ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2000 RESULTS - - PowerPoint PPT Presentation

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ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2000 RESULTS - - PowerPoint PPT Presentation

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ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2000 RESULTS PRESENTATION 12 FEBRUARY 2001 Highlights - Highlights - - 12 months to December 2000 Highlights 12 months to December 2000 12 months to December 2000 Record earnings* US$ 1bn

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SLIDE 1

ANGLO AMERICAN PLATINUM CORPORATION LIMITED

2000 RESULTS PRESENTATION

12 FEBRUARY 2001

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SLIDE 2

Highlights Highlights Highlights -

  • 12 months to December 2000

12 months to December 2000 12 months to December 2000

  • Record earnings*

US$ 1bn

  • Final dividend per share (SA cents)

1 100

  • Special dividend per share (SA cents)

600

  • Total dividend per share (SA cents)

2 410

  • Earnings*

– Full year +165,6% – 2nd half +222,2%

* Attributable earnings

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SLIDE 3

The year 2000 The year 2000 The year 2000

  • Announced an increase in platinum production to

3,5 million ounces by 2006

– R12,6bn (2000 terms) – Maandagshoek, Waterval, Union UG2 (651 000 oz) – ACP, Pietersburg Smelter

  • Concluded Northam empowerment transaction
  • Agreement with government on Eastern Limb

mineral leases

Milestones

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SLIDE 4

Outlook for 2001 Outlook for 2001 Outlook for 2001

  • Solid fundamentals for PGM’s
  • Further expansion announcements
  • Improved operational performance
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SLIDE 5

Strategy Strategy Strategy

  • Grow market for PGM’s
  • Expand into that growth
  • Optimise value in current operations
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SLIDE 6

Financial overview

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SLIDE 7

Earnings performance Earnings performance Earnings performance

500 1000 1500 2000 2500 3000 3500 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 EPS / DPS (cents) 5000 10000 15000 20000 25000 30000 35000 40000 SHARE PRICE (cents) DPS EPS Closing price

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SLIDE 8

Results dynamics Results dynamics Results dynamics

  • Improved US$ metal prices
  • Exchange rate
  • Lower production
  • Increase in other income
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SLIDE 9

Indicators Indicators Indicators

2000 1999 % Attributable earnings Rbn 6,92 2,61 165,6 Cash Rbn 6,12 2,21 176,9 Headline earnings cps 3 142 1 209 159,9 Dividends cps 2 410 700 244,3 Return on average equity % 73,2 40,9 79,0 Operating profit to average

  • perating assets

% 114,9 49,2 133,5 Interest-bearing debt equity % 0,3 0,7 57,1 .

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SLIDE 10

Consolidated income statement Consolidated income statement Consolidated income statement Rm Rm Rm

2000 1999 % Gross sales revenue 16 185,6 8 794,9 84,0 Cost of sales 6 675,8 5 338,7 (25,0) Profit on metal sales 8 861,2 3 179,3 178,7 Other net income 989,2 37,5 2 537,9 Taxation 2 932,4 612,3 (378,9) Attributable earnings 6 918,0 2 604,5 165,6

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SLIDE 11

Income statement Income statement Income statement -

  • Gross sales revenue

Gross sales revenue Gross sales revenue Rm Rm Rm

2000 16 185,6 6 008,4 Metal prices 1 177,5 Exchange rate 204,8 Sales volumes 1999 8 794,9

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SLIDE 12

Income statement Income statement Income statement -

  • Gross sales revenue

Gross sales revenue Gross sales revenue Metal prices

2000 1999 % Platinum US $/oz 544 377 44,3 Palladium US $/oz 675 358 88,5 Rhodium US $/oz 1 847 894 106,6 Nickel US $/lb 3,86 2,58 49,6 Average R/US$ 6,91 6,09 13,5 Basket price net

  • f commissions

R/oz 8 287 4 366 89,8 Basket price net

  • f commissions

$/oz 1 198 716 67,4

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SLIDE 13

Basket of metals Basket of metals Basket of metals -

  • Revenue

Revenue Revenue vs vs vs cost cost cost

Six month periods

2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 R / oz Net sales revenue per Pt oz sold Cost of sales per Pt oz sold

