A strong rand and higher production meant that Anglo Platinum’s headline earnings declined by 62,8% in 2003, compared to the previous year, chief executive officer Ralph Havenstein said on Monday.
In a media statement the group said it had achieved a gross profit margin of 23,7%, and declared a final dividend of 270 cents per share.
Havenstein said refined platinum production rose to 2,31-million ounces in 2003, slightly ahead of the target announced in July, and refined platinum production was planned to increase to 2,45-million ounces in 2004.
He said 2003 was a very challenging year for the group.
”Despite the decline in headline earnings when compared to 2002, which resulted mainly from the strength of the rand against the US dollar, I am pleased with the increased production from the ramp-up operations. The performance of our process operations in 2003 was pleasing given the significant additional smelting capacity resulting from the commissioning of the Polokwane Smelter.”
Havenstein said it was ”pleasing” to note that the temporary increase in pipeline stock levels reported with the interim results was successfully processed by the end of 2003, resulting in a significant increase in production and sales volumes in the second half of the year.
During 2003 Anglo Platinum reviewed its expansion programme and as announced in December, the impact of the review has been the slowing of certain projects. To support the expansion, the group proposed to raise R4-billion from a rights issue and implementation of a dividend reinvestment programme in respect of its final dividend for the 2003 financial year.
The R4-billion will be raised through the issue of convertible perpetual preference shares.
The company said its principal shareholder, Anglo American, had indicated its continued support for its expansion plans and would take up its rights.
Anglo Platinum said it continued to work closely with the Department of Minerals and Energy and good progress was being made towards meeting the ownership and attributable production requirements of the Mineral and Petroleum Resources Development Act and Broad Based Economic Empowerment Charter.
Havenstein said: ”All of the required mining licences in respect of ‘old-order’ mineral rights have been granted and the group is preparing itself to convert these to ‘new-order’ rights in accordance with the requirements of the new Act.
Anglo Platinum had commenced several ”significant” ventures with historically disadvantaged South African, and other agreements were being negotiated.”
Anglo Platinum said it remained firmly committed to expanding its production base, as its long term strategy to grow markets for platinum group metals, expand production to meet the increased demand and optimise operations remains in place. – Sapa