Corporate Overview June 2009 1 2008 Annual results Our Strategy - - PowerPoint PPT Presentation

1 2008 Annual results

Corporate Overview

June 2009

2 Corporate Overview June 2009

Our Strategy

To develop the market for platinum group metals, to expand our production into that opportunity and to conduct our business safely, cost effectively and competitively

3 Corporate Overview June 2009

World leader in platinum

• The world’s largest primary producer of platinum
• Refined production (000’ oz):
• Headline Earnings:
• Ordinary shares in issue (m):
• Market capitalization (US$ bn):
• Anglo American plc shareholding:

76.5% 79.6% 79.6% 35.0 13.2 14.5 229.6 237.1 237.1 1,741 1,722 US$ m 12,325 13,292 R m PGMs Rhodium Palladium Platinum 4,787 4,531 839 329 299 74 1,390 1,319 235 2,474 2,387 404 2007 2008 1Q09

4 Corporate Overview June 2009

2008 highlights

• Noticeable improvement in safety
• Record headline earnings of R13.3 billion, up 8%
• 2.39 million refined platinum ounces in line with mid year forecast
• 2.22 million ounces sold
• Unit operating costs per equivalent refined platinum ounce up 35.6%
• New mining right conversions, ESOP in place
• Global economic impacts addressed

5 Corporate Overview June 2009

Key business issues

1. Safety: 2. Cost management: 3. Improving productivity: 4. Declining grade and recovery: 5. Project pipeline management: 6. Balance sheet management: – Focus on achieving zero harm – Addressing unit costs to match output of 2.4

million refined platinum ounces

– Reduction in headcount to match output – Increased UG2 and reduced mining flexibility – Production of metal to meet market demand – Reduction in capex plans for 2009 of more than

50% to R9.1 billion

– Rising debt levels from R13.5 billion net debt as

at 31/12/08

– Suspension of final dividend for 2008

6 Corporate Overview June 2009

Safety is our first value Zero is possible

Safety

7 Corporate Overview June 2009

Safety progress

• Noticeable improvement in safety: LTIFR down 29% since 2007
• Increased safety excellence:

– Union Mine: 7 million fatality- free shifts, a mining industry milestone –Modikwa Mine: 5 million fatality-free shifts – Union concentrators, Slag plant: 3 years total injury-free –Precious Metals Refinery: 20 years fatality free –BRPM, South Shaft: 1 million fatality-free shifts –Tumela mine: first 1 million fatality-free shifts

2.03 1.82 2.05 1.80 1.52 1.44 0.5 1 1.5 2 2007 1Q08 2Q08 3Q08 4Q08 1Q09

29% reduction in LTIFR

LTI/200 000 hours

8 Corporate Overview June 2009

Cost management

• 7% reduction in Rand cash operating costs per equivalent refined platinum
• unce in 1Q09 vs. 4Q08

1Q09: split of cash operating costs*

*Includes On-mine costs (comprise mining and concentrating costs) smelting and refining costs

Labour 38% Contractors 13% Stores 27% Utilities 6% Sundries 15% Toll refining 1%

9 Corporate Overview June 2009

Anglo Platinum mines: across the industry cost curve

Mototolo WLTR Modikwa Pandora Twickenham Siphumelele Lebowa Thembelani

Production (Refined k Pt oz) Net Cash Cost(1) (Real 2008$/ Pt oz)

Southern Africa Net Cash Cost Curve (2009)

Dishaba Tumela BRPM Kroondal Khomanani Khuseleka Marikana

200 400 600 800 1,000 1,200 1,400 1,600 1,800 3,500 1,000 2,000 3,000 4,000 5,000

Bathopele Mogalakwena Union Section

Q1 Q2 Q3 Q4

Anglo Platinum

(1) Total Cash Cost less revenue from other metals outside platinum

10 Corporate Overview June 2009

Improving productivity

• 2008 headcount:

— Average number of own employees: 50,152 — Average number of contractors: 27,245 — Total average: 77,397

• Headcount reduction:

— 10,000 reduction by end 2009 (c.8,000 in 1H09) — Of which, 7,800 contract employees and 2,200 from “natural attrition” — 4,195 reductions by end 1Q09

11 Corporate Overview June 2009

Declining grade and recovery

• Increasing proportion of UG2: lower

grade and recovery

• Increased UG2 mined vs. total output:

2003: 43% to 2008: 57%

• Built-up head grade decreased from

2003: 4.53 to 2008: 3.36 g/tonne milled

• Ore mix management and process

recovery optimisation

• Focus on improving flexibility by

increasing ore reserve development

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2003 2004 2005 2006 2007 2008 10 20 30 40 50 60 70 Built up head grade % UG2

