Contents of The Business Report - Volume 1: 1 Anglo Platinum Business Report 2003 1 Anglo Platinum Business Report 2003

CONTENTS OF THE BUSINESS REPORT VOLUME 1
Main features Chairmans statement Chief Executive Officers review Market review Platinum supply and demand
Jewellery Autocatalysts Industrial Fuel cells
2 4 8 12
12 13 15 16
Union Section Potgietersrust Platinums (PPRust) Lebowa Platinum Mines (Leplats) Bafokeng-Rasimone Platinum Mine (BRPM) Modikwa Platinum Mine (non-managed)
36 37 38 39 40
Overview: processing
Waterval Smelter Polokwane Smelter Rustenburg Base Metals Refiners (RBMR) Precious Metals Refiners (PMR)
41
41 42 43 44
Overview: projects
Safety Mining projects in development Processing projects in development
45
46 46 50
Other metals
Palladium Rhodium Ruthenium and iridium Nickel
16
16 17 18 18
Review of Mineral Reserves and Resources

The Bushveld Complex Overview of current exploration South African operations Combined Mineral Reserves and Mineral Resources Mineral Reserve and Resource definitions
52
52 52 55 56 65
Finance review Financial performance

Financial results Capital expenditure Financial structure Dividend
20 20
20 21 21 21
Interests of Directors Directors remuneration Shares repurchased Share capital Dematerialization of shares (STRATE) Property Auditors Administration Subsidiary companies Holding company and ultimate holding company Remuneration report Role of the Remuneration Committee and terms of reference Membership of the Remuneration Committee Remuneration policy Other matters affecting remuneration of Directors Directors remuneration
86 86 86 87 87 87 87 87 87 87 88 88 88 88 90 91
Principal accounting policies Consolidated financial statements
98 104
Treasury Information Technology (IT)

Information governance and security statement Information management Information communications and technology
21 22
22 22 22
Group Statistics
Total operations Total steady-state operations Rustenburg Section Amandelbult Section Union Section PPRust Leplats Ramp-up operations Project in ramp-up phase Analysis of Group capital expenditure
66
66 69 70 71 72 73 74 75 77 78
Ten-year financial review Operations Review Flowchart Location of Group operations Safety and health Mining operations Processing operations Projects Human resources Capital expenditure Outlook for 2004 Overview: mining
Rustenburg Section Amandelbult Section
24 26 28 30 30 32 32 32 33 33 34
34 35
Annual financial statements Approval of annual financial statements

Declaration by the Company Secretary
79 80
80
Consolidated income statement 104 Segmental information 105 Consolidated balance sheet 106 Group statement of changes in equity 107 Consolidated cash flow statement 108 United States dollar equivalents 109 Notes to the consolidated financial statements 112 Annexure A: Mining property, plant, and equipment 132 Annexure B: Non-mining property, plant, and equipment 133 Annexure C: Equity compensation benefits Anglo Platinum Share Option Scheme 134 Annexure D: Investments in subsidiaries, joint ventures, associates, and other 136 Appendix 1: Anglo American Platinum Corporation Limited annual financial statements 138
Report of the independent auditors Directors report

Financial results and nature of business Listings Compliance with accounting standards Reporting in United States dollars Dividend Corporate governance Corporate code of conduct Black economic empowerment (BEE) initiatives Expansion programme Directorate
81 82
82 82 82 82 82 83 84 84 85 85
Glossary of terms Directorate Management and administration Notice to members Shareholders diary Form of proxy Voting instruction form
142 144 146 148 149
ANGLO PLATINUM BUSINESS REPORT 2003
MAIN FEATURES
Equivalent refined platinum production# increases by 8,0% Earnings adversely affected by strong rand Dividend cover maintained
Main features
Refined production: Platinum (Pt) Palladium (Pd) Rhodium (Rh) Gold (Au) PGM Cash on-mine costs Above: Award-winning piece of South African-produced platinum jewellery, from the PlatAfrika awards, sponsored by Anglo Platinum Cash on-mine costs Cash operating costs Financial highlights (R million): Gross sales revenue Gross profit on metal sales Headline earnings Net debt/(cash) Capital expenditure Gross profit margin % Rand revenue per platinum ounce 000 oz 000 oz 000 oz 000 oz 000 oz R/ton milled R/oz equivalent refined Pt# R/oz PGM refined
2003
2 307,8 1 190,9 232,5 116,1 4 161,5 253 3 497 2 409 16 508,6 3 909,9 2 091,7 6 923,0 7 423,6 23,7 7 017
2002
2 251,1 1 115,3 211,7 107,1 3 947,6 233 3 123 2 053 20 285,7 9 422,8 5 630,4 (1 443,6) 5 994,1 46,5 8 690
Operational highlights, steady-state mines*
* Includes all operations except Bafokeng-Rasimone Platinum Mine, Rustenburg Section UG2 Project, and Modikwa, all of which were in a production ramp-up phase. # Mines production and purchases of metal in concentrate converted to equivalent refined production using Anglo Platinums standard smelting and refining recoveries.
> Equivalent refined platinum production from mines#

2500
> Earnings and dividends per share

4000 3500
2000 3000 Cents per share 2500 2000 1500 1000 500 500 0 0
1500 000 oz 1000
Right: The Platinum Guild International (PGI) is currently running a platinum jewellery advertising campaign on television and in print in nine major cities in China the largest market for platinum jewellery. Anglo Platinum is the largest corporate sponsor of the PGI
00 01 02 03
Steadystate* Ramp-up
00 01 02 03
Earnings Dividends
CHAIRMANS STATEMENT
Our strategy is: To grow the market for PGMs; To expand into that growth; and To optimize value in current operations
Barry Davison Chairman
Dear Shareholder, Despite a challenging set of circumstances in 2003, the Groups strategy again proved to be robust. Worldwide demand for newly mined platinum continued its unbroken growth for the eleventh consecutive year, reaching a record high of 6,59 million ounces and vindicating our decision to embark on an expansion drive almost four years ago. We raised our platinum group metal (PGM) production by another 5,4% and, notwithstanding the revision of our expansion plans announced towards the end of the year, we will continue growing our output at an average annual rate of 8% for the next three years, thus meeting our customers need for these remarkable metals. In the face of some difficult economic conditions, the operating margin of our steady-state mines averaged 34%, down from 55% in 2002. By far the most significant contributory factor in this drop was the strengthening of the rand, and gross revenue fell by R3,8 billion to R16,5 billion. Headline earnings per share fell from 2 625 to 972 cents per share. what the extent of this recovery will be, and whether sustained. While demand for platinum, palladium, and rhodium, which are the three major PGMs, varies between these key markets, some broad trends are discernible. The growth in platinum demand continued to outstrip supply by a significant margin and for the fifth year in succession there was a substantial shortfall in platinum supply. This accounts in part for the strength in the platinum price, which increased versus the prior period by 28% in US dollar terms. The fortunes of palladium and rhodium, however, were quite the opposite: there continued to be an over-supply of both metals in international markets and their prices consequently fell by 40% and 37% respectively. Overall the basket price rose 9% in dollar terms.
The impact of the strengthening rand on our performance

The 28% appreciation in the value of the South African rand against the US dollar versus the previous year had a profoundly negative impact on revenues received for our basket of products and on our operating margins. Our ability to manage the effects of a volatile rand is limited. We will continue looking as broadly as we possibly can at our existing cost structures in order to keep these under strict control. Indeed, a new initiative in this regard has already begun and I look forward to substantial progress being made in the year ahead. Against the backdrop of the rands performance and its impact on cash flows, the recently announced revision of our expansion schedule was prudent. A challenging period of rapid expansion is still ahead of us, but it would have been inadvisable to have maintained the pace and scope we originally set ourselves given the 19% reduction in the basket price in rand terms that we experienced in 2003.
Safety at our operations

We continued building on a positive trend in lost-time injuries recorded over the past few years. Although the number of fatalities fell, I am deeply saddened by these tragedies and I extend my condolences and those of the Board to the family members, friends, and colleagues who have been bereaved. We are dedicated to the task of ensuring that we continue reversing the trend of fatal accidents. Zero fatalities remains our objective.
> Anglo Platinum refined platinum production

(000 oz)
2000 2001 2002 2003
1 871,7 2 109,2 2 251,1 2 307,8
Economic conditions in our key markets

Regarding the key global economies, it is encouraging that in the year under review there was some recovery in the United States and Japan. It remains to be seen
CHAIRMANS STATEMENT
Importantly, we have designed sufficient flexibility into the overall expansion programme to be able to make appropriate adjustments if and when conditions change.
Continuing issues in respect of legislative change

We can reflect favourably on the Minerals and Petroleum Resources Development Act, the Mining Charter and Scorecard, and the Groups progress towards meeting the targets and broader requirements of the latter, which is fully covered in the Sustainable Development Report accompanying this Business Report. The broad purpose of the legislative change is to empower historically disadvantaged South Africans so that they may participate fully in the countrys economic opportunities and, by this means, to strengthen the foundation of our future success as a nation. The achievement of this aim is as socially necessary as it is morally right. A business imperative for us is the conversion of so-called old-order mineral rights to new-order rights. All of the required mining licences have been granted and we are in a position to convert in accordance with the requirements of the new Act. The revision of our expansion programme will not affect this process, as mining projects are likely to proceed reasonably in line with the original plan. By contrast, I believe that the content of the redrafted Royalty Bill, when it becomes available, will require further robust engagement with Government. A body of stakeholder feedback has been submitted and the Minister of Finance has indicated that he expects to provide an update early in 2004. The initial proposal that royalty payments be based on revenue needs to be reconsidered; taxable income is a more equitable and sustainable basis. Should the intention remain to levy royalties on
revenue, I would suggest that the proposed rate be revised considerably downwards and that the introduction of royalty payments follows only after the conversion of all old-order mineral rights to new mineral rights or after five years from promulgation, whichever is the later. Also, the possibility of the duplication of royalty payments under existing agreements needs to be eliminated. We await first publication of the Beneficiation Bill, and I trust that this will prove to be a piece of logical, non-punitive draft legislation that seeks to place the responsibility for beneficiation where it best lies in terms of commercial and technical expertise. I wish to emphasize that this is not necessarily with producers, who nevertheless should be encouraged to play a supporting and facilitative, rather than an operational, role. In the jewellery sector, for example, established beneficiators such as designers and fabricators logically stand to gain from the development of their sector and are best positioned to take the lead. The Group has played a major role in financially supporting such initiatives.
Above: Polokwane smelter
Corporate governance
During the year, the Group continued to consolidate its position in respect of adherence to the second King Report on Corporate Governance. Most notably, we split the roles of Chairman and Chief Executive Officer (CEO) through my vacating the latter executive position to become Non-executive Chairman. Ralph Havenstein joined us as CEO, bringing with him a wealth of experience from the petroleum and chemicals sectors, together with valuable fresh perspectives on how to take our business forward. A number of other new directors joined the Board during the year: Bongani Khumalo as an Independent Non-executive Director; Lazarus Zim as a Non-executive Director;
CHAIRMANS STATEMENT
Below: Extracts from the recent Platinum Guild Internationals worldwide jewellery campaign
Robin Mills as Executive Director: Projects; and Abe Thebyane as Executive Director: Human Resources. I am pleased to welcome each of them and am enthused by the breadth of experience, expertise, and influence they bring to our ranks. We bid farewell to Eric Ngubane and John Dreyer as Executive Directors. I extend my appreciation to both of them for their valuable contribution to the Group over what has been an exciting period of growth and join my fellow Directors in wishing them well for the future.
responsiveness to these efforts, will help limit the downside price potential of these metals. I am satisfied that our strategy remains valid. The challenges for us in 2004 are to intensify our safety campaign, to improve the performance of our steady-state and ramp-up operations, particularly in respect of costs, and to continue with our expansion programme.
Looking ahead
I am confident that the outlook for platinum in the year ahead is robust. Jewellery demand is likely to remain flat, but the growing popularity of diesel-fuelled vehicles will ensure growth in demand for platinum in autocatalysts. Overall, demand is likely to exceed supply and prices should remain firm. Our encouragement of autocatalyst manufacturers to use more palladium and rhodium, and their growing
Barry Davison Non-executive Chairman Johannesburg 13 February 2004
Right: In the laboratory at the precious metals solvent extraction facility are Victor Mtotywa and Malcolm Arendse. The facility has been an important component of the expansion of the refinerys capacity
CHIEF EXECUTIVE OFFICERS REVIEW
The strategic review has in no way altered indeed, it has confirmed our confidence in the robustness of current and future demand for platinum
Ralph Havenstein CEO
Dear Shareholder, It gives me great pleasure to present my first Chief Executive Officers review of Anglo Platinums performance, which is a consequence of the Groups decision to separate the roles of Chairman and CEO and of my recent appointment as the latter. the Department of Minerals and Energy. It is unfortunate that media coverage in 2003 focused on the peak of emissions rather than on our progress in bringing on-stream the new ACP Plant. We have redoubled our communication efforts and we are forging strong relationships with relevant authorities, non-governmental organizations, and the broader community, both in terms of their support for the continuous improvement for which we have striven over many years and their confidence in our ability to meet the targets we have set.
Safety, health, and environment

