Angloplat Interim Results

Anglo American PLC 13 August 2002 News Release 13 August 2002 Anglo American plc ("Anglo American") notification: Anglo American wishes to draw attention to Anglo Platinum's announcement of their results for the 6 months to 30 June 2002, attached hereto. Anglo American Platinum Corporation Limited (Incorporated in the Republic of South Africa) Registration Number 1946/022452/06) JSE Code: AMS ISIN: ZAE000013181 A member of the Anglo American plc group INTERIM REPORT for the six months ended 30 June 2002 Highlights for the six months ended 30 June 2002 Headline earnings per share (cents) 1 222,8 Dividend per share (cents) 900,0 Increase in unit cost* + 6,6% + *Includes all operations except Bafokeng-Rasimone Platinum Mine and Rustenburg UG2 Phase I Project, both of which are in a production ramp-up phase. + Compared to the six month period ended 30 June 2001. Consolidated income statement Reviewed Reviewed Six months Six months Audited ended ended Year ended 30 June 30 June % 31 December R millions 2002 2001 Change 2001 Gross sales revenue 9 697,6 9 919,8 18 690,9 Commissions paid 433,2 441,8 812,0 Net sales revenue 9 264,4 9 478,0 (2,3) 17 878,9 Cost of sales 4 463,6 3 745,4 (19,2) 8 262,9 Cash operating costs 3 960,6 3 342,6 7 044,5 On-mine costs 3 316,8 2 835,3 5 948,6 Smelting costs 282,2 208,6 441,9 Treatment and refining costs 361,6 298,7 654,0 Amortisation 343,8 252,6 498,8 (Increase)/decrease in metal inventories (146,3) (125,7) 45,1 Other costs 305,5 275,9 674,5 Gross profit on metal sales 4 800,8 5 732,6 (16,3) 9 616,0 Other net (expenditure)/income + (519,0) 321,1 2 452,7 Profit on disposal of mineral rights 25,0 - - Market development and promotional expenditure (139,4) (102,4) (251,0) Operating profit 4 167,4 5 951,3 (30,0) 11 817,7 Net investment income 107,4 231,3 340,3 Income from associate 105,6 108,7 170,6 Profit before taxation 4 380,4 6 291,3 (30,4) 12 328,6 Taxation 1 735,0 2 207,4 21,4 4 308,8 Normal 1 303,0 1 820,7 3 562,1 Current 896,4 1 688,1 3 054,1 Deferred 406,6 132,6 508,0 Secondary tax on companies (STC) 432,0 386,7 746,7 Net profit 2 645,4 4 083,9 (35,2) 8 019,8 Headline earnings 2 620,4 4 083,9 (35,8) 8 019,8 Number of ordinary shares in issue (millions) 214,7 217,5 214,1 Weighted average number of ordinary shares in 214,3 217,2 217,0 issue (millions) Earnings per share (cents) - Basic 1 234,4 1 880,2 (34,3) 3 695,8 - Headline 1 222,8 1 880,2 (35,0) 3 695,8 - Diluted (basic) 1 216,8 1 848,8 (34,2) 3 637,1 - Diluted (headline) 1 205,3 1 848,8 (34,8) 3 637,1 Dividends per share (cents) 900,0 1 100,0 (18,2) 2 200,0 - Interim 900,0 1 100,0 1 100,0 - Final - - 1 100,0 - Special dividend (cents) - - - 500,0 Dividend cover (headline earnings before 1,4 1,7 (17,6) 1,7 special dividend) Reconciliation between net profit and headline earnings Net profit 2 645,4 4 083,9 (35,2) 8 019,8 Adjustment: Profit on disposal of mineral rights (25,0) - - Headline earnings 2 620,4 4 083,9 (35,8) 8 019,8 + Mainly relates to foreign exchange gains and losses. Consolidated balance sheet Reviewed Reviewed Audited as at as at as at 30 June 30 June 31 December R millions 2002 2001 2001 ASSETS Non-current assets Property, plant and equipment 8 884,0 7 233,7 7 008,3 Capital work-in-progress 3 468,4 1 376,4 3 912,9 Platinum Producers' Environmental Trust 73,1 56,0 69,5 Investment in associate 301,2 295,8 265,7 Non-current receivable 231,6 198,6 212,1 12 958,3 9 160,5 11 468,5 Current assets 5 630,2 9 032,3 9 059,6 Inventories 1 491,5 1 490,4 1 326,4 Accounts receivable 1 800,6 1 967,5 1 946,8 Cash and cash equivalents 2 338,1 5 574,4 5 786,4 Total assets 18 588,5 18 192,8 20 528,1 EQUITY AND LIABILITIES Share capital and reserves Share capital 21,5 21,8 21,4 Share premium 1 252,5 1 867,4 1 203,6 Accumulated profits before proposed dividends and STC 10 511,7 10 245,6 11 296,6 Accumulated profits after proposed dividends and STC 8 337,9 7 554,1 7 449,0 Proposed ordinary dividends 1 932,3 2 392,5 2 354,0 Proposed special dividend - - 1 070,0 STC 241,5 299,0 423,6 Shareholders' equity 11 785,7 12 134,8 12 521,6 Non-current liabilities 3 672,5 2 943,1 3 266,3 Borrowings - 8,0 - Deferred taxation 2 940,7 2 199,9 2 562,3 Provision for environmental rehabilitation 183,5 162,9 174,3 Employees' service benefits 548,3 572,3 529,7 Current liabilities 3 130,3 3 114,9 4 740,2 Accounts payable 1 350,9 1 164,0 1 731,6 Taxation 1 779,4 1 950,9 3 008,6 Total equity and liabilities 18 588,5 18 192,8 20 528,1 Group statement of changes in shareholders' equity Share Share Accumulated R millions capital premium profits Total Balance as at 31 December 2000 (Audited) 21,7 1 836,4 9 856,0 11 714,1 Net profit 4 083,9 4 083,9 Dividend paid in cash (3 694,3) (3 694,3) Share capital issued 0,1 31,0 31,1 Balance as at 30 June 2001 (Reviewed) 21,8 1 867,4 10 245,6 12 134,8 Net profit 3 935,9 3 935,9 Dividend paid in cash (2 393,1) (2 393,1) Share capital issued -* 39,7 39,7 Repurchase of ordinary shares (0,4) (703,5) (491,8) (1 195,7) Company 2 228 267 shares at cost (cancelled) (0,2) (701,4) - (701,6) Subsidiary 1 673 400 shares at cost (0,2) - (490,2) (490,4) Associated expenditure - (2,1) (1,6) (3,7) Balance as at 31 December 2001 (Audited) 21,4 1 203,6 11 296,6 12 521,6 Net profit 2 645,4 2 645,4 Dividend paid in cash (3 430,3) (3 430,3) Share capital issued 0,1 48,9 49,0 Balance as at 30 June 2002 (Reviewed) 21,5 1 252,5 10 511,7 11 785,7 * R100 000 or less for the full year. Consolidated cash flow statement Reviewed Reviewed Six months Six months Audited ended ended Year ended 30 June 30 June 31 December R millions 2002 2001 2001 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers 9 234,4 9 225,0 17 700,8 Cash paid to suppliers and employees + (5 057,7) (3 477,6) (5 122,3) Cash from operations 4 176,7 5 747,4 12 578,5 Interest paid (19,8) (2,7) (19,9) Taxation paid (2 551,3) (1 932,0) (2 588,7) Net cash from operating activities 1 605,6 3 812,7 9 969,9 CASH