ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2004 INTERIM RESULTS PRESENTATION

Transcription

1 ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2004 INTERIM RESULTS PRESENTATION 27 July 2004

2 2004 interim results CEO overview Improved earnings New management structures BEE compliance on track Outlook

3 Improved earnings Headline earnings up 33% - R1,5bn Platinum production up 26,6% - from mines up 7,8% Rand basket price up 8,8% Higher prices and volumes offset strong Rand Overall unit cost up 7,4% Process unit cost down 2,8%

4 New management structures Structure and cost review: In implementation phase New operational model Direct reporting Improved mining & process efficiencies

5 Minerals legislation Commitment to broad based BEE at mine level BEE transactions continue Conversion process on track

6 Outlook 2004 targets in place 2,45m Pt oz CPI unit cost increase Ongoing review of project returns Sound market fundamentals remain Delivery on costs and growth Robust business model

7 2004 interim results Results features Sound earnings & profitability Balance sheet strengthened Joint venture implementation

8 Sound earnings & profitability Financial summary Six months to June % Profit on metal sales Rbn 2,48 1,88 31,9 Net profit Rbn 1,45 1,11 30,6 Net debt * Rbn 2,01 3,17 36,6 Headline earnings Prior to AC 501 cps ,0 After AC 501 cps ,6 Dividends cps ,1 Refined Pt production 000 oz 1 158,9 915,1 26,6 * Borrowings less cash and cash equivalents

9 Sound earnings & profitability Headline earnings (Rm) 2004 vs (131) (133) (634) (3) (145) 2003 Exchange Inflation Metal prices Cash costs Amor tisation Interest & Other Volume 2004

10 Financial overview Gross profit margin* 60,0 50,0 40,0 % 30,0 20,0 10, H H * Gross profit on metal sales / Gross sales revenue

11 Financial overview 50,0% Operating margin and volume per mine AS 48,7% 45,0% 40,0% 35,0% WLTR 33,9% RS 38,0% KPM PSA 39,3% Operating Margin 30,0% 25,0% 20,0% BRPM 20,4% US 23,6% LPM 24,4% PPL 29,3% Group average 30,3% 15,0% 10,0% 5,0% 0,0% RS UG2 Project 3,4% Modikwa 1,3% Equivalent Pt oz (000's)

12 Balance sheet strengthened (6 923) 2004 net debt (100) 116 (470) (2 016) (2 014) R m Dec 2003 Net Debt Cash from operations Preference Shares Dividends Other Tax & Interest Capex June 2004 Net Debt

13 JV Implementation Kroondal Venture Nov 2003 Refined production neutral in current period H operating contribution R85m

14 JV Implementation BRPM JV March % BEE, 50:50 from inception RBN earnings to reduce commercial loan H earnings reduced by some R25m

15 JV Implementation Pandora JV April % BEE Capital estimate being revised

16 2004 interim results Operations overview

17 2004 interim results Operational performance Safety Production increase Stable process performance Cost improvements

18 2004 interim results Safety performance Ongoing commitment to safety Improved 2003 performance maintained in 2004 Wider implementation of behaviour based programme

19 Mining production up Equivalent refined Pt oz * H oz 000's H * Mines production converted to refined production at standard recoveries

20 Mining production up Tons milled volume and Pt content * , ,0 Tons Milled ('000s) ,0 Pt oz / '000 tons milled , H * Note: Excluding WLTR & KPM H ,0

21 2004 interim results Mining performance Merensky mining at RS successfully optimised UG2 production up slower rate in favour of Merensky Modikwa and BRPM production up Metal from mines up 7,8%

22 2004 interim results Process performance Stable operating performance Increased utilisation of capacity Optimisation of performance ACP commissioning on schedule

23 Operations cost overview Change in cash operating cost per refined ounce (excluding purchased ounces and associated costs) 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% -4,0% -6,0% -8,0% -10,0% 4,7% 4,9% 9,6% -2,2% 7,4% -14,5% -7,1% CPIX Additional mining costs On-mine cost per Pt equivalent oz Lower process unit costs Operating cost per Pt equivalent oz Pipeline movement * Operating cost per Pt refined oz * Note: oz Pt in H pipeline was released in H2 2003

24 2004 interim results Operations - Mining

25 2004 interim results Mining - outlook Safety New management structure Cost focus during expansion Rustenburg production profile

26 2004 interim results Project overview

27 Project overview No change to announced projects 2,9m oz 2006 Project re-scoping to improve returns Reduced capex in R5bn

28 Project performance Western Limb Tailings phase 1 ramping up BRPM steady state increasing grade Modikwa increased volume, grade, development Twickenham trial mine operating Unki / Kroondal / Pandora

29 2004 interim results Market overview

30 2004 interim results The physical market for Platinum is healthy following the price excursion to $937 per ounce

31 2004 interim results NET POSITION OF PLATINUM TRADE (oz) ($/oz) 1,000, , , , , , , , /1/03 4/2/03 4/3/03 1/4/03 29/4/03 27/5/03 24/6/03 22/7/03 19/8/03 16/9/03 14/10/03 11/11/03 9/12/03 6/1/04 3/2/04 2/3/04 30/3/04 27/4/04 25/5/04 22/6/04 TOCOM NYMEX PRICE

32 2004 interim results Derived demand - up Automotive - Vehicle sales ahead of Diesels increasingly popular in Europe Industrial - Glass demand bouyant in the Far East - Steady as she goes

33 2004 interim results Japan imports of Platinum '000 oz H H H H H H H H H1

34 2004 interim results Created demand Jewellery - resilient - Diamond sales up - White wave persists - Brand identity strong - UK and USA bridal growing

35 Created demand Chinese Imports Swiss Exports to Hong Kong and SGE Volumes '000 oz Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Swiss Exports Pt SGE Total

36 2004 interim results SGE Weekly Trading and Average Transaction Price kg Volume (Kgs) Holiday Price dip Ave price (US$/oz) US$/oz /11 9/8 10/6 11/3 12/1 12/29 1/26 2/23 3/22 4/19 5/17 6/14 500

37 2004 interim results Shanghai retail Pt price and JM base price (monthly average) RMB per gram Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Average Shanghai Price RMB/gram Average JM Base Price RMB/gram

38 2004 interim results The Platinum market is fundamentally sound at current prices

39 2004 interim results QUESTIONS 27 July 2004

40 ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2004 INTERIM RESULTS PRESENTATION 27 July 2004