Wrap Text
Abridged reviewed Group financial results for the six months ended 30 June 2013
ANGLO AMERICAN PLATINUM LIMITED
Incorporated in the Republic of South Africa
Registration number: 1946/022452/06
Share code: AMS - ISIN: ZAE000013181
(Amplats, the Company, the Group or Anglo American Platinum)
ABRIDGED REVIEWED GROUP FINANCIAL RESULTS
for the six months ended 30 June 2013
KEY FEATURES
- Significant improvement in safety performance with LTIFR declining 24% year-on-year to 1.04
- Equivalent refined platinum production at 1.2 Moz, in line with the first half of 2012
- Refined platinum sales volume up 11% year-on-year to 1.1 Moz
- Cash operating costs increased 5% to R16,284 per equivalent refined platinum ounce, from R15,500 on a normalised basis for
2012)
- Net debt increased to R13.2 billion from R10.5 billion as at 31 December 2012
- As part of the planned restructuring, s189 Labour Relations Act process commenced on 10 June 2013 and in progress
- Dividend suspension continued due to lower cash generated by operations increasing debt levels, future funding requirements
and uncertain global economy
Anglo American Platinum Limited's consolidated abridged reviewed interim financial results for the six months ended
30 June 2013 have been independently reviewed by the Group's external auditors. The preparation of the Group's
reviewed interim results for the six months ended 30 June 2013 was supervised by the Finance Director,
Mr B Nqwababa.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
Six months ended Year ended
30 June 30 June % 31 December
R millions Notes 2013 2012 change 2012
Gross sales revenue 24,323 19,532 43,148
Commissions paid (181) (122) (310)
Net sales revenue 24,142 19,410 24 42,838
Cost of sales (21,262) (17,331) (23) (41,948)
Gross profit on metal sales 3 2,880 2,079 39 890
Other net income/(expenditure) 185 (189) (198)
Loss on scrapping of property, plant and equipment (142) (1,293) (6,606)
Market development and promotional expenditure (249) (198) (420)
Operating profit/(loss) 2,674 399 570 (6,334)
Loss on revaluation of investment in Wesizwe Platinum Limited
(Wesizwe) (40) (256) (358)
Impairment of associates - - (105)
Interest expensed (367) (127) (435)
Interest received 30 39 220
Remeasurement of loan and receivables 27 3 54
Losses from associates (net of taxation) (122) (481) (659)
Profit/(loss) before taxation 2,202 (423) 621 (7,617)
Taxation 4 (1,050) (27) 897
Profit/(loss) for the period/year 1,152 (450) 356 (6,720)
Other comprehensive income, net of income tax
Items that will be reclassified subsequently to profit or loss 285 186 325
Deferred foreign exchange translation gains 557 87 95
Share of other comprehensive gains/(losses) from associates 8 (2) -
Reclassification of unrealised losses on available for sale
investment to loss for the period/year - 256 178
Net (losses)/gains on available for sale investments (280) (155) 52
Total comprehensive profit/(loss) for the period/year 1,437 (264) (6,395)
Profit/(loss) attributable to:
Non-controlling interest (70) 14 (43)
Owners of the Company 1,222 (464) 363 (6,677)
1,152 (450) (6,720)
Total comprehensive profit/(loss) attributable to:
Non-controlling interest (70) 14 (43)
Owners of the Company 1,507 (278) (6,352)
1,437 (264) (6,395)
Headline earnings/(loss) 5 1,341 713 88 (1,468)
Number of ordinary shares in issue (millions) 260.9 260.9 261.0
Weighted average number of ordinary shares in issue (millions) 261.0 261.1 261.0
Weighted average number of potential diluted ordinary shares in
issue (millions) 261.8 262.0 262.2
Earnings/(loss) per ordinary share (cents)
- Basic 468 (178) 363 (2,558)
- Diluted (basic) 467 (177) 364 (2,547)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Audited
As at As at
30 June 30 June 31 December
R millions Notes 2013 2012 2012
ASSETS
Non-current assets 64,901 68,076 64,652
Property, plant and equipment 43,810 43,265 43,946
Capital work-in-progress 9,419 13,548 9,149
Investment in associates 6,768 6,632 6,653
Investments held by environmental trusts 706 600 642
Other financial assets 4,142 3,971 4,204
Other non-current assets 56 60 58
Current assets 26,566 21,954 21,295
Inventories 18,827 16,841 15,937
Trade and other receivables 4,748 3,368 2,708
Other assets 310 405 472
Other current financial assets 6 13 4
Cash and cash equivalents 2,675 1,327 2,174
Total assets 91,467 90,030 85,947
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 27 27 27
Share premium 21,360 20,917 20,956
Foreign currency translation reserve 731 166 174
Available-for-sale reserve (342) (191) (62)
Retained earnings 29,543 34,686 28,725
Non-controlling interest 193 372 280
Shareholders' equity 51,512 55,977 50,100
Non-current liabilities 25,158 22,787 20,668
Non-current interest-bearing borrowings 6 12,000 8,267 8,104
Other financial liabilities - 32 -
Environmental obligations 1,814 1,472 1,709
Employees' service benefit obligations 21 3 24
Deferred taxation 11,323 13,013 10,831
Current liabilities 14,797 11,266 15,179
Current interest-bearing borrowings 6 3,880 2,602 4,561
Trade and other payables 6,658 5,986 6,425
Other liabilities 1,752 1,614 1,983
Other current financial liabilities 96 258 131
Share-based payment provision 28 62 54
Taxation 2,383 744 2,025
Total equity and liabilities 91,467 90,030 85,947
CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Audited
Six months ended Year ended
30 June 30 June 31 December
R millions 2013 2012 2012
Cash flows from/(used in) operating activities
Cash receipts from customers 22,117 18,839 43,109
Cash paid to suppliers and employees (21,195) (19,992) (40,417)
Cash from/(used in) operations 922 (1,153) 2,692
Interest paid (net of interest capitalised) (276) (75) (201)
Taxation paid (307) (531) (602)
Net cash from/(used in) operating activities 339 (1,759) 1,889
Cash flows used in investing activities
Purchase of property, plant and equipment (includes interest capitalised) (2,347) (3,013) (7,201)
Proceeds from sale of plant and equipment 42 17 102
Distribution from associates - - 94
Proceeds on sale of mineral rights and other investments 4 9 14
Loans to associates (221) (212) (535)
Advances made to Plateau Resources Proprietary Limited (Plateau) (253) (156) (305)
Settlement of obligation to subscribe for 'S' preference shares in Newshelf 1061
