Anglo Platinum is pleased to announce that refined platinum production rose to 2,251 million ounces for the year. This was 6,7% higher than in the previous year. A pleasing operational performance saw profit on metal sales of R9,42 billion decline only marginally from the R9,62 billion achieved last year. However headline earnings were heavily impacted by a R3,32 billion exchange rate related swing in other income, from a R2,44 billion gain in 2001 to a R0,88 billion loss in 2002. Other reasons contributing to lower headline earnings include lower US dollar metals prices, offset by a weaker average rand / US dollar exchange rate and an increase in the cost of sales as new operations in the ramp-up phase continue to increase production. Headline earnings for the year amounted to R5,63 billion, a decline of 29,7% on the R8,01 billion headline earnings in 2001. The Group achieved a gross profit margin of 46,5%.
Ordinary dividends per share, excluding the special dividend declared in respect of the 2001 financial year, are down 18,2% from 2 200 cents last year to 1 800 cents this year.
The Group continues to support the process of Historically Disadvantaged South African (HDSA) empowerment and has made significant progress in including empowerment groupings in its expansion plans. It remains committed to fostering further HDSA empowerment transactions and is negotiating with prospective partners in respect of the Paschaskraal, Booysendal and Pandora projects.
Commenting on these results, Executive Chairman Barry Davison referred to 2002 as a challenging year for the Group. "Despite the decline in headline earnings when compared to 2001, which resulted principally from adverse rand/US dollar exchange rate movements, the profit on metal sales was much the same year on year, thanks to increased production and sales volumes." He added that he was pleased with the performance of the ramp up operations. "These operations contributed almost R850 million to the Group’s profit on metal sales."
By continuing with its strategy of developing the market and expanding its operations to take advantage of the growth so created, Anglo Platinum is ideally placed to continue to strengthen its position as the world’s leading platinum producer.
For further information, please contact
Mike Mtakati
+27 11 373-6865 / 083 455 7887