ANGLO AMERICAN PLATINUM LIMITED - Reviewed Condensed Consolidated Interim Financial Results for the six months ended 30 June 2018

Release Date: 23/07/2018 08:01
Code(s): AMS
 
Wrap Text
Reviewed Condensed Consolidated Interim Financial Results for the six months ended 30 June 2018

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)

REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS
for the six months ended 30 June 2018

Anglo American Platinum Limited's condensed consolidated reviewed interim financial results for the six months ended  30 June 2018 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 2018 was supervised by the Finance
Director, Mr I Botha, CA(SA).

KEY FEATURES

PGM production
(2017: 2.48)
2.6 Moz

Net cash
(2017: R1.8bn net debt)
R0.5bn

EBITDA margin
(2017: 15%)
21%

Free cash from operations
(2017: -R1.0bn)
R1.3bn

Dividend
(2017: Nil)
R1.0bn or
R3.74 per share

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2018

                                                                                        Reviewed                      Audited
                                                                                    six months ended               Year ended
                                                                                   30 June   30 June              31 December
                                                                                      2018      2017           %         2017
                                                                   Notes                Rm        Rm      change           Rm
Gross sales revenue                                                    5            33,491    27,313                   65,688
Commissions paid                                                                         -        (8)                     (18)
Net sales revenue                                                                   33,491    27,305          23       65,670
Cost of sales                                                          6           (28,581)  (24,489)         17      (56,578)
Gross profit on metal sales                                            6             4,910     2,816          74        9,092
Other net income/(expenditure)                                         9               524      (263)                      (6)
Loss on impairment and scrapping of property, plant and equipment                      (16)   (1,520)                  (1,699)
Market development and promotional expenditure                                        (306)     (349)                    (813)
Operating profit                                                                     5,112       684         647        6,574
Impairment of investments in associates                               27            (1,098)     (997)                  (2,145)
Impairment of non-current financial assets                            27               (52)     (283)                    (777)
Profit on disposal of associates                                                         -         -                      135
Loss on disposal of Union Mine and Masa Chrome                        26              (850)        -                        -
Profit on disposal of long-dated resources                                               -         -                    1,066
Interest expensed                                                     10              (364)     (564)                  (1,219)
Interest received                                                                      431       148                      222
Remeasurement of loans and receivables                                                   3        31                       46
Gains/(losses) from associates (net of taxation)                                        21      (179)                    (362)
Profit/(loss) before taxation                                                        3,203    (1,160)        376        3,540
Taxation                                                              11              (923)     (150)                  (1,616)
Profit/(loss) for the period                                                         2,280    (1,310)        274        1,924
Other comprehensive income/(loss)                                                      370      (308)                    (416)
Items that will be reclassified subsequently to profit or loss                         
Deferred foreign exchange translation gains/(losses)                                   643      (230)                    (553)
Items that will not be reclassified subsequently to profit or loss                    
Net (losses)/gains on equity instruments at FVTOCI                                    (273)      (78)                     137  
Total comprehensive income/(loss) for the period                                     2,650    (1,618)                   1,508
Profit/(loss) attributable to:
Owners of the Company                                                                2,179    (1,187)        284        1,944
Non-controlling interest                                                               101      (123)                     (20)
                                                                                     2,280    (1,310)                   1,924
Total comprehensive income/(loss) attributable to:
Owners of the Company                                                                2,549    (1,495)        271        1,528
Non-controlling interest                                                               101      (123)                     (20)
                                                                                     2,650    (1,618)                   1,508
Earnings per share
Earnings/(loss) per ordinary share (cents)
- Basic                                                               12               831      (453)        284          741
- Diluted                                                             12               828      (452)        284          739
Headline earnings                                                     12             3,363       747         350        3,886

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2018

                                                                                   Reviewed         Audited
                                                                              six months as at        as at
                                                                              30 June  30 June  31 December
                                                                                 2018     2017         2017
                                                              Notes                Rm       Rm           Rm
ASSETS
Non-current assets                                                             49,509   48,993       48,938
Property, plant and equipment                                                  37,041   36,478       36,597
Capital work-in-progress                                                        6,390    4,995        5,361
Investments in associates                                        13             1,952    3,210        2,464
Investments held by environmental trusts                                        1,117    1,063          970
Other non-current assets                                                           27        -           39
Other financial assets                                           14             2,982    3,247        3,507
Current assets                                                                 33,849   29,065       31,318
Inventories                                                      15            20,968   19,314       18,489
Trade and other receivables                                                     1,907    1,474        2,097
Other assets                                                                      978      936        1,075
Other current financial assets                                                     88       49           73
Taxation                                                                          741      220          469
Cash and cash equivalents                                        16             9,167    7,072        9,115
Non-current assets held for sale                                                    -        -          558
Total assets                                                                   83,358   78,058       80,814
EQUITY AND LIABILITIES
Share capital and reserves
Share capital                                                                      27       27           27
Share premium                                                                  22,743   22,667       22,673
Foreign currency translation reserve                                            2,407    2,087        1,764
Equity investments irrevocably designated at fair value                           228      256          429
Retained earnings                                                              17,709   13,410       16,634
Non-controlling interest                                                          259     (481)        (526)
Shareholders' equity                                                           43,373   37,966       41,001
Non-current liabilities                                                        17,757   18,728       18,864
Non-current interest-bearing borrowings                          17             8,356    9,380        9,362
Obligations due under finance leases                             18                99       97           98
Environmental obligations                                                       1,724    1,993        1,693
Employees' service benefit obligations                                             17       17           17
Other financial liabilities                                      19                 -      229          239
Deferred taxation                                                               7,561    7,012        7,455
Current liabilities                                                            22,228   21,364       20,374
Current interest-bearing borrowings                              17               218    3,491        1,713
Obligations due under finance leases within one year             18                17       16           17
Trade and other payables                                                       14,497   10,824       11,316
Other liabilities                                                20             6,732    6,417        6,691
Other financial liabilities                                      19               752      603          616
Share-based payment provision                                                      12       13           21
Liabilities associated with non-current assets held for sale                        -        -          575
Total equity and liabilities                                                   83,358   78,058       80,814

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2018

                                                                                            Reviewed         Audited
                                                                                       six months ended   Year ended
                                                                                    30 June     30 June  31 December
                                                                                       2018        2017         2017
                                                                                         Rm          Rm           Rm
Cash flows from operating activities
Cash receipts from customers                                                         33,735      27,763       65,993
Cash paid to suppliers and employees                                                (25,710)    (21,196)     (50,126)
Cash from operations                                                                  8,025       6,567       15,867
Interest paid (net of interest capitalised)                                            (355)       (510)      (1,004)
Taxation paid                                                                        (1,069)       (383)      (1,742)
Net cash from operating activities                                                    6,601       5,674       13,121
Cash flows used in investing activities
Purchase of property, plant and equipment (includes interest capitalised)            (2,792)     (1,779)      (4,969)
Proceeds from sale of plant and equipment                                                21           9           17
Purchase of financial asset investments                                                 (54)        (21)         (72)
Net proceeds on disposal of Union Mine and Masa Chrome                                  414           -            -
Purchase of concentrate pipeline                                                       (974)     (1,529)      (1,529)
Receipt of deferred consideration                                                        64           -            -
Proceeds on the sale of long-dated resources                                              -           -        1,066
Net proceeds on sale of Royal Bafokeng Platinum shares (RB Plat)                        387           -            -
Net proceeds on the disposal of associates                                                -           -          131
Insurance proceeds for damage to assets                                                 333           -            -
Shareholder funding capitalised to investment in associates                            (552)       (424)      (1,156)
Redemption of preference shares in Baphalane Siyanda Chrome Company                       -          39           86
Advances made to Plateau Resources Proprietary Limited                                  (63)       (214)        (708)
Interest received                                                                        93          59          143
Growth in environmental trusts                                                            -           -            8
Other advances                                                                           (3)       (122)        (135)
Net cash used in investing activities                                                (3,126)     (3,982)      (7,118)
Cash flows used in financing activities
Purchase of treasury shares for the Bonus Share Plan (BSP)                             (140)       (150)        (155)
(Repayment of)/proceeds from interest-bearing borrowings                             (2,493)        205       (1,659)
Repayment of finance lease obligation                                                    (9)         (8)         (17)
Dividends paid                                                                         (928)          -            -
Cash distributions to minorities                                                        (95)       (124)        (272)
Net cash used in financing activities                                                (3,665)        (77)      (2,103)
Net (decrease)/increase in cash and cash equivalents                                   (190)      1,615        3,900
Cash and cash equivalents at beginning of period                                      9,357       5,457        5,457
Cash and cash equivalents at end of period                                            9,167       7,072        9,357
Movement in net cash/(debt)
Net debt at beginning of period                                                      (1,833)     (7,319)      (7,319)
Net cash from operating activities                                                    6,601       5,674       13,121
Net cash used in investing activities                                                (3,126)     (3,982)      (7,118)
Other                                                                                (1,165)       (285)        (517)
Net cash/(debt) at end of period                                                        477      (5,912)      (1,833)
Made up as follows:
Cash and cash equivalents                                                             9,167       7,072        9,115
Cash and cash equivalents classified as held-for-sale                                     -           -          242
Non-current interest-bearing borrowings                                              (8,356)     (9,380)      (9,362)
Obligations due under finance lease                                                     (99)        (97)         (98)
Current interest-bearing borrowings                                                    (218)     (3,491)      (1,713)
Obligations due under finance lease within one year                                     (17)        (16)         (17)
                                                                                        477      (5,912)      (1,833)
* Less than R500 000.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2018
                                                                                                    Equity
                                                                                    Foreign    investments
                                                                                   currency    irrevocably                   Non-
                                                                Share    Share  translation     designated  Retained  controlling
                                                              capital  premium      reserve  at fair value  earnings    interests    Total
                                                                   Rm       Rm           Rm             Rm        Rm           Rm       Rm
Balance as at 31 December 2016 (audited)                           27   22,498        2,317            334    14,840         (234)  39,782
Total comprehensive loss for the period                                                (230)           (78)   (1,187)        (123)  (1,618)
Deferred tax charged directly to equity                                                                          (-)*                    -
Cash distributions to minorities                                                                                             (124)    (124)
Shares acquired in terms of BSP - treated as treasury shares      (-)*    (150)                                                       (150)
Shares vested in terms of the BSP                                   -*     319                                  (319)                    -
Equity-settled share-based compensation                                                                           80                    80
Shares purchased for employees                                                                                    (4)                   (4)
Balance as at 30 June 2017 (reviewed)                              27   22,667        2,087            256    13,410         (481)  37,966
Total comprehensive (loss)/income for the period                                       (323)           215     3,131          103    3,126
Deferred tax charged directly to equity                                                                (42)        2                   (40)
Cash distribution to minorities                                                                                              (148)    (148)
Shares acquired in terms of BSP - treated as treasury shares      (-)*      (5)                                                         (5)
Shares vested in terms of the BSP                                   -*      11                                   (11)                    -
Equity-settled share-based compensation                                                                          109                   109
Shares purchased for employees                                                                                    (7)                   (7)
Balance as at 31 December 2017 (audited)                           27   22,673        1,764            429    16,634         (526)  41,001
Total comprehensive income/(loss) for the period                                        643           (273)    2,179          101    2,650
Deferred tax charged directly to equity                                                                 20        (2)                   18
Transfer of reserve upon disposal of shares in RB Plat                                                  52       (52)                    -
Cash distributions to minorities                                                                                              (95)     (95)
Shares acquired in terms of BSP - treated as treasury shares      (-)*    (140)                                                       (140)
Shares vested in terms of the BSP                                   -*     210                                  (210)                    -
Equity-settled share-based compensation                                                                           99                    99
Disposal of business                                                                                                          779      779
Shares forfeited to cover tax expense  on vesting                                                                (11)                  (11)
Dividends paid                                                                                                  (928)                 (928)
Balance as at 30 June 2018 (reviewed)                              27   22,743        2,407            228    17,709          259   43,373
* Less than R500 000.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 30 June 2018


1. The condensed consolidated interim financial statements are prepared in accordance with and contain the information required by IAS 34 Interim Financial
Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting
Standards Council and the requirements of the Companies Act of South Africa.

The preparation of the Group's reviewed consolidated interim results for the six months ended 30 June 2018 was supervised by the Finance Director, Mr I Botha CA
(SA).

2. The accounting policies applied in the preparation of these condensed consolidated interim financial statements are in terms of International Financial Reporting
Standards and are consistent with those applied in the financial statements for the year ended 31 December 2017, except as set out in note 3 below.

3. ACCOUNTING POLICIES
Impact of new standards issued and amendments to existing standards not yet effective
At 30 June 2018, the following new accounting standards and amendments to existing standards were in issue but not yet effective:

                                                                                                                         Effective for annual periods
New standards and amendments                                                                                             commencing on or after:

IFRS 16 Leases - removes the classification of leases as operating or finance leases and requires all                    1 January 2019
 leases to be brought onto companies' balance sheets.                                                                   (early application permitted if IFRS 15 is also applied)
                                                                                                                                                                                                                                           
IFRIC 23 Uncertainty over Income Tax Treatments - addresses the determination of taxable profit                          1 January 2019
 (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty
 over income tax treatments under IAS 12 Income Taxes. It specifically considers:                                     

Whether tax treatments should be considered collectively.

Assumptions for taxation authorities' examinations.

The determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.

The effect of changes in facts and circumstances.

