Financial overview

Anglo Platinum’s operating profit rose by 12% to $2,697 million. This was mainly due to a higher price achieved for the basket of metals sold and a weaker average rand relative to the dollar, offset by lower sales volumes on the back of reduced production from mining operations.

The average dollar price realised for the basket of metals sold equated to $2,579 per platinum ounce, 27% higher than in 2006, with firmer platinum, rhodium and nickel prices making the largest contribution to the increase. The average realised price for platinum was $162 higher than in 2006 at $1,302 per ounce, while nickel averaged $17.04 per pound against $10.73 in 2006. The realised rhodium price averaged $4,344 per ounce, an increase of $802 per ounce over 2006, and includes the effect of existing long term contractual arrangements with some customers, entered into to support and develop the rhodium market.

Anglo Platinum is at an advanced stage of negotiations to achieve mutual recognition with its relevant customers of structural changes to the rhodium market affecting the dollar price of the metal. The objective of the negotiations is to move towards a contractual price for rhodium which is market related. The year also saw a significant increase in the price of ruthenium following strong growth in demand, driven by its use in hard disk drives. This new use and its relative price insensitivity have resulted in a structural change to the market.

$ million (unless otherwise stated) 2007 2006
Operating profit 2,697 2,398
EBITDA 3,155 2,845
Net operating assets 9,234 7,078
Capital expenditure 1,479 923
Share of Group operating profit 28% 27%
Share of Group net operating assets 35% 33%