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SLIDE 14

Income statement Income statement Income statement -

  • Cost of sales

Cost of sales Cost of sales Rm Rm Rm

2000 1999 % On-mine costs 4 934,6 4 187,5 (17,8) Smelting, treatment and refining costs 936,8 868,8 (7,8) Other costs 508,6 282,0 (80,4) Amortisation 395,8 304,5 (30,0) Increase in metal inventories (100,0) (239,7) (58,3) Transfer from metal lease liability 0,0 (64,4) (100,0) Cost of sales 6 675,8 5 338,7 (25,0)

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SLIDE 15

Income statement Income statement Income statement -

  • Cost of sales

Cost of sales Cost of sales

2000 1999 % On-mine cost per ton milled 201 183 (9,8) Smelting, treatment and refining cost per Pt ounce 501 430 (16,5) Operating cost per Pt ounce 3 137 2 500 (25,5) Operating cost of production per Pt

  • unce net of other metal revenue

(1 700) 387 Cash cost per unit of production (Rand)

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SLIDE 16

Income statement Income statement Income statement -

  • Profit on metal sales

Profit on metal sales Profit on metal sales

2000 Rm Operating contribution 2000 % Operating margin 2000 % Operating margin 1999 % Rustenburg Section 2 700,3 28,8 53,4 35,6 Union Section 1 534,1 16,4 61,6 39,3 Amandelbult Section 3 200,8 34,1 69,5 52,6 Bafokeng Rasimone 374,0 4,0 50,0 25,3 Potgietersrust Platinums 1 318,1 14,1 63,2 36,6 Lebowa Platinum Mines 242,5 2,6 44,2 17,9 Operating contribution 9 369,8 100,0 60,3 40,6 Other costs 508,6 Profit on metal sales 8 861,2

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SLIDE 17

Income statement Income statement Income statement -

  • Other

Other Other Rm Rm Rm

2000 1999 % Profit on metal sales 8 861,2 3 179,3 178,7 Other income 1 169,4 176,6 562,2 Marketing expenditure (180,2) (139,1) (29,5) Taxation (2 932,4) (612,3) (378,9) Attributable earnings 6 918,0 2 604,5 165,6

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SLIDE 18

Consolidated cash flow Consolidated cash flow Consolidated cash flow Rm Rm Rm

Closing cash balances

1 000 2 000 3 000 4 000 5 000 6 000 7 000 Jun 95 Dec 95 Jun 96 Dec 96 Jun 97 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Rm

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SLIDE 19

Consolidated cash flow Consolidated cash flow Consolidated cash flow Rm Rm Rm

2000 1999 Cash holdings 6 122,8 2 214,5 Operating contribution 8 911,5 3 216,0 Tax (962,7) (243,4) Other income 403,1 170,8 Capital expenditure (1 919,7) (1 472,9) Investments acquired (110,1) 0,0 Dividend payments (2 457,4) (1 013,3) Other 43,6 27,8 Net movement in cash 3 908,3 685,0

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SLIDE 20

Operations overview

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SLIDE 21

Operational performance 2000 Operational performance 2000 Operational performance 2000

  • Tons milled up
  • Refined production down
  • Unit cost up
  • Improved performance in 2001
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SLIDE 22

3 8 13 18 23 28 1994 1995 1996 1997 1998 1999 2000 Fatalities and RIFR 0,03 0,04 0,05 0,06 0,07 0,08 0,09 0,1 0,11 LTIFR No of fatalities Reportable injury frequency rate per 1000 people per annum (RIFR) Lost time injury frequency rate per 1000 shifts per annum (LTIFR)

Safety statistics Safety statistics Safety statistics

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SLIDE 23

Operational performance Operational performance Operational performance

Tons milled (000's) six month periods

2 000 4 000 6 000 8 000 10 000 12 000 14 000 H1 1999 H2 1999 H1 2000 H2 2000

Refined platinum ounces (000's) six month periods

200 400 600 800 1 000 1 200 H1 1999 H2 1999 H1 2000 H2 2000

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SLIDE 24

Built-up head grade

4,8 4,9 5,0 5,1 5,2 5,3 5,4 5,5 5,6 1997 1998 1999 2000 g/ton

% of UG2 mined

5 10 15 20 25 30 1997 1998 1999 2000 %

Operational performance Operational performance Operational performance

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SLIDE 25

Tons milled per total employee per month (underground mines only)

40 42 44 46 48 50 1995 1996 1997 1998 1999 2000 Tons

Breakthrough Breakthrough Breakthrough

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SLIDE 26

Breakthrough Breakthrough Breakthrough -

  • second phase

second phase second phase

  • Mining optimisation
  • Mechanisation
  • Concentrator optimisation
  • People
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SLIDE 27