Annual improvements to IFRS 2015 - 2017 cycle makes the following amendments: IFRS 3 Business Combinations- requiring    1 January 2019
 the remeasurements of a previously held interest in a joint operation where control is obtained; IFRS 11 Joint
 Arrangements- clarifying that there is no remeasurement of previous interests upon obtaining joint control of a 
 business that is a joint operation; IAS 12 Income Taxes- clarifying that all income tax consequences of dividends 
 should be recognised in profit or loss regardless of how the tax arises; and IAS 23 Borrowing Costs- clarifying
 that a specific borrowing that remains outstanding after the related asset is ready for use, becomes part of general
 borrowings for purposes of interest capitalisation.                                                                  

IFRS 17 Insurance Contracts - requires insurance liabilities to be measured at a current fulfilment value and            1 January 2021
 provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are 
 designed to achieve the goal of consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes
 IFRS 4 Insurance Contracts as of 1 January 2021.
                                   
Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments In Associates and Joint Ventures -        To be determined
 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture deal with situations where 
 there is a sale or contribution of assets between an investor and its associates or joint ventures.                                                                         

The above standards and amendments are not expected to have a material impact for the Group, except IFRS 16 which is addressed below.

Impact of standards issued, effective and adopted by the Group
The Group adopted IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers on 1 January 2018. As reported previously, the adoption of these
standards has an immaterial impact for the Group. The IFRS 9 impact was the reclassification of one financial asset, with a value of R30 million on 1 January 2018,
from loans and receivables, along with all available-for-sale investments, to equity instruments irrevocably designated as at fair value though other
comprehensive income (FVTOCI) per note 14. There is no reclassification of fair value changes on available-for-sale investments as these are already in equity. The
IFRS 15 impact was only on reclassifying the deferred income liability to contract liability per note 20. Prior years were also reclassified, albeit with an
immaterial impact.

3. ACCOUNTING POLICIES
Impact of new standard issued and neither effective nor adopted by the Group
IFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the balance sheet, as the distinction between operating and finance
leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions
are short-term and low-value leases.

The standard will affect primarily the accounting for the Group's operating leases and embedded leases in service contracts. The Group has decided to adopt the
modified retrospective transition approach such that the cumulative effect of transition to IFRS 16 will be recognised in retained earnings and the comparative
period will not be restated.

As at the reporting date, 30 June 2018, the Group has non-cancellable operating leases with a net present value of approximately R0.2 billion and embedded leases
with an estimated net present value of approximately R0.2 billion, which will be capitalised together with any new leases entered into post the reporting period.
Capitalisation will result in an increase in net debt and property, plant and equipment on 1 January 2019.

The standard is mandatory for first interim periods within annual reporting periods beginning on or after 1 January 2019. The Group does not intend to adopt the
standard before its effective date.


4. 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
                                               2018             2017              2017        2018        2017         2017
                                                 Rm               Rm                Rm          Rm          Rm           Rm
    Operations
    Mogalakwena Mine                          8,624            6,450            16,118       3,288       2,022        7,029
    Amandelbult Mine                          5,936            4,760            11,423       1,142         394        1,699
    Unki Mine                                 1,270            1,038             2,489         185          84          369
    Twickenham Project                            -               15                21        (164)       (169)        (376)
    Modikwa Mine1                               922              672             1,817          91          48          246
    Mototolo Mine1                              738              590             1,218         277         127          200
    Kroondal Platinum Mine1                   1,637            1,329             3,233         346         110          213
    Union Mine2                                 275            1,814             4,280          65         416          974
    Other                                         -               20                14          (1)        (12)          10
                                             19,402           16,688            40,612       5,229       3,020       10,363
    Inter-segmental transactions                (49)               -               (24)          -           -            -
    Purchased metals                         12,718           10,617            25,082       1,260       1,064        2,104
    Trading                                   1,420                -                 -           1
                                             33,491           27,305            65,670       6,490       4,084       12,467
    Other costs                                                                             (1,580)     (1,268)      (3,375)
    Gross profit on metal sales                                                              4,910       2,816        9,092
1 Anglo American Platinum Limited's share (excluding purchase of concentrate).
2 Effective 1 February 2018, Union Mine was disposed of.
Information reported to the Executive Committee of the Group for purposes of resource allocation and assessment of segment performance is done on a mine-by-mine
basis.

Changes to the segmental information
The following change to the segmental reporting was made following changes to internal reporting to the Executive Committee:

Following the move to more detailed reporting on purchase of concentrate activities, Amandelbult has been changed to exclude metal purchased from third parties.
Also the results for toll refining activity have been moved from purchased metal to other. These changes led to a corresponding change in the results for purchased
metal.

This resulted in the following changes to the comparative figures:
                                                                                                       30 June 2017                    30 June 2017
                                                                                                     Net sales revenue             Operating contribution
                                                                                            As reported            Reclassified  As reported  Reclassified
                                                                                                     Rm                      Rm           Rm            Rm
    Amandelbult Mine                                                                              4,846                   4,760          422           394
    Other                                                                                             -                      20            -           (12)
    Purchased metals                                                                             10,551                  10,617        1,024         1,064
                                                                                                 15,397                  15,397        1,446         1,446

                                                                                                             Reviewed                Audited
                                                                                                         six months ended         Year ended
                                                                                                30 June                 30 June  31 December
                                                                                                   2018                    2017         2017
                                                                                                     Rm                      Rm           Rm
5.  GROSS SALES REVENUE
    Sales revenue emanated from the following principal regions:
    Precious metals                                                                              29,675                  24,303       58,400
    Asia                                                                                         10,703                   9,287       20,950
    Europe                                                                                       14,994                  10,975       27,494
    South Africa                                                                                  2,836                   2,215        4,970
    North America                                                                                 1,142                   1,826        4,986
    Base metals                                                                                   2,757                   2,018        5,010
    South Africa                                                                                    426                     345          784
    Rest of the world                                                                             2,331                   1,673        4,226
    Other                                                                                         1,059                     992        2,278
    South Africa                                                                                     53                      91          107
    Rest of the world                                                                             1,006                     901        2,171
                                                                                                 33,491                  27,313       65,688
    Gross sales revenue by metal:
    Platinum                                                                                     13,659                  14,181       31,590
    Palladium                                                                                     9,807                   6,584       18,421
    Rhodium                                                                                       3,468                   1,530        4,242
    Nickel                                                                                        2,020                   1,493        3,566
    Other                                                                                         4,537                   3,525        7,869
    Gross sales revenue                                                                          33,491                  27,313       65,688

6.  GROSS PROFIT ON METAL SALES
    Net sales revenue                                                                            33,491                  27,305       65,670
    Cost of sales                                                                               (28,581)                (24,489)     (56,578)
    Cash operating costs                                                                        (14,662)                (14,573)     (30,642)
    On-mine                                                                                     (11,252)                (11,529)     (24,109)
    Smelting                                                                                     (1,710)                 (1,526)      (3,363)
    Treatment and refining                                                                       (1,700)                 (1,518)      (3,170)
    Purchase of metals and trading activities                                                   (12,917)                 (9,640)     (20,763)
    Depreciation (note 7)                                                                        (1,964)                 (1,975)      (4,074)
    On-mine                                                                                      (1,348)                 (1,397)      (2,823)
    Smelting                                                                                       (269)                   (209)        (551)
    Treatment and refining                                                                         (347)                   (369)        (700)
    Increase in metal inventories                                                                 2,470                   2,967          515
    Increase in ore stockpiles                                                                       72                       -        1,761
    Other costs (note 8)                                                                         (1,580)                 (1,268)      (3,375)
    Gross profit on metal sales                                                                   4,910                   2,816        9,092
    Gross profit margin (%)                                                                        14.7                    10.3         13.8

7.  DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
    Depreciation comprises the following categories:
    Operating assets                                                                              1,964                   1,975        4,074
    Mining                                                                                        1,348                   1,397        2,823
    Smelting                                                                                        269                     209          551
    Treatment and refining                                                                          347                     369          700
    Depreciation included in other costs                                                             21                       9           19
                                                                                                  1,985                   1,984        4,093

8.  OTHER COSTS
    Other costs comprise the following principal categories:
    Overheads
    Corporate costs                                                                                 243                     223          531
    Research                                                                                         78                      71          230
    Exploration                                                                                      32                      27          105
    Other                                                                                           190                     163          423
                                                                                                    543                     484        1,289
    Direct overhead costs
    Royalties                                                                                       393                     209          653
    Share-based payments                                                                             97                      88          205
    Contributions to education and community development                                            106                     143          372
    Transport of materials                                                                          441                     344          856
                                                                                                  1,037                     784        2,086
                                                                                                  1,580                   1,268        3,375

                                                                                                           Reviewed                  Audited
                                                                                                        six months ended          Year ended
                                                                                                30 June                 30 June  31 December
                                                                                                   2018                    2017         2017
                                                                                                     Rm                      Rm           Rm
9. OTHER NET INCOME/(EXPENDITURE)
   Other net income/(expenditure) comprises the following principal categories:
   Net realised and unrealised foreign exchange gains/(losses)                                       70                    (258)        (398)
   Project maintenance costs1                                                                       (70)                    (70)        (106)
   Restructuring and other related costs                                                            (15)                     (8)         (11)
   Profit/(loss) on disposal of property, plant and equipment and conversion rights                  33                      (4)         (16)
   Insurance proceeds received2                                                                     356                       -          197
   Proceeds realised on treasury bills                                                              100                      34          228
   Other - net                                                                                       50                      43          100
                                                                                                    524                    (263)          (6)
1 Project maintenance costs comprise costs incurred to maintain land held for future projects
  and costs to keep projects on care and maintenance. It also includes the costs of the operations
  put onto care and maintenance once the decision was made.
2 For the period ended, includes R333 million in respect of damage to property
 (31 December 2017: R48 million).

10.  INTEREST EXPENSED
     Interest expensed                                                                             (363)                   (519)      (1,004)
     Interest paid on financial liabilities classified as liabilities at amortised cost1           (479)                   (620)      (1,229)
     Less: capitalised                                                                              116                     101          225
     Time value of money adjustment to environmental obligations                                     (1)                    (45)        (215)
     Decommissioning                                                                                  -                     (33)        (129)
     Restoration                                                                                     (1)                    (12)         (86)
                                                                                                   (364)                   (564)      (1,219)

1 Includes interest paid to Anglo American SA Finance Limited of R423 million at 30 June 2018 (30 June 2017: R545 million; 31 December 2017: R1,068 million).

11.  TAXATION                                                          %       %      %
     A reconciliation of the standard rate of South African normal
     taxation to that charged in the statement of comprehensive 
     income is as follows:
     South African normal tax rate                                  28.0   (28.0)  28.0
     Disallowable items that are individually immaterial            (0.5)    1.6    2.3
     Employee housing expenditure disallowed                           -       -    1.1
     Impairment of investments in associates                        (5.1)   24.1   17.0
     Impairment of non-current financial assets                      0.5     6.8    6.1
     Loss on disposal/impairment of Union Mine and Masa Chrome       6.4     5.4    1.9
     Prior year underprovision/(overprovision)                         -    (1.5)  (1.7)
     Effect of after-tax share of (income)/losses from associates   (0.2)    4.3    2.9
     Interim effective tax rate adjustment                          (0.6)   (1.2)     -
     Difference in tax rates of subsidiaries                         1.0     1.9   (1.6)
     Zimbabwean AIDS levy                                           (0.1)      -      -
     Profit on disposal on long-dated resources                        -       -   (8.4)
     Other                                                          (0.6)   (0.5)  (2.0)
     Effective tax rate                                             28.8    12.9   45.6

                                                                                            Reviewed           Audited
                                                                                        six months ended    Year ended
                                                                                      30 June     30 June  31 December
                                                                                         2018        2017         2017
                                                                                           Rm          Rm           Rm
 12. RECONCILIATION BETWEEN PROFIT/(LOSS AND HEADLINE EARNINGS
     Profit/(loss) attributable to owners of the Company                                2,179      (1,187)       1,944
     Adjustments                                                                                        -            -
     Net (profit)/loss on disposal of property, plant and equipment                       (36)          5            7
     Tax effect thereon                                                                     6          (1)          (2)
     Asset scrappings                                                                      16          30           44
     Non-controlling interest share                                                        (1)          -            -
     Tax effect thereon                                                                    (4)         (8)         (12)
     Profit on sale of long-dated resources                                                 -           -       (1,066)
     Tax effect thereon                                                                     -           -            -
     Impairment of investment in associates (Note 27)                                   1,098         997        2,145
     Tax effect thereon                                                                  (470)          -            -
     Loss on disposal/impairment of Union Mine and Masa Chrome (Note 26)                  850       1,490        1,655
     Tax effect thereon                                                                   (32)       (355)        (397)
     Non-controlling interest share                                                        (3)       (224)        (263)
     Insurance proceeds for damage to assets                                             (333)          -          (48)
     Tax effect thereon                                                                    93           -           14
     Profit on sale of associates                                                           -           -         (135)
     Tax effect thereon                                                                     -           -            -
     Headline earnings                                                                  3,363         747        3,886
     Shares
     Number of ordinary shares in issue (millions)                                      268.7       268.5        268.5
     Weighted average number of ordinary shares in issue (millions)                     262.3       262.2        262.2
     Weighted average number of diluted ordinary shares in issue (millions)             263.0       262.9        263.2
     Earnings/(loss) per ordinary share (cents)
     - Basic                                                                              831        (453)         741
     - Diluted                                                                            828        (452)         739
     Attributable headline earnings per ordinary share (cents)
     - Basic                                                                            1,282         285        1,482
     - Diluted                                                                          1,279         284        1,476

 13. INVESTMENTS IN ASSOCIATES
     Unlisted                                                                           1,952       3,210        2,464
     Bafokeng-Rasimone Platinum Mine (BRPM)1                                            1,762       2,929        2,333
     Richtrau No 123 Proprietary Limited                                                    5           5            5
     Peglerae Hospital Proprietary Limited                                                 57          56           57
     Primus Power                                                                          29           -           26
     Hydrogenious Technologies GmbH                                                        99          41           43
     Unincorporated associate - Pandora                                                     -         179            -
                                                                                        1,952       3,210        2,464