12 Corporate Overview June 2009

Replacement projects

Project pipeline management

• Approved projects form pipeline of $5.8 billion
• Five replacement projects, four expansion projects
• Project and stay-in-business capital expenditure plans reduced for 2009 to R9.1 billion

2009 2010 2011 2017 2012 2013 2014 2015 2016 2018 2019

All production shown at 100% and in ‘000 ounces per annum; dates show full production dates

Project 2400

Refined production

Mogalakwena North 200 (2Q) Lebowa Brakfontein Merensky 108 (1Q) Townlands Ore (Kuseleka Mine) 70 (2Q) Paardekraal (Thembelani Mine) 120 (2Q) Amandelbult No.4 Shaft (Tumela Mine) 271 (1Q)

Growth projects

Mogalakwena North 230 (2Q) Amandelbult East Upper UG2 (Tumela Mine) 100 (4Q) Twickenham 180 (4Q) Styldrift Merensky phase 1 245 (2Q) Capex: $230m Capex: $179m Capex: $139m Capex: $316m Capex: $1602m Capex: $692m Capex: $224m Capex: $800m Capex: $1621m

13 Corporate Overview June 2009

Balance Sheet management

• 2008 Final dividend suspended
• Net debt at end 2008: R13.5 billion
• Long term debt R10.3 billion
• Committed debt facilities of R26 billion

32.2 20.5 2.0 28.4 55.4 Interest bearing debt/Shareholders equity (%) 15.6 9.8 n/a 13.1 31.2 Net debt to CE (%) n/a n/a 0.2 0.2 0.6 Net debt/EBITDA (2,460) (4,413) 3,876 4,086 13,459 Net debt/(cash) 2004 2005 2006 2007 2008 R mn

14 Corporate Overview June 2009

The world’s largest primary producer of platinum

2008: Global platinum supply: 5,970m oz*

Anglo Platinum 40% Impala 22% Lonmin 11% Norilsk 11% Other 16% Anglo Platinum 53% Impala 29% Lonmin 15% Other 3%

2008: South Africa platinum supply: 4,530m oz*

*Source: Johnson Matthey 2009 Platinum Review

• Global platinum supply dropped by 580k oz, -8.9% from 2007
• South African platinum supply dropped by 505k oz, -10% from 2007

15 Corporate Overview June 2009

Primary platinum production drives strategy

Platinum 56% Palladium 8% Rhodium 26% Nickel 5% Other 5%

• Expansion decisions based on platinum

demand growth

• Value and return based on rand

revenue of basket of metals sold

• Anglo Platinum basket price: net sales

revenue (all metals) per platinum ounce refined in 2008: — US$2,764 (+7.2% yr on yr) — R22,348 (+23.0% yr on yr)

2008: split of gross revenue by metal

16 Corporate Overview June 2009

Extensive high quality ore reserves and resources

17 Corporate Overview June 2009

• Proved and probable reserves of 1,478 Mt @ 4.16 g/t: 197.5m oz (4E)

– Increase of 6.3% (CAGR) over 5 yrs – Implied life of mines: 60 years

• Measure and Indicated resource: 2,221 Mt @ 3.93 g/t: 281m oz (4E)

– Increase of 4.3% (CAGR) over 5 years – Implied life of mines: 84 years

• Approximately 30% of global platinum known and potential resources
• 57% of South Africa’s 4E reserves
• BEE transactions reduce total reserves and resources (including inferred) by 20.1%

Extensive high quality ore reserves and resources

18 Corporate Overview June 2009

Operating statistics 2008/2007

86 77 129 128 26 210 168 513 4,413 431 1,212 2,179 Total Capex 61 62 235 517 6 306 517 622 2,964 567 2,351 2,212 Total capex FY08 FY07 57.4 3.7 92.6 901 53.0 3.5 83.9 911 Mototolo 40.7 0.9 22.4 15,828 12.2 1.4 32.8 14,411 Marikana(2)/(4) 37.4 4.6 114.6 1,120 29.5 5.5 131.2 1,257 Modikwa(2) 61.3 5.2 128.8 2,925 58.3 8.2 196.3 3,041 Kroondal(2)/(3) 44.7 1.8 44.1 5,146 43.2 1.8 41.8 5,272 WLTR 50.1 7.7 190.5 1,284 45.9 7.1 170.5 1,124 BRPM(2) (4.6) 0.4 8.8 159 (41.8) 0.4 9.9 164 Twickenham 39.1 3.8 94.2 1,333 31.7 3.0 72.6 1,098 Lebowa 45.7 6.6 162.5 4,187 28.5 7.4 177.4 7,180 Mogalakwena 47.7 12.5 309.6 5,610 49.6 12.9 309.0 5,570 Union(1) 61.2 23.2 573.9 6,981 55.5 19.3 461.2 5,769 Amandelbult 44.3 29.6 731.9 10,646 35.3 29.3 700.1 10,003 Rustenburg Operating margin (%) %

