Anglo Platinum is pleased to announce record headline earnings for the half-year ended 30 June 2008. Headline earnings increased 22% to R8.44 billion. Headline earnings per share, attributable to ordinary shareholders, increased by 21% to R35.63. The primary factors contributing to the increased earnings were higher US dollar prices realised on metals sold, a weaker rand/US dollar exchange rate and a lower effective tax rate. This was offset by lower sales volumes on the back of reduced production from mining and processing operations, higher operating costs and a significant increase in the cost of purchasing metal from joint venture partners. An interim dividend of R35.00 per ordinary share has been declared, maintaining a dividend cover of one.
CEO Neville Nicolau said, "Our record financial performance during the period was driven by strong demand and record metal prices in the face of significant operational challenges. We are pleased with the progress made on improving employee safety while implementing programmes to move towards zero harm. Competition for skilled labour and high turnover of staff experienced in 2007 persisted in 2008 but improvements were observed in the second quarter together with a reduction in safety related stoppages."
Platinum production from mining operations decreased by 11% to 1.13 million ounces in the first half of 2008 compared to the same period in 2007 primarily as a result of the flood related disruption of operations at the Amandelbult mine, the Turffontein shaft rehabilitation, lower throughput at the Mogalakwena South concentrator and electricity supply constraints. The reduction in refined platinum to 1.00 million ounces, a 16% decrease, was due to the reduced mining output and an increase in process pipeline stocks associated with smelting facility repairs and maintenance. In line with contractual commitments, refined platinum sales were 1.11 million ounces as a result of a temporary reduction in normal working levels of refined stock.
"We are pleased that the Amandelbult mine has returned to full production and that the Mogalakwena North concentrator will be at full production in September, both instrumental in our planned increase in mining output in the second half to reach 2.4 million ounces for 2008. Increased smelter availability in quarter four will result in the reduction of pipeline stocks by year-end", said Neville.
Anglo Platinum remains confident of continued robust demand for platinum and is committed to increasing production in line with growth in global demand. In the first half of 2008, our Board approved new capital expenditure to the value of R24.8 billion, in nominal terms, in continued support of maintaining existing and developing additional production capacity. The approvals include the R7.1 billion Twickenham mine, the R16.0 billion Amandelbult 4 shaft and the R1.0 billion second slag cleaning furnace at the Waterval smelter complex.
Commenting on the progress of Anglo Platinum’s BEE transactions Neville Nicolau said "We are extremely pleased with the progress and the receipt of our new order mining rights. The applications for the BRPM and Modikwa joint ventures are in progress."
Johannesburg
28 July 2008