1 The equity investment in BRPM was partially impaired during the six months ended 30 June 2018. Refer note 27.

                                                                                          Reviewed           Audited
                                                                                      six months ended    Year ended
                                                                                    30 June     30 June  31 December
                                                                                       2018        2017         2017
                                                                                         Rm          Rm           Rm
14.  OTHER FINANCIAL ASSETS
     Loans carried at amortised cost
     Loans to Plateau Resources Proprietary Limited (Plateau)1                          211         201          201
     Loan to ARM Mining Consortium Limited                                               52          65           52
     Advance to Bakgatla-Ba-Kgafela traditional community                               149         140          149
     Preference share investment in Baphalane Siyanda Chrome Company                      -          47            -
     Other                                                                              100         100          100
                                                                                        512         553          502
     Equity instruments at fair value through other comprehensive income2
     Investment in Royal Bafokeng Platinum Limited (RBPlat)                             101         766          627
     Investment in Wesizwe Platinum Limited                                              93         116          114
     Investment in Altergy Systems Inc.                                                  21           -           31
     Investment in Ballard Power Systems Inc.                                           186           -          258
     Investment in Greyrock Energy Inc. (Greyrock)                                      104          53           93
     Investment in Hyet Holdings B.V.                                                    36           -            -
     Investment in Food Freshness Technology Holdings                                    86          50           77
     Convertible notes in United Hydrogen Group Inc.3                                    51          35           30
     Convertible notes in Primus Power Corporation                                        6           -            -
                                                                                        684       1,020        1,230
     Investments carried at fair value through profit or loss
     Deferred consideration on the sale of Rustenburg Mine                            1,653       1,674        1,660
     Deferred consideration on the sale of Pandora Joint Venture                        133           -          115
     Total other financial assets                                                     2,982       3,247        3,507

1 Loans to Plateau were partially impaired during the six months ended 30 June 2018. 
  Refer note 27.
2 Change in category from available-for-sale investments to equity instruments 
  at fair value through other comprehensive income (OCI) on adoption of IFRS 9
  Financial Instruments on 1 January 2018. These are irrevocably designated at fair 
  value and there is no recycling of the reserve to profit or loss but within equity.
3 Change in classification from loans and receivables to equity instruments fair value
  through other comprehensive income (FVTOCI) on adoption of IFRS 9 Financial Instruments
  on 1 January 2018.

15.  INVENTORIES
     Refined metals                                                                   3,244       3,401       3,906
     At cost                                                                          2,539       2,062       2,548
     At net realisable value                                                            705       1,339       1,358
     Work-in-process                                                                 13,490      13,326      10,354
     At cost                                                                          9,537       5,939       5,547
     At net realisable value                                                          3,953       7,387       4,807
     Ore stockpiles                                                                   1,832           -       1,761
     Total metal inventories                                                         18,566      16,727      16,021
     Stores and materials at cost less obsolescence provision                         2,402       2,587       2,468
                                                                                     20,968      19,314      18,489
16.  CASH AND CASH EQUIVALENTS
     Cash on deposits and on hand                                                     9,167       7,072       9,357
     Reclassified as held-for-sale                                                        -           -        (242)
                                                                                      9,167       7,072       9,115

                                                                                  Reviewed          Audited
                                                                             six months ended    Year ended
                                                                           30 June     30 June  31 December
                                                                              2018        2017         2017
                                                                                Rm          Rm           Rm
17.  INTEREST-BEARING BORROWINGS
     The Group has the following borrowing facilities:
     Committed facilities                                                   22,597      22,271       22,254
     Uncommitted facilities                                                  6,373       5,785        6,230
     Total facilities                                                       28,970      28,056       28,484
     Less: Facilities utilised1                                             (8,454)    (12,871)     (11,075)
     Non-current interest-bearing borrowings                                (8,356)     (9,380)      (9,362)
     Current interest-bearing borrowings                                       (98)     (3,491)      (1,713)
     Available facilities                                                   20,516      15,185       17,409
     Non-current interest-bearing borrowings                                 8,356       9,380        9,362
     Current borrowings                                                        218       3,491        1,713
     Interest-bearing borrowings                                                98       3,491        1,713
     Contract liability top-up                                                 120           -            -
     Total interest-bearing borrowings                                       8,574      12,871       11,075
     Weighted average borrowing rate (%)                                      8.44        8.74         8.59

1 Includes R7,928 million (30 June 2017: R9,100 million; 31 December 2017: R9,100 million) and Nil (30 June 2017: R3,491 million; 31 December 2017: R1,713 million)
owing to Anglo American SA Finance Limited on the committed and uncommitted facilities respectively as at 30 June 2018.

Committed facilities are defined as the bank's obligation to provide funding until maturity of the facility, by which time the renewal of the facility is
negotiated.

An amount of R18,517 million (30 June 2017: R20,157 million; 31 December 2017: R18,657 million) of the facilities is committed for one to five years; R280 million
(30 June 2017: R314 million; 31 December 2017: R297 million) is committed for more than five years; R2 300 million (30 June 2017: Nil; 31 December 2017: R2,300
million) is committed for a rolling period of 18 months; R1,000 million (30 June 2017: R1,300 million; 31 December 2017: R1,000) committed for a rolling period of
364 days, while the rest is committed for less than 364 days. The Company has adequate committed facilities to meet its future funding requirements.

18. OBLIGATIONS DUE UNDER FINANCE LEASES
The Group holds, under finance lease, an energy recovery plant at the Waterval Smelter site in terms of an agreement assessed to be a lease in terms of IFRIC 4
Determining whether an Arrangement contains a Lease. The lease term is for a period of 15 years, whereafter the Group has the option to purchase the plant at fair
value. The interest rate implicit in the lease amounts to 17.74%.
     Finance lease obligations                                                 116         113         115
     Less: Short-term portion included in current liabilities                  (17)        (16)        (17)
     Long-term portion included in non-current liabilities                      99          97          98

19.  OTHER FINANCIAL LIABILITIES
     Financial liabilities carried at fair value
     Deferred consideration payable on sale of Rustenburg Mine (Note 25)         -         229         239
     Non-current                                                                 -         229         239
     Financial liabilities carried at amortised cost
     Platinum Producers' Environmental Trust payable to Sibanye and Siyanda1   450         295         308
     Financial liabilities carried at fair value
     Fair value of forward foreign exchange contracts                            6           2           4
     Fair value of commodity contracts                                           2          13           -
     Deferred consideration payable on sale of Rustenburg Mine                 294         293         304
     Current                                                                   752         603         616
     Total other financial liabilities                                         752         832         855

1 Investments held in the Platinum Producers' Environmental Trust attributable to Rustenburg Mine, and Union Mine awaiting transfer to Sibanye and Siyanda as a
result of their respective purchases of the indicated mines.

                                                                          Reviewed           Audited
                                                                      six months ended    Year ended
                                                                    30 June     30 June  31 December
                                                                       2018        2017         2017
                                                                         Rm          Rm           Rm
20.  OTHER LIABILITIES
     Accrual for leave pay                                              841         905          965
     Liabilities for the return of metal1                               145         233          134
     Contract liabilities 2                                           5,727       4,336        4,623
     Other                                                               19         943        1,155
     Reclassified as held for sale                                        -           -         (186)
                                                                      6,732       6,417        6,691

1 Liabilities for the return of metal comprise provisions arising from metal leasing transactions, the best estimate of which is determined with reference to the
  spot metal price at the end of the reporting period applied to the ounces of metal obtained under such leasing arrangements.
2 The contract liability represents a payment in advance for metal to be delivered in six months time. An amount is received monthly on a rolling six-month basis
  over five years of the contract ending in March 2023. Cash and cash equivalents are held as a hedging instrument in respect of the foreign exchange risk of this
  liability. This was previously a deferred income liability and has now been reclassified as a contract liability on adoption of IFRS 15 on 1 January 2018. 

21.  COMMITMENTS
     Mining and process property, plant and equipment
     Contracted for                                                   1,899       1,770       1,919
     Not yet contracted for                                           3,562       5,987       4,302
     Authorised by the directors                                      5,461       7,757       6,221
     Allocated for:
     Project capital                                                  1,909       2,687       2,040
     - within one year                                                1,223         498         799
     - thereafter                                                       686       2,189       1,241
     Stay-in-business capital                                         3,551       5,070       4,180
     - within one year                                                3,339       2,005       2,997
     - thereafter                                                       212       3,065       1,183
     Capital commitments relating to the Group's share in associates
     Contracted for                                                     508         733         337
     Not yet contracted for                                           1,962       1,529       1,569
     Authorised by the directors                                      2,470       2,262       1,906

These commitments will be funded from existing cash resources, future operating cash flows, borrowings and any other funding strategies embarked on by the Group.

22. RELATED PARTY TRANSACTIONS
The Company and its subsidiaries, in the ordinary course of business, enter into various sale, purchase, service and lease transactions with the ultimate holding
company, Anglo American plc, its subsidiaries, joint arrangements and associates, as well as transactions with the Group's associates. Certain deposits and
borrowings are also placed with subsidiaries of the holding company. The Group participates in the Anglo American plc insurance programme. These transactions are
priced on an arm's-length basis. Material related-party transactions with subsidiaries and associates of Anglo American plc and the Group's associates (as set out
in note 13) and not disclosed elsewhere in the notes to the financial statements are as follows:

                                                                                                  Reviewed          Audited
                                                                                             six months ended    Year ended
                                                                                           30 June     30 June  31 December
                                                                                              2018        2017         2017
  Description                                                                                   Rm          Rm           Rm
  Compensation paid to key management personnel (including share-based payments)                99          83          108
  Interest paid                                                                                423         545        1,068
  Interest received                                                                             66          21           58
  Insurance paid                                                                               223         174          447
  Insurance received                                                                           356           -          197
  Purchase of goods and services                                                             2,533       2,922        5,936
  Associates                                                                                 2,160       2,608        5,310
  Anglo American plc and other subsidiaries                                                    373         314          626
  Deposits                                                                                   8,060       5,167        7,246
  Interest-bearing borrowings (including interest accrued)                                   7,989      12,647       10,777
  Amounts owed to related parties                                                            1,656       1,385        1,434
  Associates                                                                                 1,633       1,360        1,423
  Anglo American plc and other subsidiaries                                                     23          25           11

23. FAIR VALUE DISCLOSURES
This announcememt does not include information required pursuant to paragraph 15A(j) of IAS 34. The full interim report is available on the Company's website, at
the Company's registered office and upon request.

24. 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.
The Group has provided guarantees to certain financial institutions to cover various metal borrowing facilities. At 30 June 2018 these guarantees amounted to
R1,235 million (30 June 2017: R1,177 million; 31 December 2017: R1,108 million).

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 2018, these guarantees amounted to R2,450 million (30 June 2017: R2,619 million; 31 December 2017: R2,398
million).

25. CHANGES IN ACCOUNTING ESTIMATE
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 Metals Refinery where the physical count is usually
conducted every three years. The Precious Metals Refinery physical count was conducted by exception in 2016 and is due to be performed again in 2019.

This change in estimate has had the effect of decreasing the value of inventory disclosed in the financial statements by R485 million (30 June 2017: increase of
R942 million; 31 December 2017: increase of R942 million). This results in the recognition of an after tax loss of R349 million (30 June 2017: after-tax gain of
R678 million; 31 December 2017: after-tax gain of R678 million).

Rustenburg deferred consideration
The Group's sale of the Rustenburg Mine completed on 1 November 2016. The present value of the deferred consideration was recognised as a level 3 financial asset
at fair value through profit or loss. Remeasurements arising from changes in estimates of cash flows and discount rate as well as the unwinding of the discount are
included in interest income and expense. The estimated cash flows were revised in June 2018 after the finalisation of relevant financial information by the
purchaser. This has given rise to an increase of R268 million (post-tax) in the present value of the deferred consideration, and the recognition of a gain in profit
or loss which is included in headline earnings.

26. DISPOSAL TRANSACTIONS
Union Mine and Masa Chrome
The Group concluded a binding sale agreement for its 85% ownership interest in Union Mine and its 50.1% ownership interest in Masa Chrome Proprietary Limited to
Siyanda Resources. The agreement was signed on 14 February 2017 and most of the critical conditions precedent were met on 1 December 2017. As of this date, it was
highly probable that the sale would be concluded within 12 months, such that the criteria for reclassification as held for sale, in terms of IFRS 5 Non-current
Assets Held for Sale and Discontinued Operations, were met. An attributable post-tax impairment loss of R996 million was recognised for the year ended 31 December
2017. A further attributable post-tax impairment loss of R12 million was recognised in January 2018, presently partly in scrapping of assets and partly in the loss
on disposal in the statement of comprehensive income.

The sale was effective as of 1 February 2018. A post-tax loss on disposal of R811 million was recognised, and is excluded from headline earnings. This brings the
total loss, including previously recognised impairments to R1.8 million.

Royal Bafokeng Platinum Limited
On 24 April 2018 the Group conducted an accelerated book build in respect of its shares in Royal Bafokeng Platinum Limited (RB Plat). 17 million shares were sold
at a price of R22.50 per share, which was at a discount to market price. The investment was irrevocably designated as at fair value through other comprehensive
income in terms of IFRS 9 Financial Instruments such that all gains and losses are recognised directly in equity and never recycled. This transaction consequently
had no earnings impact.

