ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum acquires Glencores 39% interest in the Mototolo joint venture

Release Date: 23/07/2018 08:00
Code(s): AMS
 
Wrap Text
Anglo American Platinum acquires Glencore’s 39% interest in the Mototolo joint venture

ANGLO AMERICAN PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
("Anglo American Platinum" or “the Company")

Anglo American Platinum acquires Glencore’s 39% interest in the Mototolo joint
venture

Introduction

Anglo American Platinum announces that its wholly-owned subsidiary, Rustenburg Platinum Mines
Limited (“RPM”), has signed a sale and purchase agreement (“SPA”) with Glencore Operations South
Africa Proprietary Limited (“Glencore”) to purchase its 39% interest in the Mototolo joint venture
(“Mototolo JV”) (the “Transaction”).

The Mototolo JV is currently operated as a 50/50 joint venture between Anglo American Platinum and
a partnership between Glencore (39%) and Kagiso Tiso Holdings Proprietary Limited (“KTH”) (11%).

Chris Griffith, CEO of Anglo American Platinum, commented on the Transaction:

“The acquisition of Glencore’s stake in the Mototolo JV increases Anglo American Platinum’s interest
in a mechanised, low-cost, high quality resource, creating another major PGM hub for the Company.
The Transaction unlocks significant optionality for the Company in its wholly-owned Der Brochen
resource.”

About Mototolo JV

The Mototolo operation is 30km west of Burgersfort in Limpopo in the Eastern Limb of the Bushveld
complex and operates under a mining right covering 9km2.

Rationale for the Transaction

The acquisition of Glencore’s interest in the Mototolo JV better positions Anglo American Platinum as
the majority owner of a high-quality, fully mechanised operation. The Transaction will secure significant
infrastructure for Anglo American Platinum, allowing for value-enhancing optionality between the
Mototolo JV area and the adjacent wholly owned Der Brochen resource, creating a major PGM hub for
the Company. By combining the Mototolo JV area with the downdip and adjacent Der Brochen resource,
the life-of-mine is also significantly extended from the current c.5 year life of mine, to well in excess of
a 30 year life of mine.

Purchase Consideration

The consideration for the Transaction comprises an upfront cash payment, which at 30 June 2018 is
estimated to be R0.8 billion on a cash free basis and an additional consideration, which will be settled
monthly over a six-year period and will be determined based on the Rand PGM prices over the Mototolo
JV life of mine. While the additional consideration is not yet determinable it is estimated to be c.R1
billion (cumulative nominal) based on current spot prices. The total Purchase consideration will be
capped at R22 billion.
Conditions precedent

The Transaction is subject to a number of conditions precedent, including Competition Commission
approval. The effective date of the Transaction is expected to be in Q4 2018.

Value of Transaction net assets and attributable profits

As at the Company’s year ended 31 December 2017, the value of the net assets, excluding cash
pertaining to the Transaction assets was R0.7 billion. The losses attributable to the Transaction assets
was R3 million, impacted by the temporary closure of the Mototolo concentrator.

Categorisation of the Transaction

The Transaction constitutes a Category 2 transaction for the Company and, as such, shareholder
approval is not required.

Johannesburg, South Africa

23 July 2018

Sponsor:
Merrill Lynch South Africa Proprietary Limited

For further information, please contact:
Investors:                                       Media:
Emma Chapman                                     Mpumi Sithole
(SA) +27 (0) 11 373 6239                         (SA) +27 (0) 11 373 6246
emma.chapman@angloamerican.com                   mpumi.sithole@angloamerican.com


Notes to editors:

Anglo American Platinum Limited is a member of the Anglo American plc Group and is the world’s
leading primary producer of platinum group metals. The company is listed on the Johannesburg
Securities Exchange (JSE). Its mining, smelting and refining operations are based in South Africa.
Elsewhere in the world, the Group owns Unki Platinum Mine in Zimbabwe. Anglo American Platinum
has a number of joint ventures with several historically disadvantaged South African consortia as part
of its commitment to the transformation of the mining industry. 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.

www.angloamericanplatinum.com

Anglo American is a global diversified mining business and our products are the essential ingredients
in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and
undeveloped resources provides the metals and minerals to meet the growing consumer-driven
demands of the world’s developed and maturing economies. With our people at the heart of our
business, we use innovative practices and the latest technologies to discover new resources and mine,
process, move and market our products to our customers around the world.

As a responsible miner – of diamonds (through De Beers), copper, platinum and other precious metals,
iron ore, coal and nickel – we are the custodians of what are precious natural resources. We work
together with our key partners and stakeholders to unlock the sustainable value that those resources
represent for our shareholders, the communities and countries in which we operate and for society at
large. Anglo American is re-imagining mining to improve people’s lives.

www.angloamerican.com

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