Proprietary Limited - - (86)
(Increase)/decrease in investments held by environmental trusts (36) 76 78
Interest received 22 23 36
Growth in environmental trusts - - 3
Other advances - (81) (91)
Net cash used in investing activities (2,789) (3,337) (7,891)
Cash flows from financing activities
Share issue expenses on the community economic empowerment transaction - - (5)
Purchase of treasury shares for the Bonus Share Plan (BSP) (240) (231) (231)
Proceeds from interest-bearing borrowings 3,208 4,911 6,706
Cash dividends paid - (530) (532)
Cash distributions to minorities (17) (23) (58)
Net cash from financing activities 2,951 4,127 5,880
Net increase/(decrease) in cash and cash equivalents 501 (969) (122)
Cash and cash equivalents at beginning of period/year 2,174 2,296 2,296
Cash and cash equivalents at end of period/year 2,675 1,327 2,174
Movement in net debt
Net debt at beginning of period/year (10,491) (3,662) (3,662)
Net cash from/(used in) operating activities 339 (1,759) 1,889
Net cash used in investing activities (2,789) (3,337) (7,891)
Other (264) (784) (827)
Net debt at end of period/year (13,205) (9,542) (10,491)
Made up as follows:
Cash and cash equivalents 2,675 1,327 2,174
Current interest-bearing borrowings (3,880) (2,602) (4,561)
Non-current interest-bearing borrowings (12,000) (8,267) (8,104)
(13,205) (9,542) (10,491)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Foreign
currency Available- Non-
Share Share translation for-sale Retained controlling
capital premium reserve reserve earnings interests Total
Rm Rm Rm Rm Rm Rm Rm
Balance as at 31 December 2011 (audited) 27 21,014 79 (292) 35,534 381 56,743
Total comprehensive loss for the period 87 101 (466) 14 (264)
Deferred tax charged directly to equity 3 3
Cash distribution to minorities (23) (23)
Cash dividends paid (530) (530)
Shares acquired in terms of BSP treated as
treasury shares (-)* (231) (231)
Shares vested in terms of the BSP -* 134 (134) -
Equity-settled share-based compensation 299 299
Shares purchased for employees (20) (20)
Balance as at 30 June 2012 (reviewed) 27 20,917 166 (191) 34,686 372 55,977
Total comprehensive loss for the period 8 129 (6,211) (57) (6,131)
Deferred tax charged directly to equity 2 2
Cash distributions to minorities (35) (35)
Cash dividends paid (2) (2)
Share issue expenses on community economic
empowerment transaction (5) - (5)
Shares vested in terms of the BSP -* 44 (44) -
Equity-settled share-based compensation 290 290
Shares purchased for employees 4 4
Balance as at 31 December 2012 (audited) 27 20,956 174 (62) 28,725 280 50,100
Total comprehensive profit for the period 557 (280) 1,230 (70) 1,437
Deferred tax charged directly to equity (8) (8)
Cash distributions to minorities (17) (17)
Shares acquired in terms of BSP - treated as
treasury shares (-)* (240) (240)
Shares vested in terms of the BSP -* 234 (234) -
Shares vested in terms of group Employee
Share Option Scheme (Kotula) -* 410 (410) -
Equity-settled share-based compensation 239 239
Shares purchased for employees 1 1
Balance as at 30 June 2013 (reviewed) 27 21,360 731 (342) 29,543 193 51,512
* Less than R500,000.
ABRIDGED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. The abridged reviewed financial information is in compliance with International Financial Reporting Standards (IFRS), the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements as
issued by the Financial Reporting Standards Council, the requirements of the Companies Act of South Africa and the JSE
Limited's Listing Requirements. It also contains the information required by International Accounting Standard 34 - Interim
Financial Reporting. The accounting policies are consistent with those applied in the financial statements for the year ended
31 December 2012, except for adoption of IFRIC 20 - Stripping Costs in the Production Phase of a Surface Mine and various
other amendments to accounting standards in the period under review. These changes did not have a material impact on the
financial results of the Group.
2. SEGMENTAL INFORMATION
Net sales revenue Operating contribution
Reviewed Audited Reviewed Audited
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
R millions 2013 2012 2012 2013 2012 2012
Operations
Bathopele Mine 942 964 2,059 439 184 (32)
Khomanani Mine 787 852 1,824 173 62 (167)
Thembelani Mine 674 729 1,556 75 (12) (318)
Khuseleka Mine 1,157 1,096 2,388 318 94 (228)
Siphumelele Mine 667 691 1,461 197 104 (56)
Tumela Mine 1,908 1,638 3,731 290 197 218
Dishaba Mine 1,304 1,122 2,518 193 203 351
Union North Mine 481 528 1,159 (26) 33 (165)
Union South Mine 1,073 1,138 2,416 163 261 (40)
Mogalakwena Mine 4,910 3,688 7,649 1,374 1,085 2,201
Twickenham Platinum Mine 7 - 1 (196) - 1
Unki Platinum Mine 750 641 1,345 107 165 176
Modikwa Platinum Mine* 807 445 1,185 74 6 141
Kroondal Platinum Mine* 1,263 708 1,717 216 86 221
Marikana Platinum Mine* - 195 291 - (104) (110)
Mototolo Platinum Mine* 672 428 1,006 190 120 274
17,402 14,863 32,306 3,587 2,484 2,467
Western Limb Tailings Retreatment 568 322 768 263 127 265
Chrome refining 267 239 464 233 201 370
Total - mined 18,237 15,424 33,538 4,083 2,812 3,102
Purchased metals 5,905 3,986 9,300 243 408 525
24,142 19,410 42,838 4,326 3,220 3,627
Other costs (1,446) (1,141) (2,737)
Gross profit on metal sales 2,880 2,079 890
*Anglo American Platinum Limited's share (excluding purchase of concentrate).
Reviewed Audited
Six months ended Year ended
30 June 30 June 31 December
2013 2012 2012
Rm Rm Rm
3. GROSS PROFIT ON METAL SALES
Gross sales revenue 24,323 19,532 43,148
Commissions paid (181) (122) (310)
Net sales revenue 24,142 19,410 42,838
Cost of sales (21,262) (17,331) (41,948)
On-mine (14,812) (13,478) (27,607)
Cash operating costs (13,020) (11,794) (24,167)
Depreciation (1,792) (1,656) (3,314)
Deferred waste stripping - (28) (126)
Purchase of metals and leasing activities 1 (5,159) (4,026) (8,959)
Smelting (1,443) (1,461) (3,096)
Cash operating costs (1,123) (1,105) (2,310)
Depreciation (320) (356) (786)
Treatment and refining (1,231) (1,315) (2,693)
Cash operating costs (904) (1,001) (2,046)
Depreciation (327) (314) (647)
Increase in metal inventories 2,829 4,090 3,144
Other costs (1,446) (1,141) (2,737)
