ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2004 INTERIM RESULTS PRESENTATION 27 July 2004
2004 interim results CEO overview Improved earnings New management structures BEE compliance on track Outlook
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%
New management structures Structure and cost review: In implementation phase New operational model Direct reporting Improved mining & process efficiencies
Minerals legislation Commitment to broad based BEE at mine level BEE transactions continue Conversion process on track
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
2004 interim results Results features Sound earnings & profitability Balance sheet strengthened Joint venture implementation
Sound earnings & profitability Financial summary Six months to June 2004 2003 % 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 685 519 32,0 After AC 501 cps 698 486 43,6 Dividends cps 400 370 8,1 Refined Pt production 000 oz 1 158,9 915,1 26,6 * Borrowings less cash and cash equivalents
Sound earnings & profitability Headline earnings (Rm) 2004 vs 2003 397 1 531 1 136 1 401 (131) (133) 1 044 (634) (3) (145) 2003 Exchange Inflation Metal prices Cash costs Amor tisation Interest & Other Volume 2004
Financial overview Gross profit margin* 60,0 50,0 40,0 % 30,0 20,0 10,0-2000 2001 2002 2003 H1 2003 H1 2004 * Gross profit on metal sales / Gross sales revenue
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% 0 200 400 600 800 1 000 1 200 Equivalent Pt oz (000's)
Balance sheet strengthened 1 000 - (6 923) 2004 net debt 3 924 (100) 116 (470) (2 016) (2 014) -1 000-2 000 R m -3 000 3 455-4 000-5 000-6 000-7 000 Dec 2003 Net Debt Cash from operations Preference Shares Dividends Other Tax & Interest Capex June 2004 Net Debt
JV Implementation Kroondal Venture Nov 2003 Refined production neutral in current period H1 2004 operating contribution R85m
JV Implementation BRPM JV March 2004 50% BEE, 50:50 from inception RBN earnings to reduce commercial loan H1 2004 earnings reduced by some R25m
JV Implementation Pandora JV April 2004 15% BEE Capital estimate being revised
2004 interim results Operations overview
2004 interim results Operational performance Safety Production increase Stable process performance Cost improvements
2004 interim results Safety performance Ongoing commitment to safety Improved 2003 performance maintained in 2004 Wider implementation of behaviour based programme
Mining production up 2 500 Equivalent refined Pt oz * 2 000 H2 1 500 oz 000's 1 000 500 H1-2000 2001 2002 2003 2004 * Mines production converted to refined production at standard recoveries
Mining production up Tons milled volume and Pt content * 44 000 100,0 33 000 75,0 Tons Milled ('000s) 22 000 50,0 Pt oz / '000 tons milled 11 000 25,0-2000 2001 2002 2003 H1 2003 * Note: Excluding WLTR & KPM H1 2004 0,0
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%
2004 interim results Process performance Stable operating performance Increased utilisation of capacity Optimisation of performance ACP commissioning on schedule
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: 160 000 oz Pt in H1 2003 pipeline was released in H2 2003
2004 interim results Operations - Mining
2004 interim results Mining - outlook Safety New management structure Cost focus during expansion Rustenburg production profile
2004 interim results Project overview
Project overview No change to announced projects 2,9m oz 2006 Project re-scoping to improve returns Reduced capex in 2004 - R5bn
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
2004 interim results Market overview
2004 interim results The physical market for Platinum is healthy following the price excursion to $937 per ounce
2004 interim results NET POSITION OF PLATINUM TRADE (oz) ($/oz) 1,000,000 1000 800,000 900 600,000 400,000 800 200,000 700 0 600-200,000-400,000 500-600,000 400 7/1/03 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
2004 interim results Derived demand - up Automotive - Vehicle sales ahead of 2003 - Diesels increasingly popular in Europe Industrial - Glass demand bouyant in the Far East - Steady as she goes
2004 interim results Japan imports of Platinum 950 900 850 '000 oz 800 750 700 650 600 550 500 2000 H1 2000 H2 2001 H1 2001 H2 2002 H1 2002 H2 2003 H1 2003 H2 2004 H1
2004 interim results Created demand Jewellery - resilient - Diamond sales up - White wave persists - Brand identity strong - UK and USA bridal growing
Created demand Chinese Imports Swiss Exports to Hong Kong and SGE Volumes 250 000 200 000 150 000 '000 oz 100 000 50 000 - Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Swiss Exports Pt SGE Total
2004 interim results 1 000 900 800 SGE Weekly Trading and Average Transaction Price kg Volume (Kgs) Holiday Price dip Ave price (US$/oz) US$/oz 1 000 950 900 700 600 850 800 500 750 400 300 700 650 200 600 100 550 0 8/11 9/8 10/6 11/3 12/1 12/29 1/26 2/23 3/22 4/19 5/17 6/14 500
2004 interim results Shanghai retail Pt price and JM base price (monthly average) 300 275 250 225 200 RMB per gram 175 150 125 100 75 50 25 0 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
2004 interim results The Platinum market is fundamentally sound at current prices
2004 interim results QUESTIONS 27 July 2004
ANGLO AMERICAN PLATINUM CORPORATION LIMITED 2004 INTERIM RESULTS PRESENTATION 27 July 2004