FLOWS USED IN INVESTING ACTIVITIES Purchase of property, plant and equipment (2 477,4) (1 002,2) (3 586,1) To maintain operations (630,5) (343,5) (1 117,7) To expand operations (1 846,9) (658,7) (2 468,4) Proceeds from sale of plant and equipment 632,3 15,0 31,7 Investment in associate (0,3) - (2,4) Interest received 132,2 240,4 368,3 Growth in Platinum Producers' Environmental Trust 3,6 2,7 5,6 Dividends received from associate 36,4 51,8 121,6 Other dividends received 0,6 0,6 1,2 Net cash used in investing activities (1 672,6) (691,7) (3 060,1) CASH FLOWS USED IN FINANCING ACTIVITIES Proceeds from issuance of share capital 0,1 0,1 0,1 Increase in share premium 48,9 31,0 70,7 Own shares repurchased - - (1 195,7) Decrease in long-term borrowings - (6,2) (33,9) Dividends paid (3 430,3) (3 694,3) (6 087,4) Net cash used in financing activities (3 381,3) (3 669,4) (7 246,2) Net decrease in cash and cash equivalents (3 448,3) (548,4) (336,4) Cash and cash equivalents at beginning of year 5 786,4 6 122,8 6 122,8 Cash and cash equivalents at end of period/year 2 338,1 5 574,4 5 786,4 + Includes foreign exchange gains and losses. Notes to the interim report 1. This interim report complies with International Accounting Standard 34 - Interim Financial Reporting and South African Statement of Generally Accepted Accounting Practice, AC127, with the same title, and with Schedule 4 of the South African Companies Act. 2. The interim report has been prepared using accounting policies that comply with South African Statements of Generally Accepted Accounting Practice and International Accounting Standards. These policies are consistent with those applied in the financial statements for the year ended 31 December 2001. An accounting policy is added for the accounting treatment of joint ventures because the Group entered into a joint venture for the first time during this interim period. The policy is as follows: Joint ventures The Group's interest in jointly controlled entities is accounted for through proportionate consolidation. Under this method the Group includes its share of the joint ventures' individual income and expenses, assets and liabilities in the relevant components of its financial statements on a line-by-line basis. In respect of its interests in jointly controlled operations, the Group recognises the assets that it controls and the liabilities that it incurs, as well as its share of the income that it earns and the expenses that it incurs from the jointly controlled operation. 3. Contingent liabilities The contingent liabilities disclosed in the 2001 annual report still exist, except for the guarantee given to BoE Merchant Bank, a division of BoE Limited, which bank supplied an interim loan facility to African Rainbow Minerals Mining Consortium Limited ("ARM"). This guarantee was cancelled on 20 June 2002. Notes to the interim report (continued) Reviewed Reviewed Audited as at as at as at 30 June 30 June 31 December R millions 2002 2001 2001 Investments Listed investment in associate - Carrying amount 301,2 295,8 265,7 - Market value 874,2 796,6 869,5 Capital expenditure for the period/year 2 477,4 1 002,2 3 586,1 Commitments Mining property, plant and equipment Contracted for 1 532,3 1 646,1 1 849,0 Not yet contracted for 10 262,9 5 445,2 9 591,7 Authorised by the directors 11 795,2 7 091,3 11 440,7 Allocated for: Expansion of capacity 8 560,6 5 866,9 9 345,0 - within remainder of financial year/ next financial year 2 309,3 2 198,8 2 987,9 - thereafter 6 251,3 3 668,1 6 357,1 Maintenance of capacity 3 234,6 1 224,4 2 095,7 - within remainder of financial year/ next financial year 946,4 719,8 1 073,6 - thereafter 2 288,2 504,6 1 022,1 Other Operating lease rentals - premises 45,1 56,8 50,6 - within remainder of financial year/ next financial year 7,1 6,2 13,4 - thereafter 38,0 50,6 37,2 Information Technology Service Providers 179,6 230,4 209,6 - within remainder of financial year/ next financial year 26,0 29,5 56,0 - thereafter 153,6 200,9 153,6 Amortisation and depreciation of property, plant and equipment 365,9 270,9 532,8 Amortisation of operating assets 343,8 252,6 498,8 Mining 287,9 205,9 409,4 Smelting 25,8 19,3 38,9 Treatment and refining 28,8 26,0 47,7 Decommissioning asset 1,3 1,4 2,8 Depreciation - non-mining assets 22,1 18,3 34,0 Profit on sale of plant and equipment 2,7 3,7 9,5 Supplementary information Consolidated income statement UNITED STATES DOLLAR EQUIVALENT Reviewed Reviewed Six months Six months Audited ended ended Year ended 30 June 30 June 31 December US$ millions 2002 2001 2001 Gross sales revenue 882,8 1 251,0 2 168,8 Commissions paid 39,4 55,7 94,2 Net sales revenue 843,4 1 195,3 2 074,6 Cost of sales 406,3 472,4 958,8 Cash operating costs 360,5 421,6 817,4 On-mine costs 301,9 357,6 690,2 Smelting costs 25,7 26,3 51,3 Treatment and refining costs 32,9 37,7 75,9 Amortisation 31,3 31,9 57,9 Increase)/decrease in metal inventories (13,3) (15,9) 5,2 Other costs 27,8 34,8 78,3 Gross profit on metal sales 437,1 722,9 1 115,8 Other net (expenditure)/income + (47,2) 40,5 284,6 Profit on disposal of mineral rights 2,3 - - Market development and promotional expenditure (12,7) (12,9) (29,1) Operating profit 379,5 750,5 1 371,3 Net investment income 9,8 29,2 39,5 Income from associate 9,6 13,7 19,8 Profit before taxation 398,9 793,4 1 430,6 Taxation 157,9 278,4 499,9 Normal 118,6 229,6 413,3 Current 81,6 212,9 354,4 Deferred 37,0 16,7 58,9 STC 39,3 48,8 86,6 Net profit 241,0 515,0 930,7 Dividends paid in cash (312,3) (465,9) (706,3) Exchange rate translation adjustment 140,4 (76,7) (581,0) Accumulated profits at beginning of year 944,5 1 301,1 1 301,1 Accumulated profits at end of period/year 1 013,6 1 273,5 944,5 Average Rand/US$ exchange rate 10,9855 7,9298 8,6182 Weighted average number of ordinary shares in issue 214,3 217,2 217,0 (millions) Earnings per share (cents) - Basic 112,5 237,1 428,9 - Headline 111,4 237,1 428,9 - Diluted (basic) 110,8 