Gross profit on metal sales 2,880 2,079 890
Gross profit margin (%) 11.9 10.7 2.1
1 Consists of purchased metals in concentrate, secondary metals and other metals.
% % %
4. TAXATION
A reconciliation of the standard rate of South African normal taxation compared
with that charged in the statement of comprehensive income is set out in the
following table:
South African normal tax rate 28.0 (28.0) (28.0)
STC - 12.2 0.7
28.0 (15.8) (27.3)
Disallowable items 3.4 11.0 3.0
Capital profits - 17.0 -
Prior year underprovision 17.8 52.7 9.9
Effect of after-tax share of losses from associates 1.6 31.8 2.4
Effective tax rate adjustment (1.1) (85.9) -
Other (2.0) (4.4) 0.2
Effective tax rate 47.7 6.4 (11.8)
Rm Rm Rm
5. RECONCILIATION BETWEEN PROFIT/(LOSS)
AND HEADLINE EARNINGS/(LOSS)
Profit/(loss) attributable to owners of the Company 1,222 (464) (6,677)
Adjustments
Loss on revaluation of investment in Wesizwe 40 256 358
Profit on sale of other mineral rights and investments (14) (10) (14)
Impairment of associates - - 105
Loss on scrapping of property, plant and equipment 142 1,293 6,606
Tax effect thereon (40) (362) (1,850)
Net (profit)/loss on disposal of assets (12) - 6
Tax effect thereon 3 - (2)
Headline earnings/(loss) 1,341 713 (1,468)
Attributable headline earnings/(loss) per ordinary share (cents)
- Headline 514 273 (562)
- Diluted 512 272 (560)
Reviewed Audited
Six months ended Year ended
30 June 30 June 31 December
2013 2012 2012
Rm Rm Rm
6. INTEREST-BEARING BORROWINGS
The Group has the following borrowing facilities:
Committed facilities 22,436 20,235 20,181
Uncommitted facilities 6,497 5,301 6,331
Total facilities 28,933 25,536 26,512
Less: Facilities utilised (15,880) (10,869) (12,665)
Non-current interest-bearing borrowings* (12,000) (8,267) (8,104)
Current interest-bearing borrowings* (3,880) (2,602) (4,561)
Available 13,053 14,667 13,847
Weighted average borrowing rate (%) 6.13 6.59 6.12
*Includes R9,100 million and R1,501 million owing to Anglo American SA Finance Limited on the committed and uncommitted
facilities respectively.
7. CONTINGENT LIABILITIES
Letters of comfort have been issued to financial institutions to cover certain banking facilities. There are no encumbrances over
Group assets.
The Group is the subject of various claims, which are individually immaterial and are not expected, in aggregate, to result in
material losses. In addition, as at 30 June 2013, the Group has certain unresolved tax matters where the tax authorities are
disputing the Group treatment of these matters. Management has consulted with external tax and legal advisers, who support
the Group position. Nonetheless, we are actively discussing the issues with the tax authorities with a view to seeking resolution
and believe that these matters have been appropriately treated in the results for the six months ended 30 June 2013.
The Group has, in the case of some of its mines, provided the Department of Minerals Resources with guarantees that cover
the difference between the closure costs and amounts held in the environmental trusts. At 30 June 2013, these guarantees
amounted to R2,863 million (30 June 2012: R2,801 million; 31 December 2012: R2,760 million).
8. CHANGES IN ACCOUNTING ESTIMATE FOR INVENTORY
During the current period, the Group changed its estimate of the quantities of inventory based on the outcome of a physical
count of in-process metals. The Group runs a theoretical metal inventory system based on inputs, the results of previous
counts and outputs. Due to the nature of in-process inventories being contained in weirs, pipes and other vessels, physical
counts only take place once per annum, except in the Precious Metal Refinery, which takes place once every three years.
This change in estimate has had the effect of increasing the value of inventory disclosed in the financial statements by
R358 million (2012: R1,439 million). This results in the recognition of an after tax gain of R257 million (2012: R1,036 million).
9. REFINANCING OF ATLATSA RESOURCES CORPORATION (ATLATSA)
In 2012, the Group and Atlatsa agreed in principle to the restructure, recapitalisation and refinancing of Atlatsa and Bokoni
Platinum Holdings Proprietary Limited. The implementation of the transaction is subject to the fulfilment of certain conditions
precedent including regulatory approval and Atlatsa shareholder approval. On 28 June 2013, Atlatsa shareholders approved
the transaction. This transaction will be accounted for once these remaining conditions precedent have been fulfilled.
Subject to fulfilment of the remaining conditions precendent, the estimated impact on profit for the year will be a loss of
approximately R1.2 billion (before tax). The Group and Atlatsa are collaborating to optimise the operations of Bokoni Platinum
Mine.
10. UNKI INDIGENISATION PLAN
On 2 November 2012 the Group announced the approval of its proposed 51% indigenisation implementation plan at Unki
Mines (Private) Limited by the Zimbabwe Minister of Youth Development, Indigenisation and Empowerment and noted its
intention to implement the indigenisation plan by 30 June 2013. The Group advises that the indigenisation plan has not yet
been implemented and discussions around the indigenisation plan and its implementation remain ongoing. Stakeholders will be
kept informed of any material developments in this regard.
11. PORTFOLIO RESTRUCTURING
On 10 May 2013, the Group announced the revised proposals of the Platinum Portfolio Review. The key revised proposals
from the review were as follows:
- Placement of Khuseleka 2 shaft, Siphumelele 2 shaft and Khomanani Mine (shafts 1 and 2) on long-term care and
maintenance;
- Consolidation of the Rustenburg operations into three operating mines; and
- Closure of the Union Mine North declines.
As a result, if the Group is not expected to receive future economic benefits from these mines, the property, plant and
equipment with a carrying value of approximately R2.3 billion (after tax: R1.7 billion) could be written off once the proposals are
implemented. These write-offs will be excluded from headline earnings.
The gross cash costs associated with implementation of the Platinum Portfolio Restructuring and overhead review which is
expected to be approximately R2.6 billion (after tax: R1.9 billion) will be expensed and included in headline earnings as and
when they are incurred.
Reallocation of declared Mineral Reserves to exclusive Mineral Resources will occur at the affected operations (Khomanani,
Khuseleka, and Union mines), with the amount being dependent on the final scale of implementation of the Platinum Portfolio
Restructuring. Currently, reliable reasonable estimation of the scale of impact is not possible because of uncertainty in the
implementation.
12. AUDITOR'S REVIEW
The interim report from which the abridged interim results have been extracted has been reviewed by the Company's auditors,
Deloitte & Touche. The review of the abridged results was performed in accordance with ISRE 2410, "Reviewed Interim
Financial Information Performed by the Independent Auditor of the Entity". The auditors review report does not necessarily
report on all the information contained in this announcement. Shareholders are therefore advised that, in order to obtain a full
understanding of the nature of the auditors engagement, they should obtain a copy of the auditors review report together with
the accompanying abridged financial information from the Company's registered office. Their unmodified review report is
available for inspection at the Company's registered office. Any reference to future financial performance, included in this
announcement, has not been reviewed or reported on by the Company's auditors.