• z

Tonnes milled Operating margin (%) %

• z

Tonnes milled Mining operation Refined Pt Refined Pt

(1) 85% owned (2) 50% Joint Venture (3) Tonnes milled for underground only (4) Tonnes milled for opencast only

19 Corporate Overview June 2009

Unique competitive advantages

• Extensive high quality ore reserves
• Expansion projects in place and ready to react to increased market demand
• Extensive HDSA JV experience
• Superior market intelligence
• Conversion of all mining rights including at project level

20 Corporate Overview June 2009

Strategy

• Grow the market for Platinum Group Metals

— nurture and grow PGM demand

• Expand into market growth

— establish and commission multiple greenfield and brownfield sites

• Optimize value in current operations

— optimize cost efficiency

21 Corporate Overview June 2009

Unique metal market dynamics

• Diverse application base
• Balance of elastic and inelastic applications – beneficial price role
• Geographically diverse demand

Autocatalysts (net) 43% Industrial* 28% Investment 7% Jewellery 22%

*Includes Chemical, Electrical, Glass, Petroleum and Other Source: Johnson Matthey 2009 Platinum Review

2008: split of platinum demand by application

Europe 38% Japan 17% North America 9% China 20% RoW 16%

2008: split of platinum demand by region

22 Corporate Overview June 2009

Platinum supply & demand: 1998-2008

1000 2000 3000 4000 5000 6000 7000 8000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total Supply: 1999-2008 CAGR 2.3% Total Demand: 1999-2008 CAGR 1.4% ‘000 ounces

23 Corporate Overview June 2009

Autocatalyst demand driver: emissions legislation

• Continued increase in diesel car popularity
• Continued tighter legislation - Euro V 2009
• Early voluntary particulate filter fitment
• Heavy duty vehicle retrofitting - high loadings
• Vehicle volume growth in China – medium term

“China's economy and auto industry are continuing their steady growth amid the global economy slowing down” Toyota President Katsuaki Watanabe (19/04/09)

Emissions standards: Legislative horizon

“China during the last five years more than doubled its domestic automobile production, while US manufacturing has declined by nearly 50 per cent ” Egil Juliussen, Director and Fellow of Automotive Research

24 Corporate Overview June 2009

PGMs for autocatalysts: Demand 1999-2008

1000 2000 3000 4000 5000 6000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Pt Pd Rh ‘000 ounces

25 Corporate Overview June 2009

Platinum jewellery: demand drivers

• Sophisticated marketing - PGI

— focus on niche and new markets

• High brand awareness
• Strong bridal underpin
• Unsaturated markets

Unique beneficial effect on price

26 Corporate Overview June 2009

Unique role of jewellery sector

• ‘Shock absorber’ effect, at any price level

— Jewellery demand: price elastic vs. Industrial demand: price inelastic — Demand balance results in lower price volatility

• Price tension (upward pressure on price)

— Strong consumer demand — Consumer has adjusted to higher prices over time — Chinese market low margin, high turnover, unsaturated

Jewellery demand pleasing at current price levels

27 Corporate Overview June 2009

Platinum jewellery market: Japan mature, China growing

200 400 600 800 1000 1200 1400 1600 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Europe Japan North America China RoW ‘000 ounces

28 Corporate Overview June 2009

Investment: A growing source of demand

• Platinum and palladium ETFs introduced in April-May 2006 by ETF

Securities and Zurcher Kantonal Bank

• Platinum ETF holdings currently c.500k oz vs. peak in 2008 of c.450k oz
• Palladium ETF holdings currently at record highs of c.830 k oz

Platinum ETF positions to mid-May 2009 Palladium ETF positions to end April 2009

29 Corporate Overview June 2009

Palladium: Outlook

• Increasing autocatalyst demand
• Palladium consumption growing from current levels as expected
• Investment activity and Exchange Traded Funds continue to increase
• Palladium use in diesel: 25% long term
• Potential for further jewellery development
• Overhang of stock remains

30 Corporate Overview June 2009

Palladium supply & demand: 1999-2008

2000 4000 6000 8000 10000 12000 14000 16000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total Supply: 1999-2008 CAGR -1.1% Total Demand: 1999-2008 CAGR -8.4% ‘000 ounces

31 Corporate Overview June 2009

Investor Relations Contact

Anna Poulter

Direct line: +27 (0) 11 373 6683 Mobile: +27 (0) 73 870 9032 Email: apoulter@angloplat.com www.angloplatinum.com