233,2 422,0 - Diluted (headline) 109,7 233,2 422,0 + Mainly relates to foreign exchange gains and losses. Income statement items were translated at the average exchange rate for the period/year. Supplementary information Consolidated balance sheet UNITED STATES DOLLAR EQUIVALENT Reviewed Reviewed Audited as at as at as at 30 June 30 June 31 December US$ millions 2002 2001 2001 ASSETS Non-current assets Property, plant and equipment 856,7 899,1 585,9 Capital work-in-progress 334,5 171,1 327,1 Platinum Producers' Environmental Trust 7,0 6,9 5,8 Investment in associate 29,0 36,8 22,2 Non-current receivable 22,3 24,7 17,7 1 249,5 1 138,6 958,7 Current assets 543,0 1 122,8 757,5 Inventories 143,8 185,3 110,9 Accounts receivable 173,7 244,6 162,8 Cash and cash equivalents 225,5 692,9 483,8 Total assets 1 792,5 2 261,4 1 716,2 EQUITY AND LIABILITIES Share capital and reserves Share capital 2,1 2,7 1,8 Share premium 120,8 232,1 100,6 Accumulated profits before proposed dividends and STC 1 013,6 1 273,5 944,5 Accumulated profits after proposed dividends and STC 804,0 938,9 622,8 Proposed ordinary dividends 186,3 297,4 196,8 Proposed special dividend - - 89,5 STC 23,3 37,2 35,4 Shareholders' equity 1 136,5 1 508,3 1 046,9 Non-current liabilities 354,1 365,9 273,1 Borrowings - 1,0 - Deferred taxation 283,5 273,5 214,2 Environmental rehabilitation obligation 17,7 20,3 14,6 Employees' service benefits 52,9 71,1 44,3 Current liabilities 301,9 387,2 396,2 Accounts payable 130,3 144,7 144,7 Taxation 171,6 242,5 251,5 Total equity and liabilities 1 792,5 2 261,4 1 716,2 Closing Rand/US$ exchange rate 10,3705 8,0450 11,9610 Balance sheet items have been translated at the closing exchange rate for the period/year. Supplementary information Consolidated cash flow statement UNITED STATES DOLLAR EQUIVALENT Reviewed Reviewed Six months Six months Audited ended ended Year ended 30 June 30 June 31 December US$ millions 2002 2001 2001 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers 840,5 1 163,3 2 053,9 Cash paid to suppliers and employees + (460,3) (438,6) (594,4) Cash from operations 380,2 724,7 1 459,5 Interest paid (1,8) (0,3) (2,3) Taxation paid (232,2) (243,6) (300,3) Net cash from operating activities 146,2 480,8 1 156,9 CASH FLOWS USED IN INVESTING ACTIVITIES Purchase of property, plant and equipment (225,5) (126,4) (416,1) To maintain operations (57,4) (43,3) (129,7) To expand operations (168,1) (83,1) (286,4) Proceeds from sale of plant and equipment 57,6 1,9 3,7 Investment in associate - * - (0,3) Interest received 12,0 30,3 42,7 Growth in Platinum Producers' Environmental Trust 0,3 0,3 0,6 Dividends received from associate 3,3 6,5 14,1 Other dividends received 0,1 0,1 0,1 Net cash used in investing activities (152,2) (87,3) (355,2) CASH FLOWS USED IN FINANCING ACTIVITIES Proceeds from issuance of share capital -* -* -* Increase in share premium 4,5 3,9 8,2 Own shares repurchased - - (138,7) Decrease in long-term borrowings - (0,8) (3,9) Dividends paid (312,3) (465,9) (706,3) Net cash used in financing activities (307,8) (462,8) (840,7) Net decrease in cash and cash equivalents (313,8) (69,3) (39,0) Exchange difference 55,5 (46,1) (285,5) Cash and cash equivalents at beginning of year 483,8 808,3 808,3 Cash and cash equivalents at end of period/year 225,5 692,9 483,8 Average Rand/US$ exchange rate 10,9855 7,9298 8,6182 Cash flow items were translated at the average exchange rate for the period/ year. + Includes foreign exchange gains and losses. * Less than US$50 000 Supplementary information Consolidated statistics Unaudited Unaudited Unaudited Six months Six months Year ended ended ended 30 June 30 June 31 December Total operations 2002 2001 2001 Marketing statistics Average market prices achieved Platinum (US$/oz) 513 600 526 Palladium (US$/oz) 371 784 582 Rhodium (US$/oz) 946 1 976 1 610 Nickel (US$/lb) 2,91 2,99 2,65 Net sales revenue per Pt (US$) 819 1 233 1 004 ounce sold Platinum (R/oz) 5 533 4 754 4 531 Palladium (R/oz) 4 036 6 197 4 936 Rhodium (R/oz) 10 387 15 623 13 410 Nickel (R/lb) 32,02 23,69 23,14 Net sales revenue per Pt (R) 8 995 9 776 8 654 ounce sold Average Pt exchange rates (R : US$) 10,7842 7,9196 8,6184 achieved Exchange rates at end of (R : US$) 10,3705 8,0450 11,9610 period Profitability statistics Gross sales revenue per ton (R) 669 751 696 milled Gross profit margin (%) 49,5 57,8 51,4 Earnings before interest, (R millions) 4 633,9 6 003,5 10 148,8 taxation depreciation and amortisation (EBITDA) Operating profit to average (%) 71,6 121,8 120,0 operating assets Return on average (%) 44,2 77,2 66,2 shareholders' equity Return on capital employed (%) 44,5 67,3 64,0 Refined production Platinum (thousands) (oz) 1 043,3 1 000,6 2 109,2 Palladium (thousands) (oz) 515,5 478,8 1 049,0 Rhodium (thousands) (oz) 82,5 94,2 200,4 Gold (thousands) (oz) 60,1 46,0 102,2 Nickel (thousands) (tons) 9,2 9,2 19,5 Copper (thousands) (tons) 5,1 5,1 10,8 PGM's (thousands) (oz) 1 787,5 1 720,3 3 673,6 Analysis of operating (R millions) contribution by mine Rustenburg Section 1 419,0 1 761,0 2 993,6 Union Section 630,3 703,0 1 190,9 Amandelbult Section 2 060,9 2 067,2 3 742,6 Potgietersrust Platinums 518,5 1 055,3 1 680,5 Lebowa Platinum Mines 238,5 229,2 407,7 Steady state operating 4 867,2 5 815,7 10 015,3 contribution Rustenburg UG2 Phase I 67,3 - - Project Bafokeng-Rasimone Platinum 171,8 192,8 275,2 Mine Consolidated operating 5 106,3 6 008,5 10 290,5 contribution Other costs 305,5 275,9 674,5 Gross profit on metal sales 4 800,8 5 732,6 9 616,0 Total steady state operations* Production statistics and efficiency measures Tons mined - PPRust (thousands) 17 761 16 632 29 631 (opencast) Tons broken - underground (thousands) 9 590 10 282 21 519 mines Tons milled (thousands) 11 767 12 207 24 952 Built-up head grade (g/ton) 4,95 5,06 5,06 Immediately available ore (months) 15,5 14,2 14,2 reserves Metres face advance (per month) 9,1 8,8 8,8 Square metres per employee (per