ANGLO AMERICAN PLATINUM LIMITED 2011 ANNUAL RESULTS 13 February - - PowerPoint PPT Presentation

ANGLO AMERICAN PLATINUM LIMITED 2011 ANNUAL RESULTS

Mogalakwena Central Pit

13 February 2012

DISCLAIMER: CERTAIN FORWARD-LOOKING STATEMENTS

Certain statements made in this presentation constitute forward-looking statements. Forward looking statements are typically identified by the use of forward-looking terminology such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'intends', 'estimates', 'plans', 'assumes' or 'anticipates' or the negative thereof or other variations thereon or comparable terminology, or by discussions of, e.g. future plans, present or future events, or strategy that involve risks and uncertainties. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control and all of which are based on the Company's current beliefs and expectations about future events. Such statements are based on current expectations and, by their nature, are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, expressed

• r implied, by the forward-looking statement. No assurance can be given that such future results will be achieved; actual events or results may

differ materially as a result of risks and uncertainties facing the Company and its subsidiaries. The forward-looking statements contained in this presentation speak only as of the date of this presentation and the Company undertakes no duty to, and will not necessarily, update any of them in light of new information or future events, except to the extent required by applicable law or regulation.

AGENDA

• Overview of FY2011, review of safety, markets and operations

– Neville Nicolau, CEO

• Review of financial performance

– Bongani Nqwababa, Finance Director

• Outlook

– Neville Nicolau, CEO

• Question and Answer session

OVERVIEW OF FY2011

• Neville Nicolau, CEO

KEY FEATURES

• Notwithstanding a 52% reduction in fatalities since 2007, disappointingly 12 employees lost their

lives in 2011

• Sales volume up 3% to 2.60 million ounces
• Operating free cash flow increased by 21% to R9,413 million from R7,783 in 2010
• Operating profit increased by 10% to R7,965 million in 2011 and adjusted headline earnings up

8% to R20.94 per share

• Cash operating costs up 16% to R13,552 as a result of mining inflation and safety stoppages
• Unki delivered 51,600 ounces of platinum and reached steady state a year ahead of schedule
• Landmark community economic empowerment transaction implemented in December 2011
• Dividend for 2011 of R7,00 per share which includes a final dividend of R2.00 per share

SAFETY

25 18 14 8 12 1H 8 4 2H 5 10 15 20 25 30 2007 2008 2009 2010 2011 2.03 1.74 1.37 1.17 1.33 1.22 0.00 0.50 1.00 1.50 2.00 2.50 2007 2008 2009 2010 1H 2011 2H 2011

• Significant safety achievements during 2011

– Modikwa Mine: > 8 million fatality free shifts – Khomanani mine: > 4 million fatality free shifts – Khuseleka mine: > 3.7 million fatality free shifts – Tumela mine: > 2 million fatality free shifts – Twickenham project: > 1.5 million fatality free shifts – Mogalakwena: > 1.9 million fatality free shifts – Dishaba mine: > 1.4 million fatality free shifts – Precious metal refinery: > 22 fatality free years

JOURNEY TO ZERO HARM

Lost-time injury frequency rate: down 37% since 2007 Number of fatalities: down 52% since 2007

REVIEW OF MARKETS

• Major move away from commodities in 4Q

2011

• Platinum price declined by approximately

36% in 4Q 2011 on concerns about European sovereign debt

• Europe is 30% of global platinum demand
• Low vehicle inventories & pent up demand
• Heavy duty diesel catalyst growth likely
• Germany dominates diesel vehicle

production

PLATINUM MARKET IN 2011

Platinum and Gold price (January 2010 to December 2012

FUEL CELL TECHNOLOGY

To insert another photo of a fuel cell charging a mobile phone

OPERATIONAL REVIEW

27 35 60 36 81 10 20 30 40 50 60 70 80 90 2007 2008 2009 2010 2011

PRODUCTION PERFORMANCE IN 2011

Own mines safety stoppages (S54s) Group equivalent refined platinum production Own mines equivalent refined platinum production