I am pleased to report that the Behaviour Based Safety programme continued to contribute to a decline in the lost-time injury frequency rate for the Group as a whole, from 1,2 per 200 000 man-hours in 2002 to 0,7 in 2003. Although the number of fatal injuries fell versus those recorded in 2002, it is distressing to record that 24 fatalities occurred at the Groups managed operations in 2003. I extend my deepest condolences to the families, friends, and colleagues of all who died at work in 2003. The HIV/AIDS pandemic, and in particular management of its impacts on employees, continued to be a primary focus of attention for the Group. A key feature of the year was our decision to provide antiretroviral therapy to employees and to lend our support to Government in the rollout of its own programme. This initiative, together with ongoing education, voluntary counselling and testing, and wellness programmes, will collectively manage this disease from both the business and social perspectives. On the environmental front, the new stateof-the-art Anglo Platinum Converting Process (ACP) Plant at the Waterval Smelter in Rustenburg performed to expectations as it began ramping up to full operation. By the end of 2004, when it will be operating at steady-state capacity, it will have reduced sulphur dioxide emissions to well within air quality limits recommended by the World Health Organization and in line with the schedule of reductions agreed with
Expansion review
The Groups revised expansion programme was announced shortly before year-end. The announcement was not unanticipated, shareholders having been warned at the half-year of the possible consequences for the programme of a much stronger-thananticipated rand and hence lower rand prices for the basket of metals sold in 2003 compared to 2002. The strategic review has in no way altered indeed, it has confirmed our confidence in the robustness of current and future demand for platinum and the need to retain our long-term strategy to grow the markets for PGM products, expand production to meet increased demand, and optimize current operations. It has, however, highlighted the combined impact of: South African producer price inflation of 26% over the past three years; an overall 14% decline in the US dollar price for the basket of metals produced during the same period despite a 9% recovery over 2003; and the 50% appreciation in the value of the rand from its low of almost R13 to the US dollar in December 2001. These factors pointed to the need: to slow down the rate of implementation of some of the Groups expansion projects by between one and three years, in particular Twickenham, Der Brochen, the second
phase of the Western Limb Tailings Retreatment Project, and the Pandora Project; to continue expanding treatment, smelting, and refining projects to meet the requirements of the build-up in the mining profile; and to rationalize existing operations to protect operating margins. We target to produce 2,9 million ounces of refined platinum in 2006, which will still see us growing our production by an average annual compound rate of 8% and making a significant contribution to the worlds demand for platinum group metals (PGM). We expect that increased usage of palladium in autocatalysts and slower growth in demand for platinum in jewellery fabrication will help soften the impact of the platinum supply deficit. From a mining perspective, we retain some flexibility to adjust production from our Merensky and UG2 reserves according to changing circumstances and this, together with adequate plant capacity, will enable us to bring forward project implementation once the outlook improves. The revised expansion programme will affect neither our Black Economic Empowerment (BEE) commitments nor our ability to comply with the requirements of the Mining Charter. Indeed, we have made good progress on BEE, facilitating the purchase of 22,5% of Northam Platinum by Mvelaphanda Platinum, securing a 50:50 joint venture with African Rainbow Minerals in respect of the Modikwa Platinum Mine, and agreeing a 50:50 joint venture with Royal Bafokeng Resources. We are also in discussion with the Pelawan and Khumama consortia on the Ga-Phasha PGM Project (formerly known as the Paschaskraal JV) and Booysendal Joint Venture respectively. We have already moved a long way down the path of meaningful economic empowerment of historically disadvantaged South Africans.
Operating and financial performance

The year was characterized by a generally sound operating performance from our steady-state mining operations. None of our operations, including those in a rampup stage, made an operating loss for the year, despite the aforementioned economic difficulties. We exceeded the target of 2,3 million ounces of refined platinum communicated to shareholders during 2003, a growth of 2,5% on platinum output in 2002, while contained platinum ounces purchased and produced at mine level rose by 8%. The difference results from a planned build-up in process pipeline compared with the reduction achieved in 2002. The temporary excess pipeline stock build-up in the first half was processed by year-end. At steady-state operations, the average head grade dropped from 4,91 to 4,86 grams per ton of 4E (down 1,0%) owing to a higher proportion of UG2 in the ore mix. On-mine cash costs rose from R233 to R253 per ton milled, or by 8,6%. Much of the increase in costs can be attributed to improved employee benefits, which in turn equated to an increase in average salaries and wages that was considerably above the South African inflation rate, and to higher steel and safety costs. The impact of a stronger rand against the US dollar was felt in the rand price received for our basket of metals, which at an average of R7 017 per ounce of platinum sold was 19.3% lower in 2003 than in 2002. Nevertheless, operating margins at our steady-state mines were robust at an average of 34,2%, the lowest being 20,4% at Union Section. Headline earnings for the year were R2,1 billion, down 63% on 2002. Cash flow from operations was R3,36 billion and R7,10 billion was invested in the Group, mainly on major projects to maintain and
Above: David Maluleke, drill-rig operator at Zwartfontein South Pit, PPRust. Holes for blasting purposes are drilled up to 30 metres deep
BEE progress
Facilitating purchase of 22,5% of Northam Platinum by Mvelaphanda 50:50 JV with African Rainbow Minerals in the Modikwa Platinum Mine 50:50 JV with Royal Bafokeng Resources (subject to conditions precedent) Discussions with Pelawan on Ga-Phasha Discussions with Khumama on Booysendal
expand operations. The Groups interestbearing borrowings increased to R7,17 billion. In light of the need to invest in expansion to take advantage of the opportunity that burgeoning PGM demand and our portfolio of quality ore reserve assets afford us, the Board has taken the decision to propose a cash dividend of 270 cents per ordinary share, with the option of reinvesting in the Companys equity. This is in addition to the interim dividend of 370 cents declared at the half-year.
A financing programme has been selected, which includes the raising of R4 billion through a rights issue and a dividend reinvestment election in respect of the final dividend for the 2003 financial year. The R4 billion is to be raised through the issue of convertible perpetual preference shares. All existing shareholders will have the opportunity to participate. Importantly, our principal shareholder, Anglo American plc, has agreed to reinvest its portion of the Groups final dividend and to take up its portion of the rights issue.
Prospects Capital expenditure and funding

A consequence of the revised implementation programme is a decline in planned capital expenditure on expansion between 2003 and 2006, from R15,3 billion to R11,0 billion (in 2003 terms), providing some relief in respect of the Groups funding requirements. In 2004, total capital expenditure is expected to be R6,5 billion. Of this, R4,4 billion is to maintain and replace production capacity, including R1,9 billion on major replacement projects, R1,9 billion is for expansion projects, and the balance is on capitalized interest. The Groups refined platinum production is planned to increase to approximately 2,45 million ounces in 2004. Our financial performance will be determined largely by our ability to manage costs at our steady-state mining and process operations and to continue with our expansion. Costs, on all fronts, will be the major priority for us. We have embarked on a Group-wide programme to increase efficiencies and reduce costs. The scope of this exercise will include all aspects of our business, with special emphasis on work processes and structures, both at our business units and at our corporate and central functions.
Below: Anglo Platinums billboard campaign now in its second year is one of the most recognized campaigns in the country within its sector. The theme of the campaign Turns platinum into prosperity underlines Anglo Platinums commitment to Black Economic Empowerment (BEE)
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Platinum prices are expected to remain firm due to the fundamental strength of demand for the metal. The market is experiencing historically high prices above US$800 per ounce after a strong rally from around US$600 per ounce in May 2003. The buoyant price is believed to be related partly to the weakness of the US dollar relative to the major currencies and the South African rand and partly to sustained physical offtake from all sectors, lowerthan-expected production levels, and anticipation of recovering economic growth around the world. The prices of other PGMs, including palladium and rhodium, appear rangebound, although palladium could potentially benefit from investor interest in anticipation of an increase in offtake of the metal by the automobile sector. Fundamental trends in the base metal markets, particularly nickel, are supportive of higher prices for these metals in 2004.
Notwithstanding the planned increase in volumes and the anticipation of good US dollar metal prices, earnings remain highly sensitive to the strength of the rand against the US dollar and US dollar metal prices. I extend my thanks to my fellow Executive Directors and all management and staff at Anglo Platinum for their strong commitment to the Group in 2003, and look forward to working with them in 2004.
Ralph Havenstein Chief Executive Officer Johannesburg 13 February 2004
Below: Members of the Executive Committee. Back, left to right: Mike Halhead (Technical Director), Sandy Wood (Commercial Director) Front: Dorian Emmett (Chief Operating Officer), Roeland van Kerckhoven (Finance Director), Ralph Havenstein (Chief Executive Officer), and Robin Mills (Director: Projects). On the date that this photograph was taken, Abe Thebyane had not yet joined the Group
11
MARKET REVIEW > PLATINUM SUPPLY AND DEMAND
Recent consumer and trade surveys confirm the increasing preference for platinum bridal jewellery
MARKET REVIEW
> Platinum supply and demand
Supply Demand
5,29 5,68 5,86 6,23 5,97 6,56 6,11 6,59
Platinum supply and demand

(Moz)
2000 2001 2002 2003
Source: Johnson Matthey
Demand for platinum is either derived or created: industrial use of the metal is derived from its unique physical and chemical properties that enable its use in many varied applications, whereas jewellery demand is created and requires constant promotion and support. Platinums catalytic properties, inertness, durability, electrical conductivity, and high melting point are suited to diverse industrial applications, while its rarity, purity, strength, and beauty make it the metal of choice in jewellery. Demand for newly mined platinum* grew by an estimated 30 000 ounces in 2003 to 6,59 million ounces. Despite a 2,4% increase in newly mined supplies, the market was in deficit for the fifth consecutive year (480 000 ounces in 2003).
previous years, despite the rising platinum price. Recent consumer and trade surveys confirm the increasing preference for platinum bridal jewellery. Europe Platinum demand from jewellery fabricators in Europe rose by 3% in 2003, with strength in the UK market making up for weakness in other countries. Platinum made strong gains in the UK bridal market, resulting in a 30% growth in the volume of platinum jewellery hallmarked in 2003. Demand from Italy was flat. In Germany, platinum jewellery sales fell, but platinum bridal demand rose, highlighting the growing popularity of platinum in engagement and wedding bands. Japan Demand for platinum for the manufacture of jewellery in Japan fell by 15% in 2003. Consumer spending on luxury goods remained depressed because of weak economic conditions, while that on precious metal jewellery was 4% below that for the same period a year previously. The number of pieces sold was 17% down. The year-on-year declines affected gold more than platinum, with the number of platinum pieces sold registering a 13% decline versus golds 18%. Platinums decline was muted on account of its preferred status in the bridal market: more than 80% of wedding rings sold in Japan are made from platinum. At the lower end of the market, platinum lost market share, though mainly to white gold, thus evidencing the continued preference for white metal. Demand for new metal from manufacturers weakened, with a greater proportion of their metal being sourced from jewellery recycling. A high rate of bankruptcy in the jewellery sector resulted in increased volumes of secondary metal being supplied to the market.
* Platinum 2003, Johnson Matthey Interim Review
Jewellery
The higher platinum price had an adverse impact on the jewellery market during the year, and demand fell 13,1% to 2,45 million ounces for the year. In contrast to other applications, the jewellery industry has cheaper substitutes, such as white gold. Despite these difficulties, demand at the consumer end of the market remained surprisingly resilient. Platinums profile was raised by the launch of a new branding and advertising campaign by the Platinum Guild International during 2003. North America Demand for platinum for the fabrication of jewellery in North America rose by 5% in 2003 as platinum built on its popularity in the bridal sector. Consumer surveys conducted in this target market indicated that in 2002 platinum accounted for 38% of engagement rings priced above US$3 000, 36% of womens wedding bands priced above US$1 000, and 32% of mens wedding bands priced above US$500. These are substantially up on
> Platinum supply and demand

(000 oz)
2003 Supply South Africa Russia North America Others Total supply Demand Autocatalyst: gross recovery Jewellery Industrial Investment Total demand Movements in stocks
2002
4 650 4 450 950 980 285 390 225 150 6 110 5 970
3 180 (650) 2 450 1 600 10 6 590 (480)
2 640 (570) 2 820 1 590 80 6 560 (590)
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China Platinum demand for Chinese jewellery fabrication fell for the first time since this market was developed. Demand for the year was 1,2 million ounces, 19% below the 2002 level. Consumer demand was affected earlier in the year by the SARS outbreak, especially in Beijing, keeping consumers at home. The effect was temporary and demand returned after fears subsided, with a number of leading manufacturers reporting record sales in revenue terms. At the manufacturing level, margins were squeezed by higher prices, and some purchases of metal were held back until spot prices eased or retail prices could be raised. In August, platinum started trading on the Shanghai Gold Exchange. Platinum taxation was bought in line with that of gold, having previously been at a higher level. Platinum traded through the exchange is effectively free of value-added tax and the removal of this economic restraint bodes well for future growth in demand. Changes in sales legislation enabled more retailers to start stocking and selling gold. As a result, helped by its higher margins, 18-carat white gold gained some market share at the lower end. Bridal demand for platinum, however, has continued increasing in China, with the metal being seen as appropriate for the setting of diamonds and for plain wedding rings.
extent by gradual further geographical spread of autocatalyst requirements to less-developed countries. North America Sales of new vehicles in North America declined in the first eight months of 2003, but rose afterwards: sales for the year are estimated to have been equivalent to levels reached in 2002. Production of new vehicles in North America, however, was 11% down from 2002s level as imported vehicles increased their share of the market and domestic manufacturers reduced inventory levels, which were high at the beginning of 2003. Despite lower vehicle production, demand for newly mined platinum increased by 54% as low metal stocks at the start of the year necessitated purchases for consumption and to supplement inventories. Many auto-manufacturers made plans to reduce their reliance on
Below: More than 90% of new vehicles built in the world are fitted with autocatalysts
> Platinum demand: autocatalysts