SALIENT FEATURES
Six months ended Year ended
30 June 30 June 31 December
2013 2012 % change 2012
Average market prices achieved
Platinum US$/oz 1,549 1,547 - 1,532
Palladium US$/oz 720 655 10 640
Rhodium US$/oz 1,144 1,390 (18) 1,264
Gold US$/oz 1,520 1,659 (8) 1,669
Nickel US$/lb 6.99 8.08 (13) 7.76
Copper US$/lb 3.35 3.63 (8) 3.58
US$ basket price - Pt
(net sales revenue per Pt oz sold) US$/oz Pt sold 2,416 2,532 (5) 2,406
US$ basket price - PGM
(net sales revenue per PGM oz sold) US$/oz PGM sold 1,097 1,332 (18) 1,316
R basket price - Pt
(net sales revenue per Pt oz sold) R/oz Pt sold 22,473 20,086 12 19,764
R basket price - PGM
(net sales revenue per PGM oz sold) R/oz PGM sold 10,210 10,569 (3) 10,811
Exchange rates
Average exchange rate achieved on sales ZAR/US$ 9.3109 7.9354 17 8.2156
Exchange rate at end of the period/year ZAR/US$ 9.9697 8.1902 22 8.4689
Unit cost performance
Cash on-mine cost/tonne milled R/tonne 638 560 14 625
Cash operating cost per refined Pt ounce R 19,244 17,530 10 15,660
Cost of sales per total Pt ounce sold R 19,794 17,915 10 19,354
Productivity
m2 per total operating employee per month 1 6.50 6.54 (1) 6.05
Refined platinum ounces per employee 2 25.9 25.3 2 29.3
Financial statistics
Gross profit margin % 11.9 10.7 11 2.1
EBITDA R million 5,048 2,252 124 (2,136)
Return on average shareholders' equity % 4.5 (1.6) 381 (12.6)
Return on average capital employed % 8.1 (0.3) 2,800 (11.7)
Current ratio 1.8:1 1.9:1 (5) 1.4:1
Interest cover - EBITDA % 11.1 8.7 28 (3.2)
Interest-bearing debt to shareholders' equity % 30.8 19.4 59 25.3
NAV per share % 197.4 214.6 (8) 191.9
Effective tax rate % 47.7 6.4 645 (11.8)
Market information and share statistics
Total shares in issue millions 269.7 269.7 - 269.7
Weighted average number of shares in issue millions 261.0 261.1 - 261.0
Treasury shares held millions 2.5 2.5 - 2.4
Market capitalisation billions 79.6 130.7 (39) 120.4
Closing share price cents 29,500 48,479 (39) 44,633
1 Square metres mined per operating employee including processing but excluding projects, opencast and Western Limb Tailings
Retreatment employees.
2 Refined platinum ounces per operating employee; Mined refined production divided by the sum of all own and Amplats' attributable
joint-venture operational employees.
REFINED PRODUCTION
Six months ended Year ended
30 June 30 June 31 December
Total operations 2013 2012 % change 2012
Refined production from mining operations
Platinum 000 oz 763.6 773.4 (1) 1,773.3
Palladium 000 oz 447.8 465.5 (4) 1,080.5
Rhodium 000 oz 90.3 101.0 (11) 240.3
Gold 000 oz 32.7 40.0 (18) 86.4
PGMs 000 oz 1,473.0 1,522.6 (3) 3,513.9
Nickel 000 tonnes 10.1 8.6 17 14.9
Copper 000 tonnes 6.9 5.4 28 9.9
Chrome 000 tonnes 227.5 184.6 23 136.1
Refined production from purchases inclusive of returns
Platinum 000 oz 257.4 252.4 2 605.3
Palladium 000 oz 135.5 125.0 8 315.4
Rhodium 000 oz 36.0 28.0 29 70.4
Gold 000 oz 6.9 8.1 (15) 18.8
PGMs 000 oz 501.7 465.4 8 1,126.7
Nickel 000 tonnes 2.0 1.5 33 2.8
Copper 000 tonnes 1.2 0.8 50 1.5
Chrome 000 tonnes - - - -
Total refined production
Platinum 000 oz 1,021.0 1,025.8 - 2,378.6
Palladium 000 oz 583.3 590.5 (1) 1,395.9
Rhodium 000 oz 126.3 129.0 (2) 310.7
Gold 000 oz 39.6 48.1 (18) 105.2
PGMs 000 oz 1,974.7 1,988.0 (1) 4,640.6
Nickel - Refined 000 tonnes 6.7 10.1 (34) 17.7
Nickel - Matte 000 tonnes 5.4 - -
Copper - Refined 000 tonnes 4.0 6.2 (35) 11.4
Copper - Matte 000 tonnes 4.1 - -
Chrome 000 tonnes 227.5 184.6 23 136.1
PIPELINE CALCULATION
Six months ended Year ended
30 June 30 June 31 December
Total operations 2013 2012 % change 2012
Equivalent refined platinum production 1 000 oz 1,177.5 1,176.8 - 2,219.1
Bathopele Mine 64.5 64.5 - 108.7
Khomanani Mine 54.6 56.8 (4) 96.6
Thembelani Mine 46.8 47.8 (2) 81.2
Khuseleka Mine 80.8 72.3 12 125.3
Siphumelele Mine 46.9 46.7 - 78.3
Tumela Mine 100.6 107.1 (6) 217.1
Dishaba Mine 70.3 73.3 (4) 145.2
Union North Mine 29.9 37.4 (20) 63.7
Union South Mine 66.5 79.9 (17) 132.0
Mogalakwena Mine 164.4 160.2 3 300.2
Twickenham Platinum Mine 1.5 - -
Unki Platinum Mine 29.3 32.6 (10) 62.1
Western Limb Tailings Retreatment 31.2 24.0 30 47.6
787.3 802.6 (2) 1,458.0
Modikwa Platinum Mine 57.0 50.4 13 119.6
Kroondal Platinum Mine 115.6 96.6 20 213.2
Marikana Platinum Mine - 26.4 (100) 26.4
Mototolo Platinum Mine 57.6 58.4 (1) 118.8
Bafokeng-Rasimone Platinum Mine 83.4 82.2 1 171.6
Bokoni Platinum Mine 42.4 33.6 26 55.1
356.0 347.6 2 704.7
Purchases from third parties 34.2 26.6 29 56.4
Pipeline stock adjustment 49.4 137.9 (64) 137.9
Refined platinum production (excl. toll refined metal) (1,018.1) (994.6) 2 (2,329.1)
Mining (763.6) (773.4) (1) (1,773.3)
Purchases of concentrate (254.5) (221.2) 15 (555.8)
Platinum pipeline movement 208.8 320.1 (35) 27.9
1 Mines' production and purchases of metal in concentrate, secondary metals and other metals converted to equivalent refined
production using Amplats' standard smelting and refining recoveries.