27. IMPAIRMENT OF ASSETS AND INVESTMENTS
Bokoni Holdco and associated loan
The Group has a c.23% shareholding in Atlatsa as well as a 49% shareholding in Bokoni Holdco. Both investments are equity accounted, with the investment in
Atlatsa previously fully impaired and subsequently reporting losses which have not been equity accounted.

In light of the difficult market conditions and negative cash flows incurred by Bokoni Platinum Mine. The Group's equity interest continues to be fully impaired to
the extent that the balance is not otherwise reduced through equity accounted losses. During the first half of 2018, 49% of the funding provided to Bokoni mine for
care and maintenance (R50 million) was capitalised to the investment and reduced by equity accounted losses of an equal amount.

Atlatsa's ability to service its debt obligations in the context of the current market conditions, where Bokoni Platinum Mine is its main source of funding, is
doubtful. The Group has impaired all but R211 million in funding provided to Atlatsa. This resulted in an impairment loss for the period of R52 million, which is
included in headline earnings.

Bafokeng Ras'mone Platinum Mine (BRPM)
Due to a binding sale agreement that was signed on 4 July 2018 for the disposal of the Group's 33% interest in BRPM, see note 28, the equity-accounted BRPM
investment was impaired to the fair value of the transaction price (level 1 fair value) per the binding sale agreement. A post-tax impairment of R628 million 
has accordingly been recognised, and excluded from headline earnings.

28. POST-BALANCE SHEET EVENTS
Disposal of 33% equity-accounted interest in the Bafokeng Rasimone Platinum Mine
On 4 July 2018, the Group entered into a binding sale and purchase agreement (SPA) with a subsidiary of RB Plat for the sale of the Group's 33% interest in the
unincorporated BRPM joint venture. Owing to the signature of the SPA after the balance sheet date and the fact that certain approvals remain outstanding, the
investment was not classified as held for sale in terms of IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations. The salient transaction terms are as
follows:
Initial purchase price to be settled in cash arising from a 5% capital raise by RB Plat, plus any capital contributions made by the Group to BRPM between the SPA
signature date and completion date. Deferred consideration for the remainder of the agreed R1.863 billion transaction price to be settled in three equal tranches
1.5; 2.5 and 2.5 years after the effective date, with early settlement permitted. The deferred consideration will escalate at the RB Plat cost of borrowing plus a 
premium of 2%. RB Plat has the option of settling the deferred consideration either in cash or by the issue of additional RB Plat shares to the Group at each
payment date.

Anglo Platinum ventures with Public Investment Corporation
On 17 July 2018, AP Ventures (APV) was launched as an independent venture capital fund to invest in Platinum Group metals (PGMs). AP Ventures is backed by Anglo
American Platinum Limited and South Africa's Public Investment Corporation (PIC) who have committed a total of USD200 million, USD100 million each, as joint
partners. AAPL will sell its current Platinum Group Metals investments, valued at USD60 million, to APV as part of its contribution. APV is a joint venture, as the
parties require 75% of the voting power for decision making, and will be equity-accounted when the agreement becomes effective with AAPL's share of profit or loss
of APV recognised in profit or loss.

Dividend
The Board approved a dividend of R3.74 per share on 19 July 2018.

29. AUDITOR'S REVIEW
These condensed consolidated interim financial statements have been reviewed by the Group's auditors, Deloitte & Touche. The review of the condensed consolidated
interim financial statements was performed in accordance with ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity.
The auditor's review report does not necessarily report on all the information contained in these interim results. Shareholders are advised that in order to obtain
a full understanding of the nature of the auditor's engagement they should read the auditor's review report and obtain the accompanying financial information from
the registered office.

Any reference to future financial performance, included in these interim results, has not been reviewed or reported on by the Group's auditors.

The unmodified review report on the Group's condensed consolidated interim financial statements is available for inspection at the Company's registered office.

GROUP PERFORMANCE DATA
for the six months ended 30 June 2018

SALIENT FEATURES
                                                           Six months ended            Year ended
                                                                    30 June   30 June              31 December
                                                                       2018      2017    % change         2017
Average market prices achieved
Platinum                                      USD/oz                    932       957          (3)         947
Palladium                                     USD/oz                  1,005       780          29          876
Rhodium                                       USD/oz                  1,938       911         113        1,094
Iridium                                       USD/oz                  1,054       804          31          864
Ruthenium                                     USD/oz                    221        48         360           72
Gold                                          USD/oz                  1,312     1,235           6        1,253
Nickel                                        USD/tonne              13,633     9,660          41       10,314
Copper                                        USD/tonne               6,776     5,859          16        6,221
Chrome                                        USD/tonne                 196       198          (1)         177

% contribution of net revenue
PGMs                                          %                        88.6      88.9           -         88.9
Platinum                                      %                        40.8      51.9         (11)        48.1
Palladium                                     %                        29.3      24.1           5         28.0
Rhodium                                       %                        10.4       5.6           5          6.5
Iridium                                       %                         2.2       2.9          (1)         2.1
Ruthenium                                     %                         3.4       1.0           2          1.2
Gold                                          %                         2.5       3.4          (1)         3.0
Nickel                                        %                         6.0       5.5           1          5.4
Copper                                        %                         2.0       1.6           -          2.0
Chrome                                        %                         3.0       3.5           -          3.3
Other metals                                  %                         0.4       0.5           -          0.4

Exchange rates
Average achieved on sales                     ZAR/USD                 12.38     13.24          (6)       13.33
Closing exchange rate at end of year          ZAR/USD                 13.73     13.08           5        12.31

Basket prices achieved - excluding trading
Platinum - Dollar basket price                USD/Pt oz               2,318     1,843          26        1,966
PGM - Dollar basket price - Average           USD/PGM oz              1,032       848          22          915
PGM - Dollar basket price - Mined volume      USD/PGM oz              1,111       905          23          972
PGM - Dollar basket price - Purchased volume  USD/PGM oz                932       771          21          835
Platinum - Rand basket price                  Rand/Pt oz             28,695    24,400          18       26,213
PGM - Rand basket price - Average             Rand/PGM oz            12,777    11,227          14       12,198
PGM - Rand basket price - Mined volume        Rand/PGM oz            13,753    11,981          15       12,965
PGM - Rand basket price - Purchased volume    Rand/PGM oz            11,543    10,211          13       11,139
Total PGM ounces sold - excluding trading                           2,508.8   2,432.6           3      5,382.2
Platinum                                      000 ounces            1,117.1   1,119.3           -      2,504.6
Palladium                                     000 ounces              733.5     636.2          15      1,571.7
Other PGMs+Gold                               000 ounces              658.2     677.1          (3)     1,305.9
Total PGM ounces sold - trading                                       120.1         -           -            -
Platinum                                      000 ounces               65.6         -           -            -
Palladium                                     000 ounces               53.0         -           -            -
Gold                                          000 ounces                1.5         -           -            -
Financials - excluding trading
Net sales revenue                             R million              32,071    27,305          17       65,670
from platinum                                 R million              12,901    14,181          (9)      31,590
from palladium                                R million               9,168     6,584          39       18,421
from rhodium                                  R million               3,468     1,530         127        4,242
from other PGMs and gold                      R million               2,685     1,980          36        4,089
from base and other metals                    R million               2,851     2,079          37        5,171
from chrome                                   R million                 998       951           5        2,157
Total operating costs                                               (25,283)  (23,310)          8      (53,685)
EBITDA                                        R million               6,788     3,995          70       11,985
EBITDA margin                                           %              21.2      14.6           7         18.3
EBIT                                          R million               4,802     2,011         139        7,892
ROCE                                                    %              22.4       8.8          14         17.6

                                                                                           Six months ended               Year ended
                                                                                           30 June  30 June              31 December
                                                                                              2018     2017    % change         2017
Costs and unit costs
Cash operating costs                                                R million               13,371   13,446          (1)      26,427
Cash on-mine cost per tonne milled                                  R/tonne                    770      781          (1)         742
Cash operating cost per PGM oz produced  (mined volume)             R/PGM oz                 8,954    9,265          (3)       8,871
Cash operating cost per PGM oz produced  (mined volume)             USD/PGM oz                 728      701           4          666
Stay-in-business capital                                            R million                1,772    1,106          60        3,336
Capitalised waste stripping                                         R million                  635      376          68          784
All-in sustaining costs net of metal revenue credits other than Pt  USD million                901    1,133         (21)       2,000
All-in sustaining costs per platinum ounce sold                     USD/Pt oz                  829    1,036         (19)         826
Cash operating cost per platinum ounce produced (mined volume)*     R/Pt oz                 19,571   20,105          (3)      19,203
Cash operating cost per platinum ounce produced (mined volume) *    USD/Pt oz                1,591    1,522           5        1,443
Reconciling items for AISC and free cash flow
Allocated marketing and market development costs                    USD/Pt oz sold              21       24         (13)          24
Abnormal income/(expense) included in operating and net cash flow
- Disposal of treasury bills                                        R million                  100       34         194          228

Financial statistics
Gross profit margin                                                 %                         14.7     10.3           4         13.8
Operating profit as a % of average operating assets                 %                         15.9      7.5           8         14.0
EBITDA excluding trading1                                           R million                6,788    3,995          70       11,985
Return on average capital employed1 (ROCE)                          %                         22.4      8.8          14         17.6
Return on average attributable capital employed2                    %                         24.9     41.9         (17)        19.0
Current ratio                                                                                1.5:1    1.4:1           7        1.5:1
Interest cover - EBITDA                                             times                     14.2      6.4         120          9.8
Debt cover ratio                                                    times                      0.9      0.5          80          1.4
Dividend cover                                                      times                      3.3        -         100            -
Gearing ratio (net debt to total capital)                           %                         (1.1)    13.5         (15)         4.3
Interest-bearing debt to shareholders' equity                       %                         20.0     34.2         (14)        27.3
Net asset value as a % of market capitalisation                     %                         45.0     47.2          (2)        43.2
Effective cash tax paid rate                                        %                         33.4    (33.0)         66         45.6

Market information and share statistics
Total shares in issue                                               millions                 268.7    268.5           -        268.5
Weighted average number of shares in issue                          millions                 262.3    262.2           -        262.2
Treasury shares held                                                millions                   1.0      1.2         (20)         1.2
Market capitalisation                                               R billion                 96.5     80.5          20         94.9
Closing share price                                                 cents                   35,900   29,975          20       35,346

Headcount (as at period ended)
Total employees (AAP own and contractors, excluding JVs)                                    23,146   28,411         (19)      28,692
Own enrolled                                                                                21,613   25,986         (17)      26,453
Contractors                                                                                  1,533    2,425         (37)       2,239

Productivity
PGM ounces produced per employee                                    per annum                  110       92          20           94
* 2017 unit cost restated to include third-party tolling cost.
1 Earnings adjusted for asset scrapping, Union impairment and insurance receipt for damage to assets.
2 Basis of calculation amended for current and prior period to fully exclude capital and earnings attributable to non controlling interest.

REFINED PRODUCTION
                                                                                  Six months ended               Year ended
                                                                                  30 June  30 June              31 December
                                                                                     2018     2017    % change         2017
Total operations
Refined production from mining operations
Total PGMs                                                   000 oz               1,251.0  1,304.6          (4)     2,975.5
Platinum                                                     000 oz                 589.9    615.6          (4)     1,419.5
Palladium                                                    000 oz                 441.7    436.6           1      1,035.3
Rhodium                                                      000 oz                  71.5     86.0         (17)       179.8
Other PGMs                                                   000 oz                 111.7    130.0         (14)       261.9
Gold                                                         000 oz                  36.2     36.4          (1)        79.0
Nickel                                                       000 tonnes               8.0      8.2          (2)        18.9
Copper                                                       000 tonnes               5.8      5.2          12         12.1
Chrome tonnes (100%)                                         000 tonnes             430.0    430.0           -        978.8
Refined production from purchases
Total PGMs                                                   000 oz                 926.2    989.5          (6)     2,140.7
Platinum                                                     000 oz                 485.4    490.0          (1)     1,092.4
Palladium                                                    000 oz                 244.8    289.9         (16)       633.1
Rhodium                                                      000 oz                  64.8     70.5          (8)       143.4
Other PGMs                                                   000 oz                 117.1    121.6          (4)       235.4
Gold                                                         000 oz                  14.1     17.5         (19)        36.4
Nickel                                                       000 tonnes               2.8      2.9          (3)         7.2
Copper                                                       000 tonnes               1.4      1.5          (7)         3.7
Chrome tonnes (100%)                                         000 tonnes                 -        -           -            -
Total refined production (including toll refined metal)
Total PGMs                                                   000 oz               2,177.2  2,294.1          (5)     5,116.2
Platinum                                                     000 oz               1,075.3  1,105.6          (3)     2,511.9
Palladium                                                    000 oz                 686.5    726.5          (6)     1,668.4
Rhodium                                                      000 oz                 136.3    156.5         (13)       323.2
Other PGMs                                                   000 oz                 228.8    251.6          (9)       497.3
Gold                                                         000 oz                  50.3     53.9          (7)       115.4
Nickel - Refined                                             000 tonnes              10.8     11.1          (3)        26.1
Copper - Refined                                             000 tonnes               7.2      6.7           7         15.8
Chrome tonnes (100%)                                         000 tonnes             430.0    430.0           -        978.8

SPLIT OF TOTAL REFINED PRODUCTION
Platinum                                                                               49       48           1           49
Palladium                                                    %                         32       32           -           33
Rhodium                                                      %                          6        7          (1)           6
Other PGMs                                                   %                         11       11           -           10
Gold                                                         %                          2        2           -            2
Base Metals
Nickel                                                       %                         59       61          (2)          61
Copper                                                       %                         40       37           3           37
Other Base Metals                                            %                          1        2          (1)           2

