ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2004 YEAR END RESULTS PRESENTATION

Transcription

1 ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2004 YEAR END RESULTS PRESENTATION 14 February 2005

2 CEO overview Improved earnings Solid fundamental PGM demand Robust business model being implemented BEE compliance on track

3 CEO overview Improved earnings Headline earnings up 25,1% - R2,62bn Headline earnings per share up 17,1%. R11,38 / share Refined platinum production up 6,3%, 3,9% from mines Overall unit costs up 9,2% Rand basket price up 9,0% Higher US$ metal prices and increased volumes partly offset by strong rand and higher costs

4 CEO overview Solid PGM demand US$ weakness higher US$ platinum price Solid industrial platinum demand and resilience in Chinese jewellery market firm price Sound palladium demand and consumption flat price Tight rhodium market firm price to continue Rand strength continues to dampen supply Platinum market in balance

5 CEO overview Robust business model New management structure in place Mining and process functions split Operational focus and accountability Well positioned for cost and efficiency improvements

6 CEO overview Robust business model Rand strength reduced project returns and operational profitability Expansion implementation adjusted ,6 million Pt ounces Capex R6 bn ,7 to 2,8 million Pt ounces

7 CEO overview BEE on track Firm commitment to broad based BEE Conversion process commenced Several applications submitted Partner relationships enhanced Ongoing Government engagement

8 Results features Sound earnings and profitability Growth in earnings, margins maintained Balance sheet strengthened

9 Financial overview Financial summary Year ended December % Profit on metal sales Rbn 4,63 3,91 18,3 Total headline earnings Rbn 2,62 2,09 25,1 Net debt * Rbn 3,43 6,92 50,5 Headline earnings per share cps ,1 Ordinary dividends cps ,8 Refined Pt production 000 oz 2 453, ,8 6,3 Interest bearing debt to equity % 32,2 60,3 46,6 EBITDA - Interest cover 13,4 12,0 11,7 * Borrowings less cash and cash equivalents

10 Financial overview Headline earnings (Rm) 2004 vs (390) (261) (1285) (326) 2003 Exchange Inflation Metal prices Cash costs Amor tisation Interest & Other Volume 2004

11 Financial overview Gross profit margin* % * Gross profit on metal sales / Gross sales revenue

12 Financial overview Operating margin and volume per mine 50.0% 45.0% 40.0% RS 37,1% WLTR 39,5% AS 46,0% Operating Margin 35.0% 30.0% 25.0% 20.0% 15.0% BRPM 16,6% US 17,9% KPM PSA PPL 31,5% 29,3% LPM 23,0% Group average 27,8% 10.0% 5.0% 0.0% Modikwa 0,3% RS UG2 Project 0,5% ,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 Equivalent Pt oz (000's)

13 Financial overview cash flows (3 924) (5 459) R m (618) Dec 2003 Net Debt Cash from operations Dividends Capex Preference Shares Other Tax & Interest Dec 2004 Net Debt

14 Mining overview

15 Mining overview Safety Mining performance mixed Increased production Outlook

16 Mining overview Commitment to safety Safety Wider implementation of behaviour based programme Evolving mining safety standards to accommodate changing mining conditions Production stopped for remedial action where necessary

17 Mining overview Mining key features Challenging conditions: Amandelbult Union Rustenburg steady state Difficult ramp-up at Modikwa Strong performances from: Potgietersrust Lebowa Strike

18 Mining overview Mining performance Increased production Platinum from mines up 3,9% Overall mining grade stable Cost pressure

19 Mining overview Cost performance Mining unit cost up 11,2% Wage strike volume loss Wage settlement above inflation Mining issues at Amandelbult, Union and Rustenburg

20 Mining overview Mining outlook New management structure Operational focus Production growth in 2005

21 Process and projects overview

22 Process performance Stable ACP performance 20 tons per day SO 2 achieved Fully commissioned Waterval Smelter site rehabilitation Polokwane Smelter good overall performance Tight cost control reduction in unit costs Solid process performance

23 Projects overview Project implementation adjusted Ongoing re-scoping and review to improve returns Reduced capex in 2005 R6bn

24 Projects overview Project progress in 2004 sound Western Limb Tailings Phase 1 commissioned and at full production Modikwa and BRPM volumes increased additional development in place Twickenham small scale mining continues Kroondal construction on track Unki project progressing Feasibility studies continue Pandora, Ga-Phasha, Der Brochen, Booysendal

25 Cost performance 12,0% Change in cash operating cost per equivalent refined platinum ounce (excluding purchased ounces and associated costs) 10,0% 8,0% (% increase) 6,0% 4,0% 2,0% 0,0% CPI 4,4% Amandelbult, Union Rustenburg 4,8% Strike 2,0% Mining increase 11,2% Process decrease 2,0% Operating cost 9,2%

26 Group Outlook 2005 Strategy to expand in line with increased demand remains Rand strength to impact earnings and timing of project implementation 2005 target 2,6m Pt oz Robust business model to deliver on costs and growth

27 QUESTIONS 14 February 2005

28 ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2004 YEAR END RESULTS PRESENTATION 14 February 2005