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Results for the year ending 30 June 1998

12 August, 1998

Amplats has pleasure in announcing that the Group’s net profit attributable to ordinary shareholders amounted to R1 639,4 million, which is R1 035,0 million or 171,2% higher than last year’s figure.

The disposal of investments in the diamond trading companies contributed R518,7 million to this result. Headline earnings rose by R516,3 million, or 85,4%, to R1 120,7 million.

The improvement was mainly due to a R1438,1 million increase in net sales revenue and an increase of R122,3 million in other net income and net investment income, which was partly offset by a R740,9 million increase in the cost of sales and a R304,5 million increase in taxation.

Gross sales revenue increased by R1 454,1 million, or 30,4%, to R6 242,3 million. Firmer US dollar metal prices for platinum, palladium and rhodium, partly offset by a lower nickel price, contributed R499,1 million to the increase. The weaker rand added a further R656,6 million and increased metal sales volumes contributed R298,4 million.

Group production of refined platinum amounted to 1 898 400 ounces, an increase of 9,4%. The cash operating costs of production, excluding certain restructuring and re-engineering costs and net of all other metal revenue, decreased by 19,7% per platinum refined ounce.

The Group’s R1,6 billion expansion program is proceeding as planned. The Potgietersrust Platinums Limited expansion is scheduled to come on-stream towards the end of this calendar year. The Bafokeng Rasimone mine is expected to commence production in the year 2000. Capital expenditure, both on-going and expansion, amounted to R1 026,6 million (1997 : R502,0 million).

The Board has resolved to award a final cash dividend of 190,0 cents per share (1997 : 135,4 cents), thus increasing the total cash dividend for the year by 51,7% to 305,0 cents (1997 : 201,0 cents).

For further information, contact Johan Adler
Tel: (011) 373-6637
Cell: 083 627-3918