PLATINUM PIPELINE CALCULATION
Own mined volume                                             000 oz                 546.0    545.5           -      1,130.9
JV mined volume                                              000 oz                 137.2    123.3          11        245.3
Purchase of concentrate                                      000 oz                 550.2    520.3           6      1,021.2
M&C platinum production                                      000 oz               1,233.4  1,189.1           4      2,397.5
Pipeline stock adjustment                                    000 oz                  26.3     77.2         (66)        77.2
Pipeline movement                                            000 oz                (184.4)  (172.3)         (7)        20.4
Refined platinum production  (excluding toll refined metal)  000 oz               1,075.3  1,094.0          (2)     2,495.0

COMMENTARY

Key Messages

- Focus on elimination of fatalities - seeing improvements in overall safety performance and a 42% reduction in total recordable case frequency rate (TRCFR)

- Commitment to industry leading returns to shareholders
 - Cash from operations of R5.9 billion, resulting in an 87% cash conversion ratio
 - EBITDA growth of 70% to R6.8 billion
 - Return on capital employed (ROCE) increased from 9% to 22% (annualised)
 - Interim dividend declared of R1.0bn or R3.74 per share for H1 2018

- Strong operational performance - metal in concentrate PGM production up 4%
 - Record performance from Mogalakwena and Unki
 - Turnaround plan in action at Amandelbult
 - Supported by strong production across all joint venture operations

- Scheduled rebuild of Mortimer smelter and other maintenance resulted in a temporary build-up of work-in-progress inventory, resulting in lower refined production

- Strong cost control continues - unit costs down 3% to R19,571 per platinum ounce

- Balance sheet re-built to net cash of R0.5bn from R1.8bn net debt as at 31 December 2017

- Simplification of the portfolio:
 - Commercial terms agreed with Royal Bafokeng Platinum to sell AAP's 33% interest in BRPM
 - Sold down equity ownership of Royal Bafokeng Platinum from 11.4% to 2.6% with view to exit
 - Conclusion of disposal of Union to Siyanda Resources

- Strategy to deliver next phase of value -
 - Growing demand for PGMs - USD200m committed to launch of the AP Ventures funds together with the PIC
 - Work underway to extract the next phase of value at existing operations through best operating practices and modernisation, through people and innovation
 - Project studies to determine best value growth options at Mogalakwena continues
 - Commercial terms agreed with Glencore for the acquisition of Glencore's 39% interest in Mototolo JV
 - Project studies underway assessing value-enhancing growth optionality between Mototolo and adjacent 100% wholly-owned Der Brochen

Chris Griffith, CEO of Anglo American Platinum commented:

"Anglo American Platinum has produced another strong set of operational and financial results. Our commitment to ensuring safe production has delivered value and
the Company continues to improve more profitable own-mine production, with total PGM production up 4%. We did however lose one of our colleagues to multiple bee
stings and again have sent our condolences to the friends, family and colleagues of Mr Maimela. Our focus will remain on the elimination of fatalities.

We've seen strong production from our operations, with the world-class Mogalakwena operation increasing production 19% in H1 2018. The turnaround plan at
Amandelbult is progressing and the joint venture portfolio had a strong performance, with record production from Mototolo and Kroondal. This strong production
performance, combined with strict cost control led to a further 3% decrease in unit costs.

Despite the temporary build up in work in progress inventory, due to maintenance and the scheduled Mortimer smelter rebuild in Q2, the Company generated operating
free cash flow of R1.3 billion, reducing net debt by R2.3 billion and moving to a net cash position of R0.5 billion.

We have been busy and in the last six months, announced a number of transactions. As part of the simplification of the portfolio, we have sold 8.8% of our equity
holding in Royal Bafokeng Platinum, and agreed the sale of our 33% interest in BRPM to them. In support of our strategic objective of growing demand for PGM's, we
have supported the launch of AP Venture funds, with the PIC, together committing USD200 million to stimulate demand for PGMs. Finally, to own and operate the best
assets, we have signed an SPA to acquire Glencore's 39% stake in the Mototolo JV, which will unlock significant synergies with Der Brochen.

Work is underway to extract value at existing operations through world best operating practices and modernisation, through people and innovation; and finally,
project studies continue to assess how to unlock the most value from Mogalakwena.

Anglo American Platinum remains committed to delivering PGM industry leading returns, and has increased EBITDA by 70% to R6.8 billion, resulting in an increase in
EBITDA margin to 21%; an increase in ROCE to 22% and the Board has declared an interim dividend of R1.0 billion. This is very much a stronger business today as a
result of the actions we have taken in recent years and I'm pleased to say that we see even more value that we can unlock ahead of us."

STRATEGY

Anglo American Platinum's strategy over the past five years has focused on restructuring and repositioning the portfolio in response to structural changes in the
platinum group metals (PGM) industry. The execution of this strategy is essentially complete and has simplified and improved the business by reducing its operating
mines from eighteen to seven, decreased overheads by 50% and headcount by 60%, whilst maintaining PGM production. The portfolio is now positioned with 70% of
production in H1 of the primary industry cost curve (excluding BRPM), with PGM industry leading cost control outperforming input cost inflation, improved operating
free cash flows and delivering a return on capital employed of 22%. The balance sheet has been de-levered with net debt reducing from R14.8 billion in 2014, to a
net cash position of R0.5 billion in H1 2018, and a base dividend was reintroduced in 2017.

The next chapter of the strategy has been formulated with the view to maximise margins, returns and cash flows within a changing market and competitor landscape. We
continue to see material upside value in the Company, with work underway to quantify the potential from existing operations, and growth options of our world class
resources.

Value proposition

Anglo American Platinum has a differentiated value proposition through:

- The quality of our long-life assets from which we continually strive to extract full value;
- Demonstrated capital discipline that has resulted in balance sheet strength which enables flexibility to be responsive to opportunities through the cycle and
  withstand potential downward pressure; and
- Ensuring the long-term sustainability of the business by leading market development to grow demand for PGMs, progressing select prioritised project studies to
  ensure optionality is maintained, and by modernising our organisation.

The Company's focus is on driving the value and earnings of the business, by taking the operational performance of the operations to world best practice, investing
in growth optionality across the portfolio, and developing the market for PGMs.

Anglo American Platinum seeks to deliver these strategic priorities in a safe, values driven and socially responsible way.

Simplified mining portfolio

The quality and long life of our mineral assets are the foundation of our leadership position in the industry. We focus on operating and investing in the assets
that offer the most attractive long-term value creation potential, that are positioned in the lower half of the cash cost curve and that are, or have potential to
be mechanised.

We have further simplified the ownership structure of our mining portfolio, with greater direct influence over the asset operational performance as well as being
able to focus capital allocation to these assets. This will be achieved as the sales and purchase agreement was signed to acquire Glencore's interest in Mototolo,
enabling a seamless transition into Der Brochen. In addition, Anglo American Platinum has signed an SPA to dispose of the 33% stake in the BRPM JV to our joint
venture partners Royal Bafokeng Platinum. The non-strategic minority interest in the remaining 2.6% of the listed shares of Royal Bafokeng Platinum Limited will be
sold following the sale of 8.8% in April 2018, which generated gross proceeds of R390 million.

Disciplined capital allocation

Our value-focused approach to capital allocation underpins our preferred portfolio by prioritising the following:

- Maintaining asset integrity, ensuring a strong balance sheet and paying base dividends to our shareholders;
- Discretionary capital allocation to the best value outcome, by investing in fast pay-back projects and profitable growth;
- Thereafter, capital will be allocated between further increasing balance sheet strength or additional returns to shareholders; and
- Disciplined value-added growth projects to enhance margins and additional returns

Anglo American Platinum has rebuilt its balance sheet to a net cash position, supported by strong underlying cash generation, despite the current pricing and global
economic environment. In line with the capital allocation framework, Anglo American Platinum continues to progress project studies to assess the expansion potential
at our key operations, Mogalakwena and Der Brochen and determine how we extract the most value from these assets, considering market and capital constraints.

Mogalakwena expansion

Mogalakwena remains the world's most significant PGM operation and the only major open-pit operation globally. The mine is in the lowest quartile of the primary PGM
producer cash cost curve, and as a palladium-rich resource, will benefit given the current and medium term structural deficits in the palladium market.

The project opportunity studies have identified that a third concentrator expansion at Mogalakwena will significantly improve the NPV of the asset, has value-
enhancing returns, with optimal value being achieved with a concentrator size of between 9-12 million tonnes per annum. This would lead to an incremental c.270,000
palladium ounces and c.250,000 platinum ounces. The concept and prefeasibility studies have commenced and the capital expenditure will be quantified once the
project studies have advanced further.

Mototolo / Der Brochen

As announced on SENS, Anglo American Platinum has signed an SPA with Glencore to purchase its 39% interest in the Mototolo joint venture.

The acquisition enables significant synergies between Mototolo and the adjacent Der Brochen resource, with project studies underway to assess the most valuable
options which could include both replacement and growth options, 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.five-year life of mine, to beyond a thirty-year life of mine.

Extracting full value from our assets

We are working to reset operational performance benchmarks across our business, recognising the further latent potential that exists in our operations,
notwithstanding the material improvements we have made over the last few years. Whether it's the hours one gets out of a truck or shortening the lost time between
shift changes or failures, or to completely re-think long established practices, Anglo American Platinum believes there is substantial additional value to be gained
by focussing on best practice benchmarks and further improvements through modernisation and technical innovation.

Developing the market for PGMs

Market development is a key priority where latent demand across jewellery, investment and industrial segments remains a large and growing opportunity.

The Company's Platinum Group Metals Development Fund has enjoyed great success and built a strong track record. We have now taken the decision to separate the
fund's activities into an independent structure, AP Ventures, which will attract additional outside investment allowing it to increase the scale of its activities.

The launch of AP Ventures is an exciting development which will support the growth of PGM technologies and is expected to increase PGM demand from the industrial
segment. Through this transaction, we are hoping to facilitate the application of cutting-edge technological advances and broad innovative thinking to address the
major global challenges. It is a clear example of the use of collaborative partnerships to connect people for the betterment of the industry and we are grateful to
have had the support of the Public Investment Corporation in bringing the Funds to fruition.

In addition, we continue to also drive PGM demand through:

Engaging and collaborating in the shaping of the strategy and activities of the Platinum Guild International (PGI), focusing on jewellery demand creation, and the
- World Platinum Investment Council (WPIC), focusing on investment demand creation;
- Spearheading new initiatives which fall outside the mandates of the industry funded entities, by expanding and formalising an approach to primary R&D with the
  intention of developing PGM based solutions to global issues; identifying bottlenecks and barriers to increased use/sales of PGMs and developing solutions in
  partnership with AP Ventures funds, the PGI & WPIC; and
- Focus on fuel cell development and the hydrogen economy through advocacy, investment in refuelling infrastructure and anti-diesel lobbying.

SAFETY, HEALTH, ENVIRONMENT & SOCIAL INVESTMENT

Safety

Tragically there was one work related loss of life in H1 2018. Mr Johannes Maimela died of multiple bee stings at Dishaba Mine in March 2018, and our deepest
condolences go to Mr Maimela's family, friends and colleagues.

Management has committed to maintaining safe operations and the benefits of safe production are producing results. Safety indicators highlight the significant
improvements that have been made, with total recordable injury frequency rate (TRCFR) the lowest on record, down 42% to 2.93 per one million hours worked (H1 2017:
5.08). This can be attributed to the implementation of the revised safety, health and environment strategy and the focus on reporting and learning from high
potential incidents.

Health

Anglo American Platinum remains committed to the fight against HIV, tuberculosis (TB) and the wellness of employees. The Company aspires to the UN targets of
90:90:90 with respect to HIV. These targets aim at diagnosing 90% of all HIV-positive persons, provide antiretroviral therapy (ART) for 90% of those diagnosed, and
achieve viral suppression for 90% of those treated. AAP achieved 80% "know-your status" and 86% on ART in 2017. The Company remains confident that by intensifying
efforts and encouraging the participation of employees at all levels of the organisation, these levels can further improve. Our HIV interventions, together with
parallel proactive TB interventions are contributing to a consistent reduction in TB incidence rates - reducing 53% to 271 per 100,000 and well below the national
average of 781 per 100,000. These efforts highlight the significant reduction in TB related deaths - reducing from over 60 in 2013 to 3 so far in 2018.

Environment

Anglo American Platinum has again had no major or material environmental incidents (categorised as Level 4 to 5), and has had no Level 3 incidents since 2013.
Through applying an operational risk management process and identifying critical controls to manage priority unwanted environmental events, the Company ensures that
environmental risk is appropriately managed. Minor environmental incidents are analysed and investigated to learn from, and implement remedial actions to prevent
repeats.

Rustenburg Base Metals Refinery (RBMR) and Precious Metals Refinery (PMR) are the key operations to remain ISO14001 certified as they are responsible for product
delivery and complying with external requirements. As a result, PMR was certified against the new ISO 14001:2015 standard in October 2017 and RBMR was certified in
June 2018. All other operations will focus on implementing the new ISO14001:2015 standards and best practice.

The Company continues to focus on reducing demand for fresh water and energy. Improving energy efficiency also drives reduced carbon emissions. The focus on water
efficiency depends on two key measures: technology to reduce total water demand; and reduced dependency on potable water to ensure water availability for
surrounding stakeholders. To minimise water usage at operations, non-potable or effluent water is the priority source.

Anglo American Platinum continues to make considerable progress in the management of hazardous and non-hazardous waste sent to landfill as a result of several
reduce, re-use and recycling activities. For the five months to end-May there was a 64% reduction in the total tonnes of waste to landfill compared to the same
period last year.