(000 oz)
2003 Europe Japan North America Rest of the world Total Autocatalyst recovery
2002
1 370 1 260 490 430 880 570 440 380 3 180 2 640 (650) (570)
Autocatalysts
Autocatalysts using PGMs are fitted to vehicles to convert noxious exhaust emissions into less harmful gases. Legislation limiting emissions from vehicles was first promulgated in North America in the 1970s and later adopted by other regions. More than 90% of new vehicles built in the world are fitted with autocatalysts. Future growth will be driven mainly by the increasing stringency of legislation governing emissions in the major consuming countries, requiring higher loadings per vehicle, and to a lesser
13
in Europe still rose by 9% owing to the growth of the diesel market share. Sales of light-duty diesel vehicles continued to climb and their share of the market for 2003 is estimated at 43%, up from 40,3% in 2002. Demand for platinum in the gasoline sector was static during the year. Automotive analysts believe that sales of all light vehicles, which have been declining since late-1999, are likely to rebound in 2004. All new vehicles in Europe must comply with EURO III legislation and will have to meet EURO IV limits in 2005. Tax benefits offered to purchasers of vehicles that are already EURO IV-compliant are encouraging manufacturers to meet the more stringent standards early. A new directive on sulphur levels in fuel has been approved, requiring the maximum amounts of sulphur in petrol and diesel to be less than 50 parts per million (ppm) from 2005. Between 2005 and 2009, this limit will decline in phases to less than 10ppm. The availability of sulphur-free fuels will enable catalytic systems to meet the future emission standards, particularly diesel standards. Furthermore, low-sulphur fuels and the fitting of autocatalysts to diesel vehicles will enable manufacturers to meet the carbon dioxide targets set for 2008. These developments will be particularly important in the case of platinum, which is more suited to diesel applications than other PGMs. Japan Demand for platinum for the manufacture of autocatalysts in Japan rose by 14% in 2003, largely because of the retrofitting of emission control devices to heavy-duty diesel vehicles. Sales of light vehicles in Japan were in line with those for the same period in 2002. Production of vehicles fell, with weak domestic demand exacerbated by a decline in exports. Successful thrifting programmes enabled auto-manufacturers to reduce their use of both platinum and palladium in the light-duty sector. In April 2002, the Central Environment Council, policy advisors to the Ministry of the Environment, announced new longterm targets for reduced vehicle emissions, which must be achieved by the end of 2005. Rest of the world Platinum autocatalyst demand in the rest of the world was 16% higher in 2003, owing to increased vehicle production in China and stricter emissions legislation. Chinese vehicle output, including cars, trucks, and
Source: PGI
> Platinum demand: jewellery

2003
palladium when its price rallied at the end of 2000 by substituting platinum for some palladium. These platinum-bearing systems are presently being fitted to new vehicles. The California Air Resources Board introduced new legislation in April. Instead of 10% of vehicles having to be zeroemission, the Board is now calling for hybrid vehicles. The revised legislation, which comes into effect in 2005, will allow manufacturers two options in order to meet their zero-emission vehicle obligations. They will be allowed to produce fewer fuel cell vehicles by 2008, provided that they produce a certain percentage of advancedtechnology partial zero-emission vehicles and partial zero-emission vehicles. Europe Sales of light vehicles in Europe were 1,5% lower than in 2002. Despite the fall in car sales, demand for platinum in autocatalysts
Europe 6,7% Japan 27,1% North America 13,3% Rest of the world 52,9%
> Platinum demand: jewellery

2002
Europe 5,7% Japan 27,7% North America 11,0% Rest of the world 55,6%
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buses, reached 4 million, up from 3,25 million in 2002; car sales were close to 2 million units. The Chinese government has mandated that all vehicles must comply with emission limits equivalent to EURO II in 2004 and the more stringent EURO IV by 2008. 30% of vehicle output consists of diesel-fuelled units, mainly for commercial vehicles; this number is expected to expand to 35% by 2005. With continuing growth in vehicle production, the rising proportion of diesels, and the adoption of more stringent emissions legislation, Chinese autocatalyst platinum demand will expand rapidly.
Industrial
Chemical Platinum catalysts are used in many chemical processes, such as the production of nitric acid, silicones, and paraxylene. The use of platinum catalysts to produce nitric acid is one of the metals oldest industrial uses. Much of the platinum demand is merely for topping up and it is only when new nitric acid capacity is constructed that demand rises significantly. The major use of nitric acid is in the fertilizer industry. Competing products and over-capacity have resulted in few new production facilities in North America and Europe and output has been low in these regions. New capacity was restricted to a few plants in Eastern Europe and Asia. Thus, demand for platinum was lower in 2003. Platinums use in the manufacture of silicones has grown over the last few years and now accounts for the largest proportion of chemical demand for platinum. It is completely consumed in the process, and demand increases directly with output. Silicones are used in the manufacture of pressure-sensitive adhesives, release liners, and waterrepellent coatings. Pressure-sensitive adhesives are used in Post-it notes, while release liners are used in re-sealable plastic bags. Water-repellent coatings have a vast array of applications, among them furniture polish and cleaning products. Platinum demand was unchanged, given no significant increase in output of these chemicals. Electrical Platinum is used in a cobalt-based alloy in computer hard disks to enhance storage capacity. Data-storage requirements of computers have increased rapidly and almost all computer hard disks now contain platinum. As data storage has increased, the number of disks per computer has
Source: PGI
decreased. This, however, has been balanced by the growing use of disks in other applications, such as games consoles, and platinum demand rose by 4% year on year. With a rise in steel output in 2003, demand for platinum thermocouples also grew. Glass Equipment used in the glass industry is made from platinum alloys because of their high melting temperature, strength, and corrosion resistance. Platinum is used in the manufacture of liquid crystal displays, cathode-ray tube displays, and optical glass, while platinum/rhodium bushings are used to manufacture glass fibre. Demand for speciality glass benefited from improved sales of personal computers. However, sales of platinum to this sector did not increase in 2003. Demand in 2001 and 2002 was boosted by construction of new capacity, which was sufficient to meet 2003s demand. The net impact was to reduce demand for newly mined platinum from 255 000 ounces in 2002 to 245 000 ounces in 2003.
> Palladium supply and demand

(000 oz)
2003 Supply South Africa Russia North America Others Total supply
2002 160 930 990 170 250
2 280 2 2 950 1 850 240 6 320 5
Demand Autocatalyst: gross 3 670 3 090 recovery (410) (370) Dental 815 770 Electronics 985 750 Other 590 610 Total demand 5 650 4 850 Movements in stocks 670 400
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MARKET REVIEW > PLATINUM SUPPLY AND DEMAND > OTHER METALS
> Palladium supply and demand

Supply Demand
7,80 8,96 7,32 6,75 5,25 4,85 6,32 5,65
(Moz)
2000 2001 2002 2003

Petroleum Platinum is used in catalysts for the reforming and isomerization of petroleum. Demand for newly mined platinum in the petroleum sector remained unchanged in 2003, with a lack of construction of new reforming capacity. Recent developments in technology have extended the lifespan of catalysts and allowed for less platinum per catalyst. Demand therefore will only increase if capacities are expanded sufficiently to counteract these trends.
iridium, and ruthenium), gold, and base metals (nickel, copper, and cobalt sulphate). The contribution of these other metals to total revenue in 2003 was 29% (2002: 38%).
Palladium
Demand for palladium rose by 16% in 2003, to 5,65 million ounces. The rebound in demand was largely attributable to the component inventory run-down at auto and electronic companies. Palladium supplies were, however, 20% higher than in 2002, resulting in a surplus of 670 000 ounces. Supplies rose on higher shipments from Russia and South Africa. Norilsk is believed to have sold its full production of palladium in 2003. South African output of palladium is increasing relative to that of platinum, since much of its new output is sourced from the relatively palladium-rich UG2 Reef. Autocatalysts Purchases of palladium for use in autocatalysts rose strongly in 2003, largely because US auto-manufacturers inventories had been run down in 2002. The underlying use of palladium per unit has however fallen as a result of intensive thrifting programmes. The amount of palladium used in autocatalysts in the 1990s was very high compared to platinum. The technology available at the time required between three and four times more palladium per catalyst than platinum. Palladium traded at such a large discount to platinum that, even with the heavier metal content, palladium technology was still cost-effective. However, when the palladium price rose to around US$1 000/oz in 2001, automanufacturers examined ways of reducing their reliance on the metal. Palladium is an integral part of gasoline exhaust-emission control systems on account of its superior ability to convert hydrocarbons, and automanufacturers are unable to dispense with its use entirely. North America Purchases of palladium by the North American autocatalyst sector in 2003 compared with 2002 more than doubled to 1,31 million ounces. In 2002, a large proportion of vehicle manufacturers requirements were met from stock, which was consequently run down. Palladium actually used in 2003 declined as programmes implemented in 2000 and 2001 to reduce reliance on the metal through thrifting and substitution were successfully implemented.
Fuel cells
Fuel cells are electrochemical generators of electricity. As they are exceptionally efficient, they produce no noxious gases if fuelled by hydrogen. The concept of fuel cells has long been understood; it is only recently, however, that the commercial use of fuel cells has been explored. The primary driver behind research has been the desire to limit emissions as a consequence of increasingly strict regulatory controls. There are different types of fuel cells: alkaline fuel cells, which provide power on spacecraft; direct methanol fuel cells; molten carbonate fuel cells; solid oxide fuel cells; and proton-exchange membrane fuel cells (PEMFC). They all have unique properties that lend themselves to different applications. However, PEMFCs, containing platinum, are the most versatile and can be used to power anything from the smallest electronic device to vehicles. Most major automobile manufacturers are involved in fuel cell research. The PEMFC is seen as the best option for developing an emission-free vehicle that runs on hydrogen. Before the widespread commercialization of fuel cell vehicles takes hold, a number of issues will need to be resolved, including the sourcing of hydrogen and mass refuelling infrastructure. In the meantime, auto-manufacturers will launch hybrid vehicles (some with fuel cells). The first commercial market for fuel cell technology is likely to be in the portable power sector, where products are being developed. Demand for larger portable systems, particularly those used in the military, is strong, as they are not restricted in time of use as conventional batteries, have a greater power density, and are quiet in operation.
Other metals
Platinum is the largest single contributor to Anglo Platinums revenues. However, the Group also produces important amounts of the other PGMs (palladium, rhodium,
16
MARKET REVIEW > OTHER METALS
Europe Demand for palladium for autocatalysts fell in Europe by some 100 000 ounces, in line with a decline in sales of gasoline vehicles, which were more than 6% below levels reached the previous year. Although total light vehicle sales for the year were little changed, the continuing gains of diesel vehicles against gasoline-powered vehicles brought about the fall in sales. Japan Because of a need to replenish inventories, demand for palladium in autocatalysts rose by 4% in 2003, despite lower vehicle output. More stringent emissions legislation is necessitating higher loadings of palladium. Japanese original equipment manufacturers have traditionally used all three PGMs, and any major switching of technology in favour of one is not foreseen. Electronics Palladium demand in the electronic sector was depressed in 2001 and 2002 as a result of high component and metal inventories. These inventories have since declined and production is now being increased to meet demand. Manufacturers inventories of metal have shrunk to more realistic levels and capacity utilization has improved, resulting in an increase of palladium purchases. The largest area of palladium consumption in the electronic sector is in multi-layer ceramic capacitors (MLCC), in which a palladium/silver conductive electrode material is layered between insulating ceramic wafers. Rising prices at the beginning of 2000 led to a move towards base metal MLCC production. Nickel-based MLCCs have grown and now account for 63% of total output. This shift towards substitution, coupled with a trend towards miniaturization of components, translated into lower consumption of palladium in 2003. Palladium is used with silver to connect electronic components in hybrid integrated circuits (HIC). Thrifting strategies by component manufacturers have managed to reduce the use of palladium in HICs by up to 25%. Palladium is also used to plate connectors that link components in electronic circuitry. Although gold can be used in this application, the use of palladium requires less metal. Lead frames are used to connect integrated circuits to other electronic devices. Some manufacturers use palladium to plate the frames as an environmentally preferable
alternative to tin-lead solder. Gold can be used instead, but palladiums price advantage discourages this. Dental Palladium demand in dentistry rose by 6% in 2003, with the lower price encouraging its use in North America and Japan. Palladium is alloyed with other metals for use in dental restorations, such as crowns. In Japan, the government specifies the alloy used for subsidized dental work: kinpala, containing 20% palladium. Japan is the leading market for palladium dental alloys, and 2003 consumption was at 530 000 ounces, 25 000 ounces more than in 2002. Palladium demand increased in North America owing to the price differential with gold. In Europe, however, demand remained static because of a move to the greater use of base metal alloys and ceramics. Chemical Palladium-based catalysts are used in a vast array of bulk and speciality fine chemical production processes. Some of the bulk chemicals produced are acetaldehyde, hydrogen peroxide, oleochemicals, purified terephthalic acid (PTA), and vinyl acetate monomer. Growth in capacity for production of these chemicals in the Middle East has underpinned palladium demand recently; weaker demand for these chemicals in Japan and North America in 2003, however, caused overall demand to flatten out. Demand from the process catalyst sector rose steadily on the back of the expansion of PTA manufacturing capacity in Asia.
> Rhodium supply and demand

