Anglo Platinum is pleased to announce a significant improvement in headline earnings for the year ended 31 December 2005. Headline earnings per share, attributable to ordinary shareholders, increased by 63,1% to R18,28 per share. Factors contributing to the increase included: higher US dollar prices of metals sold, increased sales volumes, gains on repatriation of US dollar revenue and once-off benefits arising from the reduction in the South African corporate tax rate and an increase in the quantity and value of pipeline stocks in 2005. A final dividend of R7,00 per ordinary share has been declared.
Commenting on these results, CEO Ralph Havenstein said "We are pleased with the robust demand for platinum group metals and our solid financial performance. We continue to focus on increasing production at improved operating efficiencies."
Refined PGM production increased by 5,1% when compared to 2004, while refined platinum production of 2,45m ounces was similar to 2004. This was achieved notwithstanding the Polokwane smelter shut-down from 7 September to 5 December 2005 to repair and modify the waffle cooler system. Increased mine production and a reduction in the level of pipeline inventories are expected to result in refined platinum production of between 2,7 and 2,8 million ounces in 2006.
Anglo Platinum remains confident of the robustness of current and future demand for platinum and is continuing with its expansion programme. The outlook for long term metal prices is more positive than it has been for some time. Consequently, studies evaluating the ramping up of those projects previously slowed down for economic reasons are being conducted.
"It is pleasing that during 2005 the Board approved mining replacement projects to the value of R4,9 billion to extend the life of our existing production capacity, increase efficiency and support continued growth. An exciting growth opportunity for us is the expansion of the Potgietersrust North project which will provide an additional 230 000 oz of refined platinum per annum at a capital cost of around R4 billion. Final Board and regulatory approvals for this expansion project are expected shortly," said Ralph.
Anglo Platinum is committed to increase production in line with growth in global demand. In the light of the continuing growth in autocatalyst and industrial demand and the resilience of the jewellery market at higher prices, average production growth of around 5% per annum can be expected. Operational focus will remain on optimising production and controlling cost increases in conditions of relatively high inflation in the mining environment.
Johannesburg
13 February 2006
For further information, please contact
Trevor Raymond
(011) 373-6462
082 654 8467