month) 9,8 10,7 10,7 Tons broken per employee - 291 283 593 underground mine Tons mined per employee - 16 044 15 106 27 060 PPRust Total average number of 34 024 37 412 37 396 mine employees Average number of mine 32 917 36 311 36 301 employees - underground mines - opencast mine (PPRust) 1 107 1 101 1 095 UG2 mined to total output (%) 26 27 28 Platinum ounces refined (thousands) 922,3 936,8 1 979,0 Refined Pt ounces per 27,1 25,0 52,9 employee Profitability and cost statistics Net sales revenue per Pt (R) 9 055 9 897 8 744 ounce sold Operating performance Cash operating costs per Pt (R) 3 478 3 262 3 254 ounce refined Cash operating costs per Pt (US$) 317 411 378 ounce refined Cash operating costs per (R) 2 016 1 876 1 852 PGM ounce refined Cash operating costs per (US$) 184 237 215 PGM ounce refined Operating income statement (R millions) Net sales revenue 8 235,7 9 000,1 16 971,8 Operating cost of sales + (3 368,5) (3 184,4) (6 956,5) Operating contribution 4 867,2 5 815,7 10 015,3 Operating margin (%) 59,1 64,6 59,0 * Includes all operations except Bafokeng-Rasimone Platinum Mine and Rustenburg UG2 Phase I Project, both of which are in a production ramp-up phase. + Cost of sales excluding other costs Supplementary information Operating statistics by mine STEADY STATE OPERATIONS RUSTENBURG SECTION 2002 excludes portions of the Brakspruit, Bleskop and Paardekraal shafts that are being expanded as part of the Rustenburg UG2 Phase I Project. These shafts, at a lower level of output, are included in the steady state information for 2001. Unaudited Unaudited Unaudited Six months Six months Year ended ended ended 30 June 30 June 31 December 2002 2001 2001 Production statistics and efficiency measures Tons broken (thousands) 3 308 4 218 8 550 Tons milled (thousands) 3 328 3 756 7 733 Built-up head grade (g/ton) 5,58 5,45 5,38 Immediately available ore (months) 17,7 16,3 15,0 reserves Metres face advance (per month) 8,7 8,8 8,9 Square metres per employee (per month) 8,0 10,8 10,7 Tons broken per employee 228 244 493 Average number of mine 14 536 17 281 17 346 employees UG2 mined to total output (%) 2 14 16 Platinum ounces refined (thousands) 303,4 340,9 719,1 Refined Pt ounces per employee 20,9 19,7 41,5 Profitability and cost statistics Net sales revenue per Pt ounce (R) 8 761 9 216 8 273 sold Operating performance Cash operating costs per Pt (R) 3 896 3 635 3 650 ounce refined Cash operating costs per Pt (US$) 355 458 424 ounce refined Cash operating costs per PGM (R) 2 438 2 260 2 233 ounce refined Cash operating costs per PGM (US$) 222 285 259 ounce refined Operating income statement (R millions) Net sales revenue 2 609,1 3 014,4 5 780,6 Operating cost of sales + (1 190,1) (1 253,4) (2 787,0) Operating contribution 1 419,0 1 761,0 2 993,6 Operating margin (%) 54,4 58,4 51,8 + Cost of sales excluding other costs UNION SECTION Production statistics and efficiency measures Tons broken (thousands) 1 658 1 754 3 694 Tons milled (thousands) 2 137 2 238 4 466 Built-up head grade (g/ton) 4,27 4,34 4,40 Immediately available ore reserves (months) 20,1 14,8 16,1 Metres face advance (per month) 8,0 6,7 7,1 Square metres per employee (per month) 7,2 8,2 7,8 Tons broken per employee 273 271 582 Average number of mine employees 6 080 6 471 6 342 UG2 mined to total output (%) 58 60 60 Platinum ounces refined (thousands) 138,0 130,9 280,4 Refined Pt ounces per employee 22,7 20,2 44,2 Profitability and cost statistics Net sales revenue per Pt ounce sold (R) 8 730 9 756 8 497 Operating performance Cash operating costs per Pt ounce refined (R) 3 969 3 986 3 787 Cash operating costs per Pt ounce refined (US$) 361 503 439 Cash operating costs per PGM ounce refined (R) 2 246 2 240 2 102 Cash operating costs per PGM ounce refined (US$) 204 282 244 Operating income statement (R millions) Net sales revenue 1 196,9 1 237,1 2 326,6 Operating cost of sales + (566,6) (534,1) (1 135,7) Operating contribution 630,3 703,0 1 190,9 Operating margin (%) 52,7 56,8 51,2 + Cost of sales excluding other costs AMANDELBULT SECTION Production statistics and efficiency measures Tons broken (thousands) 3 680 3 539 7 621 Tons milled (thousands) 3 509 3 409 7 086 Built-up head grade (g/ton) 5,84 5,69 5,68 Immediately available ore reserves (months) 18,0 17,0 18,0 Metres face advance (per month) 9,7 9,4 9,3 Square metres per employee (per month) 12,7 11,4 12,0 Tons broken per employee 384 352 771 Average number of mine employees 9 571 10 056 9 890 UG2 mined to total output (%) 42 35 36 Platinum ounces refined (thousands) 349,7 314,7 679,3 Refined Pt ounces per employee 36,5 31,3 68,7 Profitability and cost statistics Net sales revenue per Pt ounce sold (R) 8 592 9 247 8 189 Operating performance Cash operating costs per Pt ounce refined (R) 2 389 2 314 2 312 Cash operating costs per Pt ounce refined (US$) 217 292 268 Cash operating costs per PGM ounce refined (R) 1 408 1 365 1 340 Cash operating costs per PGM ounce refined (US$) 128 172 155 Operating income statement (R millions) Net sales revenue 2 950,5 2 822,2 5 473,0 Operating cost of sales + (889,6) (755,0) (1 730,4) Operating contribution 2 060,9 2 067,2 3 742,6 Operating margin (%) 69,8 73,2 68,4 + Cost of sales excluding other costs POTGIETERSRUST PLATINUMS Production statistics and efficiency measures Tons mined (thousands) 17 761 16 632 29 631 Tons milled (thousands) 2 035 2 100 4 270 Built-up head grade (g/ton) 3,29 4,48 4,38 Stripping ratio 19,2 11,6 10,9 Immediately available ore reserves within the pit (months) 0,4 5,2 3,5 Tons mined per employee 16 044 15 106 27 060 Average number of mine employees 1 107 1 101 1 095 Platinum ounces refined (thousands) 83,1 110,5 211,1 Refined Pt ounces per employee 75,1 100,4 192,8 Profitability and cost statistics Net sales revenue per Pt ounce sold (R) 12 000 13 652 12 120 Operating performance Cash operating costs per Pt ounce refined (R) 4 878 3 440 3 688 Cash operating costs per Pt ounce refined (US$) 444 434 