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ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum Strategy Update

Release Date: 22/02/2021 08:00
Code(s): AMS     PDF:  
Wrap Text
Anglo American Platinum Strategy Update

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


Anglo American Platinum Strategy Update

Anglo American Platinum poised to deliver next phase of value for our stakeholders

Natascha Viljoen, Chief Executive Officer of Anglo American Platinum, commented:

“We are grounded in our purpose to re-imagine mining to improve people’s lives. Delivering on our
strategy will create value for our stakeholders and help ensure a safer, cleaner and smarter future.
Climate change is rapidly accelerating global decarbonisation efforts, which will increase the long-term
demand for our metals. We are therefore strongly focused on leveraging our capabilities across our value
chain to lead technology deployment and market development for our products. Against this backdrop,
our industry leading portfolio provides a strong platform for growth, and we own diverse, low cost and
long-life mining and processing assets. Our firm commitments to deliver safe, responsible and reliable
production, together with building thriving local communities and maintaining a healthy environment, is
central to all we do. We will achieve this through our goal of delivering industry leading returns through
value-focused capital allocation.”


Strategic priorities

Our focus is on four strategic priorities to deliver the next phase of value creation for stakeholders.

•   Stimulate new markets and leverage new capabilities through our market development activities
    to increase and broaden demand while capturing value from adjacent value chain opportunities.
•   Embed anti-fragility across our business to increase the resilience of our operations and enable
    value creation initiatives.
•   Maximise value from our core. We have an industry leading asset portfolio and our assets will be
    in the first half of the cost curve. We own diverse, high quality and long-life mining and processing
    assets with the optionality to grow high margin, high returning ounces in a disciplined manner.
•   Be a leader in ESG through developing trust as a corporate leader, building thriving communities,
    and maintaining a healthy environment. ESG is core to our strategy and way of working, including in
    our capital allocation framework.


Value creation

Delivering on these strategic priorities will increase our attributable production from own mines and joint
operations from c.3.0 million ounces today, by 20% to c.3.6 million ounces in 2030, while improving
margins and returns from the business.
This will be achieved through operational excellence and our disciplined, balanced capital allocation
approach, which is focused on maintaining balance sheet strength, value added growth and an attractive
return to shareholders:

•      We are committed to the base dividend of 40% pay-out of headline earnings; and
•      We will continue a disciplined approach to discretionary capital, looking at the highest returns through
       portfolio upgrade, breakthrough technology, project growth options, ESG opportunities and additional
       returns to shareholders.


Key targets (1):

       -    100% of our operations to be fully modernised and mechanised by 2030
       -    All of our own mine operations to be in the first half of the primary cost curve by 2025
       -    Mining EBITDA margin of 35-45% by 2030
       -    A through the cycle return on capital employed of at least 25%
       -    Supporting the creation of 5 jobs off site for every one on site by 2030
       -    A net reduction in CO2 emissions of 30% by 2030 and carbon neutral (scope 1 and 2) by 2040.


(1)    Targets are all based on consensus long term pricing



This announcement contains forward-looking statements which are based on the Company’s current
beliefs and expectations about future events. The operational and financial forecasts provided in this
announcement are estimates and have not been reviewed and reported on by the Company’s external
auditors.


Johannesburg, South Africa

22 February 2021

Sponsor
Merrill Lynch South Africa Proprietary Limited

For further information, please contact:

Investors:                                                 Media:
Emma Chapman                                               Jana Marais
(SA) +27 (0)76 480 1570                                    (SA) +27 (0)79 932 1586
emma.chapman@angloamerican.com                             jana.marais@angloamerican.com

Notes to editors:

Anglo American Platinum Limited is a member of the Anglo American plc Group and is a leading primary
producer of platinum group metals. The company is listed on the Johannesburg Securities Exchange
(JSE). Its mining, smelting and refining operations, as well as its two joint operations, are based in South
Africa. Elsewhere in the world, the Group owns Unki Platinum Mine in Zimbabwe. 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 leading global mining company and our products are the essential ingredients in
almost every aspect of modern life. Our portfolio of world-class competitive operations, development
projects and undeveloped resources, provides many of the metals and minerals that enable a cleaner,
greener, more sustainable world and that meet the fast growing consumer-driven demands of developed
and maturing economies. With our people at the heart of our business, we use innovative practices and
the latest technologies to mine, process, move and market our products to our customers – and to
discover new resources – safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the
steelmaking ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in development
and thermal coal operations planned for divestment – we are committed to being carbon neutral across
our operations by 2040. We work together with our business partners and diverse stakeholders to unlock
sustainable value from precious natural resources for the benefit of the communities and countries in
which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining
to improve people’s lives.

www.angloamerican.com

Date: 22-02-2021 08:00:00
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