(000 oz)
2003 Supply South Africa Russia North America Others Total supply Demand Autocatalyst: gross recovery Chemical Electrical Glass Other Total demand Movements in stocks 520 100 21 14 655
2002 490 90 25 9 614
673 (120) 36 6 36 10 641 14
609 (99) 40 6 37 11 604 10
Rhodium
Rhodium demand was 6% higher in 2003, largely because of an increase in autocatalyst demand. Supply of rhodium grew at a greater rate because of expansions in PGM production in South Africa and an increase in shipments from Russia. The rhodium market was therefore in surplus to the extent of some 14 000 ounces for the year. Autocatalyst Demand for rhodium in the autocatalyst sector rose by 11% in 2003 on account of low pre-year inventory levels and more exacting emissions legislation. Furthermore, intense platinum and palladium thrifting programmes are in some cases achieved by the addition of more rhodium. In the USA, Tier II emission regulations will be phased in from 2004. Tier II requires significantly lower nitrous oxide emissions, necessitating an increase in rhodium on
Source: PGI
17
MARKET REVIEW > OTHER METALS
some vehicles. Programmes in the USA to reduce platinum and palladium content in catalysts have promoted the use of rhodium. In Japan, some auto-manufacturers are meeting legislation ahead of the 2005 deadline, which has boosted demand for rhodium in the region. In Europe, increased use of rhodium to facilitate platinum and palladium thrifting and the meeting of Euro IV standards was offset by a decline in the production of gasoline vehicles, and rhodium demand was relatively unchanged from the previous years figure. The largest growth region for rhodium was Asia. High growth in vehicle output, coupled with the widening of emissions legislation, caused a 14% increase in the use of rhodium in autocatalysts.
iridium in the manufacture of crucibles. Ruthenium and iridium have also been introduced into the fabrication of magnetic random access memory (MRAM) technology, used for electronic data storage. Supply of both ruthenium and iridium will rise as South African mining of the UG2 Reef expands, which contains higher quantities of ruthenium and iridium than the Merensky Reef.
Nickel
Market projections of deficits from 2003 to 2006 attracted relentless buying from investment funds seeking an alternative to underperforming equity markets in a weakening dollar environment. By September 2003, the price had surpassed the US$10 000/ton level after starting the year at US$7 100/ton. In 2003, support for the nickel price was driven by a strike at INCO in Canada and booming demand from Chinese stainless steel producers. Norilsk Nickels decision to sell off 60 000 tons of nickel, held on stockpile as collateral during the year, had no significant dampening effect on the price. Chinas stainless steel industry imported a net 35 800 tons of nickel in the year to July, an increase of 154% in imports against the same period in 2002. Chinas domestic nickel production meets only 60% of its demand and it looks to the rest of the world to fill the gap. However, the danger now lies in China looking to lower-content nickel stainless steel grades at current nickel prices, which were last seen 13 years ago. The outlook for the next few years remains positive, with demand likely to exceed supply. Not until 2006 will two new projects from INCO come on stream, these being the Voiseys Bay 50 000 tons per year mine in Canada and the Goro 60 000 tons per year mine in New Caledonia. In view of current underlying strength in market fundamentals, a firmer nickel price in 2004, above that of the 2003 average, appears likely.
> Ruthenium demand by application

(000 oz)
2003 Chemical Electrochemical Electronics Other Total demand 139 102 153 67 461
2002 101 100 140 63 404
Other Rhodium catalysts are used in the manufacture of bulk chemical intermediates, such as oxo-alcohols and acetic acid. Demand for rhodium in this sector declined in 2003 with a fall-off in the construction of new capacity. Other demand sectors, namely glass and nitric acid production, did not increase their consumption.
Ruthenium and iridium

The main applications for ruthenium and iridium are chemical, electrochemical, and electronic. Growth in ruthenium demand has increased significantly on account of its use in the manufacture of acetic acid. Production of acetic acid, which previously used a rhodium catalyst, is now increasingly dependent on a ruthenium-iridium catalyst (Cativa process), boosting demand for both metals. Rutheniums use in electronics also increased in 2003 following a component stock drawdown in 2002. Ruthenium and iridium are used to coat anodes in electrochemical processes, such as chlorine production. Increasing demand for high-purity crystals, especially lithium-based crystals used in cellular telephones, has boosted demand for
> Iridium demand by application

(000 oz)
2003 Chemical Electrochemical Electronics Other Total demand 20 23 26 27 96
2002 10 23 21 28 82
Right: Building the ore sorting plant as part of the Rustenburg UG2 Project. The plant optically sorts waste rock from reef. It increases plant capacity by removing waste rock from the plant feed
18
FINANCE REVIEW
The operating margin of our steady-state mines averaged 34%, down from 55% in 2002
FINANCE REVIEW
Above: Miree Leslie, a process mineralogist conducting research into the characterization of PGMs at the Anglo Platinum Research Centre (ARC)
Financial performance
The average rand/US dollar exchange rate achieved on sales for 2003 was 28,2% lower than for 2002. Had the average rand/US dollar exchange rate been the same as that for 2002, gross sales revenue would have been R5,72 billion higher than the R16,51 billion recorded. Cost of sales rose by 20,3% or R2,06 billion, mainly because of increased production from ramp-up operations and inflationary cost pressures. Headline earnings declined by 62,8% to R2,09 billion. Headline earnings per share decreased by 63,0% to 972 cents per share.
Cash smelting costs increased by R269,5 million, or 42,1%, to R910,1 million due to the commissioning of the Polokwane Smelter together with the dual operation of the old converters and acid plant in tandem with the new ACP Plant to provide dual processing capacity during the ramp-up of the new plant. Cash treatment and refining costs increased by 5,9%, from R752,0 million to R796,3 million. Purchases of metal in concentrate increased by R169,7 million to R291,6 million, owing mainly to higher purchases from the Modikwa Joint Venture. Amortization of operating assets rose by R382,8 million. Amortization of smelting assets increased by 122,0% or R69,8 million as a result of bringing the Polokwane Smelter and the ACP Plant into use in 2003. Amortization of mining assets increased by R293,5 million owing to higher amortization of Modikwa and the Rustenburg UG2 Project, which were only in use for part of 2002, and a general increase in amortization charges across the operations resulting from ongoing capital expenditure. The value of metals in inventory increased by R584,9 million during 2003 as a result of higher stocks and cost increases. Other net expenditure in 2003 amounted to R269,3 million, compared with R754,7 million in 2002. This primarily reflects lower foreign exchange losses resulting from a lower appreciation of the rand than in the previous period. Profits of R157,3 million realized on commodity contracts were largely offset by costs of R111,4 million incurred as a result of the slowdown of the rate of implementation of the expansion projects.
Financial results
Gross sales revenue decreased by R3,78 billion to R16,51 billion. The decrease was caused primarily by the stronger rand (R5,72 billion), partly offset by an increase in US dollar revenues for metals sold (R1,33 billion) and higher sales volumes (R0,61 billion). The net sales revenue per platinum ounce sold (basket price) decreased by 19,3%, from R8 690 in 2002 to R7 017 in 2003. Cost of sales rose by R2,06 billion to R12,19 billion. The cash on-mine costs at steady-state operations increased by R669,6 million, or 11,7%. This reflects a higher volume of ore mined, the 9,5% annual wage increase negotiated in 2002, the cost to equalize retirement fund contribution rates across the Group, and aboveinflation increases in steel costs. In addition, the Group raised the level of expenditure in key areas such as safety, training, and health. Cash on-mine costs at ramp-up operations increased by R988,1 million owing to higher production. Unit costs at these operations will remain relatively high as they ramp up to steady-state production.
20
FINANCE REVIEW
Net interest paid during the review period amounted to R236,9 million, compared with net interest received of R155,7 million in 2002, as a result of the Group moving into a borrowed position. Interest paid is net of R200,5 million of interest on borrowings capitalized to capital projects under construction.
the issue of convertible perpetual preference shares. All existing shareholders will have the opportunity to participate. Anglo American plc has agreed to reinvest its portion of the Groups final dividend and to take up its portion of the Groups rights issue.
Capital expenditure
Capital expenditure amounted to R7,42 billion (2002: R5,99 billion). Expenditure to maintain operations increased from R2,14 billion to R3,95 billion owing to increased expenditure on projects to replace production at steadystate mines, including the Rustenburg UG2 Project. Expansion capital expenditure amounted to R3,27 billion (2002: R3,85 billion).
Dividend
The Group is committed to large capital expenditures for several years in order to increase production volumes. During this period, cash generated by operations may vary considerably, depending on short-term metal prices and the rand/US dollar exchange rate. The declaration of cash dividends will continue to be considered by the Board in conjunction with an evaluation of current and future funding requirements, and will be adjusted to levels considered appropriate at the time of the declaration. Dividends will be paid out of cash generated from operations. Accordingly, the Board has declared a final cash dividend of 270 cents per ordinary share, with the option to reinvest the dividend in the companys equity. This brings the total dividend declared for 2003 to 640 cents per ordinary share.
Financial structure
During the year ended 31 December 2003, the Group moved from a net cash position of R1,44 billion to a net debt position of R6,92 billion, a net outflow of R8,36 billion. Cash generated by operations amounted to R3,36 billion (2002: R9,62 billion). Payments consisted mainly of capital expenditure totaling R7,42 billion (2002: R5,99 billion), dividends of R2,73 billion (2002: R5,36 billion), and taxation of R1,47 billion (2002: R3,30 billion) and interest of R0,20 billion was capitalized (2002: nil). Borrowings at the end of 2003 consist primarily of short-term debt facilities. A financing programme has been selected in conjunction with external financiers and with Anglo Platinums major shareholder, Anglo American plc. The proposed financing programme includes the raising of R4 billion through a rights issue and a dividend reinvestment election in respect of the final dividend for the 2003 financial year. The R4 billion is to be raised through
Treasury
Treasury provides analyses of market trends and makes strategic recommendations to the Group Risk Committee, which in turn submits recommendations to the Executive Committee. In addition, Treasury is responsible for the Groups cash management and banking relationships, which are developed and maintained with highly rated financial institutions.
21
FINANCE REVIEW
Right: Dorothy Segoe is a Strata Control Officer in the Rock Mechanics Department at Townlands shaft in Rustenburg. Her job involves checking the stability of ground to reduce rockfalls and rockbursts. Also in the picture are Paulos Ntoi, stope team leader, and Craig Burnham, assistant electrician
Information technology (IT) Information governance and security statement

The Board affirms its responsibility for the governance of IT within the Group. The IT governance model reflects both business and IT requirements, focusing on project management, security, asset management and policies, procedures, and standards. Special attention is being paid to the consequences of the new Electronic Communications Act and other legal requirements. The business of IT is conducted in accordance with international standards, such as those embodied in the IT Governance Institutes CobiT framework, and is reviewed from time to time to take into account organizational changes, international developments in the field of IT governance, and changing IT-related risk profiles.
critical corporate information is disseminated to all employees in a secure and controlled manner. Data warehouse: the use of the data warehouse was extended into disciplines such as Human Resources, Sales and Distribution, and Capital Projects, playing a critical role in the provision of timeous and accurate management information and enabling improved decisionmaking. e-Learning: a system, comprising virtual classrooms, computer webbased learning, and digital collaboration was developed in support of aspects such as health and safety, and adult education.
Information communications and technology