• Anglo American Platinum lost 161,200
• unces of platinum due to S54s

–122,200 ounces from non-fatality related and non localised S54s –39,000 ounces from fatality related S54s

• Own mines lost 138,200 ounces due to

S54s; 101,100 ounces from non-fatality related and non localised S54s and 37,100 ounces from fatality related S54s

2,200 2,250 2,300 2,350 2,400 2,450 2,500 2,484

• 53
• 21

2,410 0.0%

• 2.1%
• 0.8%
• 3.0%

2010 Own mines & WLTR JVs Associates & 3rd parties 2011 Equivalent refined platinum ounces ('000) 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,560 52 46 (13) (101) (37) 54 1,561 2010 Unki Mogala kwena Surf mat S54 non fat S54 fat Other 2011 Equivalent refined platinum ounce ('000)

523.2 599.1 693.8 696.7 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 2008 2009 2010 2011 Tonnes 23.9 27.3 32.7 32.5 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2008 2009 2010 2011 Ounces 5.73 6.33 7.06 6.32 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2008 2009 2010 2011 Square metres

LABOUR PRODUCTIVITY

Labour productivity profile (M2/operating employee) Labour productivity profile (refined platinum ounce/

• perating employee)

Labour productivity profile (Tonnes/operating employee)

• Underground mine productivity declined 10% to

6.32 m2 per employee

• Own mines productivity was essentially flat at

5.87 m2 per employee.

• Tonnes per employee and refined ounce per

employee are more comprehensive measures of

• productivity. Both were essentially in line with

the prior year

60 70 75 76 50 55 60 65 70 75 80 1Q 2011 2Q 2011 3Q 2011 4Q 2011 Recoveries (%) 82 81 81 81 82 80 82 80 86 86 77 78 79 80 81 82 83 84 85 86 87 2007 2008 2009 2010 2011 Recoveries (%) UG2 Concentrators without IsaMills UG2 Concentrators with IsaMIlls

IMPROVEMENT IN PROCESSING PERFORMANCE

• UG2 recoveries up 6% from 2007

–Stirred milling technology successful –Deployment of expert control systems

• Mogalakwena ramp up complete

–Recoveries up 10% in 2H 2011 from 1H 2011

• Improved Smelting Reliability
• BMR commissioning complete
• Rustenburg Chrome plant commissioning in

progress

Mogalakwena North concentrator recoveries UG2 concentrator recoveries

475 453 472 529 0.0 100.0 200.0 300.0 400.0 500.0 600.0 2008 2009 2010 2011 Rand/tonne 11,448 11,261 11,336 12,869 0.0 2,000.0 4,000.0 6,000.0 8,000.0 10,000.0 12,000.0 14,000.0 2008 2009 2010 2011 Rand/ounce 11,096 11,236 11,730 13,552 0.0 2,000.0 4,000.0 6,000.0 8,000.0 10,000.0 12,000.0 14,000.0 16,000.0 2008 2009 2010 2011 Rand/ounce

COST MANAGEMENT

Cash operating cost per equivalent refined Pt oz Cash operating cost per refined Pt oz

• Cash operating costs per equivalent refined

platinum ounce increased by 16% –If it was not for the 109,212 ounces of platinum lost due to safety stoppages unit cost increase would have been 11% –Mining inflation of 14% compared to average inflation of 5%

• Cash unit costs remained essentially flat in real

terms between 2008 and 2010

• Cash on-mine cost per tonne up 12% to R529 in

2011 but remained flat between 2008 and 2010

Cash on-mine cost per tonne milled

TRANSFORMATION AND SUSTAINABLE DEVELOPMENT

• Culture survey completed in 2011 and change management programme ongoing
• Woman in mining at 12%; exceeds the 10% required by the Mining Charter
• Achieved level 3 certification on BBBEE codes
• Promoting employee home ownership; entered into partnership with Government to build

20,000 houses

• Landmark community economic empowerment transaction implemented in December 2011.

