Anglo Platinum is pleased to announce that refined platinum production rose to 2,31 million ounces, slightly ahead of the target announced in July 2003. The Group’s refined platinum production is planned to increase to 2,45 million ounces in 2004. When compared to the same period last year, headline earnings declined by 62,8% primarily as a result of the strong rand and additional costs associated with higher production. The Group achieved a gross profit margin of 23,7%. A final dividend of 270 cents per share has been declared.
Commenting on these results, CEO Ralph Havenstein referred to 2003 as a very challenging year for the Group. "Despite the decline in headline earnings when compared to 2002, which resulted mainly from the strength of the rand against the US dollar, I am pleased with the increased production from the ramp-up operations. The performance of our process operations in 2003 was pleasing given the significant additional smelting capacity resulting from the commissioning of the Polokwane Smelter," he said.
"It is also pleasing to note that the temporary increase in pipeline stock levels reported with the interim results was successfully processed by the end of 2003, resulting in a significant increase in production and sales volumes in the second half of the year," he added.
During 2003 Anglo Platinum reviewed its expansion programme and as announced in December, the impact of the review has been the slowing of certain projects. To support the expansion, the Group proposes to raise R4 billion from a rights issue and implementation of a dividend reinvestment programme in respect of its final dividend for the 2003 financial year. The R4 billion will be raised through the issue of convertible perpetual preference shares. Importantly, our principal shareholder, Anglo American plc, has indicated its continued support for our expansion plans and will take up its rights.
Anglo Platinum continues to work closely with the Department of Minerals and Energy and good progress is being made towards meeting the ownership and attributable production requirements of the Mineral and Petroleum Resources Development Act and Broad Based Economic Empowerment Charter. "All of the required mining licences in respect of "old-order" mineral rights have been granted and the Group is preparing itself to convert these to "new-order" rights in accordance with the requirements of the new Act. Several significant ventures with Historically Disadvantaged South African (HDSA) partners have commenced, and other agreements are being negotiated," says Ralph.
Anglo Platinum remains firmly committed to expanding its production base, as its long term strategy to grow markets for platinum group metals, expand production to meet the increased demand and optimise operations remains in place.
For further information, please contact
Mike Mtakati
(011) 373-6865
083 455 7887