Anglo Platinums use of Quadrem (the mining, minerals, and metals electronic marketplace) grew as it continued to drive efficiencies and reduce costs. The Group also implemented Quadrems electronic tender tool, QUEST, for non-contract quotations. There was an ongoing joint effort with Quadrem to improve the quality of electronic catalogues. As these are developed, they are made available via SAPs Enterprise Buyer Professional (EBP) to end-users. The Group also utilized Quadrems reverse auction service to source items at significantly reduced prices. The implementation of the SAP system over the past few years has strongly supported the Groups expansion, and SAP was successfully deployed at all new sites. A continuous business improvement exercise is under way to further exploit the benefits that SAP can provide. Significant progress was made in the areas of material purchasing and production planning. SAP continued to perform reliably as the core commercial system for the Group and reached a satisfactory level of maturity in most functional areas. IT functions continued to be outsourced to some of the strongest IT service providers in South Africa. The selective outsource model was reviewed and validated by an international consulting group, Gartner, which is also assisting with redefinition of the associated management processes and contracts.
Information management
Knowledge management: Anglo Platinum improved the utilization of its intangible assets by formalizing a Knowledge Management approach. The long-term objective is to foster a culture of innovation. Learning from previous mistakes and the wider sharing of successes assists the Group in lowering the risks associated with the business and improving productivity. Executive information systems (EIS): in the interests of better decisionmaking, a comprehensive EIS has been designed and installed that provides a common database, accessible on-line to all relevant decision-makers, which provides the latest information on the performance of key parameters at Group and business unit levels. Document management: a document management system has been implemented to safeguard and manage Anglo Platinums important corporate and other operations-based documents. The system protects the organization from document-related risk and ensures compliance with increasingly stringent external regulation. Internet and intranet: the corporate intranet continues to be expanded as an important vehicle for ensuring that
22
TEN-YEAR FINANCIAL REVIEW
R million Gross sales revenue Commissions paid Net sales revenue Cost of sales Cash operating costs On-mine costs Purchases of metals in concentrate Smelting costs Treatment and refining costs Amortization of operating assets Increase/(decrease) in metal inventories Transfer (from)/to metal lease liability Other costs Gross profit on metal sales Other net (expenditure)/income Market development and promotional expenditure Operating profit Net interest (paid)/received Income from associates Profit before taxation Renewals and replacements Current taxation Deferred taxation Net profit Dividends and capitalization share awards Cash flows from operating activities Cash flows (used in)/from investing activities Capital expenditure Cash flows from/(used) in financing activities Cash and cash equivalents at year-end Metal inventories Net liquid (liabilities)/assets Shareholders equity Average prices achieved, US$/oz Platinum Palladium Rhodium Average R/US$ exchange rate achieved on sales
2003 16 508,6 (408,2) 16 100,4
2002 20 285,7 (733,0) 19 552,7
2001 18 690,9 (812,0) 17 878,9
2000 16 185,6 (648,6) 15 537,0
1999 8 794,9 (276,9) 8 518,0
1998 6 855,2 (232,3) 6 622,9
1997 5 313,0 (154,8) 5 158,2
1996 3 899,7 (198,5) 3 701,2
1995 3 654,1 (185,7) 3 468,4
1994 3 352,3 (172,7) 3 179,6
(12 190,5) (10 129,9) (8 262,9) (6 675,8) (5 338,7) (4 815,8) (4 311,0) (2 943,1) (2 707,9) (2 341,1) (11 025,1) (8 883,9) (7 044,5) (5 871,4) (5 056,3) (4 538,1) (4 032,3) (2 849,4) (2 630,5) (2 235,3) (9 027,1) (7 369,4) (5 948,6) (4 934,6) (4 187,5) (3 787,0) (3 267,1) (2 385,7) (2 179,2) (1 936,4) (291,6) (910,1) (796,3) (1 146,6) (121,9) (640,6) (752,0) (763,8) (441,9) (654,0) (498,8) (336,9) (599,9) (395,8) (330,7) (538,1) (304,5) (264,7) (486,4) (256,5) (269,6) (495,6) (208,5) (163,2) (300,5) (168,9) (282,4) (101,6) (197,3)
584,9
109,1
45,1
100,0
239,7
236,3
(125,4)
(70,5)
6,6
(22,4)
(603,7) 3 909,9 (269,3)
(591,3) 9 422,8 (754,7)
(674,5) 9 616,0 2 452,7
(508,6) 8 861,2 716,2
64,4 (282,0) 3 179,3 56,0
(29,1) (228,4) 1 807,1 159,4
226,8 (171,6) 847,2 23,0
(23,2) 758,1 1,8
(84,0) 760,5 0,3
(83,4) 838,5 0,7
(257,5) 3 383,1 (236,9) 35,0 3 181,2 449,5 639,8 2 091,9
(266,5) 8 401,6 155,7 181,6 8 738,9 1 764,1 1 234,8 5 740,0
(251,0) 11 817,7 340,3 170,6 12 328,6 3 800,8 508,0 8 019,8
(180,2) 9 397,2 295,6 157,6 9 850,4 2 319,3 613,1 6 918,0
(139,1) 3 096,2 120,6 3 216,8 566,8 45,5 2 604,5
(120,7) 1 845,8 220,8 2 066,6 470,0 176,6 1 420,0
(118,6) 751,6 231,7 983,3 158,9 108,5 715,9
(84,3) 675,6 45,8 721,4 258,7 87,8 21,7 353,2
(75,8) 685,0 40,4 725,4 213,2 63,0 50,3 398,9
(65,8) 773,4 29,9 803,3 303,9 110,8 82,7 305,9
2 731,6 1 607,0
5 362,9 6 277,9
6 087,4 9 969,9
2 457,4 7 945,7
1 013,3 2 972,6
654,7 1 438,6
356,0 849,0
289,2 580,1
269,4 557,2
206,8 671,8
(7 096,4) (5 196,3) (3 060,1) (1 623,6) (1 302,1) (1 186,1) (7 423,6) (5 994,1) (3 586,1) (1 919,7) (1 472,9) (1 460,0) 4 478,8 569,4 2 113,1 (6 950,0) 12 422,7 (5 288,0) (7 246,2) (2 413,8) 1 580,0 1 528,2* (140,6) 13 184,1 5 786,4 1 097,0* 2 992,6 12 521,6 6 122,8 1 142,1 4 774,8 11 714,1 (985,5) 2 214,5 1 042,1 1 668,9 7 196,3 (639,0) 1 529,5 802,4 1 283,8 5 551,9
848,0 (641,3) (940,2) 1 916,0 566,1 1 691,7 4 752,7
(317,3) (364,4) (33,2) 730,4 251,8 728,6 2 905,4
(286,9) (327,1) (100,5) 500,8 322,3 446,1 2 558,5
(464,9) (495,6) (200,0) 341,5 315,7 252,5 2 229,6
696 198 527
544 329 831
526 582 1 610
544 675 1 847
377 358 894
373 282 609
397 180 291
398 129 294
426 152 488
410 142 752
7,4055
10,3101
8,5434
6,9881
6,1576
5,5835
4,6393
4,2906
3,6601
3,5572
* Restated for change in accounting policy. Refer to Principal Accounting Policies: Change in Accounting Policy. Metal inventories for 2000 and prior have not been restated.
24
TEN-YEAR FINANCIAL REVIEW
2003 Ratio analysis Return on equity, % Net asset value as a % of market capitalization Gross profit margin, % After-tax operating profit as a % of average operating assets Effective tax rate, % Debt equity ratio Current ratio Rand revenue per platinum ounce sold Share performance Number of ordinary shares in issue (millions) Weighted average number of ordinary shares in issue (millions) Headline earnings per share (cents) Dividends per share (cents) Interim Final Special Market capitalization (R millions) Number of ordinary shares traded (millions) Highest price traded (cents) Lowest price traded (cents) Closing price (cents) Number of deals Value of deals (R millions) 215,1 972 640 370 270 62 789,1 97,4 35 900 19 300 29 150 73 484 26 756,3 215,4 20,2 34,2 1:1,7 0,5:1 7 017 19,8 23,7 16,3
2002
2001
2000
1999
1998
1997
1996
1995
1994
45,0
66,2
73,2
40,9
27,6
18,7
12,9
16,7
14,4
19,1 46,5
13,1 51,4
15,3 54,7
17,8 36,1
32,0 26,4
34,1 15,9
34,5 19,4
33,4 20,8
15,9 25,0
66,3 34,3 1:97 1,5:1 8 690
120,0 34,9 1,9:1 8 654
117,6 29,8 1:346 3,0:1 8 287
49,1 19,0 1:152 3,2:1 4 366
35,4 31,3 1:76 3,9:1 3 603
21,0 27,2 1:67 3,9:1 3 003
27,2 15,2 2,6:1 2 472
29,2 15,6 2,5:1 2 266
36,2 24,1 1,9:1 2 090
214,9
214,1
217,0
216,1
215,1
214,6
131,4
127,6
125,3
214,5 2 625 1 800 900 900 67 918,9 107,7 54 800 28 900 31 600 90 877 42 748,1
217,0 3 696 2 700 1 100 1 100 500 95 659,9 97,9 45 040 25 500 44 680 96 207 32 339,6
216,3 3 142 2 410 710 1 100 600 76 384,0 67,8 37 000 17 400 35 200 51 640 15 440,3
215,5 1 209 700 275 425 40 410,7 71,1 19 560 7 650 18 700 30 346 9 780,5
214,5 662 385 190 195 17 358,6 39,5 9 600 4 950 8 070 18 829 3 046,5
214,1 334 250 135 115 13 949,0 41,3 8 800 5 600 6 500 12 269 3 059,7
130,2 270 200 150 50 8 409,6 12,1 9 000 6 000 6 400 7 082 880,9
126,4 312 222 147 75 7 656,0 6,5 11 000 6 000 6 000 3 218 516,9
125,3 239 171 103 68 14 033,6 5,4 12 600 7 200 11 200 3 636 527,2
Financial years 1997 2003 are in accordance with International Financial Reporting Standards. Financial information published for financial years 1994 1996 is in accordance with South African GAAP and consists of the statistics for Anglo American Platinum Corporation Limited (formerly Rustenburg Platinum Holdings Limited), its subsidiaries, joint ventures, and associates. Net of 1 673 400 shares held by a wholly owned subsidiary
25
OPERATIONS REVIEW > FLOW CHART
Mining
Waste
Reef Reef Converter matte
Concentrators
Milling Flotation Filtration
Tailings
Smelters
Smelting Converting (ACP Plant)
Slag Sulphuric Acid
26
OPERATIONS REVIEW > FLOW CHART
Base Metals Refinery

Leaching Electro-winning Nickel
Copper Sodium sulphate
Ni / Cu / Co SO4 Concentrate
Cobalt sulphate
M C Plant
Magnetic concentrate leaching
Platinum
Palladium
Rhodium
Final concentrate
Ruthenium
Iridium
Precious Metals Refinery

Dissolve Processing Pure Metal Products Metallics Gold
27
OPERATIONS REVIEW > LOCATION OF GROUP OPERATIONS
We target to produce 2,9 million ounces of refined platinum in 2006
Above: Conveyor belt at the Rustenburg Sections UG2 Concentrator Plant
Location of Group Operations in South Africa

Northern Limb PPRust Mokopane Leplats
Polokwane
Limpopo Province Thabazimbi Northam Platinum Mine Union Section Bela Bela
Ga-Phasha Twickenham Platinum Mine Project Modikwa Platinum Mine
Amandelbult Section
Der Brochen Project
North West Province BRPM Styldrift Rustenburg Pretoria Kroondal PSA Pandora JV Rustenburg Section Witbank
0 25 Kilometres 50
Booysendal JV Gauteng Mpumalanga Province
> Legend
Bushveld Complex Upper Zone Main Zone Group interests Operation/Project Critical Zone Lower Zone
Right: Rosina Mahlatji prepares for work at PPRust where she is employed as a wheel-dozer operator
28
OPERATIONS REVIEW > INTRODUCTION INTRODUCTION Safety and health

The safety and health of employees remained managements highest concern during 2003. There was continuous emphasis on the Behaviour Based Safety (BBS) process embarked upon in 2002, which yielded a considerable improvement in the reported lost-time injury frequency rate (LTIFR) per 200 000 hours worked at managed operations, as well as a decline in the number of fatal injuries. The primary occupational risks are falls of ground, moving machinery, and materials handling. The level of safety-related expenditure per ton milled increased by some 20% at Anglo Platinums mines in 2003. As well as the BBS process, with its concomitant increase in training personnel, support and equipment standards were revised to improve the safety of employees. The Group LTIFR improved by 42%, from 1,2 in 2002 to 0,7 in 2003. All operations showed an improvement, with the exception of Waterval Smelter, (which had two fatal accidents). The fatal injury frequency rate (FIFR) per 200 000 man-hours was flat at 0,03. All operations improved their FIFR, except Waterval Smelter and Union Section. At Union Section, a promising downward trend in the LTIFR was undermined by five fatal accidents; all support standards were subsequently revised and training programmes were intensified. Despite the overall improvement in safety measures, the number of fatal accidents was only slightly lower in 2003 than in 2002. Tragically, 24 employees died at Anglo Platinums managed operations during 2003, and a further three employees died at Modikwa, a nonmanaged operation. The Board and management extend their condolences to the families and colleagues of those who have died and reaffirm the Groups commitment towards the goal of creating a fatality-free work environment. It is managements firm belief that continued focus on the BBS process will in due course deliver the mindset change required to reduce the number of injuries and fatal accidents at all operations. In 2004, there will be particular focus on falls of ground prevention training. At all the Groups operations, there is no significant risk of exposure to either asbestos or silica dusts, making them comparatively safe environments in which to work as far as the danger of lung disease is concerned. However, as an expanding mining company the Group finds occasional cases of lung disease acquired as a consequence of prior exposure, which, once detected, are monitored. Affected individuals are referred to national social security and workmens compensation bodies. In accordance with the changed compensation framework for noise-induced hearing loss (Compensation for Occupational Injuries and Disease Act, Instruction No. 171) all employees were base-lined for hearing by the statutory deadline of 16 November 2003. HIV/AIDS remains a significant operational challenge. Anglo Platinum is well equipped to manage the impact of this pandemic at both the individual and the Group level. The HIV/AIDS strategy is reviewed annually in terms of its effectiveness, and the HIV/AIDS programme has been extended to include the delivery of antiretroviral therapy (ART) to employees and, together with the support of the Stateled programmes, will provide employees with treatment options. In addition, steps are being taken to help prevent the development of resistance to medication, an increasingly important issue as more people take advantage of the availability of ART. A full discussion on safety and health performance and the various initiatives implemented by the Group may be found in the accompanying Sustainable Development Report.
Above: Crushing section at Rustenburg Section. Ben Ramatla, Senior Machinery Inspector at Rustenburg UG2 Plant, checking vibration levels and doing an oil analysis
Mining operations
Total platinum delivered to the smelters, including platinum purchased from the Modikwa joint venture partners, increased by 8%, an additional 175 000 ounces refined platinum at standard recoveries. The increased output is mainly attributable to the ramp-up operations: Rustenburg UG2, Modikwa and BRPM.
> Lost-time injury frequency rate (LTIFR)