–Lefa la Rona Trust set up to house the shares

• Refinancing and restructuring of Anooraq and Bokoni Platinum Holdings announced on 02

February 2012 –Mogalakwena’s resources and reserves increased following the acquisition of Boikgantsho project –Acquisition of the eastern section of the Ga-Phasha project increases the potential of Twickenham project

• Transactions underscore the company’s commitment to empowerment and community

development

REVIEW OF FINANCIAL PERFORMANCE

• Bongani Nqwababa, Finance Director

UNDERLYING FINANCIAL PERFORMANCE IMPROVES

R million 2011 2010 Change Basket price per Pt oz ($) 2,698 2,491 8%

• Basket price per Pt oz (R)

19,595 18,159 8%

• Net sales revenue

51,117 46,025 11%

• EBITDA

11,997 11,378 5%

• Operating profit

7,965 7,253 10%

• Headline earnings

3,566 4,931

• 28%
• Headline earnings per share (cents)

1,365 1,935

• 29%
• Ordinary dividends

1,857 1,791 4%

• Ordinary dividends per share (cents)

700 683 2%

• Operating free cash flow

9,413 7,783 21%

• Capital expenditure (excl. interest capitalised)

7,141 7,244

• 1%
• Net debt

3,662 4,111

• 11%

ADJUSTED HEADLINE EARNINGS

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 4,931 2,913

• 277
• 855

800

• 1,021
• 872
• 221
• 12
• 111
• 1,156
• 553

3,566 1,907 5,473 FY 2010 Price Exchange Inflation Sales volume Costs Stock movement Depreciation Net interest Associates Community development Other FY 2011 Once-off items Adjusted FY 2011 Rand million

COST MANAGEMENT AND OPERATING MARGIN

1 Cash operating costs comprise on-mine, smelting and refining costs

R million 2011 2010 Change Cash operating costs1 25,783 23,232 11%

• Other costs

2,812 2,185 29%

• Purchase of metals and leasing activities

9,193 9,215 0%

• Depreciation and waste stripping

4,571 4,354 5%

• Cost of sales

42,562 37,991 12%

• Margins

2011 2010 Change Gross profit margin 16.7% 17.5%

• 5%
• Headline earnings margin

7.0% 10.7%

• 35%

COSTS IMPACTED BY MINING INFLATION AND LOWER PRODUCTION VOLUME

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000

11,730 1,642 574

• 518

125

• 164

163 13,552 14.0% 4.9%

• 4.4%

1.1%

• 1.4%

1.4% 15.5% 2010 Actual Mining inflation Production Labour Power Sundry Contractors 2011 Actual

Rand per equivalent refined platinum ounce

STRONG OPERATING FREE CASH FLOW

2,000 4,000 6,000 8,000 10,000 12,000 14,000 7,783 5,092

• 4,472

1,282

• 272

9,413 2010 Higher revenue Higher costs Working capital management SIB capex 2011 Operating free cashflow (Rm)

OUTLOOK

• Outlook

– Neville Nicolau, CEO

OUR STRATEGY

Our strategy is to maximise value by understanding and developing the market for platinum group metals, to expand our production into that

• pportunity and to conduct our business safely,

cost-effectively and competitively SAFE, PROFITABLE PLATINUM

• Strategy review
• Focus on adding value
• Match products to customer needs:

–Security of supply –Metal quality –Product development

• Review of:

–Customer mix –Contractual terms

• Increased market intelligence
• Risk management

REVIEW OF MARKETING AND COMMERCIAL STRATEGY

Platinum demand by sector – 2011 Platinum demand by geographic region – 2011

2012 OUTLOOK

• Journey to zero harm continues
• Expect a balanced platinum market in 2012
• Planning to refine and sell between 2.5 and 2.6 million ounces of platinum in 2012 subject to

market conditions

• Aiming to contain cash unit costs to between R14,000 and R14,500 per equivalent refined

platinum ounce, assuming 2.6 million ounces production level

• CAPEX forecast of up to R8 billion for 2012

Q&A

THANK YOU