Consolidated mining statistics Consolidated mining statistics Consolidated mining statistics

2000 1999 % Tons mined - PPRust (000's) 30 183 34 730 (13,1) Tons broken - Underground mines (000's) 19 613 20 824 (5,8) Tons milled (000's) 24 575 22 853 7,5 Built-up head grade (g/ton) 5,05 5,40 (6,5) Immediately available ore reserves (months) 14,0 16,1 (13,0) Metres face advance (per month) 8,4 9,4 (10,6) m

2 per stoping and cleaning employee

(per month) 35,9 40,0 (10,3) Tons broken per underground mine employee 564 634 (11,0) Average number of mine employees 35 921 34 044 5,5 Cash on-mine cost per ton milled (R) 201 183 9,8

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SLIDE 28

Rustenburg Rustenburg Rustenburg 2000 h 2000 h 2000 highlights ighlights ighlights

  • Labour reduction of 1,4%
  • UG2 mined increased by 67%
  • Expansion by 395 000 ozs approved
  • 2001 focus

– Safety – Infrastructure refurbishment – Cost management – Concentrator recovery

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SLIDE 29
  • Increase in tonnage milled by 10,9%
  • Slag plant commissioned
  • m2 per stoping and cleaning employee up by 5,1%
  • Expansion by 94 000 ozs approved
  • 2001 focus

– Safety – Infrastructure refurbishment – Grade improvement – Concentrator recovery

Union 2000 h Union 2000 h Union 2000 highlights ighlights ighlights

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SLIDE 30
  • Increase in tons milled by 3,1%
  • Commissioned UG2 expansion
  • 2001 focus

– Safety – Concentrator recovery - UG2 – Grade improvement – Mechanised bord and pillar section

Amandelbult Amandelbult Amandelbult 2000 h 2000 h 2000 highlights ighlights ighlights

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SLIDE 31

Bafokeng Rasimone Bafokeng Rasimone Bafokeng Rasimone 2000 h 2000 h 2000 highlights ighlights ighlights

  • Concentrator recovery significantly above plan
  • 2001 focus

– Safety – Training and efficiencies of new employees – Cost management – Mechanised bord and pillar section – Grade improvement – Accelerated development – 200 000 tpm from underground operations by the end

  • f 2001
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SLIDE 32

Potgietersrust Potgietersrust Potgietersrust 2000 h 2000 h 2000 highlights ighlights ighlights

  • Improved mill throughput - batch process
  • Performance improvement despite stripping ratio

increase of 10,1%

  • Ga Pila village relocating
  • 2001 focus

– Safety – Sustainable water supply for additional crushing capacity – Further optimisation of grade – Accelerated overburden stripping

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SLIDE 33

Lebowa Lebowa Lebowa 2000 h 2000 h 2000 highlights ighlights ighlights

  • Increased tons milled by 5,7%
  • UG2 plant commissioned
  • Enhanced employee relationships
  • 2001 focus

– Safety – Improved production and grades – Cost management

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SLIDE 34

Waterval Waterval Waterval Smelter 2000 highlights Smelter 2000 highlights Smelter 2000 highlights

  • Smelted throughput up 2,9%
  • Commissioned 4th flash dryer
  • Sulphur fixation improved by 10%
  • 2001 focus

– Safety – Throughput optimisation – ACP project implementation – Recovery improvement

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SLIDE 35

RBMR 2000 highlights RBMR 2000 highlights RBMR 2000 highlights

  • Labour complement reduced by 7%
  • Further reduction in metal inventories
  • 2001 focus

– Safety – Debottlenecking – Cost management

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SLIDE 36

PMR 2000 highlights PMR 2000 highlights PMR 2000 highlights

  • Continuing improvement in metal recoveries
  • New “dissolve” technology introduced
  • Further reduction in metal inventories
  • 2001 focus

– Safety – Security – Debottlenecking – Cost management

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SLIDE 37

Technology / Technology / Technology / mechanisation mechanisation mechanisation

Underground mines only

2 4 6 8 10 12 1997 1998 1999 2000 2001 % MECHANISED

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SLIDE 38

Technology / Technology / Technology / mechanisation mechanisation mechanisation

  • Stope drill rigs
  • Bord and pillar stoping
  • Activated disc cutter
  • Tunnel boring machine for raise lines
  • Longhole stope drilling
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SLIDE 39