428 Cash operating costs per PGM ounce refined (R) 2 272 1 568 1 682 Cash operating costs per PGM ounce refined (US$) 207 198 195 Operating income statement (R millions) Net sales revenue 997,2 1 508,6 2 558,6 Operating cost of sales + (478,7) (453,3) (878,1) Operating contribution 518,5 1 055,3 1 680,5 Operating margin (%) 52,0 70,0 65,7 + Cost of sales excluding other costs LEBOWA PLATINUM MINES Production statistics and efficiency measures Tons broken (thousands) 944 771 1 654 Tons milled (thousands) 758 704 1 397 Built-up head grade (g/ton) 4,47 4,00 4,26 Immediately available ore reserves (months) 14,2 13,2 13,8 Metres face advance (per month) 9,9 9,7 9,4 Square metres per employee (per month) 14,9 13,3 13,0 Tons broken per employee 346 308 607 Average number of mine employees 2 730 2 503 2 723 UG2 mined to total output (%) 37 38 38 Platinum ounces refined (thousands) 48,1 39,8 89,1 Refined Pt ounces per employee 17,6 15,9 32,7 Profitability and cost statistics Net sales revenue per Pt ounce sold (R) 10 021 10 497 9 349 Operating performance Cash operating costs per Pt ounce refined (R) 4 925 4 678 4 540 Cash operating costs per Pt ounce refined (US$) 448 590 527 Cash operating costs per PGM ounce refined (R) 2 618 2 612 2 498 Cash operating costs per PGM ounce refined (US$) 238 329 290 Operating income statement (R millions) Net sales revenue 482,0 417,8 833,0 Operating cost of sales + (243,5) (188,6) (425,3) Operating contribution 238,5 229,2 407,7 Operating margin (%) 49,5 54,9 48,9 + Cost of sales excluding other costs BAFOKENG-RASIMONE PLATINUM MINE Production statistics and efficiency measures Tons broken (thousands) 981 548 1 256 Tons milled (thousands) 1 252 1 005 1 892 Built-up head grade (g/ton) 4,05 4,44 4,42 Immediately available ore reserves (months) 6,8 6,7 7,3 Metres face advance (per month) 8,4 7,8 7,2 Square metres per employee (per month) 10,1 6,5 7,0 Tons broken per employee 313 232 492 Average number of mine employees 3 136 2 367 2 554 UG2 mined to total output (%) 17 28 24 Platinum ounces refined (thousands) 70,7 63,8 130,2 Refined Pt ounces per employee 22,5 27,0 51,0 Profitability and cost statistics Net sales revenue per Pt ounce sold (R) 8 313 7 952 7 257 Operating performance Cash operating costs per Pt ounce refined (R) 5 472 4 498 4 638 Cash operating costs per Pt ounce refined (US$) 498 567 538 Cash operating costs per PGM ounce refined (R) 3 501 3 123 3 087 Cash operating costs per PGM ounce refined (US$) 319 394 358 Operating income statement (R millions) Net sales revenue 589,4 477,9 907,1 Operating cost of sales + (417,6) (285,1) (631,9) Operating contribution 171,8 192,8 275,2 Operating margin (%) 29,1 40,3 30,3 + Cost of sales excluding other costs Supplementary information Operating statistics by mine (continued) PROJECTS IN RAMP-UP PHASE RUSTENBURG UG2 Phase I Project The project includes output from the Brakspruit, Bleskop and Paardekraal, as well as the new Waterval shafts, feeding the new 400 ktpm Waterval Concentrator. Milling at the new concentrator commenced in February 2002. Unaudited Unaudited Unaudited Six months Six months Year ended ended ended 30 June 30 June 31 December 2002 2001 2001 Production statistics and efficiency measures Tons broken (thousands) 1 377 - - Tons milled (thousands) 1 481 - - Built-up head grade (g/ton) 3,25 - - Immediately available ore (months) 10,3 - - reserves Metres face advance (per month) 18,2 - - Square metres per employee (per month) 21,7 - - Tons broken per employee 421 - - Average number of mine 3 271 - - employees UG2 mined to total output (%) 90 - - Platinum ounces refined (thousands) 50,3 - - Refined Pt ounces per employee 15,4 - - Profitability and cost statistics Net sales revenue per Pt ounce (R) 8 875 - - sold Operating performance Cash operating costs per Pt (R) 7 282 - - ounce refined Cash operating costs per Pt (US$) 663 - - ounce refined Cash operating costs per PGM (R) 4 259 - - ounce refined Cash operating costs per PGM (US$) 388 - - ounce refined Operating income statement (R millions) Net sales revenue 439,3 - - Operating cost of sales + (372,0) - - Operating contribution 67,3 - - Operating margin (%) 15,3 - - + Cost of sales excluding other costs Commentary Safety Notwithstanding very intensive and focussed safety programmes, the Board deeply regrets the deaths of 14 employees on managed operations. On a positive note, it is worth reporting that largely as a result of these intensive safety programmes, the majority of the Business Units of the Group have reported a significant improvement in lost time injury rates over the period. Financial results The record first half profits achieved in 2001 were not repeated in the first half of 2002. Earnings were adversely affected by lower average rand prices for metals sold, the impact that the stronger rand had on the translation of US dollar based assets when compared to December 2001, and higher cost of sales. Headline earnings for the period amounted to R2,62 billion, a 35,8% reduction from the same period last year. The Group achieved a gross profit margin of 49,5%. Gross sales revenue reduced by R222,2 million to R9,70 billion. The reduction was the net result of lower US dollar metal prices (R4,25 billion decrease), a weaker rand (R3,70 billion increase) and additional sales volumes following increased production (R327,6 million increase). The average realised US dollar price for platinum of US$513 per ounce was US$87 lower than in the previous period. Palladium and rhodium prices more than halved to US$371 per ounce for palladium (2001: US$784) and US$946 per ounce for rhodium (2001: US$1 976). The cost of sales rose to R4,46 billion. Operating cost of sales at steady state operations rose by R184,1 million to R3,37 billion. Costs at these operations were tightly controlled and, for the second year in a row, increased at a rate below that of inflation. The cash operating cost per refined platinum ounce ("unit cost") at