Managed
2000 2001 2002 2003

1,24 0,73 2,55
3,75
Steady-state mines
The total volume from steady-state operations was in line with that for 2002 at 1,83 million equivalent refined platinum ounces. This is a notable achievement considering the ongoing replacement of Merensky ore with lowergrade UG2 ore at Rustenburg Section, Union Section, and Amandelbult Section. The proportion of UG2 tons milled increased from 28% of the total in 2002 to 32% in 2003.
> Fatal injury frequency rate (FIFR)

Managed
2000 2001 2002 2003

0,035 0,031 0,026
0,041
30
OPERATIONS REVIEW > INTRODUCTION
Production increased at Union Section and PPRust. Union Section reaped the benefits of the UG2 project commissioned in 2002, with additional production from the new declines and increased plant capacity from the extension to the UG2 Plant. As well as an increase in underground production Union Section used its available plant capacity to process opencast and tailings material and its equivalent refined platinum production rose by 41 500 ounces. PPRust successfully brought the Zwartfontein South Pit into production, resulting in improved mill feed grades and an increase in equivalent refined platinum production of 27 100 ounces. At Rustenburg Section, replacement of Merensky with UG2 production continued during 2003. Equivalent refined platinum production from steady-state shafts fell by 40 200 ounces to 571 300 ounces, reflecting a decrease in available Merensky reserves. Amandelbult focused on optimizing its new UG2 mechanized sections during 2003, and on improving its ore reserves. The mine milled 6 956 000 tons in 2003, slightly lower than in 2002. Production of equivalent refined platinum fell by 32 900 ounces to pre-2002 levels because of lower grades and recoveries resulting from increased UG2 opencast production, the substitution of Merensky with UG2 production, and a shift in Merensky production from No. 1 Shaft to No. 2 Shaft, which has a slightly lower grade. Leplats production in 2003 was steady at 105 000 equivalent refined platinum ounces. Cash on-mine costs per ton milled increased by 8,6% from R233 per ton in 2002 to R253 per ton in 2003. This is higher than official inflation because of high increases in the costs of labour and steel, as well as increased safety-related expenditure. The lower grade and recovery associated with higher UG2 and surface material resulted in a 12% increase in cash on-mine costs per equivalent refined platinum ounce. In order to minimize the rate of decline of the steady-state production base, all steady-state operations ensured that they maintained their immediately available ore reserves and invested the appropriate amount of working cost and capital
expenditure in maintaining infrastructure and replacing depleted mining reserves. Notwithstanding the strength of the rand against the US dollar during 2003, operating margins at steady-state operations were robust at an average of 34,2%. Combined, these operations generated 95,8% of the Groups operating contribution in 2003.
Ramp-up mines
Equivalent refined platinum production from ramp-up operations (including purchases from Modikwa) amounted to 529 500 ounces in 2003, compared with 349 900 ounces in 2002, an increase of 179 600 ounces (51,3%). BRPM steadily improved its underground production efficiencies and volumes during 2003, with the result that far less surface material was milled. The higher grade and recoveries associated with the underground ore largely offset higher mining costs. At the end of the year, most production measures were substantially in line with design parameters, and from 2004 the mine will be reported as a steady-state operation. Full PGM production volumes and optimum cost efficiency will be achieved through incremental grade improvement. The Rustenburg UG2 Project achieved a 51% increase in tons milled in 2003, and equivalent refined platinum ounces increased by 58,3% because of more tons at an improved grade at the Waterval mine. The new plant exceeded design throughput for the year. Despite the rapid build-up, production from this operation did not achieve expectations owing to limited face availability. Accelerated development plans and mined-grade enhancement initiatives are in place, and the ore-sorting plant is being commissioned to further improve the mill feed grade and make better use of the available milling capacity. Modikwa completed its first full year of production in 2003, having commenced operations in the second half of 2002. Square metre production increased steadily during the year despite difficult geological conditions, which hampered development rates and the creation of ore reserves. Accelerated development at the mine continues and the mine is expected to be close to design parameters by the end of 2004.
Above: Modikwa Platinum Mine
31
Processing operations
The key feature of the performance of process operations in 2003 was the significant increase in smelting capacity put in place with the commissioning of the Polokwane Smelter, the Anglo Platinum Converting Process (ACP) Plant, and the Waterval Slag-cleaning Furnace. Unfortunately, this capacity brings with it a higher level of operating costs that cannot be absorbed by current levels of throughput; consequently, unit costs of smelting will fall as increased volumes from the expansion programme are achieved. Nonetheless, the capacity is now in place and the new plants are operating well. Polokwane Smelter has already achieved design recoveries and the ACP is steadily increasing throughput while significantly reducing sulphur dioxide emission levels. The base metals and precious metals refineries both delivered high-quality technical performances in 2003, and contained costs well. The commissioning activity caused a temporary build-up of some 160 000 equivalent refined platinum ounces at the end of June, which was all released by the end of the year. Permanent lock-up of metal in 2003 due to the new plants in operation and higher throughput amounted to some 52 700 equivalent refined platinum ounces. The treatment of purchased concentrate has become an important part of the Process Divisions business. More material will be purchased in future as joint venture output rises. Combined with the increase in output from the Groups mines, this may result in temporary stock build-ups. During such periods, the Group will continue to consider toll-refining and the sale of metal in near-refined product. Such sale of metal or toll-refined product is incorporated in the definition of refined product. The processing operations are well positioned to meet the Groups requirements in 2004.
decision to slow down the implementation of a number of mining projects by between one and three years, and as a result refined platinum production is now targeted to reach 2,9 million ounces in 2006. Progress on the major projects under development is discussed on pages 45 to 50 of this Report. Two new projects announced during the year are the Pooling and Sharing Agreement (PSA) with Aquarius Platinum (South Africa), a midsized PGM operation, the holding company of which is listed on the Australian and the London Stock Exchanges, and the Unki project, being undertaken with Anglo American Corporation Zimbabwe Limited. In the PSA with Aquarius Platinum (South Africa), some mining assets were pooled with effect from November 2003 and the parties will share the proceeds. The project will produce an annual 280 000 ounces of refined platinum at full production in 2006. From 2005, Anglo Platinum will also treat concentrate from the venture. The Unki project entails the development of a mine on the Zimbabwean Great Dyke, which will, at peak production, produce 58 000 ounces of refined platinum per year.
Above: UG2 concentrator, Rustenburg Section
Human resources
Human resource development (HRD) remains a core component of the Groups strategy and the Groups human capital development needs are continually integrated within the business plan. During 2003, the Group focused on aligning HRD with Group strategy and optimizing the business alignment of the Anglo Platinum Development Centre (ADC). The outcomes-based education, training, and development methodology was initiated. The main external development was the preparation of the Department of Minerals and Energys requirements for conducting falls of ground competence assessments that are aligned with the National Unit Standards. The Group succeeded for the third successive year in reclaiming its full Skills Levy Fund remittance from the Mining Qualifications Authority. During 2003, Anglo Platinum developed a record number of graduates and trainees, a total of 520. The Group continued to enjoy labour stability through the maintenance of
Projects
Towards the end of the financial year, and in view of the continuing strength of the South African currency and lower rand prices for the Groups basket of metals sold, the Group undertook a critical review of its previously announced expansion plan to produce at a rate of 3,5 million ounces of refined platinum per year by the end of 2006. The outcome of this review was a
32
positive relationships with its unions and associations.
Capital expenditure
Capital expenditure for the year rose by 23,9% to R7,42 billion. Of this, R3,95 billion was spent on maintaining and replacing production, R3,27 billion was spent on expansion projects, and interest of R200,5 million was capitalized.
Outlook for 2004

Anglo Platinums refined platinum production, net of an expected increase in the refining pipeline, is planned to increase to approximately 2,45 million ounces in 2004. At steady-state operations, every effort will be made to optimize existing available Merensky in preference to UG2 ore reserves, which should result in a slower rate of replacement of Merensky by UG2 production than originally planned.
Mining cost inflation over the last few years has been considerably higher than core inflation. The cumulative effect of this, in combination with reduced revenues caused by the strong rand and lower overall PGM prices, is that operating margins have been severely eroded. Clearly the Group cannot continue to accept cost increases greater than the rate of inflation and consequently management has initiated a Group-wide cost-cutting and restructuring initiative. The short-term target of this initiative is to restrict unit cash cost increases in 2004 to the official consumer price inflation rate. In light of current market circumstances and in line with the revised expansion programme, capital expenditure will continue to be deferred without adversely affecting planned production levels.
Below: The concentrator plant at Amandelbult Section
33
OPERATIONS REVIEW > OVERVIEW: MINING > RUSTENBURG SECTION OVERVIEW: MINING Rustenburg Section
To facilitate more effective and direct management, Rustenburg Section has been split into three separate mining units: the West Mine comprising Frank, Townlands, and Paardekraal shafts; the East Mine comprising Turffontein, Bleskop, and Brakspruit shafts; and the Waterval Mine. The Rustenburg UG2 Project is expanding UG2 mining at Frank, Townlands, Paardekraal, Bleskop, and Brakspruit shafts, as well as the Waterval Mine.
Above: UG2 concentrator plant, Rustenburg Section
Costs
The cash on-mine cost per ton milled for the steady-state operations increased by 6,8%, primarily because of the benefit of the higher volumes achieved on the West Mine. The cash on-mine cost per equivalent refined platinum ounce increased by 6,0%.
Capital expenditure
Capital expenditure, at R1,55 billion, was higher than in 2002, with R1,43 billion of ongoing and replacement expenditure (including Phase 2 of the Rustenburg UG2 Project) and R112,7 million of expansion capital expenditure on Phase 1 of the Rustenburg UG2 Project.
Production
Replacement of Merensky with UG2 production continued during 2003. Equivalent refined platinum production from steady-state shafts fell by 40 200 ounces to 571 300 ounces, reflecting a decrease in available Merensky reserves. The Rustenburg UG2 Project achieved a 51% increase in tons milled, and equivalent refined platinum ounces increased by 58% owing to higher tons at an improved grade at the Waterval Mine. The new plant exceeded design throughput for the year and the ore-sorting plant is being commissioned to improve head grades and to make better use of the available milling capacity.
Outlook
Production will rise in 2004 with additional output from the UG2 Project, partly offset by lower Merensky production. Every effort will be made to optimize available Merensky in preference to UG2 reserves, which should result in a slowdown of the rate of replacement of Merensky with UG2 production. As part of a Group wide initiative, there will be a particular focus on cost control and restructuring.
> LTIFR
2000 2001 2002 2003
0,83 1,32 1,36 3,03
> FIFR
2000 2001 2002 2003
0,03 0,04 0,04 0,05
Rustenburg Section
> Equivalent refined platinum production

Steady-state Ramp-up 625 690 612 571 161
Boschpoort 284 JQ Reinkoyalskraal 278 JQ Wildebeestfontein 274 JQ Elandsheuvel 282 JQ Boschfontein 268 JQ Beestkraal 290 JQ Klipgat 281 JQ Paardekraal 279 JQ Turffontein 302 JQ Hoedspruit 298 JQ Rustenburg Town & Townlands 272 JQ
(000 oz)
2000 2001 2002 2003
255
> Legend
Mining Licence
Townlands shaft
Waterval 307 JQ
Bleskop Shaft Boschfontein Incline shaft Brakspruit shaft Central Deep shaft Frank No 2 shaft Frank shaft Paardekraal shaft
Turffontein shaft Waterval shaft
Waterval 303 JQ
Klipfontein 300 JQ
Merensky Reef Outcrop UG2 Reef Outcrop Merensky Reef Workings UG2 Reef Workings
0 2 Kilometres 4 Brakspruit 299 JQ Kroondal 304 JQ
34
OPERATIONS REVIEW > OVERVIEW: MINING > AMANDELBULT SECTION
Amandelbult Section Production

Amandelbult focused on optimizing its new UG2 mechanized sections during 2003, and on improving its ore reserves. The mine milled 6 956 000 tons, slightly less than in 2002. Production of equivalent refined platinum fell by 32 900 ounces to pre-2002 levels because of lower grades and recoveries resulting from increased UG2 opencast production, the substitution of UG2 for Merensky production, and a shift in Merensky production from No. 1 Shaft to No. 2 Shaft, which has a slightly lower grade. Difficult geology led to lower production from the Merensky operations during the year at No. 2 Shaft, owing to the lack of mineable face length and to poor ground conditions. The shortfall was offset by the mining of additional conventional UG2 ore at Elandskuil, the optimization of opencast grade control, and additional UG2 opencast production.
In addition to above-inflation increases in the cost of labour and steel, and higher safety-related expenditure, Amandelbult incurred extra contracting mining costs to produce tons to replace the shortfall in Merensky production. The lower grade and recovery associated with the different ore mix resulted in Amandelbult producing fewer platinum ounces in relation to tons milled, leading to an 18% increase in the cash on-mine cost per equivalent refined platinum ounce. At R2 607 per ounce, however, the unit cost was still the lowest in the Group.
Above: Amandelbult Section
Capital expenditure
Capital expenditure for the year amounted to R435 million, allocated in its entirety to maintaining and replacing production.
Outlook
Sound progress has been made on issues which affected Merensky production in 2003. Production is expected to be constant in 2004. Costs will be tightly managed in line with the Groups objective of keeping unit cost increases at the official consumer price inflation rate in 2004.
> LTIFR
2000 2001 2002 2003
0,96 2,87 6,69 7,51
Costs
Cash on-mine costs per ton milled rose by 14,2% in 2003 off an extremely low base.
> FIFR
2000 2001 2002
0,02 0,02 0,04 0,05
Amandelbult Section
Haakdoorndrift 374 KQ Langpan 371 KQ
2003