COMMENTARY
SAFETY
It is with great sadness that we have to report that one of our employees lost his life during the period. We extend our sincere
condolences to Mr Limeth Matlapeng Lekoba's family, friends and colleagues. The fatality was caused by a fall of ground incident at
the Khuseleka Mine.
Anglo American Platinum saw a significant improvement in the safety performance across all operations. With the number of lost-
time injuries decreasing by 27% year-on-year while the number of serious injuries incurred decreased by 34% over the same
period. This resulted in a lost-time injury frequency rate (LTIFR) of 1.04 in the first half of 2013, compared with 1.36 in the same
period in 2012. We are encouraged by the 22% decrease in lost-time injuries caused by materials handling, the biggest contributor
to our injuries. The proactive management of safety risks resulted in a decrease in the number of safety stoppages during the
period under review from 39 to 28.
The management systems, engineering and technological solutions introduced to prevent the historical causes of injury and death,
have shown remarkable results. Increased focus on behavioural change and visible leadership also had a positive impact on our
safety performance. It is encouraging to see that fatalities caused by falls of ground, in particular, have been reduced significantly in
recent years. In the first half of 2013 one fatality was caused by fall of ground as compared to seven in the first half of 2007. The
journey to zero harm remains our key strategic objective and we are confident that our zero harm in action programme introduced at
the end of 2011 will contribute to us achieving this objective.
SUSTAINABLE DEVELOPMENT, HEALTH AND TRANSFORMATION
Anglo American Platinum recognises the importance and impact of sustainability on both our legal and social licences to operate.
Performance against sustainability targets is tracked and includes employee safety, employee health, compliance with mineral
policy and legislation and, access to and allocation of resources. We have made progress towards achieving our sustainable
development objectives and our achievements include the following:
Employee health
- Approximately 4,382 employees are on Anti-Retroviral Treatment for HIV and Aids, an improvement of 9% year-on-year.
- Voluntary Counselling and Testing for HIV and AIDS is down 22% from the first half of 2012 likely due to the removal of
incentives for testing and the labour relations climate affected by the S189 process and inter-union rivalry. A total of 16 160
employees were tested and counselled in H1 2013.
- Work on reducing noise level of our equipment to below 110 decibels continues.
Access to and allocation of energy, water and land
- Reductions in our water consumption and increase in the use of grey and effluent water to reduce the use of potable water
continues.
MPRDA and the revised Mining Charter
Anglo American Platinum has made significant progress towards achieving its transformation objectives as envisaged by the
Minerals and Petroleum Resources Development Act (MPRDA) and the revised Mining Charter.
The key milestones achieved in support of our Social and Labour Plans include the following:
- Average of 55% historically disadvantaged South Africans (HDSA) in management positions (top management 40%, senior
management 40%, middle management 57% and junior management 66%);
- While it is still a challenge to employ women in underground mining positions, in management we have done better. Total
women in management stands at 20% with the following spread across levels: top management 20%, senior management 17%,
middle management 22% and junior management 20%. Overall, we have achieved 13% women in mining;
- HDSA procurement of R 4.6 billion in the first half of 2013 equating to 48.2% of available spend with HDSA suppliers. HDSA
procurement with suppliers defined as local was R 1.2 billion; and
- Three years ago, we committed to promote employee home ownership and entered into a partnership with the then Department
of Housing to build 20,000 housing units for our employees. To date, 2,211 stands have been fully serviced and approximately
517 housing units have been built. The company has also commissioned five housing development projects to promote
employee home ownership.
We implemented the R3.5 billion landmark mine host community empowerment transaction in December 2011 and Lefa La Rona
Trust received a maiden dividend at the beginning of 2012. Zenzele Itereleng NPC, that was formed to cater for the labour sending
areas, has been registered. The trustees have identified community projects and work continues to engage beneficiary communities
and finalise the establishment of the beneficiary development trusts.
We have a clear transformation plan which has evolved beyond compliance to focusing on creating a "great place to work", and
being the employer of choice. This includes creating the right culture within the company and a focus on increasing women
participation in mining.
We are continuing to work with the Department of Mineral Resources (DMR) to resolve issues surrounding a number of our
prospecting rights that are under contention as we believe that these rights were incorrectly awarded to third-party entities.
Environmental incident
The Blinkwater Tailings dam wall, at our Mogalakwena operation, started seeping from the base on 25 June 2013 due to void
tunnelling. The seepage flowed along the tailings dam into the western cut-off drain and later into the dry river bed of the Mohlosane
River. The environmental incident has the potential to impact on the communities' water supply. An extensive clean-up and
engagement program, involving the community, is in place and the community is being supplied with water for their livestock to
ensure that the animals do not drink the tailings dam water. We have been working together with government and community
stakeholder to ensure proper clean-up of the river and this is progressing well.
Employee relations
Following the signing by AMCU (Association of Mineworkers and Construction Union) of the Anglo American Platinum Employee
Relations Recognition Agreement (ERRA), AMCU became a recognised union at Anglo American Platinum. AMCU is the majority
union and represents approximately 57% of the operator level bargaining category of employees, which includes rock drill operators
and miners, while the National Union of Mineworkers (NUM), National Union of Metalworkers of SA (NUMSA) and United
Association of South Africa (UASA-The Union) represent 26%, 1% and 7% respectively. At supervisor level bargaining category,
AMCU represents 5% of employees compared to NUM's 37%, NUMSA's 4% and UASA-The Union's 42%. Overall, AMCU
represents 49% of operator and supervisor bargaining categories of employees while NUM, NUMSA and UASA-The Union
represent 28%, 1% and 13% respectively.
Anglo American Platinum has a single recognition threshold which offers labour unions certain rights in terms of access and union
dues. The company has two bargaining units namely supervisory and operators. Labour unions are required to achieve a 40%
membership at either operator or supervisory level employees bargaining unit at any mine or processing plant in order to get
recognition. If the membership drops below 40% in one of the two categories (operators or supervisors), the union is derecognised
in that category only. If the union still has 40% membership in the other category, it still has full recognition rights and does not have
to vacate its offices or be removed from the operation. If a union drops below 40% membership in both categories, it is
derecognised, no longer has any rights and has to vacate its offices and leave the operation.
A 50% membership is required in order to get additional collective bargaining rights in any of the two bargaining units at any
operation. Alternatively a union with at least 30% group wide membership is entitled to participate in the collective bargaining
process.