these operations increased by 6,6% (2001: 1,8% increase) and declined in US dollar terms by 22,9% (2001: 15,6% decrease). An ongoing focus on minimising costs helped to ameliorate the negative effect of inflationary pressures. The Rustenburg UG2 Phase 1 Project and a further build-up in production at Bafokeng-Rasimone resulted in project operating cost of sales rising by R504,5 million to R789,6 million. Smelting, treatment and refining costs rose as a combined result of inflationary pressures, the weaker rand and the cost of temporarily sourcing additional smelting capacity to process smelter slag and control the increased chrome levels arising from higher UG2 production. Anglo Platinum's slag cleaning furnace, which will be commissioned in the second half of 2002, will provide a sustainable solution at lower cost. Although the average rand/US dollar exchange rate for the six months to June 2002 was 38,5% weaker than for the same period in 2001, the rand strengthened from the end of December 2001 to 30 June 2002. This resulted in losses on translation of foreign operations and on the repatriation of US dollar revenues which largely account for other net expenditure of R519,0 million in 2002 compared to other net income of R321,1 million in the first half and R2,13 billion in the second half of 2001. Market development and promotional expenditure costs are mostly US dollar denominated and increased by R37,0 million because of the weaker rand. Net investment income declined by R123,9 million to R107,4 million as a result of lower cash holdings. The higher effective tax rate reflects the impact of secondary tax on companies paid on the final and special dividends for 2001 that were declared in February of this year. Capital expenditure Capital expenditure was on plan for the six months to June 2002 and amounted to R2,48 billion. Expansion capital expenditure totalled R1,85 billion (2001: R0,66 billion) and expenditure to maintain operations was R0,63 billion (2001: R0,34 billion). The finalisation of the Modikwa Platinum Joint Venture with African Rainbow Minerals ("ARM") during the period resulted in a recovery of R0,67 billion of capital expenditure and interest of R41,7 million in respect of ARM's share of expenditure incurred up to the effective date of the 50:50 joint venture. Anglo Platinum incurred this expenditure up front to prevent project delays and facilitate the entry of a Black Economic Empowerment ("BEE") party in this significant joint venture. Cash reserves Cash and cash equivalents declined by R3,45 billion to R2,34 billion. Cash generated by operations amounted to R4,18 billion (2001: R5,75 billion). Payments consisted of dividends amounting to R3,43 billion, taxation of R2,55 billion and net investing activities of R1,67 billion which includes capital expenditure of R2,48 billion less a reimbursement by ARM of its share of expenditure incurred up to the effective date of the joint venture. Share buy-back Anglo Platinum did not purchase any of its own shares during the six months to 30 June 2002. Operations Refined production across the Group increased by 42 700 platinum ounces to 1,043 million ounces. Planned refined production of 1,084 million ounces was not achieved primarily as a result of a larger than expected low grade intrusion at Potgietersrust and a delay in the build-up of new production at Rustenburg Section. At steady state operations, better process recoveries resulted in an increase in refined platinum production realised relative to the volume of material milled. An operating margin of 59,1% was achieved. Amandelbult Section performed exceptionally well. Both head grades and efficiencies improved and the unit cost increase was contained to 3,2%. Lebowa also performed well and ongoing optimisation of the UG2 expansion yielded an improved head grade, higher production and a unit cost increase of only 5,3%. Union Section maintained production levels and focussed heavily on upgrading infrastructure and improving operating flexibility. Unit costs decreased by 0,4%. Rustenburg Section recorded a production decline as a result of the redesignation of output from the Brakspruit, Bleskop and Paardekraal shafts as part of the Rustenburg UG2 Phase 1 Project. Potgietersrust had a disappointing six months primarily as a result of a reduction in mill head grade resulting from the combined effect of a larger than expected low grade intrusion in the South Pit and limited mining flexibility due to the proximity of the Ga-Pila village. The mine is however pleased to report that the Ga-Pila village relocation has progressed sufficiently to allow greater mining flexibility in future. Unit costs rose by 41,8% as a result of lower refined production volumes. Unit mining costs were nevertheless well controlled and on a tons mined basis were the same as last year. The smelting, treatment and refining operations performed well in terms of throughput, recoveries and pipeline stock management during the period under review. Application for mining authorisations Due to inordinate delays experienced in the processing of applications for mining authorisations, Anglo Platinum instituted legal action against the Department of Minerals and Energy. However, as announced on 7 August 2002, an agreement has been reached which removes the need to proceed with this court action. While the agreement is satisfactory in terms of providing sufficient security of tenure to justify the continuation of the Group's expansion programme and meeting the Department's BEE objectives, the full impact of the delays on the planned build up to 3,5 million ounces of refined platinum is still being evaluated. Projects Recent market demand reviews confirm a significant growth opportunity for Anglo Platinum, and the Company remains committed to the expansion programme to produce 3,5 million ounces of refined platinum by 2006. However delays by the Department of Minerals and Energy in