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ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum update on the repositioning of the portfolio

Release Date: 13/12/2017 09:00
Code(s): AMS     PDF:  
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Anglo American Platinum update on the repositioning of the portfolio

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

Anglo American Platinum update on the repositioning of the portfolio

Anglo American Platinum has made significant progress on the repositioning of its portfolio, continuing
to move its production down the cost curve and creating a more value enhancing portfolio. The
Company announced its intention to divest of assets which do not fit its long term strategy, including
Rustenburg (exit completed on 1 November 2016), Bokoni (placed on care and maintenance on
30 October 2017), Union, and the Pandora joint venture ("Pandora"), as well as the sale of long-dated
resources at Amandelbult. Progress has been made on the outstanding transactions as detailed below:

Completion of the disposal of long-dated Amandelbult resources to Northam

Anglo American Platinum announces the completion of the disposal of mineral resources within the
Amandelbult mining right to Northam Platinum Limited ("Northam") on 6 December 2017. The Company
received a cash consideration of R1.0 billion which was used to reduce net debt.

Completion of the disposal of interest in Pandora joint venture

Anglo American Platinum announces the completion of the disposal of its loss-making 42.5% interest
in Pandora to Lonmin plc ("Lonmin") for a deferred cash payment of a minimum of R400 million and a
maximum of R1.0 billion (both in nominal terms), based on 20% of free cash flow over six years; and
the use of and full operational control of Lonmin’s Baobab concentrator for a three year period
commencing on 1 December 2017.

Taking over operational control of Baobab concentrator will allow the Company to continue processing
excess ore from Mogalakwena mine and pursue optimisation initiatives at the Baobab concentrator.

Update on the progress of the disposal of Union mine

As announced on 15 February 2017, the Sale and Purchase Agreement to dispose of Anglo American
Platinum’s 85% interest in Union Mine and its 50.1% interest in MASA Chrome Company Proprietary
Limited (collectively "Union and MASA") to a subsidiary of Siyanda Resources Proprietary Limited
("Siyanda"), was signed on 14 February 2017. Significant progress has since been made on completing
the conditions precedent, including approval from the South African competition authorities in
accordance with the Competition Act on 13 September 2017 and consent in terms of section 11 of the
Mineral and Petroleum Resources Development Act on 7 November 2017. Anglo American Platinum
and Siyanda are working to ensure a smooth transition of Union and MASA to Siyanda. The Company
will provide a further update upon completion of the transaction.

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

"We have made significant progress in the repositioning of our portfolio with the disposal of our 42.5%
interest in Pandora to our joint venture partner Lonmin, completing the disposal of long-dated resources
at Amandelbult to Northam and progressing the disposal of Union and MASA to Siyanda. We believe
we have delivered transactions that are beneficial for all parties involved, enabling a sustainable future
for the Pandora and Union mines. The benefits of operational control over the Baobab concentrator will
enable us to continue to unlock value at Mogalakwena mine, and the cash proceeds received from
Northam will allow us to further reduce our net debt position. We will continue to focus on completing
the disposal of Union and MASA, which is expected to occur in early 2018."

Anglo American Platinum refers stakeholders to the announcement released by Lonmin plc on the Stock
Exchange News Service of the Johannesburg Stock Exchange and the Regulatory News Service of the
London Stock Exchange on 13 December 2017 regarding the Pandora Transaction.

Johannesburg, South Africa

13 December 2017

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited).

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


Notes to editors:

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

www.angloamericanplatinum.com

Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining
operations and undeveloped resources provides the raw materials to meet the growing consumer-
driven demands of the world’s developed and maturing economies. Our people are at the heart of our
business. It is our people who use the latest technologies to find new resources, plan and build our
mines and who mine, process and move and market our products to our customers around the world.

As a responsible miner – of diamonds (through De Beers), copper, platinum and other precious metals,
iron ore, coal and nickel – we are the custodians of what are precious natural resources. We work
together with our key partners and stakeholders to unlock the long-term value that those resources
represent for our shareholders and for the communities and countries in which we operate – creating
sustainable value and making a real difference.

www.angloamerican.com

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