Employee relations Employee relations Employee relations

  • Wage settlement agreement reached and aligned

– Mines 2 years – Process 18 months

  • Secured meal interval exemptions
  • Good progress in partnership process
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SLIDE 40

Expansion projects Expansion projects Expansion projects -

  • current

current current

Capex (unescalated) Pt oz (000's) Commissioning Date Maandagshoek R1,35bn * 162 Q2 2002 Union UG2 expansion R0,45bn * 94 Q2 2002 RPM/Waterval UG2 expansion R1,40bn * 395 Q4 2002 Converting process R1,45bn *

  • Q1 2004

Pietersburg Smelter R1,31bn**

  • Q3 2002

* Year 2000 money terms ** Year 2001 money terms

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SLIDE 41

Market overview

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Platinum Platinum Platinum freemarket freemarket freemarket price trends 2000 price trends 2000 price trends 2000

400 450 500 550 600 650

Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00

US$/oz

  • Average freemarket price for

2000 was $545/oz, 44,3% above 1999

  • The price rose to a 13-year

high of $625/oz on 13th December

  • Ongoing supply deficit on

the back of solid demand sustained a firm price

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SLIDE 43

Palladium Palladium Palladium freemarket freemarket freemarket price trends 2000 price trends 2000 price trends 2000

400 500 600 700 800 900 1000

Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00

US$/oz

  • Average freemarket price in

2000 was $681/oz, 90% above 1999

  • Price posted an all-time high
  • f $972/oz on 27th December
  • Tight market conditions

prevailed

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Rhodium Rhodium Rhodium freemarket freemarket freemarket price trends 2000 price trends 2000 price trends 2000

1000 1200 1400 1600 1800 2000 2200 2400 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00

US$/oz

  • Rhodium average price for

2000 was $1994/oz, 120% above 1999

  • Firm industrial demand
  • Growing use in autocatalyst

applications

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SLIDE 45

Jewellery Jewellery Jewellery

  • Sales to the Chinese and US markets increased in

2000, despite a slowdown in Chinese offtake at the year-end

– Chinese consumer demand remains strong

  • Sales of platinum jewellery pieces in Japan

decreased by 3,0% in the first eleven months of 2000

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SLIDE 46

Fuel cells Fuel cells Fuel cells

“I believe fuel cells will finally end the 100-year reign

  • f the internal combustion engine.”

Bill Ford, Chairman Ford Motor Company Ford PS2000 SUV

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SLIDE 47

Fuel cells Fuel cells Fuel cells

  • Ballard, leading supplier of PEM fuel cells for

transportation, is to supply Nissan with power packs for Nissan’s fuel cell program

  • Ballard Generation Systems has delivered its fourth 250-

kilowatt stationary fuel cell generator for field testing

  • General Motors plans a production-ready fuel cell

vehicle by 2004

  • Ford announces that the fuel cell version of Ford Focus

(TH!NK FC5) will be in mass production by 2004

  • Daimler Chrysler is to deliver its first fuel-cell

commercial vehicle into service this year

Recent developments in PEM technology

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SLIDE 48

Platinum demand outlook Platinum demand outlook Platinum demand outlook

  • The use of platinum in autocatalysts will continue

to grow due to more stringent emission legislation for diesel vehicles and concern over long term supplies of palladium

  • Higher platinum prices this year are likely to weigh
  • n low-end international jewellery sales, while the

bridal sector is expected to expand

  • Industrial demand growth will continue to be

driven by the use of platinum in computer hard disks

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SLIDE 49

Platinum supply / demand balance outlook Platinum supply / demand balance outlook Platinum supply / demand balance outlook

  • Firm markets are likely to continue, given

– Strong demand – Continuing market development – No significant increase in Russian production – Russian platinum stockpile denuded

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SLIDE 50

Palladium supply / demand balance outlook Palladium supply / demand balance outlook Palladium supply / demand balance outlook

  • The year 2000 saw a reduction in palladium

demand for autocatalysts as manufacturers drew down stocks

  • Autocatalysts demand expected to increase in the

short term - thrifting and substitution by platinum will have an influence thereafter

  • Substitution in dental and electronics will

continue

  • Uncertainty regarding Russian selling patterns

and solid demand are underpinning record prices

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SLIDE 51

Questions