processing mining licence applications may affect the timeous achievement of this target. The Group continues to engage the Department at all appropriate levels to resolve delays in the processing of applications, the development of the mining charter and the implementation of the new Bill in a way that builds investor confidence and achieves the Bills' objectives. Bafokeng-Rasimone continued its drive to increase development and improve mining efficiencies. Improvement in these areas was achieved, but progress continues to be hindered by poor geological conditions at South Shaft. While milled tonnage increased, grade deteriorated with the processing of low-grade surface material. Refined production increased by 10,8% compared to the first half of last year but was below plan. While unit costs for the period were high as a result of the low grade and increased expenditure on development, the mine nevertheless added R171,8 million to the Group's operating contribution. The Rustenburg UG2 Phase 1 Project consists of a 400 ktpm concentrator processing ore from the new Waterval mine as well as the Brakspruit, Bleskop and Paardekraal shafts. The concentrator was successfully commissioned as planned and milling commenced in February. The unit is performing well and is achieving designed recoveries. Production build-up from the Waterval mine, although very rapid, was initially slower than expected due to delays in development caused by congestion underground. Stoping widths in the UG2 areas of the Brakspruit, Bleskop and Paardekraal shafts were increased to include the leader seam and reduce the risk of falls of ground. The associated reduction in grade will impact production from the project in 2003, however a combination of ore sorting and dense media separation is being evaluated for implementation during 2003 to improve the mill feed grade. The project nevertheless added R67,3 million to the Group's overall operating contribution for the period under review. Plant start-up at Modikwa Platinum was delayed until July because of a strike by employees of one of the construction contractors. Notwithstanding these difficulties, underground mine development is on schedule and refined metal production for the year will be close to plan. The strategic evaluation at Union Section has concluded that the existing shaft infrastructure and resource cannot support the planned expansion for the required period. However it is advantageous to complete the Mortimer UG2 plant expansion and the establishment of the additional decline section to increase recoveries and provide additional resources that will yield replacement material for Richard and Spud shafts as their production capacity declines over time. Milling at the expanded plant commenced in July. The Anglo Platinum Converting Process ("ACP") Project, which is designed to set a new global benchmark for the control of sulphur emissions, started its commissioning programme in March. The plant utilises innovative technology which was extensively tested during the project design and study phase. Trial smelting has been carried out as part of the commissioning programme with very successful results. Progress is according to plan and it is anticipated that commissioning will be completed during the second half of 2002. In the light of the potential delays associated with the Minerals Bill the optimum mix of projects is being re-examined. The manner in which these projects will be brought to account will be communicated in November 2002. Black Economic Empowerment ("BEE") Anglo Platinum continues to support the process of BEE and is proud of the very significant contribution the Group has made by facilitating the purchase of 22,5% of Northam Platinum by Mvelaphanda Platinum, and by entering into a 50:50 joint venture with a consortium led by ARM in respect of the Modikwa Platinum Project. The Company's commitment to fostering further black economic empowerment in projects has been reaffirmed by the agreement reached with government regarding substantial BEE participation on portions of the Eastern Limb expansion projects and the conclusion of the joint venture with the Royal Bafokeng Nation in respect of the Bafokeng-Rasimone Platinum Mine and the Styldrift Project. All conditions precedent in respect of the Bafokeng-Rasimone Joint Venture are expected to be satisfied by year end. In support of the BEE process Anglo Platinum has made significant strides in its social upliftment programme. As well as making large contributions to the AAC Chairman's Fund, the Group runs its own education and health care programmes that greatly benefit communities in the Limpopo and North-West provinces, and supports the development of small and medium black enterprises through its procurement policy. A comprehensive HIV/AIDS programme is in place at all operations and surrounding communities. Dividend After due consideration of the cash demands arising from the expansion programme, and with the expectation of continued strong cashflows generated by the operations, the Board has declared an interim cash dividend of 900 (2001: 1 100) cents per ordinary share. Prospects Current rand platinum group metal prices are at levels that continue to yield substantial operating margins. The platinum market continues to enjoy firm broad-based industrial and jewellery demand, particularly in China, that underpins the price. Sales of palladium from US government and industrial stocks have steadily pressured the palladium price since the start of this year and reduced volatility in this market. Prices have been supported by the low level of Russian spot market sales. Palladium demand remains sensitive to substitution trends by platinum in the automobile sector and by nickel in the electronic sector. As a result of the grade decline at Potgietersrust and the slower than expected ore build up at the Rustenburg UG2 Phase 1 Project, refined platinum production for 2002 is estimated