Social and community investment

We continue to engage with stakeholders as part of our mandate to enhance the social license to operate and endeavor to make a lasting positive contribution to
communities in which we operate. Several projects have been implemented as part of our commitment to social labour plans, including the signature of a service level
agreement with Hall Core Mapela to supply water to 42 villages of Mapela, which will deliver potable water to over 70,000 people. We are constructing administration
blocks and additional classrooms in four schools, completed water and sanitation facilities in eight schools, with another three schools under construction.

Food production remains a focus, and the communities in which we are delivering water projects are also encouraged to start food gardens. The Amandelbult, St George
and Kalkfontein farming projects are thriving and over 30 jobs are sustained on these farms. All our initiatives are contributing towards the achievement of the
National Development Plan of our Country and the Integrated Development Plans of the host Municipalities and are done in partnership with our stakeholders.

The Company has spent R86 million so far in H1 2018 on Social Labour Plan projects, equating to 2% of NOPAT, and in line with plan. This spend will more than double
by the year end.

Environmental, social and governance (ESG) awards

The Company continues to operate as a sustainable and socially responsible business. The metals that are mined are utilised to enable solutions to some global
problems such as air quality, growing resource scarcity and improving wellness through medication and technology. As a result, the Company is gaining global
recognition for its ESG practices:
- Second mining company globally in the ISS oekom Corporate Responsibility Review 2018;
- Top 30 in the JSE Responsible Investment Index since inception;
- Inclusion in the FTSE4Good index since June 2015; and
- Third in the Institutional Investor EMEA Executive Team 2018 awards for best ESG SRI metrics

JOURNEY TO OPERATIONAL EXCELLENCE

Operational performance

As a result of improved operational efficiencies across the own-managed mine portfolio, and strong performances from the joint venture portfolio, PGM production for
H1 2018 increased, despite the closure of unprofitable production from Bokoni and Maseve in H2 2017, which does not form part of H1 2018 production.

Total PGM production (expressed as platinum, palladium, rhodium, gold, iridium and ruthenium metal in concentrate) was up 4% to 2,583,800 ounces in H1 2018 (H1
2017: 2,484,300 ounces). Platinum production was up 4% to 1,233,400 ounces (H1 2017: 1,189,100 ounces), while palladium increased 5% to 813,200 ounces (H1 2017:
774,900 ounces).

The 4E built-up head grade of 3.52g/tonne was 2% higher due to higher grade from Mogalakwena, which targeted a particularly high grade area at Zwartfontein pit, as
well as higher underground grades at Amandelbult.

Own managed mines

Own managed mines (Mogalakwena, Amandelbult and Unki) increased total PGM production by 14% to 1,166,700 ounces (H1 2017: 1,021,100 ounces). Platinum production by
own-managed mines increased 14% to 534,500 ounces (H1 2017: 467,900 ounces) and palladium increased by 15% to 434,600 ounces (H1 2017: 377,800 ounces).

Mogalakwena

Mogalakwena produced a record 641,400 PGM ounces up 19% (H1 2017: 538,600 PGM ounces), with platinum production up 21% to 272,900 ounces (H1 2017: 225,800 ounces)
and palladium up 18% to 295,500 ounces (H1 2017: 251,200 ounces). Total production included production from the Baobab concentrator plant of 48,700 PGM ounces (H1
2017: 39,100 PGM ounces).

Mogalakwena increased production through mining a higher-grade area within the current mining cut as per the mine plan, as well as optimisation of the North
concentrator plant which led to improved concentrator throughput and recoveries. Material was mined from the Zwartfontein pit which also contributed to higher
grade, but at a lower recovery. Total tonnes mined remained constant year-on-year, but tonnes milled increased 6% and the 4E built-up head grade increased 10% to
3.39g/t from 3.07g/t in H1 2017.

Mogalakwena contributed R2.1 billion in economic free cash flow, up from R812 million in H1 2017. The mine delivered EBITDA of R3.9 billion at a 45% margin, up from
37% in H1 2017. Return on Capital Employed increased to 29% from 16% (on an annualised basis).

Cash operating costs (costs after allowing for off-mine smelting and refining activities) increased 9% to R4.7 billion. Cash operating costs including capitalised
waste stripping increased by 14% to R5.4 billion from R4.7 billion.

Cash operating costs per platinum ounce decreased 10% to R17,224 from R19,122 in H1 2017 owing to increased mining volume. Cash operating costs per PGM ounce (metal
in concentrate) was R7,328 against R8,018 per ounce in H1 2017.

All-in sustaining costs (AISC) (includes operating costs as defined above, all sustaining capital expenditure, capitalised waste stripping and allocated marketing
and market development costs net of by product revenue) per platinum ounce sold was USD253 per platinum ounce, down from USD687 per platinum ounce in the previous
period.

During 2018, improvements in mining efficiencies and concentrator performance resulted in mine plan changes, causing differences between the sequencing of ore and
waste mining. Improvements in shovel and truck performances resulted in an increase in waste tonnes mined, the bulk of which was capitalised waste. This led to a
decrease in ore mined over the period and coupled with higher milled volumes, resulted in the drawdown from ore stockpiles (which were previously guided to
increase). The net impact from these changes for H1 2018 was a 6% increase in unit costs for Mogalakwena.

The current mining profiles are expected to continue in H2 of 2018 which will result in an overall higher unit cost for the mine for 2018 compared to 2017, which
was lower due to the benefit of measuring R1.6billion of ore stockpiles. The revised medium term mine plan will enable greater minng of ore and will reduce overall
unit costs in future years.

Mogalakwena targeted a high-grade area in the Zwartfontein pit, which led to an increase in grade in H1 2018. This will normalise in H2 2018 which will result in an
annual average of grade 3.18g/t. High grade production was planned for H1 2018, to get early ounces prior to the planned smelter rebuilds in Q2 and Q3 2018. Total
production from Mogalakwena in 2018 is expected to be approximately 1.15 million PGM ounces (around 480,000 platinum ounces).
Amandelbult

Total PGM production at Amandelbult increased by 9% to 432,700 PGM ounces (H1 2017: 397,500 PGM ounces). Platinum production increased 8% 220,200 ounces (H1 2017:
203,700 ounces) and palladium production increased 10% to 102,900 (H1 2017: 93,600 ounces).

Production increased due to the implementation of the operational turnaround of the asset. The immediately stopeable ore reserves (IMS) at Dishaba have increased
and productivity improvements have been implemented.

As development at Dishaba continues, surface tonnes supplement underground production, and led to a 5% increase in tonnes milled. Despite the increased surface
sources in the ore mix, the 4E built-up head grade increased 3% to 3.91 g/t (H1 2017: 3.81 g/t) due to increases in both underground reef ore sources (UG2 and
Merensky) and as a result of reduced dilution.

Production from the chrome plant increased by 46%, yielding 403,000 tonnes of chrome concentrate on a 100% basis (H1 2017: 276,000 chrome tonnes). This is in part
due to 8% increase in plant feed as well as the chrome interstage implementation, increasing the plant yield to 16%. (H1 2017: 12%). Amandelbult is moving towards
a primarily UG2 mine. The chrome recovery capacity is being extended to the Merensky Concentrator by construction of two further modules at a capex cost of R530
million, which will be commissioned in July 2019, and will result in an incremental 360,000 tonnes of chrome production per annum.

Despite a fall in the chrome price during H1 2018 to an average of USD200/tonne, from an average of USD242/tonne in the comparative period, the increased volume and low
production cost enabled the Amandelbult chrome operation to generate attributable economic free cash flow of R409 million (H1 2017: R261 million).

Amandelbult delivered R159 million in economic free cash flow from its mining and chrome activities, up from negative R541 million in H1 2017. The mine delivered
EBITDA of R1.0 billion at a 17% margin, up from 3% in H1 2017. Return on Capital Employed increased to 16% from negative 5%.

Cash operating costs increased by 10% to R4.8 billion (H1 2017: R4.4 billion), mainly due to mining inflation, chrome plant operational costs and costs relating to
the future replacement of production from Tumela Upper to Dishaba Lower UG2. Cash operating costs per platinum ounce was flat year-on-year at R21,701 (H1 2017
R21,596) owing to higher volume. The measurement of run-of-mine ore stockpiles at Amandelbult as at 30 June 2018, resulted in a 2% reduction in unit cost for the
mine.

Cash operating costs per PGM ounce (metal in concentrate) was R11,041 against R11,070 per ounce in H1 2017. AISC per platinum ounce sold was USD891 per ounce, down
from USD1,183 in the previous year.

Total production from Amandelbult in 2018 is expected to increase to between 900,000 to 9 240,000 PGM ounces (c.460,000 - 470,000 platinum ounces).

Unki

Unki mine in Zimbabwe produced a record 92,600 PGM ounces, an increase of 9% (H1 2017: 85,100 ounces). Platinum production increased 8% to 41,400 ounces (H1 2017:
38,400 ounces) and palladium production increased 10% to 36,200 ounces (H1 2017: 33,000 ounces).

Production increased due to an increase in tonnes milled, up 6% due to improved throughput and recovery. The 4E built-up head grade stayed relatively flat at
3.47g/t (H1 2017: 3.48g/t).

Unki increased economic free cash flow to R311 million from R85 million due to improved performance and the sale of treasury bills of R100 million.

The mine delivered EBITDA of R424 million at a 33% margin, up from 21% in H1 2017. Return on Capital Employed increased to 11% from 2% in H1 2017.

Cash operating costs were up 6% to R0.9 billion. The mine, being a dollar denominated operation, benefitted from the strengthening of the rand which increased 6% to
R12.38 from R13.24. Cash operating costs increased by R35 million as ore stock ahead of the concentrator, which was built-up during maintenance at the concentrator
in H2 2017, was depleted in full in H1 2018. Cash operating cost per platinum ounce rose 2% to R23,477 from R22,967 in H1 2017.

Cash operating costs per PGM ounce (metal in concentrate) was R10,511 against R10,360 per ounce in H1 2017. AISC (excluding the receipts of treasury bills) per
platinum ounce sold was USD272 per ounce, down from USD808 in H1 2017.

The Unki smelter, a project in execution, is expected to be completed in Q3 2018 at a total cost of R650 million, with R162 million of the project capital incurred
in H1 2018.

Total PGM production from Unki in 2018 is expected to increase slightly to 180,000 PGM ounces (previously 170,000 PGM ounces) including c.80,000 platinum ounces
(previously 75,000 ounces).

Joint ventures (own-mined and purchase of concentrate)

Total PGM production from joint ventures (Mototolo, Modikwa and Kroondal inclusive of both own-mined and purchase of concentrate production) increased 10% to
607,200 PGM ounces (H1 2017: 550,100 PGM ounces). Platinum production increased 11% to 274,300 ounces (H1 2017: 246,600 ounces) and palladium production increased
10% to 177,000 ounces (H1 2017: 161,500 ounces).

Mototolo PGM production increased 26% to 157,200 PGM ounces (H1 2017: 124,800) due to higher built-up head grade and additional production rolled over from H2 2017
which was toll-treated at Bokoni due to the tailings dam rehabilitation. Platinum production increased 25% to 72,600 ounces (H1 2017: 57,800 ounces) and palladium
production increased 30% to 45,500 ounces (H1 2017: 35,100 ounces).

Modikwa PGM production increased 6% to 158,000 PGM ounces (H1 2017: 149,700 ounces) due to additional ore purchased from Mototolo. Platinum production increased 9%
to 62,800 ounces (H1 2017: 57,800 ounces) and palladium production increased 2% to 58,100 ounces (H1 2017: 56,700 ounces).

Kroondal PGM production increased 6% to 292,000 PGM ounces (H1 2017: 275,700 ounces), due to an increase in underground production efficiencies as well as improved
concentrator throughput. Platinum production increased 6% to 138,900 ounces (H1 2017: 131,000 ounces) and palladium production increased 5% to 73,500 ounces (H1
2017: 69,700 ounces).

Purchase of concentrate from associates

PGM production from associates decreased by 28% to 183,100 PGM ounces (H1 2017: 254,800 ounces), largely due to the removal of unprofitable production from Bokoni
which was placed on care and maintenance in Q3 2017. Platinum production from associates decreased by 22% to 106,500 ounces (H1 2017: 137,200 ounces) and palladium
production decreased 37% to 43,800 ounces (H1 2017: 69,400 ounces).

BRPM PGM production increased 6% to 183,100 PGM ounces (H1 2017: 173,000) following improved underground mining efficiencies and the ongoing ramp up of the
Styldrift project. Platinum production increased 7% to 106,500 ounces (H1 2017: 99,300 ounces), and palladium production increased 5% to 43,800 ounces (H1 2017:
41,500 ounces).

On 5th July 2018, Anglo American Platinum announced it had entered into an agreement to sell its 33% interest in the BRPM JV to RB Plat. When conditions precedent
are complete, material from BRPM will be treated as third party purchase of concentrate and not as a purchase of concentrate from associates.

Purchase of concentrate from third parties

Union mine was sold to Siyanda Resources ("Siyanda") on 1 February 2018, from which date Union production was treated as third party purchase of concentrate. As a
result, PGM production decreased 85% to 23,100 PGM ounces, and platinum and palladium decreased by 85% to 11,600 ounces and 5,200 ounces respectively.

Purchase of PGM concentrate from third parties increased by 20% to 603,800 PGM ounces (H1 2017: 503,300 PGM ounces) due to an increase in purchased production from
Union mine. This is despite a reduction in production from Sibanye Stillwater down 5% to 445,100 PGM ounces and a reduction in production from Maseve which was
placed on care and maintenance in Q4 2017. Platinum purchase of concentrate increased 18% to 306,500 ounces (H1 2017: 259,800 ounces) and palladium purchase of
concentrate increased 17% to 152,600 ounces (H1 2017: 130,300 ounces).