(000 oz)
2000
Elandskuil 378 KQ Zwartkop 369 KQ Middellaagte 382 KQ Grootkuil 376 KQ
567 654 678 645
2001 2002 2003
Vlakpoort 388 KQ
Schilpadsnest 385 KQ
Amandelbult 383 KQ
Middeldrift 379 KQ
Vlaknek 392 KQ
Zondereinde 384 KQ
Elandsfontein 386 KQ Moddergat 389 KQ Kopje Alleen 422 KQ Oskuil 390 KQ Goevernements Plaats 417 KQ Kaalvlakte 516 KQ Vlakplaats 427 KQ
> Legend
Mining Licence No 1 shaft
De Deur 419 KQ
Merensky Reef Outcrop UG2 Reef Outcrop Merensky Reef Workings UG2 Reef Workings
No 2 shaft
Kilometres
35
OPERATIONS REVIEW > OVERVIEW: MINING > UNION SECTION
Union Section Production

Union Section had the benefit of additional concentrator capacity in 2003, and the new UG2 plant module, which was commissioned in 2002, was in use for the whole of 2003. The new plant processed fresh underground ore, including additional production from the mechanized declines, while spare capacity at Ivan Plant processed opencast UG2 ore and tailings. Production rose by 28,9% to 5 882 000 tons milled, while equivalent refined platinum ounces rose by 15,0%, the additional tons being offset by lower grades and recoveries associated with the opencast and tailings material. Notwithstanding the overall decrease in grade and recovery, underground grades improved in comparison to 2002 grades because of better grade control and the addition of production from the mechanized declines. Considering the overall mix of material, recovery losses were well contained by improvements in the metallurgical cycle. The mine successfully converted from the five-day week work cycle, which had been implemented on a trial basis, back to the eleven-shift-per-fortnight cycle.
Costs
Cash on-mine costs per ton milled fell because of the relatively high volume of low-cost surface material processed. The cash on-mine cost per equivalent refined platinum ounce however increased by 9,2%, mainly as a result of the lower grades associated with the surface material.
Capital expenditure
Capital expenditure for the year amounted to R606 million. This all related to maintaining and replacing current production capacity, and included the continued development of the new declines that are part of the UG2 Project.
> LTIFR
2000 2001 2002 2003
1,31 1,26 3,48 3,17
Outlook
With good quality reserves available to replace declining production from Richard and Spud shafts, and sound infrastructure across the mine, Union Section is well positioned to maintain its current production levels in 2004. Cost control will be given top priority, and the mine intends to keep unit cost increases at or below the official consumer price inflation rate in 2004.
> FIFR
2000 2001 2002 2003
0,02 0,04 0,03 0,04

(000 oz)
2000 2001 2002 2003

270
291
Union Section
Oskuil 390 KQ Kameelhoek 408 KQ Kaalvlakte 516 KQ
318
277
Nooitgedacht 406 KQ
Grootkuil 409 KQ Varkensvlei 403 KQ Zwartklip 405 KQ Turfbult 404 KQ
Leeuwkopje 415 KQ
Wildebeestlaagte 411 KQ
Spitzkop 410 KQ
> Legend
Current Mining Licence Proposed Mining Licence Ivan shaft Richard shaft 22 Vertical shaft Merensky Reef Workings UG2 Reef Workings Spud shaft Merensky Reef Outcrop UG2 Reef Outcrop
Haakdoorn 6 JQ
Syferkuil 9 JQ
Nooitgedacht 11 JQ
Haakdoornfontein 12 JQ
Kilometres
36
OPERATIONS REVIEW > OVERVIEW: MINING > PPRUST
Potgietersrust Platinums (PPRust) Production

PPRusts successful year was built on its ability to bring the Zwartfontein South Pit into production in good time. This gave access to higher-grade ore, which enabled the overall head grade to be improved substantially. Material from the Sandsloot and Zwartfontein South pits was milled separately in batches to enable plantoperating parameters to be optimized in relation to the characteristics of each orebody. Plant availability was improved through the better integration of business systems, and throughput increased by 2,1% to 4 465 000 tons milled. This increase, combined with improved grades, resulted in the production of an additional 27 100 equivalent refined platinum ounces, an increase of 16,5%.
and the cash on-mine cost per equivalent refined platinum ounce rose by 8,9%. PPRust experienced higher-than-coreinflation labour cost increases, and also incurred a higher level of safety-related expenditure.
Capital expenditure
Capital expenditure for the year of R338,7 million included the cost of the establishment of the Zwartfontein South Pit, the replacement of some haul trucks and pit mining equipment, and the establishment of infrastructure to ensure the long-term sustainable supply of water.
Above: The Sandsloot Pit at PPRust
> LTIFR
Outlook
PPRust will continue to mine both the Sandsloot and Zwartfontein South pits in 2004, and production of equivalent refined platinum ounces is expected to be similar to the 2003 level. Costs will come under the same detailed review as at the other operations, with the objective of keeping unit cost increases at or below official consumer price inflation.
2000 2001 2002 2003 2000 2001 2002 2003
1,05 0,68 0,34 1,65
Costs
Cash on-mine costs per ton milled increased by 24,5% because of the cost incurred in opening up the Zwartfontein South Pit. However, the higher-grade material somewhat negated this increase
> FIFR
0,00 0,00 0,00 0,04

(000 oz)
Potgietersrust Platinums Limited (PPRust)

Witrivier 777 LR Drenthe 778 LR Utrecht 776 LR
2000 2001 2002 2003

165
203 211
192
Overysel 815 LR Moordkopje 813 LR Blinkwater 820 LR
Zwartfontein 818 LR
Zwartfontein 814 LR Vaalkop 819 LR Sandsloot 236 KR Holmesleigh 1 KS Gezond 235 KR Tweefontein 238 KR Knapdaar 234 KR Rietfontein 2 KS Rietfontein 240 KR Hoogedoorns 233 KR
Commandodrift 228 KR
Bultong Fontein 239 KR
> Legend
Mining Licence Overysel Central* Zwartfontein North* Tweefontein North* Tweefontein Hill* Platreef Platreef Pit * Future Pits
0
Turfspruit 241 KR
Zwartfontein South* Sandsloot Pit
Kilometres
37
OPERATIONS REVIEW > OVERVIEW: MINING > LEPLATS
Lebowa Platinum Mines (Leplats) Production

Leplats continued to operate the UG2 and Merensky production areas at capacity during 2003, and focused heavily on development to maintain future operating flexibility in the face of complex geological conditions. Tons milled were almost the same as in 2003, and equivalent refined platinum production was maintained at 105 000 ounces.
Above: Surface infrastructure at Leplats
Capital expenditure
Capital expenditure to maintain and replace production amounted to R267 million in 2003.
Outlook
Equivalent refined platinum production will be maintained in 2004. The extensive development of new mining areas will provide the opportunity of milling additional tons if plant capacity is available. Controlling unit costs will be a high focus area in 2004 and Leplats will continue to address the challenge of matching its fixedcost base with its relatively low production volume.
Costs
Cash on-mine costs per ton milled increased by 14,7%, and the cash on-mine cost per equivalent refined platinum ounce increased by 13,9%. This reflects the cost of additional expenditure incurred to maintain the level of ore reserves, increased costs of labour and steel, and higher safety-related expenditure.
> LTIFR
2000 2001 2002 2003
0,53 0,37 1,12 2,76
> FIFR
2000 2001 2002 2003
0,04 0,03 0,06 0,07

(000 oz)
2000 2001 2002 2003
73 90 105 105
Lebowa Platinum Mines (Leplats)

Grootplaats 406 KS Scheiding 407 KS Koedoeskop 408 KS Jagdlust 418 KS
Leeuwkop 425 KS Tigerpoort 426 KS
Zeekoegat 421 KS Diamand 422 KS
Wintersveld 417 KS Moeijelyk 412 KS
Diepsloot 4
Middelpunt 420 KS Blauwbloemetjeskloof 428 KS Umkoanestad 419 KS Zwartkoppies 413 KS
Schoonoord 462 KS
Brakfontein 464 KS
> Legend
Mining Licence Vertical shaft Middlepunt Adits UM1 Incline UM2 Incline Merensky Reef Outcrop UG2 Reef Outcrop Merensky Reef Workings UG2 Reef Workings
0 1 2 Indie 474 KS
Klipfontein 465 KS Himalaya 468 KS
Zwitserland 473 KS
Paschaskraal 466 KS Avoca 472 KS De Kamp 507 KS
Kilometres
38
OPERATIONS REVIEW > OVERVIEW: MINING > BRPM
Bafokeng-Rasimone Platinum Mine (BRPM) Production

BRPMs main production focus in 2003 was to complete the ramp-up of underground mining efficiencies and volumes at the North and South shafts. This was largely achieved, and tons broken increased by 24,2%. This resulted in a significant increase in the volume of underground material milled, and there was a commensurate reduction in the volume of surface material milled. The plant again operated at capacity for the year, milling 2 481 000 tons, but the improved grade and associated recovery from increased underground production resulted in the production of an additional 22 000 equivalent refined platinum ounces. Total equivalent refined platinum production of 183 500 ounces was 13,6% higher than in 2002.
However, the higher grade and recovery achieved from the underground material, combined with improving mining efficiencies, largely offset the additional costs. Cash on-mine costs per equivalent refined platinum ounce rose by 1,7%.
Capital expenditure
Capital expenditure of R298 million was incurred in 2003, mainly on extensions to the shaft complex and ongoing development.
Outlook
Most production measures were in line with design parameters and, from 2004, the mine will be reported as a steady-state operation, notwithstanding that full PGM production volume and optimum cost efficiency will be achieved via incremental grade improvement. Equivalent refined platinum production is expected to exceed 200 000 ounces in 2004. The ongoing focus on underground mining practices and productivity is expected to result in improved cost efficiency in 2004, and unit cost increases should not exceed official consumer price inflation.
Above: Bafokeng-Rasimone Platinum Mine
> LTIFR
2000 2001 2002 2003
0,84 0,59 0,58 0,29
Costs
Cash on-mine costs per ton milled increased by 15,8% because of the replacement of cheap surface operations with more expensive underground mining.
> FIFR
2000 2001 2002 2003
0,01 0,00 0,03 0,05
Bafokeng-Rasimone Platinum Mine (BRPM)

Doornhoek 91 JQ Ledig 93 JQ Waagfontein 89 JQ Rhenosterfontein 86 JQ
(000 oz)
2000 2001 2002 2003
112 126 162 184
Hartebeestspruit 88 JQ Styldrift 90 JQ
Frischgewaagd 96 JQ Goedgedacht 110 JQ Onderstepoort 98 JQ Doornspruit 109 JQ Boschkoppie 104 JQ
Elandsfontein 102 JQ
Klein Doornspruit 108 JQ
> Legend
Mining Licence North Incline South Incline Merensky Reef Outcrop UG2 Reef Outcrop Merenksy Reef Pit UG2 Reef Pit Merensky Reef Workings
Boschhoek 103 JQ Uitvalgrond 105 JQ
Doornspruit 106 JQ
1 Kilometres
D-Mine Incline South 40 Incline
39
OPERATIONS REVIEW > OVERVIEW: MINING > MODIKWA PLATINUM MINE
Modikwa Platinum Mine (non-managed) Production

Notwithstanding the performance in relation to the steep ramp-up planned for 2003, tons milled and equivalent refined platinum ounces increased substantially in comparison with 2002. Equivalent refined platinum production in 2003 was 91 000 ounces, compared with 27 300 ounces in 2002. All of this was delivered to Anglo Platinum for smelting and refining, with 50% attributable to Anglo Platinum and the other 50% purchased from the other joint venture partner, a consortium led by African Rainbow Minerals. Given the relatively low ore reserve position, certain adverse geological conditions and a slow build-up in crew efficiencies resulted in lower-thanexpected tons and grade. In addition, significant additional costs were incurred to replace reserves lost owing to these geological factors. Sub-optimal crew efficiencies were addressed by a sharp focus on development
and performance management systems, with appropriate training programmes. The introduction in the last quarter of 2003 of additional experienced crews has proved beneficial.
Costs
Unit costs for 2003 were high because of ramp-up production volumes and grade, as well as the costs incurred to replace ore reserves.
Above: Modikwa concentrator
Capital expenditure
Capital expenditure of R219 million in 2003 included the completion of the initial project scope.
> LTIFR
2001 2002 2003
0,28 0,41 0,77
Outlook
Production will increase significantly in 2004, and by the end of the year Modikwa is expected to be close to design parameters in terms of efficiency and throughput, with a monthly production rate equivalent to the stated capacity of 162 000 refined platinum ounces. As volumes and efficiencies improve, unit costs will come down.
> FIFR
2001 2002 2003
0,00 0,02 0,04

