2007 Annual Results Presentation 11 February 2008 1 2007 Annual results
Highlights – Norman Mbazima • Record headline earnings of R12.3 billion, up 2.8% • Higher metal prices supported by strong market fundamentals • Equivalent refined platinum production down 6.3% at 2.47 million ounces • Refined platinum production at 2.47 million ounces – sales of 2.48 million ounces • Landmark BEE transactions further enhance transformation of the South African mining sector • Positive developments to the Royalty Bill • 1 times dividend cover maintained with a final dividend of R23.00 per ordinary share declared 2 2007 Annual results
Higher metal prices • Average basket price achieved per Pt ounce sold up 31% at R18,167 20,000 1,600 18,000 1,400 Realised metal Prices US$ 16,000 2007 2006 % change 14,000 1,200 Platinum/oz 1,302 1,140 14.2% Palladium/oz 355 319 11.3% 12,000 R / Pt oz $ / oz Rhodium/oz* 4,344 3,542 22.6% 1,000 10,000 Gold/oz 697 619 12.6% Nickel/lb 17.04 10.74 58.7% 8,000 800 Basket/Pt oz 2,579 2,030 27.0% 6,000 R/US$ 7.043 6.822 3.2% 600 4,000 * Subject to contractual arrangements 2,000 400 2003 2004 2005 2006 2007 Rand basket price (R/Pt oz sold) US$ platinum price ($ / oz) • Advanced stage of negotiations to reach market related price on rhodium sales 3 2007 Annual results
Strong market fundamentals Platinum Palladium • Strong demand, slower than • Substantial growth in auto demand anticipated supply growth and a • Investment activity and Exchange weak US dollar all supportive of Traded Funds continue to support higher prices prices • Continued strong demand from auto • Potential for further jewellery and industrial sectors development • Chinese jewellery still resilient at higher price levels 900 1,800 800 1,600 700 1,400 600 1,200 500 $ / oz $ / oz 1,000 400 800 300 600 200 400 100 200 0 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 2001 2002 2003 2004 2005 2006 2007 2001 2002 2003 2004 2005 2006 2007 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 4 2007 Annual results
Strong market fundamentals (cont.) Rhodium Ruthenium • Tight market with reduced liquidity • The hard disk sector remains a key driver of ruthenium demand • Stable auto demand • Reduced price volatility as demand • Chemical demand firm increasingly satisfied from recycled • Thrifting in glass sector continues metal • Price pressure from slower supply growth 1,000 8,000 900 7,000 800 6,000 700 5,000 600 $ / oz $ / oz 500 4,000 400 3,000 300 2,000 200 1,000 100 0 0 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 5 2007 Annual results
Financial highlights • Record earnings with headline earnings up 2.8% at R12.3 billion • Average shares in issue up 7.3% on preferences share conversions and dividend re-investments • Headline earnings per ordinary share down 2.5% to 5,239 cents • Cash generated from operations of R20.7 billion, an increase of 12% over 2006 • Net debt position of R3.88 billion • Capital expenditure up 63% to R10.7 billion, in line with forecast • Full year dividends per ordinary share of R52.00 per share with 1 times dividend cover maintained 6 2007 Annual results
Financial performance Year ended 31 December R million 2007 2006 Change � 19% Net sales revenue 46,616 39,155 � 15% Gross profit on metal sales 19,097 16,624 Gross profit margin (%) 40.7% 42.2% Effective tax rate % 34.4% 28.6% � 3% Headline earnings 12,325 11,993 � 3% Headline earnings per share (cents) 5,239 5,374 � 188% Net (debt) / cash (3,876) 4,413 � Full year ordinary dividends (cents) 5,200 5,300 2% ROCE (%) 67% 70% 7 2007 Annual results
Headline earnings • Headline earnings increased by 2.8% … 20,000 (800) 724 (1,671) 18,000 5,378 (1,776) 16,000 (1,066) 14,000 (255) (202) 12,325 11,993 - 12,000 R million 10,000 8,000 6,000 4,000 2,000 - 2006 Price Exchange Inflation Volume Cash cost Interest & Non-cash Other 2007 Tax cost 8 2007 Annual results
Price variance Gross revenue per metal • … the largest contributor to the increase is price … December 2007 8% 10% 20,000 111 Platinum 5,378 1,165 18,000 1,756 Palladium 50% 16,000 Rhodium 24% 14,000 Ruthenium 11,993 12,000 8% Nickel R million 921 207 10,000 Other December 2006 5% 8,000 1,218 9% 6,000 4,000 22% 2,000 55% - 2006 Price 9% 9 2007 Annual results