Refined production & sales volume

Refined PGM production decreased by 5% to 2,177,200 PGM ounces (H1 2017: 2,294,100 PGM ounces). Platinum refined production decreased 3% to 1,075,300 ounces (H1
2017: 1,105,600 ounces), and palladium refined production decreased 6% to 686,500 ounces (H1 2017: 726,500 ounces).

Refined production in H1 2018 was lower due to the removal of unprofitable production from Bokoni and Maseve, which were both placed on care and maintenance in H2
2017 (H1 2017: 84,600 PGM ounces and 41,000 platinum ounces).

In addition, refined PGM production for H1 2018 was lower than M&C production (including c.140,000 platinum ounces) as work-in-progress inventory was built up. This
was due to the planned rebuild of Mortimer smelter which was completed during H1 and scheduled maintenance on the processing assets. It is expected that the backlog
of work-in-progress inventory will largely be processed by the year end despite the planned partial rebuild of Polokwane Smelter in Q3 2018, the commissioning of
the Unki smelter in Q3 2018, which will marginally increase pipeline inventory, and commissioning of the Convertor Plant Phase A module (ACP).

As per normal practices, the annual stock count was completed in H1 2018 which resulted in the first net stock loss since 2010, impacting mainly palladium and
rhodium. As a result, PGM refined production for 2018 will be lower than metal in concentrate production.

PGM sales volumes from mining increased by 3% to 2,508,800 PGM ounces (H1 2017: 2,432,600 PGM ounces). Platinum sales volumes (excluding trading activities) were
constant at 1,117,100 ounces (H1 2017: 1,119,300 ounces) and palladium sales volumes increased by 15% to 733,500 ounces (H1 2017: 636,200 ounces).

Total sales volumes were made up of refined production, supplemented by drawing down on refined inventory levels of c.41,000 platinum and 47,000 palladium ounces.
In addition to sales from mining activities, trading activities of c.66,000 platinum ounces and 53,000 palladium ounces took place during the period. Refined
inventory is expected to be built up in H2 2018 and return to normalised levels which will impact sales volumes.

FINANCIAL PERFORMANCE

H1 2018 overview

The Company has had a strong financial performance in H1 2018 with a 70% increase in EBITDA to R6.8 billion with group EBITDA margin increasing to 21% (H1 2017:
15%). Headline earnings increased to R3.4 billion from R0.7 billion reported in H1 2017 and headline earnings per share (HEPS) of 1,282 cents increased 350%
compared to H1 2017 (285 cents) due to the Company's improved operational performance and improvement in the rand basket price for the period.

The balance sheet position has strengthened substantially, with a net cash position of R0.5 billion at 30 June 2018, a R2.3 billion improvement from a net debt
position of R1.8 billion at 31 December 2017. The improvement was after a cash dividend to shareholders of R0.9 billion and was driven by free cashflow from
operations of R1.3 billion, as well as R0.9 billion of net proceeds on asset sales (including R0.4 billion from the disposal of Union mine and R0.4 billion from the
sale of shares in RB Plat). The customer prepayment increased by R1.1 billion due to the impact of a weaker rand at the end of H1 2018 compared to 31 December 2017
as well as higher palladium and rhodium prices, bringing the total customer prepayment to R5.7 billion.

Disposals and acquisitions

On 1 February 2018, the sale of the Company's 85% interest in Union Mine to Siyanda Resources became effective. The Group realised an attributable, after tax loss
on disposal of R0.8 billion, which together with prior impairments recognised brings the total attributable, after tax loss on divesting from this operation to R1.8
billion. The loss on disposal is excluded from headline earnings.

Anglo American Platinum continues to fund Bokoni mine's care and maintenance expenditure. R52 million in impairment losses were recognised in respect of funding
Atlatsa's 51% share and is thus not an impairment of assets but a loan write off, which is included in basic and headline earnings.

On 24 April 2018, the Company disposed of 17.3 million shares in RB Plats for R0.4 billion. There was no earnings impact as the investment was classified at fair
value through other comprehensive income.

On 6 July 2018, Anglo American Platinum entered into a binding sale and purchase agreement with RB Plat for the sale of the Company's 33% interest in the BRPM JV.
The sale is inter alia subject to RB Plat shareholder and lender approval, and the investment was accordingly not classified as held-for-sale at 30 June 2018.
Approximately R0.2 billion of the transaction price will be settled in cash, upfront, with the remainder to be settled in three equal tranches, attracting interest,
and commencing 18 months after the effective date. The deferred amount may be settled in cash or in the equivalent value of RB Plat shares. Owing to the signing of
the binding sale and purchase agreement, the Group impaired its equity-accounted investment in BRPM by R0.6 billion (post-tax) to bring it in line with the
transaction price. This impairment is excluded from headline earnings.

Sales revenue

Net sales revenue rose 23% to R33.5 billion from R27.3 billion in the first half of 2017 on the back of higher palladium, rhodium and chrome sales volumes due to
the ramp-up of the new chrome plant at Amandelbult. The US dollar basket price was 26% higher at USD2,318 per platinum ounce sold compared to USD1,843 in
H1 2017. The sales price achieved on all metals improved, except for platinum at USD932 per ounce (H1 2017: USD957). Palladium was up 29%, rhodium up 113%, nickel
up 41% and copper up 16%. The rand strengthened to an average of R12.38 (H1 2017: R13.24), eroding some of the price benefit, which resulted in a 18% higher rand
basket price of R28,695 per platinum ounce sold (H1 2017: R24,400).

Cost of sales

Cost of sales increased by 17%, from R24.5 billion in H1 2017 to R28.6 billion mainly due to higher purchase of concentrate costs, driven by higher prices as well
as the purchase of metals for trading activities, while the planned rebuild and maintenance of processing assets takes place. Following the sale of Union operations
in February 2018, the Company has higher purchase of concentrate costs and lower on-mine costs due to the purchase of concentrate from Siyanda.

Cash on-mine costs (mines and concentrators) decreased by R0.3 billion mainly due to the Union exit, partly offset by input cost inflation and higher tonnes milled
at Mogalakwena. Processing costs rose R0.4 billion to R3.4 billion, a 12% increase due to inflationary increases, higher insurance costs and coal price increases.

Costs for the purchase of concentrate increased to R12.9 billion from R9.6 billion, principally due higher metal prices and additional volumes purchased from
Siyanda following the sale of Union, offset by no volumes from Bokoni since being placed on care and maintenance.

Other costs increased 24% to R1.6 billion (H1 2017: R1.3 billion), primarily due to higher costs of transporting metal (R0.1 billion) given the increased volume of
chrome concentrate produced and increased royalties as a result of higher revenue (R0.2 billion).

Owing to a change in mining approach, run-of-mine ore stockpile material to the value of R1.8 billion was measured at 31 December 2017. The ore stockpile material
has increased marginally at 30 June 2018, impacting cost of sales by R0.1 billion.

Through higher production, especially from Mogalakwena, unit costs are down 3% at R19,571 per produced platinum ounce (H1 2017: R20,105). Unit cost of PGM
production was R8,954 per ounce, 3% lower than the prior year (H1 2017: R9,265 per ounce). AISC of USD829 per ounce (H1 2017: USD1,036 per ounce) against an
achieved platinum price of USD932 per ounce reflects stringent cost management, higher by-product revenue and operational efficiencies.

Earnings before interest, taxation, depreciation and amortisation (EBITDA)

Reported EBITDA increased 70% to R6.8 billion from R4.0 billion in the first half of 2017. The movements in EBITDA were due to:
- Uncontrollable items, including inflation, US dollar metal prices and the rand/US dollar exchange rate, improving earnings by R2.0 billion, with stronger metal
  prices of R3.6 billion, partially offset by inflation contributing R0.6 billion and a stronger rand R1.0 billion.
- Controllable items - volume and costs - contributed R0.6 billion. Costs reduced mainly due to the disposal of Union, partially offset by the impact of a R0.5
  billion stock-count loss compared to a R0.9 billion stock count gain in H1 2017. EBITDA further benefitted from Bokoni being placed on care and maintenance and the
  disposal of Pandora both in Q4 2017 resulting in lower cost incurred for associates (R0.2 billion).

The Company EBITDA margin was 21%, up from 15% in H1 2017. The EBITDA margin for own mining operations was 34% (H1 2017: 22%), on mined portion of joint ventures
23%, normalised for the Helena tailings dam flow through from 2017 (27% actual) (H1 2017: 23%), while the margin on purchased concentrate was 11% (H1 2017: 11%).

Capital expenditure

Disciplined capital allocation remains a priority, aimed at maintaining asset integrity and adding value, not additional volume.

Capital expenditure for the first half of 2018, excluding capitalised interest and waste stripping, rose by R0.5 billion to R1.8 billion (after adjusting for the
ACP insurance proceeds of R0.3 billion) from R1.3 billion in the first half of 2017. Stay-in-business capital expenditure increased by R0.2 billion to R1.4 billion,
focused on safety-critical and business continuity projects, including heavy mining equipment replacement and the planned maintenance of processing assets,
including the Mortimer Smelter rebuild. Our focus is to invest in low capex, fast-payback, value-accretive projects. Project capital was R0.2 billion higher at R0.4
billion, relating to the Unki smelter, Amandelbult chrome plants and Mogalakwena concentrator optimisation project.

Waste tonnes mined decreased from 34Mt in H1 2017 to 33Mt in H1 2018 and the cost of mining 15Mt was capitalised (H1 2017: capitalisation of 10Mt). As a result,
capitalised waste stripping increased from R0.4 billion in H1 2017 to R0.6 billion in H1 2018.

Project and stay-in-business capex is forecast to be within 2018 guidance of between R4.7 billion and R5.2 billion. The increase reflects a once-off stay-in-
business project for SO2 abatement at the Polokwane and Mortimer smelters to be incurred between 2018 and 2023 (R2.5 billion) to achieve global benchmark emissions
standards and South African legal requirements. Capitalised waste stripping is expected to be around R1.4 billion, above previous guidance of R1.1 billion as a
result of increased waste tonnes mined due to improved truck and shovel efficiencies.

Working Capital

We continue to focus on optimising our working capital levels. Trade working capital has been actively managed down from R13.3 billion (75 days) at the beginning of
2016 to R6.2 billion at the end of 2017, representing a 26-day working capital cycle. Trade working capital at 30 June 2018 was R5.4 billion (33 days), a R0.8
billion decrease due to improved debtors collection (R0.3 billion) and higher trade creditors (R1.9 billion) due to purchases of concentrate from Siyanda and the
impact of higher prices on purchases of concentrate cost and an increase in customer prepayment of R1.1 billion. This was partially offset by a build-up in work-
in-progress material as planned maintenance takes place at processing assets, partially offset by a reduction in refined metal.

Platinum and palladium work-in-progress inventory has increased from around 467,000 ounces and 379,000 ounces at end of 2017 to levels of 628,000 ounces and 467,000
ounces respectively at the end of the first half of 2018. In H1 2018, we had a stock count loss of R0.5 billion (H1 2017: stock count gain of R0.9 billion), with
the benefit of a 26,000-ounce platinum stock count gain valued at R0.2 billion, being offset by stock count losses of 16,000 palladium ounces, 19,000 rhodium ounces
and 3,000 tonnes of nickel valued at R0.7 billion.

Net debt and liquidity

During the first half of the year, we made further progress in strengthening the balance sheet. The Company ended with a net cash position of R0.5 billion compared
to R1.8 billion net debt at the end of 2017, after the payment of a R0.9 billion dividend and despite the work-in progress build-up. The reduction was supported by
free cash flow from operations of R1.3 billion, R1.1 billion from the customer prepayment and R0.9 billion net proceeds on asset sales, including R0.4 billion from
the disposal of Union operations and R0.4 billion from the sale of the Company's 8.8% shareholding in RB Plat.

Excluding the customer prepayment of R5.7 billion (which is settled in metal), net debt is R5.2 billion and net debt to EBITDA is 0.4. Liquidity headroom is at
R22.5 billion, comprising both undrawn committed facilities of R13.3 billion and cash of R9.2 billion, and the Company is very comfortably within its debt
covenants.

Dividend

In accordance with the Company's capital allocation framework to distribute a base dividend of 30% of headline earnings for each reporting period, the Board has
declared an interim cash dividend of R3.74 per share, which is equivalent to a 30% headline earnings pay-out ratio or 3.3x dividend cover. The dividend is
applicable to shareholders on the register on 10 August 2018 and payable on 13 August 2018.

PGM MARKET REVIEW

Prices

The USD-based market platinum price ended H1 2018 at USD849 per ounce, down 8% year-on-year (H1 2017: USD921). The market palladium price was up 11% to USD953 per ounce
(H1 2017: USD858) and the market rhodium price up 117% to USD2,250 per ounce (H1 2017: USD1,035).

Platinum

The average achieved platinum price in H1 2018 declined by 3% compared to H1 2017 in US Dollar terms. Platinum underperformed the other platinum group metals due to
a modest surplus and weak sentiment driven by a soft Chinese jewellery market and a decrease in the share of the diesel engine in Europe's light duty vehicle
market.

Total platinum supply is expected to remain largely unchanged year-on-year in 2018. Primary production of platinum is forecast to decline marginally in 2018 to 6.05
million ounces, partly driven by the impact of mine closures in South Africa during 2017. Secondary supply of platinum is forecast to increase by 80,000 ounces due
to growth in autocatalyst recycling volumes, although this will be partially offset by lower volumes of platinum jewellery recycling in China.

