  • perations

Dividends Capex Preference Shares Other Tax & Interest Dec 2004 Net Debt R m

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SLIDE 14

Mining overview

2004 results presentation

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SLIDE 15
  • Safety
  • Mining performance mixed
  • Increased production
  • Outlook

Mining overview

2004 results presentation

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SLIDE 16
  • Commitment to safety
  • Wider implementation of behaviour based

programme

  • Evolving mining safety standards to accommodate

changing mining conditions

  • Production stopped for remedial action where

necessary

Safety

2004 results presentation

Mining overview

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SLIDE 17

Mining – key features

2004 results presentation

  • Challenging conditions:

– Amandelbult – Union – Rustenburg steady state

  • Difficult ramp-up at Modikwa
  • Strong performances from:

– Potgietersrust – Lebowa

  • Strike

Mining overview

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SLIDE 18

Mining performance

2004 results presentation

  • Increased production

– Platinum from mines up 3,9%

  • Overall mining grade stable
  • Cost pressure

Mining overview

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SLIDE 19

Cost performance

2004 results presentation

  • Mining unit cost up 11,2%

– Wage strike volume loss – Wage settlement above inflation – Mining issues at Amandelbult, Union and Rustenburg

Mining overview

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SLIDE 20

Mining outlook

2004 results presentation

  • New management structure
  • Operational focus
  • Production growth in 2005

Mining overview

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SLIDE 21

Process and projects overview

2004 results presentation

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SLIDE 22

Process performance

2004 results presentation

  • Stable ACP performance

– 20 tons per day SO2 achieved – Fully commissioned

  • Waterval Smelter site rehabilitation
  • Polokwane Smelter – good overall performance
  • Tight cost control – reduction in unit costs
  • Solid process performance
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SLIDE 23

Projects overview

2004 results presentation

  • Project implementation adjusted
  • Ongoing re-scoping and review to improve returns
  • Reduced capex in 2005 – R6bn
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SLIDE 24

Project progress in 2004 sound

2004 results presentation

Projects overview

  • Western Limb Tailings Phase 1 commissioned and at

full production

  • Modikwa and BRPM volumes increased – additional

development in place

  • Twickenham small scale mining continues
  • Kroondal construction on track
  • Unki project progressing
  • Feasibility studies continue

– Pandora, Ga-Phasha, Der Brochen, Booysendal

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SLIDE 25

Change in cash operating cost per equivalent refined platinum ounce

(excluding purchased ounces and associated costs)

2004 results presentation

Cost performance

0, 0,0% 0% 2, 2,0% 0% 4, 4,0% 0% 6, 6,0% 0% 8, 8,0% 0% 10, 10,0% 0% 12, 12,0% 0% CP CPI 4, 4,4% 4% Am Amandelbul ult, Unio ion R n Rustenbu burg rg 4, 4,8% 8% St Strike 2, 2,0% 0% Mi Mining i incr crea ease 11, 11,2% 2% Proc

  • cess d

ss decrease se 2, 2,0% 0% Op Operat ating c cost 9, 9,2% 2%

(% increase)

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SLIDE 26

Group Outlook 2005

2004 results presentation

  • Strategy to expand in line with increased demand

remains

  • Rand strength to impact earnings and timing of

project implementation

  • 2005 target – 2,6m Pt oz
  • Robust business model to deliver on costs and

growth

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SLIDE 27

QUESTIONS

14 February 2005

2004 results presentation

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SLIDE 28

ANGLO AMERICAN PLATINUM ANGLO AMERICAN PLATINUM CORPORATION LIMITED CORPORATION LIMITED

14 February 2005

2004 YEAR END RESULTS PRESENTATION