On 21 February 2013 a mining industry peace and stability accord was signed. The accord was drawn up by a task team with
representatives from the DMR, Platinum mining industry, NUM, AMCU, NUMSA, UASA-The Union and Solidarity. As signatories,
there is commitment to denounce violence, intimidation, lack of respect for life and property and to adhere to the law, tolerate
different views - including freedom of association and disassociation - as well as refrain from intimidation and violence.
The industrial relations climate in the first half of 2013 was characterised by intermittent illegal industrial action and labour
shortages. This was driven by union rivalry, the impending implementation of the portfolio restructuring proposals and the
upcoming wage negotiations. While this is likely to remain a feature of the industrial relations climate for the immediate future, we
are encouraged by the steps taken by the Government, under the leadership of the Deputy President of South Africa, to find a long
lasting solution to the issues affecting the South African mining industry.
Wage negotiations are in the early stages of collecting wage demands from various recognised unions. Anglo American Platinum
has received wage demands from AMCU and UASA. We expect to start negotiations once the demands are collated.
FINANCIAL REVIEW
Headline earnings per ordinary share increased by 88% to R5.14 in the first half of 2013 from R2.73 reported in the first half of
2012. This was primarily due a weaker Rand and an increase in platinum sales volumes, partially offset by the impact of higher
costs and lower realised dollar metal prices. Headline earnings for the first half of 2012 excluded an after-tax loss of R1.2 billion
(R4.55 per share) resulting from the revaluation of Wesizwe Platinum Limited investments and the write-down of assets, which were
considered uneconomical in the current environment, compared to an after-tax loss of R142 million (54 cents per share) in the first
half of 2013.
Net sales revenue increased by 24% or R4.7 billion to R24.1 billion. R1.8 billion of the increase in net revenue was due to higher
sales volumes and R2.9 billion was due to higher average realised rand prices. Refined platinum sales for the period ended 30 June
2013 increased by 11% compared to the first half of 2012, to 1,074,155 ounces. The average dollar basket price achieved declined
by 5% from US$2,532 per ounce in the first half of 2012 to US$2,416 per ounce in the first half of 2013. However, the average
exchange rate achieved on sales during the first half of 2013 was R9.31, 17% weaker compared to R7.94 in the first half of 2012.
As a result, the realised average Rand basket price in the first half of 2013 was R22,473 per platinum ounce, 12% higher than the
basket price of R20,086 achieved in the first half of 2012.
Cost of sales increased by 23% year-on-year from R17.3 billion to R21.3 billion in the first half of 2013. On-mine cash operating
expenses increased by R1.2 billion or 10% year on year. The Group incurred R5.2 billion on the purchase of concentrate, which
increased year-on-year due to higher volume and stronger Rand metal prices. The cost of processing (smelting, treatment and
refining) decreased by 4% to R2.0 billion from R2.1 billion incurred in the first half of 2012. Costs amounting to R2.9 billion (1H 2012
R4.1 billion) were capitalised to inventory as it relates to metal still in process. The higher stock levels and normal inventory
revaluation accounted for R2.5 billion of the increase and the physical stock count adjustment of R358 million before tax. During the
period the company commenced with the implementation of various initiatives to reduce costs. The group has for example seen
reduced electricity expenditure through the management of reactive power consumption and a reduction in marketing expenditure
due to alignment of the marketing strategy with the group commercial strategy. Anglo American Platinum has improved its working
capital position by reducing the inventory level of consumable stores maintained.
As with the rest of the industry, the company experienced mining inflation well in excess of headline inflation (CPI). In addition,
operating costs remained under pressure as fixed costs were incurred despite the disruption in production. The cash operating cost
per equivalent refined platinum ounce increased by 5% to R16,284 from R15,500 in 2012 (on a normalised basis taking into
account the impact of the strikes during the second half of the year).
Operating profit increased to R2.7 billion in the first half of 2013 from R399 million in the first half of 2012, primarily as a result of a
stronger Rand basket price, increased sales volumes and non-cash inventory adjustments and the change in treatment of revenue
recognised on a base metals toll refining agreement (R82 million). As a result, operating margin, improved from 2% in the first half
of 2012 to 11% during the period under review.
Capital expenditure for the first half of 2013, including capitalised interest, decreased by 22% or R666 million to R2.3 billion. The
reduction in spend reflects the outcome of the capital rationing exercise implemented in 2012, a proactive action in line with the
portfolio restructuring proposals and prudent action in light of the challenging economic and operating environment.
The continued increase in costs and the capital investment required to sustain our mines resulted in net cash outflow for the Group
of R2.7 billion. This cash outflow has resulted in an increase in the net debt position of the Group to R13.2 billion from R10.5 billion
at the end of December 2012. Despite this increase, gearing was maintained at around 26%.
As a result of this increase in net debt, together with the considerations for future funding requirements and uncertain global
economy, the Board resolved not to declare an interim dividend.
MARKETS
Supply concerns and US macro-economic weakness during the first quarter of 2013 supported platinum prices above US$1,600 per
ounce. The second quarter, however, the platinum price was impacted by dramatic sell offs in Gold Exchange Traded Fund (ETF)
investment holdings which saw the platinum price fall in tandem to below US$1,400 per ounce to a low of US$1,317 per ounce at
the end of June 2013, a level not seen since the global economic crisis in 2009.
Global demand for platinum during the first half of 2013 was higher than expected due to continued stimulation of jewellery demand
by current low price levels, increased Platinum ETF investment holdings, firmer industrial demand and flat demand from the
autocatalyst sector. Supply of refined platinum from South Africa in the first half of 2013 continued to be impacted by intermittent
illegal industrial actions.
Palladium demand remained firm dominated by continued growth in demand for gasoline vehicles in developing markets. Market
expectations of a deficit market continue providing a firm underpin to price.
Rhodium demand remains weak due to substitution implemented during significant price increases in 2007/08.
Autocatalysts
Gross autocatalyst demand remained largely flat. Heightened economic uncertainty in Europe reduced demand for new vehicles in
the first half of 2013 with sales approximately 7% below those in the first half of 2012. Lower sales in Europe are somewhat offset
by increased loadings as Euro 6 emissions levels are implemented in 2013 and 2014.
Industrial
Gross platinum demand for industrial applications remained firm in the first half of 2013 with some evidence that purchases in the
glass and electrical sectors, delayed in 2012, had re-commenced.
Jewellery
Despite platinum returning to trading at a premium to gold during the first half of 2013, jewellery demand remained firm with China
benefiting most from increased consumer and manufacturer interest at current low price levels. Confidence in platinum jewellery by
Chinese and Hong Kong retail brands remains high with increased platinum stock levels in existing and newly opened stores.