Platinum demand is expected to fall slightly in 2018. Investment demand is predicted to fall by about 100,000 ounces to more normal levels of 250,000 ounces in 2018
and autocatalyst demand is forecast to weaken by the same amount. This will be driven by lower platinum demand from the European diesel light-duty vehicle sector,
where the diesel engine's share in new vehicle sales is declining markedly. However, this will be partially offset by higher demand from the global heavy duty
diesel vehicle sector. Platinum demand from the glass, petroleum and chemical sectors should increase year-on-year in 2018. This combination of slightly lower
demand, modestly lower primary production and a marginal increase in secondary supply should see a small surplus of 315,000 ounces.

Palladium

The average palladium market price in H1 2018 of USD1,005 per ounce was over USD200 higher than the average price in H1 2017. Growing demand for palladium from the
automotive sector has tightened the market over the past couple of years and known inventories of palladium have fallen. The market deficit was estimated at 800,000
ounces in 2017 and palladium is expected to remain in a deficit of around 250,000 ounces in 2018.

Palladium supply from the largest producer of the metal, Russia, is expected to increase year-on-year in 2018 as sales more closely match overall mine production.
Global primary palladium supply may be augmented by additional Russian material and could increase 500,000 ounces to 6.9 million ounces in 2018. Secondary supply
from autocatalyst recycling is anticipated to increase by about 200,000 ounces year-on-year.

Palladium demand is strong with particularly firm growth from the autocatalyst sector, which accounts for approximately 80% of global palladium demand. Demand from
this sector is expected to increase 175,000 ounces year-on-year to 8.6 million ounces in 2018, largely offsetting the increased recycling volumes. However, ETF and
other investment flows were negative in 2017 and are forecast to be negative again in 2018.
The tight market, with deficits of supply versus demand, should continue to support higher palladium prices. The impact of US and China trade tariffs and sentiment
may result in some volatility in the price.

Rhodium

Rhodium has performed very strongly in H1 2018, with the average market price rising by 103% to a 7-year high of USD1,938 per ounce (H1 2017: USD911). Both primary and
secondary production of the metal are expected to increase slightly in 2018. Speculative investment demand for rhodium has driven a higher price in 2018 and
stronger automotive demand is likely to support a higher price going forward.

Minor metals

Ruthenium and iridium prices increased to multi-year highs in H1 2018. Ruthenium climbed to an average of USD221 per ounce (H1 2017: USD48) and iridium rose to an
average of USD1,054 per ounce (H1 2017: USD804), with the prices of each metal driven higher by strong industrial demand in Asia.

Automotive

Global light duty vehicle (LDV) sales are forecast to grow by 2.3% year-on-year to 98 million units in 2018 (source: LMC Automotive Global Light Vehicle Sales
Update). Modest year-on-year growth is forecast in Europe and China, and a small decline is expected in North America. Palladium and rhodium are used in the
catalytic converters of gasoline vehicles and will benefit from global vehicle growth, while platinum is the dominant PGM in exhaust after treatment for diesel
vehicles.

The diesel engine's share of LDV sales in Europe has fallen from an average of nearly 45% in H1 2017 to under 40% in H1 2018, driven primarily by concerns over
potential banning of older diesel vehicles in European cities. However, platinum demand from the automotive sector worldwide is only expected to fall by 100,000
ounces between 2017 and 2018. Offsetting the decline in light vehicles in Europe, diesel LDV sales outside of Europe are expected to increase by 200,000 units;
strong demand is also expected from the heavy-duty vehicle sector (HDV). Globally, the share of HDVs fitted with PGM containing catalyst systems is expected to rise
above 60% and grow rapidly over the medium term as increased emissions legislation in China and India encourages the fitment of more PGM containing catalysts.

The outlook for palladium and rhodium demand is quite positive for the next few years, despite only moderately strong vehicle sales growth. Tighter emissions
standards and higher light duty vehicle production are forecast to support palladium and rhodium demand from 2019 onwards. With the palladium price having traded
above that of platinum since September 2017, the question of substituting platinum for palladium in gasoline or three-way catalytic converters comes into play.
While research suggests that substitution in some of these catalysts is possible, automotive companies have yet to respond to the changing price environment in this
way. It is unlikely that there will be any meaningful progress in replacing palladium with platinum in gasoline autocatalytic converters before 2020, although it is
likely this will occur at some point.

Battery electric vehicles make up less than 2% of light vehicle sales in most countries and have made only nominal inroads on PGM demand. However, while still
small, the electric vehicle sector continues to grow and increasing numbers of automotive producers are looking at introducing electric options for vehicles they
sell. It is estimated that demand for platinum from the fuel cell electric vehicle sector was less than 20,000 ounces in 2017 but this will continue to grow. As
with battery electric vehicles, China is leading the way in developing the fuel cell electric vehicle sector and is aiming to have 50,000 fuel cell vehicles on the
road by 2025 and one million vehicles by 2030.

Hybrid electric vehicle sales are growing more rapidly than battery electric or fuel cell electric vehicle sales. PGM loadings on hybrid vehicles are currently
about the same as their internal combustion engine equivalents and so a shift to hybrid powertrains does not represent a negative impact on PGM demand.

Industrial

Gross industrial demand for platinum is expected to increase by about 60,000 ounces in 2018. This will be driven by stronger demand from the chemical and electrical
sectors.

In contrast, gross industrial demand for palladium is expected to fall back by about 2%, or 50,000 ounces this year. This will be led by weaker demand from the
chemical industry as well as further thrifting of palladium in the dental and electronic sectors. Industrial demand for rhodium is also expected to fall this year
due to lower purchases of the metal by the glass and chemical sectors.

Jewellery

Global gross demand for platinum from the jewellery sector fell slightly in 2017. This decline was driven by weak demand from China, where platinum jewellery
manufacturing fell approximately 10% in 2017, the fourth consecutive year of falling demand. Platinum jewellery demand in China has come under pressure from slower
economic growth and a move to higher margins at a retail level. Nevertheless, platinum gem-set and bridal jewellery sales are still strong in the country. Demand
for platinum from the Chinese jewellery sector is forecast to fall again in 2018 but there is scope for it to stabilise from 2019 onwards, driven by growth in Tier
3 and 4 cities and continuing work on improving retail margins.

There were more positive performances elsewhere, for instance from a strengthening Indian market. In contrast to China, Indian platinum jewellery demand underwent
robust growth in 2017, with demand 15% higher year-on-year and further growth should be seen this year. Elsewhere, modest growth is expected in the European and US
platinum jewellery sectors.

Investment

Net investment demand for platinum is expected to be 250,000 ounces in 2018, about 100,000 ounces lower than in 2017. There were net inflows of metal into ETFs in
2017, encouraged by periods of relative price weakness in US Dollar terms. So far this year, ETF flows have been close to neutral but the US Mint has sold 23,000
ounces of platinum Eagles, suggesting that underlying demand for platinum as an investment continues. Work by the WPIC continues to improve availability and demand
for physical products. Partnerships with the likes of Bullion Vault and the Royal Mint have helped to stimulate additional physical demand in a number of countries.

Net disinvestment of palladium occurred in 2017 and this is expected to occur again in 2018 despite the metal's healthy fundamentals as investors continue to sell
into price strength. At the start of 2018, profit taking resulted in some heavy selling by ETFs as the palladium price moved above USD1,000 per ounce. Palladium ETF
holdings have fallen by roughly 300,000 ounces year-to-date to only 950,000 ounces.

Market outlook

The platinum market is likely to remain in a small surplus in the next few years, with supply outweighing demand. In contrast, the palladium market will probably
remain in a deficit, primarily as a result of strong demand from the automotive sector, potentially supporting a strong palladium price.

Automotive platinum demand looks set to remain weak, and this is not expected to be completely offset by rising industrial demand for the metal. Investment demand
is dependent on price movements and on price volatility but should be positive, aided by market development. Primary supply of platinum is expected to decline
modestly and there is only limited potential for growth in recycling of platinum from the autocatalyst, electrical and jewellery sectors.

The number of gasoline vehicles produced is expected to grow and, in conjunction with tighter emissions legislation, this means that palladium demand from the
automotive industry is likely to rise again year-on-year in 2018 and in the following few years. It is unlikely that there will be any meaningful progress in
replacing palladium with platinum in gasoline catalytic converters in the next 24 months, although it is likely this will occur at some point. As with platinum,
mine production of palladium should stay relatively unchanged year-on-year in 2018 and in the next few years, although some previously-mined material may come to
market this year. There will be about 8% growth in secondary supply of palladium from greater volumes of catalytic converter recycling, but nevertheless, palladium
should remain in a deficit even if disinvestment of physical palladium continues.

Growing demand from the automotive sector will support higher demand for rhodium going forward in a relatively illiquid market. Ruthenium and iridium demand is also
likely to remain healthy.

GOVERNMENT AND INDUSTRY POLICY

The Reviewed Mining Charter (MCIII)

Anglo American Platinum notes the publication of the draft 2018 Mining Charter by the Minister of Mineral Resources on 15 June 2018. All parties have until the end
of August to respond to the draft, following the decision by the Minister of Mineral Resources to extend the public consultation period. Anglo American is preparing
its submission in respect of the draft 2018 Mining Charter.

Anglo American Platinum shares the acknowledgement made by the Minerals Council that the draft 2018 Mining Charter is an improvement on the draft 2017 Mining
Charter. However, Anglo American Platinum has concerns surrounding several significant issues in the draft charter that it believes may affect the sustainability of
the mining industry in South Africa, should they not be reconsidered.

Anglo American Platinum has consistently affirmed its support for the Government's national transformation objectives in relation to the mining industry and
acknowledges its role in promoting transformation in South Africa. Correspondingly, Anglo American Platinum has a longstanding track record of driving and
supporting transformation in the mining industry and beyond, while contributing significantly to South Africa's economic growth and development.

Anglo American Platinum believes that more work needs to be done, in consultation with all stakeholders, to create a Mining Charter that promotes both investment
for the long term and transformation. We look forward to the ongoing discussions with the Minister, the Department of Mineral Resources and other industry
stakeholders to work towards this.

MINERAL RESERVES AND RESOURCES STATEMENT

During this period, the sale of the Company's 85% attributable interest in Union was finalised, and as a result there will be a decrease in the Inclusive Mineral
Resource estimates as disclosed in the 2017 integrated report.

MANAGEMENT CHANGES

Indresen Pillay has resigned as Executive Head of Projects and Safety, Health and Environment as of August 2018. A process is underway to find his successor.

Vishnu Pillay will retire as Executive Head of Joint Ventures and Exit Operations as of 31 December 2018.

OUTLOOK

Operational outlook

Due to a strong operational performance in H1 2018, Anglo American Platinum revises up its production outlook for the full year. PGM production guidance (metal in
concentrate) will be 4.85 - 5.10 million PGM ounces (from 4.75 to 5.00 million ounces), including platinum ounces of 2.40 - 2.45 million ounces (from 2.35 - 2.40
million ounces).

Mogalakwena production increased in part due to the high-grade area mined in H1 2018. This will normalise to an annual average of 3.18g/t, resulting in a forecast
production for 2018 of 1.15 million PGM ounces (around 480,000 platinum ounces).

Platinum refined production and sales volumes will be in line with production as the backlog of work-in-progress inventory built up will be refined by year end. PGM
refined production and sales volumes will however be lower than production overall, as the 2018 stock count identified a loss of work-in-progress inventory,
particularly impacting palladium and rhodium.

Financial outlook

The global economic outlook remains uncertain, with volatility in metal prices and exchange rates expected to continue. Management's efforts to reposition the
portfolio, taking out loss-making ounces, implementing strict cost control and focussing on operational efficiencies should enhance margins and generate sustainable
cash flow. Unit cost is expected to be inline with previous market guidance of R19,600-R20,200 per platinum ounce produced. Capital discipline will continue, with
capital expenditure guidance remaining between R4.7 billion to R5.2 billion, of which R3.9 billion to R4.2 billion will be on sustaining capex to maintain asset
integrity and meet compliance requirements.

Johannesburg, South Africa
19 July 2018

For further information, please contact:

Investors:
Emma Chapman
Head of Investor Relations
+27 (0)11 373 6239
emma.chapman@angloamerican.com

Media:
Mpumi Sithole
Media Relations
+27 (0)11 373 6246
mpumi.sithole@angloamerican.com

ADMINISTRATION
EXECUTIVE DIRECTORS
CI Griffith (Chief executive officer)
I Botha (Finance director)

INDEPENDENT NON-EXECUTIVE DIRECTORS
MV Moosa (Independent non-executive chairman)
RMW Dunne (British)
NP Mageza
NT Moholi
D Naidoo
JM Vice

NON-EXECUTIVE DIRECTORS
M Cutifani (Australian)
R Medori (French)
AM O'Neill (Australian)
AH Sangqu

Alternate director
PG Whitcutt (Alternate director to R Medori)

COMPANY SECRETARY
Elizna Viljoen
elizna.viljoen@angloamerican.com
Telephone +27 (0) 11 638 3425
Facsimile +27 (0) 11 373 5111

FINANCIAL, ADMINISTRATIVE, TECHNICAL ADVISERS
Anglo Operations Proprietary Limited

CORPORATE AND DIVISIONAL OFFICE, REGISTERED OFFICE AND BUSINESS AND POSTAL ADDRESSES OF THE COMPANY SECRETARY AND ADMINISTRATIVE ADVISERS
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
Merrill Lynch South Africa Proprietary 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

AUDITORS
Deloitte & Touche
Buildings 1 and 2, Deloitte Place
The Woodlands, Woodlands Drive
Woodmead
Sandton 2196

INVESTOR RELATIONS
Emma Chapman
emma.chapman@angloamerican.com
Telephone +27 (0) 11 373 6239

FRAUD LINE - SPEAKUP
Anonymous whistleblower facility
0800 230 570 (South Africa)
angloplat@anglospeakup.com

23 July 2018

DISCLAIMER
Certain elements made in this annual report 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 current 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 or 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.


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