at approximately 2,25 million ounces. Notwithstanding the revision, refined platinum production in the second half of the year will be substantially higher than in the first half. With this increase, and on the assumption that rand metal prices will remain at current levels, the profit on metal sales for 2002 will be similar to that achieved in 2001. Other income for the year is difficult to predict, but the significant contribution to earnings recorded in 2001 as a result of the weaker rand will not be repeated this year. It is therefore unlikely that the record earnings achieved in 2001 on the back of exceptionally high PGM prices and a substantial weakening of the rand in December 2001 will be repeated. The recent agreement reached with Government and the Department of Minerals and Energy in respect of BEE ventures and security of tenure will enable the Company to pursue its already announced expansion to 3,5 million refined platinum ounces, and further market opportunities when they are identified. Signed for and on behalf of the Board, as evidence of approval of the interim report. B E Davison (Chairman and Managing Director) T A Wixley (Deputy Chairman) Johannesburg 12 August 2002 Review report of the independent auditors To the members of Anglo American Platinum Corporation Limited We have reviewed the accompanying summarised consolidated interim report of Anglo American Platinum Corporation Limited and its subsidiaries for the six months ended 30 June 2002 where indicated as such in column headings. This interim report is the responsibility of the Company's directors. Our responsibility is to issue a report on this interim report based on our review. Scope We conducted our review in accordance with the statement of South African Auditing Standards applicable to review engagements. This standard requires that we plan and perform the review to obtain moderate assurance that the interim financial information is free of material misstatement. A review is limited primarily to enquiries of Company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Review opinion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim report is not fairly presented, in all material respects, in accordance with South African Statements of Generally Accepted Accounting Practice, International Accounting Standards and the Companies Act in South Africa. Deloitte & Touche Registered Accountants and Auditors Chartered Accountants (SA) Johannesburg 12 August 2002 Declaration of interim ordinary dividend (No. 99) Notice is hereby given that an interim dividend of 900 cents per ordinary share, in the currency of the Republic of South Africa, has been declared in respect of the financial year ending 31 December 2002. The dividend is payable to shareholders recorded in the books of the Company at the close of business on Friday 6 September 2002. The salient dates for the interim dividend are as follows: Salient Dates for South Africa and United Kingdom 2002 Last day to trade (cum dividend) Friday, 30 August First day of trading (ex dividend) Monday, 2 September Currency conversion date Tuesday, 3 September (for sterling payments from London) Record date Friday, 6 September Date of payment Wednesday, 11 September Share certificates may not be dematerialised or rematerialised between Monday 2 September 2002 and Friday 6 September 2002, both days inclusive. On Wednesday 11 September 2002, the dividend will be electronically transferred to the bank accounts of all certificated shareholders where this facility is available. Where electronic fund transfer is not available or desired, cheques dated 11 September 2002 will be posted on that date. Shareholders who have dematerialised their share certificates will have their bank accounts, which are linked to their CSDP or broker's safe custody accounts, credited on 11 September 2002. Shareholders registered on the United Kingdom section of the register will be paid the dividend in pounds sterling at the rate of exchange determined on Tuesday 3 September 2002. A further announcement stating the rand/sterling conversion rate will be released through the relevant South African and United Kingdom news services on Wednesday 4 September 2002. The dividend is payable subject to the customary conditions which may be inspected at or obtained from the Company's Johannesburg office or from its London Secretaries. By order of the Board D A Freemantle Company Secretary Johannesburg 12 August 2002 Administration EXECUTIVE DIRECTORS B E Davison (Chairman and Managing Director), J A Dreyer, D T G Emmett, B E Ngubane, R H H van Kerckhoven (Belgian), A I Wood (British) NON-EXECUTIVE DIRECTORS L Boyd, M W King, W A Nairn, A J Trahar INDEPENDENT NON-EXECUTIVE DIRECTORS T A Wixley (Deputy Chairman), C B Brayshaw ALTERNATE DIRECTORS A H Calver (British), J M Halhead (British) P J V Kinver (British), R Pilkington, C B Sheppard, V P Uren Company Secretary D A Freemantle REGISTERED OFFICE 28 Harrison Street, Johannesburg, 2001 (P.O. Box 62179, Marshalltown, 2107) Facsimile +27 11 373-5111 Telephone +27 11 373-6111 SOUTH AFRICAN REGISTRARS Computershare Investor Services Limited, (Registration No. 1958/003546/06), 2nd Floor, Edura, 41 Fox Street, Johannesburg, 2001 (P.O. Box 61051, Marshalltown, 2107) Facsimile +27 11 836-0792/6145 Telephone +27 11 370-7700 LONDON SECRETARIES Anglo American Services (UK) Limited, 20 Carlton House Terrace, London, SW1Y 5AN, England Facsimile +44 207 698-8755 Telephone +44 207 698-8888 UNITED KINGDOM REGISTRARS Capita IRG plc, Balfour House, 390-398 High Road, Ilford, Essex IG1 1NQ, England Facsimile +44 207 478-7717 Telephone +44 207 478-8241 This Interim Report is available on the Company's internet site: http://www.angloplatinum.com E-mail enquiries should be directed to: mmtakati@angloplat.com This information is provided by RNS The company news service from the London Stock Exchange

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