Investment
Platinum investment demand in the first half of 2013 increased primarily as a result of the launch of a new South African rand-based
ETF. South African investors used this as an opportunity largely to move off-shore holdings onshore, though new entrants also
contributed to the funds rapid growth to over 400,000 ounces at the end of June 2013. Global investment sentiment, however,
remains poor, driven by limited liquidity and supply uncertainty. Downward pressure on price also materialised as poor sentiment
around gold impacted platinum holdings that track the gold price.
OPERATIONS
Equivalent refined platinum production (equivalent ounces are mined ounces expressed as refined ounces) from the mines
managed by Anglo American Platinum and its joint venture partners for the first half of 2013 at 1.18 million ounces, was in line with
the first half of 2012 despite the impact of intermittent illegal industrial actions.
Underground mining performance at our own mines was principally impacted by illegal industrial actions, a national bus driver strike
which impacted employees' ability to commute to work and labour shortages. This was exacerbated by the lack of flexibility, in the
current labour environment, to redeploy employees to operations where there are staff shortage. Tonnes milled from underground
sources was down 6% at 9.3 million tonnes while head grade improved by 3% to 3.25 grams per tonne. As a result, equivalent
refined platinum production from own mines and the Western Limb Tailings Retreatment plant decreased by 15,300 ounces or 2%
year-on-year to 787,300 ounces in the first half of 2013. Own mines lost 20,300 ounces as a result of the intermittent illegal
industrial actions during the first half of 2013.
In spite of these challenges, equivalent refined platinum production at the Rustenburg mines (Bathopele, Khuseleka, Khomanani,
Siphumelele and Thembelani) increased by 5,500 ounces or 2% year-on-year to 293,600 ounces. Mogalakwena mine increased
production by 4,200 ounces to 164,400 platinum ounces as a result of improved concentrator recoveries. New production from
Twickenham mine added 1,500 ounces while the Western Limb Tailings Retreatment plant increased output by 30% or 7,200
ounces due to an improved 4E built-up head grade and improved concentrator recoveries.
The increased performances were offset by lower production at the more affected Amandelbult and Union mines. Amandelbult
mines (Tumela and Dishaba) output was 170,900 ounces, lower by 5% or 9,500 ounces while Union (North and South) mines
recorded a year-on-year decrease of 20,900 ounces or 18% ending the first half on 96,400 ounces. Unki mine produced 3,300 or
10% ounces less compared to the first half of 2012 due to decreased concentrator recoveries ending the first half of 2013 with
29,300 ounces.
Equivalent refined platinum production from joint ventures and associates, inclusive of both mined and purchased production
increased by 2% year-on-year to 356,000 ounces. Equivalent refined platinum production in the first half of 2012 included 26 koz
from Marikana which was placed on care and maintenance in June 2012; on a comparative basis, excluding Marikana, operating
mines improved production by 35 koz or 11% year-on-year. This was due to higher production volumes across all mines, most
notably at Kroondal (20%) and Bokoni (26%) due to productivity improvement initiatives.
Equivalent refined platinum ounces purchased from third parties increased by 29% year-on-year from 26,600 to 34,200 ounces in
the first half of 2013.
Refined platinum production at 1.02 million ounces in the first half of 2013, was unchanged compared to the same period in 2012.
This is largely reflective of our processing plants maintenance which is always scheduled in the first half of the year. Refined
production of palladium and rhodium decreased by 1% and 2% year-on-year respectively. Palladium and rhodium variances are
partly a result of the intermittent illegal industrial action, a different ore source mix from operations and different pipeline processing
times for each metal.
Refined platinum sales volume for the first half of 2013 increased by 11% year-on-year to 1.07 million ounces from 967,400 ounces
in the first half of 2012. Platinum sales were marginally higher than refined production of 1.02 million ounces.
Nickel production at the base metals refinery was adversely affected by delays to the ramp up of the new automated tank house.
The main reason for constructing a new nickel tank house was largely to address the occupational exposure to nickel aerosols. New
technical features found in the tank house include closer anode cathode spacing, anode bags and hoods to address aerosol
capture at source and plating on titanium blanks as opposed to starter sheets to allow for automatic harvesting in a further attempt
to reduce occupational exposure.
Since the commissioning it became evident that electrical short circuiting between anodes and cathodes in the electro winning cells
was the major impediment to the tank house reaching design capacity. The frequency of short circuiting is significantly greater than
that experienced in the conventional nickel electro winning tank house and has been mainly ascribed to new features like anode
bags, crystal growth associated with cell hoods and a reduction in anode cathode distances. Significant work has gone into
resolving these technical challenges and progress has been made to achieve the design intent of the project. The tank house is
expected to be back to steady state operating level in the third quarter of 2013.
CAPITAL EXPENDITURE PROJECTS
Capital expenditure for the first half of 2013 amounted to R2,347 million, a 22% decrease on the comparable period in 2012. Of this,
R837 million was spent on projects and R1,022 million on stay-in-business capital. Following a review to ensure effective capital
allocation, a significant reduction in capital expenditure is expected over the next three years. The majority of project capital
expenditure for the first half of 2013 was invested on the Unki mine (R273 million), Twickenham mine (R162 million) and the
Bathopele Phase 5 project (R58 million).
MINERAL RESOURCES AND RESERVES
There have been no material changes to the ore reserves as disclosed in the 2012 Annual Report. The mineral resources and
reserve tables in the 2012 Annual Report reflect estimates prior to the strategic announcement in January 2013. Changes
associated with the strategic review will most probably result in a reallocation of the affected reported ore reserves to mineral
resources in the Rustenburg and Union areas and will only be reflected in the 2013 Annual Report.
BOARD AND COMMITTEE CHANGES
Cynthia Carroll resigned as a non-executive director and chairman of the Anglo American Platinum Board with effect from
26 April 2013.
Valli Moosa was appointed as chairman of Anglo American Platinum Board with effect from 26 April 2013. As a
consequence, he retires as a member of the Audit and Risk Committee (previously the Audit Committee) and has been
appointed to the Remuneration Committee with effect from 19 July 2013.
Mark Cutifani was appointed as non-executive director with effect from 26 April 2013.
Dhanasagree Naidoo, Nkateko Peter Mageza and Nombulelo Moholi were appointed as independent non-executive
directors with effect from 1 July 2013. Nkateko Peter Mageza and Dhanasagree Naidoo were appointed as members of
the Audit and Risk Committee with effect from 19 July 2013.
Following the appointment of Wendy Lucas-Bull as chairman of the ABSA Group, to ensure an orderly transition, she
advised that she will be retiring from the Anglo American Platinum Board with effect from 1 January 2014. Consequently,
the Board has decided that chairmanship of the Social, Ethics and Transformation Committee, be handed over to
Nombulelo Moholi with effect from 19 July 2013.
Elizna Viljoen joined as Company Secretary with effect from 1 May 2013.