Exchange rate variance • … followed by exchange rate 20,000 Average exchange rate has weakened 724 3% in 2007 contributing R724 million 5,378 18,000 to headline earnings 16,000 14,000 11,993 12,000 R million 8.0 10,000 Ave: 7.04 Ave: 6.82 Ave: 6.39 7.0 8,000 R / US$ 6,000 6.0 4,000 2,000 5.0 2005 2006 2007 - Exchange rate Ave rate achieved 2006 Price Exchange 10 2007 Annual results
Volume variance • Increase in earnings offset by a decline in volumes 20,000 Largest contributor to the volume decline is (800) 724 Rustenburg, off-set by increased ounces from Mototolo 18,000 (1,671) 5,378 16,000 14,000 Mototolo 82 11,993 12,000 R million Other (10) 10,000 Amandelbult (19) 8,000 BRPM (24) 6,000 Potgietersrust (28) 4,000 Rustenburg (168) 2,000 -200 -150 -100 -50 0 50 100 Equivalent refined platinum ounces - 2006 Price Exchange Inflation Volume 11 2007 Annual results
Cash cost increases • Cash costs have increased by R1.78 billion • Labour and contract labour costs comprise some 55% of the increase 20,000 (800) 724 (1,671) 18,000 5,378 (1,776) 16,000 Other 99 14,000 Fuel (89) 11,993 12,000 Tyres (137) R million 10,000 Contractors (206) Support, steel balls, chemicals 8,000 (273) Purchase of metals (400) 6,000 Labour (770) 4,000 -1,000 -800 -600 -400 -200 0 200 2,000 R million - 2006 Price Exchange Inflation Volume Cash cost 12 2007 Annual results
Unit cost variance • Increased labour cost not yet matched by commensurate increase in production 45% 40% 35% 30% % increase 25% 20% 15% 10% 5% 0% 6.5% 5.4% 1 0.2% 2.0% 2.2% 1 .6% 1 .3% 1 .6% 30.9% 5.8% -3.0% 33.8% 2.0% 5.7% 41 .4% Inflation Volumes Labour & Steelballs, Engineering Tyres & fuel Equipment Other M ining & Grade & ore Process Cash Pipeline Polokwane Cash contract chemicals & stores hire & treatment mix improvement operating movement refined operating labour support maintenance cash cost effect cost cost / ton / equiv. / refined Pt milled refined Pt oz oz 13 2007 Annual results
Mining operating margin • Mining margins remain robust 70% MOT KPM 65% 57.4% LPM 61.3% MRK 39.1% 60% BRPM AS A 40.7% S 50.1% 61.2% WLTR 55% 4, 2006 Group average - 51.9% 44.7% 1 % 50% 2007 Group average - 49.8% MDK 37.4% US 45% PPL 47.7% Gross profit % RS 45.7% 40% 44.3% 35% 30% 25% 20% 15% 10% 5% 0% - 150 300 450 600 750 900 1,050 1,200 1,350 1,500 1,650 1,800 1,950 2,100 2,250 Excluding purchase of concentrate Refined Pt Oz (000’s) 14 2007 Annual results
Net cash flow • Strong cash generation to fund capital expenditure and dividends to shareholders 27,000 (6,437) 20,665 24,000 21,000 (12,658) 18,000 15,000 R million 12,000 9,000 (10,653) 6,000 4,413 3,000 0 (3,000) 794 (3,876) (6,000) 2006 Cash from Tax & interest Dividends Capex Other 2007 Net cash operations Net debt 15 2007 Annual results
Distributions • R24.4 billion in dividends to ordinary shareholders in 2006 and 2007 • 1 times dividend cover ratio maintained with a final distribution of R5.4 billion Dividend per share (R) Total dividend distribution (R billion) 53.00 52.00 12.3 12.1 11.80 2.6 7.35 6.40 1.6 1.4 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 16 2007 Annual results
Meaningful and sustainable BEE 51% Lebowa Anooraq 1% Ga-Phasha R3.6 billion Mvela 50% Booysendal Resources 22.4% Northam R4.0 billion Employees 1.5% Anglo Platinum R3.3 billion Two HDSA managed and controlled PGM producers and empowered employees 17 2007 Annual results
Meaningful and sustainable BEE (cont.) • Creation of the two major HDSA managed and controlled PGM producers Post transaction attributable reserves & resources 225 • Mvela transaction terms miliion 4E oz revised - close in 1 st half 150 2008 75 Anooraq - close in 1 st half • 2008 0 Aquarius ARM Northam Lonmin Lebowa Impala Holdco Note: excludes non South African reserves and resources • Largest employee share ownership initiative by value in the South African mining sector to-date • Broad based transactions with community, women and employee representation reflect Anglo Platinum’s commitment to transformation and broad-based BEE 18 2007 Annual results
2007 Annual results Operational overview 19
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