CREATING A SUSTAINABLE, COMPETITIVE AND PROFITABLE PLATINUM BUSINESS
Recommendations of the Anglo American Platinum portfolio review were announced on 15 January 2013. Anglo American Platinum
and the DMR engaged extensively following the announcement, and as a result, a revised plan was announced on 10 May 2013.
Following the announcement of the revised proposals, Anglo American Platinum, its recognised unions and the DMR agreed to
delay the resumption of the section 189 consultations to provide feedback to labour unions on the bilateral engagements. The
tripartite engagements and feedback sessions with the DMR and unions have now been completed and the section 189
consultations resumed on 10 June 2013. We expect to conclude this 60-day process on 10 August. Our revised proposals remain
focused on ensuring the long term sustainability of our business and restoring profitability, while being cognisant of the local and
national socio economic challenges. The focus remains on cost reductions, revenue enhancement from the implementation of the
revised commercial strategy, operational efficiency improvements and the prioritisation of capital allocation in line with the revised
portfolio.
The revised portfolio restructuring proposals plan to reduce our baseline production to between 2.2 and 2.4 million ounces per
annum in the short to medium term to more closely align output with expected demand while retaining the flexibility to meet potential
demand upside. This will be achieved through consolidating Rustenburg into three operating mines by integrating and optimising
Khuseleka 2 and Khomanani 1 and 2 shafts into the surrounding mines. Khuseleka 1 remains operational - this is a principal
revision to the previous proposal. Anglo American Platinum's Rustenburg operations will be reconfigured as a sustainable 320,000 -
350,000 ounces per annum platinum producer in the medium term. The proposals will result in a reduction of production capacity of
approximately 250,000 ounces per annum in 2013 and by an additional approximately 100,000 ounces per annum in the medium
term. While we plan to keep our production profile flat, we would progressively replace production from high-cost and capital
intensive assets with production from low-cost and high-quality assets over the next decade.
We have continued with the process of reducing overhead costs and improving efficiencies so as to align our cost base with the
proposed footprint. We will right-size and simplify the overhead structure to support the revised portfolio review proposals.
Processing operations will be aligned to the revised long term production plans. We remain committed to delivering R3.8 billion of
annual savings by 2015 from the indirect and direct cost savings. The revised proposals continue to require extensive consultation
with government, organised labour and other stakeholders prior to implementation.
OUTLOOK
The global platinum market continues to suffer supply disruptions, production curtailment and capital rationing in the current
economic environment, while net platinum demand is expected to remain relatively flat in 2013. This is despite higher than expected
demand in the first half of 2013. Vehicles sales in Europe remain depressed with price sensitive jewellery and investment demand
vulnerable to any platinum price improvement from the current depressed levels.
Primary supply challenges are expected to continue during 2013 with higher mining inflation putting pressure on margins and
increased risk of supply disruptions from industrial action in South Africa. Supplies of metal from the recycle of spent autocatalysts
are expected to rise as pipeline stocks are processed.
The palladium market is expected to remain in deficit in 2013, supported by gasoline vehicle production growth in developing
markets. Primary supply is constrained by the same factors impacting platinum production.
The Rhodium market is expected to remain depressed in 2013, although autocatalyst and new industrial demand is expected to
increase.
We are increasing our refined production target for 2013 to 2.3 million platinum ounces due to the delayed implementation of the
portfolio restructuring proposals. We remain committed to progress with the consultations and implementation of the portfolio
restructuring proposals to reduce our baseline production to between 2.2 and 2.4 million ounces per annum to more closely align
output with expected demand while retaining the flexibility to meet potential demand upside.
Cost inflation will, however, continue to present the company with challenges this year. During the first half of 2013, a further
effective 13% increase in Eskom's electricity tariffs was seen and during the second half of the year the industry is expected to see
an increase in wages. Anglo American Platinum now estimates that cash unit costs will increase to around R17,000 per equivalent
refined platinum ounce for 2013.
Anglo American Platinum remains on track to incur capital expenditure of between R6 and R7 billion for the year. Capital
expenditure planned for the period 2013 to 2015 remains unchanged at between R6 and R7 billion per annum, excluding capitalised
interest. We will continue to optimise capital allocation to focus on the highest return and lowest risk opportunities while remaining
nimble to respond to cash compression.
The rand weakened significantly to the US dollar during the second quarter of 2013. Anglo American Platinum earnings remain
highly geared to the Rand/US dollar exchange rate.
Anglo American Platinum is committed to the highest standards of safety and continues to make a meaningful and sustainable
difference in the development of the communities around its operations.
Johannesburg, South Africa
19 July 2013
* Any reference to future financial performance included in this announcement has not been reviewed or reported on by the
company's external auditors and does not constitute an earnings forecast.
ADMINISTRATION
THE BOARD
Executive directors
CI Griffith (Chief Executive Officer)
B Nqwababa (Finance Director)
Independent non-executive directors
MV Moosa (Chairman)
RMW Dunne (British)
BA Khumalo
WE Lucas-Bull
NP Mageza (Appointed 1 July 2013)
N Moholi (Appointed 1 July 2013)
D Naidoo (Appointed 1 July 2013)
JM Vice
Non-executive directors
BR Beamish
M Cutifani (Australian) (Appointed 26 April 2013)
KT Kweyama
R Medori (French)
PG Whitcutt (Alternate director to R Medori)
COMPANY SECRETARY
Elizna Viljoen (Appointed 1 May 2013)
elizna.viljoen@angloamerican.com
13th Floor, 55 Marshall Street, Johannesburg 2001
PO Box 62179, Marshalltown 2107
Telephone +27 (0) 11 638 3425
Facsimile +27 (0) 11 373 5111
REGISTERED OFFICE
55 Marshall Street, Johannesburg 2001
PO Box 62179, Marshalltown 2107
Telephone +27 (0) 11 373 6111
Facsimile +27 (0) 11 373 5111
+27 (0) 11 834 2379
SPONSOR
Rand Merchant Bank
a division of FirstRand Bank Limited
REGISTRARS
Computershare Investor Services Proprietary Limited
70 Marshall Street
Johannesburg 2001
PO Box 61051
Marshalltown 2107
Telephone +27 (0) 11 370 5000
Facsimile +27 (0) 11 688 5200
UK PAYING AGENTS
Computershare Investor Services PLC
Bridgwater Road, Bristol, B39979H
United Kingdom
PO Box 82
The Pavilions
Telephone +0870 702 0000
Facsimile +0870 703 6120
AUDITORS
Deloitte & Touche
Deloitte & Touche Place
The Woodlands
Woodmead
Sandton 2196
INVESTOR RELATIONS
Kgapu Mphahlele
kgapu.mphahlele@angloamerican.com
Telephone +27 (0) 11 373 6239
22 July 2013
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