(000 oz)
2002 2003
27 91
Modikwa Platinum Mine

Winaarshoek 250 KT Groothoek 256 KT Driekop 253 KT
De Kom 252 KT Zwemkloof 283 KT Maandagshoek 254 KT Grootvygenboom 284 KT Garatouw 282 KT Mooihoek 256 KT
Genokakop 285 KT
Hendriksplaats 281 KT
Hoogstepunt 290 KT Onverwacht 292 KT Hoepakrantz 291 KT
> Legend
Mining Licence No 2 Winze North shaft decline Mid shaft decline South shaft decline Onverwacht Hill (Adits) Merensky Reef Outcrop UG2 Reef Outcrop UG2 Reef Workings
Houtbosch 323 KT
Doornbosch 294 KT
Winterveld 293 KT Soupiana 325 KT Nooitverwacht 324 KT Eerste Geluk 322 KT Goudmyn 337 KT 0 1 2 4
Kilometres
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OPERATIONS REVIEW > OVERVIEW: PROCESSING > WATERVAL SMELTER OVERVIEW: PROCESSING Waterval Smelter Production
Waterval Smelter processes concentrate from the mines, as well as the furnace matte produced by the Mortimer and Polokwane smelters. 2003 saw the simultaneous commissioning of the ACP Plant and Slag-cleaning Furnace and the continued operation of existing plants. In the context of this highly challenging situation, Waterval Smelter performed well. Commissioning activity resulted in a temporary build-up of metal in the pipeline in the middle of the year. A focus on establishing optimum operating practices for the new equipment yielded quick results, and by year-end all excess stocks had been cleared. The ACP Plant ramp-up proceeded smoothly and it will achieve full throughput in the second half of 2004. A partial rebuild was carried out on the Pierce-Smith converters and the old acid plant was refurbished. These plants will be retained on standby until completion of the second ACP converter in 2006. beginning of 2003 and the entire cost of running the new facility was borne on working costs, while the old Pierce-Smith converters and acid plant were run in tandem with the ACP Plant for the full year. The contract to use an Xstrata furnace to process furnace slag was terminated at the beginning of the year, and this cost was replaced with that of running the new Slagcleaning Furnace. The net effect was that total cash operating costs rose by R130,6 million, or 23,8%. Platinum ounces produced by the smelter increased by 9,1%, resulting in a cash unit cost increase of 13,5%.
Capital expenditure
Capital expenditure totalled R300 million in the year, of which R78 million was for ongoing items and R222 million for expansion, including costs associated with the ACP Plant and Slag-cleaning Furnace.
2000 2001 2002 2003
> LTIFR
0,61 0,24 0,17 0,27
Outlook
2004 promises to be another challenging year. The optimization of the newly commissioned plants will be the main focus area, enabling the Waterval Smelter to achieve its sulphur dioxide emission reduction targets and to process the increased volume of mined and purchased ounces.
> FIFR
2000 2001 2002 2003
0,00 0,11 0,00 0,04
Costs
The ACP Plant moved from a commissioning to an operating phase at the
Left: The ACP Plant and acid plant at Waterval Smelter will contribute to the reduction of SO2 emissions from the smelter
41
OPERATIONS REVIEW > OVERVIEW: PROCESSING > POLOKWANE SMELTER
Polokwane Smelter Production

The Polokwane Smelter was successfully commissioned in March 2003, ahead of schedule and within budget. At full capacity of 650 000 tons per year, the modern Polokwane Smelter will process concentrate from existing and new mines on the Eastern Limb, as well as provide some backup capability for the Waterval and Mortimer smelting processes.
Above and below: The Polokwane Smelter, which was commissioned successfully ahead of schedule in 2003, and will make a significant contribution to the Groups overall processing performance
total costs for the year were slightly higher than anticipated. Unit costs per ton treated were satisfactory and with the build-up of volumes Polokwane Smelter should make a significant contribution to the improvement of the Groups overall processing performance.
Capital expenditure
Total capital expenditure for the year amounted to R493 million, primarily consisting of expenditure associated with the initial project vote.
The Smelter performed at levels that exceeded expectations, at times running at design throughput levels in the ramp-up stage and with very good technical performance. The furnace is able to treat high chrome-bearing concentrate from the UG2 Reef both efficiently and effectively.
Outlook
In 2004, the Smelter is expected to perform at the same levels as those achieved in the second half of 2003, in line with the build-up of Eastern Limb mining output. However, its capacity is far in excess of the volumes it will receive in 2004 and optimum cost efficiency will therefore not yet be achieved.
> LTIFR
2003
0,75
Costs
With the earlier-than-expected commissioning (originally planned for May 2003),
> FIFR
2003
0,00
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OPERATIONS REVIEW > OVERVIEW: PROCESSING > RBMR
Rustenburg Base Metal Refiners (RBMR) Production

The two metallurgical processing plants the magnetic concentration plant (MC Plant) and the base metal refinery plant (BMR) performed exceptionally well over the year, achieving record throughput levels. Base metal output (nickel, copper, and cobalt sulphate) exceeded the BMRs design capacity, resulting also in the production of nickel cathode being 13% higher than the levels achieved in 2002. Efficiencies and productivity also improved over the year, measured in terms of tons of base metals produced per employee. The de-bottlenecking of the MC Plant to ease the treatment of expanded mine production proceeded according to schedule.
Capital expenditure
In line with the expansion review announced in 2003, the refining strategy was amended, resulting in the deferral and reduction of the capital expenditure associated with further de-bottlenecking of the BMR. This resulted in an allocation of only R83 million to capital expenditure, lower than the figure of R273 million projected in 2002. Of this amount, R28 million was committed to ongoing capital items and R55 million to expansion projects.
> LTIFR
2000 2001 2002 2003
0,62 0,59 0,30 0,07
Outlook
Based on its good performance in 2003, RBMR is well geared to meet the challenges of 2004. The appropriate infrastructure, management systems, employee relations, and motivation levels now in place should ensure continuous improvement in performance over 2003.
> FIFR
2000 2001 2002 2003
0,00 0,00 0,00 0,07
Costs
Overall cost control was well maintained, with the unit cost falling by some 4,8% in 2003.
Below: Rustenburg Base Metal Refiners
43
OPERATIONS REVIEW > OVERVIEW: PROCESSING > PMR
Precious Metals Refiners (PMR) Production

Located in Rustenburg, the PMR remains in terms of size, technology, and recoveries the world leader in the field of PGM refining. The PMR services all of the Groups mines and joint ventures. Final concentrate from the MC Plant and metallic concentrates from four of the Groups concentrators are refined to high degrees of purity, and are fabricated into various forms according to customer specifications.
Above: Precious Metals Refiners (PMR) in Rustenburg services the Groups mines and joint ventures
platinum and slightly higher cash costs per PGM ounce.
Capital expenditure
The capital expenditure programme at the PMR absorbed a total of R633 million, of which R536 million was associated with the expansion, notably the Gold Solvent Extraction and Insoluble Metals plants.
Outlook
The PMR will complete its final debottlenecking phase by the end of 2005. Capacity will be adequate for all the Groups anticipated PGM refining requirements.
Costs
Costs were well controlled, with only a marginal increase in unit costs per ounce of
Right: The lime cake handling facility at PMR
> LTIFR
2000 2001 2002 2003
0,00 0,12 1,03 0,54
> FIFR
2000 2001 2002 2003
0,00 0,00 0,00 0,00
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OPERATIONS REVIEW > OVERVIEW: PROJECTS OVERVIEW: PROJECTS

The Projects Division, established two years ago, is responsible for the feasibility study, evaluation, and execution phases of major expansion and replacement projects required to meet the Groups production targets. During the second half of 2003, the Group reviewed all aspects of its strategy and expansion programme against the backdrop of unfavourable economic circumstances. The impact of the review on Anglo Platinums project suite was to slow down the implementation of a number of mining projects by between one and three years. Ore treatment, smelting, and refining projects will continue to be expanded commensurately with the build-up in the mining profile. In terms of announced projects, the BRPM and Modikwa ramp-up operations were unaffected. On the Eastern Limb of the Bushveld Complex, the development of the Twickenham and Der Brochen projects was slowed down. Anglo Platinum remains in discussion with its BEE partners in the Ga-Phasha PGM Project and Booysendal Joint Venture and will complete bankable feasibility studies in due course, following which announcements on each project will be made. On the Western Limb of the Bushveld Complex, the Board approved the PSA with Aquarius Platinum (South Africa). This project continues as originally planned. However, the Pandora Project implementation will be slowed down in consultation with the Groups partners. The Rustenburg UG2 Project, which sources ore from a combination of new declines and existing shafts, will be optimized to include the higher platinum-content Merensky ore rather than solely the originally envisaged UG2 Reef. The concentrators will be modified accordingly. The Western Limb Tailings Retreatment Project is ahead of schedule, with its Phase 1 commissioning in progress; however, the second phase has been slowed down.
> LTIFR
2002 2003
0,24 0,33
> FIFR
2002 2003
0,00 0,02
Mining opportunities will continue to be evaluated, both for the purposes of Group expansion and replacement of depleted reserves at existing operations. Where projects have been slowed down, the additional time will be utilized to further improve knowledge of the orebody and optimize mine design. In addition, de-bottlenecking of processing capacity will continue and further processing project announcements will be made in due course.
Below: The concentrator plant at Modikwa. Modikwa completed its first full year of production in 2003
45
OPERATIONS REVIEW > OVERVIEW: PROJECTS > MINING PROJECTS IN DEVELOPMENT
During the course of the year, the Modikwa JV Project and components of the Rustenburg UG2 Project were successfully handed over to Operations, and are reported on in the Overview: mining.
shafts, together with two new green-field decline mine clusters at Boschfontein. Included in this project was the expansion of the existing Waterval UG2 Concentrator from 400 000 to 800 000 tons per month. During the year under review, portal excavations commenced at the new Boschfontein declines. At the two brownfield shafts, development access to the UG2 Reef proceeded ahead of schedule and stoping operations commenced. The strategic review proposed several steps to minimize the negative impact of the prevailing economic climate. Consequently, the Boschfontein East portion of the project will be slowed down. The Boschfontein West Mine was modified to utilize some of the pre-existing Merensky Reef infrastructure in place of two of the three originally proposed declines in the cluster. The proportion of UG2 Reef that was to be accessed from Frank and Townlands shafts was reduced in favour of Merensky Reef. Mining methods at these shafts were adjusted with a view to maximizing head grade and extraction ratios. The need for the 400 000 tons per month concentrator expansion was investigated in light of a revised holistic exploitation strategy for the complete Rustenburg mineable resource. Further debottlenecking of the very successful existing plant and its possible upgrading may make the additional plant unnecessary. These studies will be finalized early in 2004 and could result in both a capital and a production change to the announced scope of the project.
Safety
Great emphasis was placed on safety in all project execution activities, inherently a high-risk area. There were no attributable fatalities and a total of 33 LTIs for the year, resulting in a low LTIFR of 0,33 per 200 000 man-hours, compared with 0,24 in 2002. The data includes both surface and underground construction activities. The Group and its contracting companies worked in partnership throughout the year to achieve a strong emphasis on safety.
Mining projects in development Rustenburg UG2 Project

Below: Flotation cells at the Modikwa concentrator plant
The Group announced Phase 2 of the Rustenburg UG2 Project late in 2002. The original scope incorporated brown-field developments at Frank and Townlands
Styldrift (BRPM Expansion), joint venture with Royal Bafokeng Resources (RBR)
Preliminary design and project engineering work progressed well in 2003, including analysis of the three-dimensional seismic survey conducted in late 2002. These results, together with the continuing drilling programme, improved the structural geological model of the region. This aids the evaluation of the Merensky Reef mine layout and shaft-positioning options, allowing account to be taken of the synergies available from the combined joint venture properties. The finalization of all outstanding conditions precedent to the JV is expected to be concluded early in 2004.
46
Twickenham Platinum Mine

The agreement reached with Government in pursuit of the aims of the Minerals and Petroleum Resources Development Act (MPRDA) and the Mining Charter affected the original scope of this project substantially. The originally announced R2,7 billion (in 2002 terms) projects mining area comprised the farms Twickenham, Hackney, and Paschaskraal. In terms of the agreement, a 50:50 joint venture with a BEE consortium Pelawan was established. Paschaskraal was combined with the farm Klipfontein and with the down-dip State-owned mineral rights on the farms of Avoca and De Kamp. This potential project is now known as the Ga-Phasha PGM Project. The change in mining areas necessitated a redesign of the originally proposed mine layouts. The Twickenham Platinum Mine, 100% owned by Anglo Platinum, will exploit the Twickenham and Hackney areas only, initially mining the UG2 Reef. A mining authorization for these farms was granted in December 2002, nine months later than anticipated. Capital expenditure for the 250 000 tons per month project will be in the order of R3,4 billion (2004 terms). The project is still expected to produce 160 000 ounces of refined platinum and 176 000 ounces of refined palladium at steady-state production. During 2003, on-site project activities progressed well at the Hackney and Twickenham shafts, with the development of the portals and initial decline-sinking taking place. Establishment of the mine infrastructure progressed well and permanent electricity and water supplies were commissioned. Access roads to the shafts were established and staff shortages addressed. The relocation of affected villagers on the mining footprint was successfully completed. The Group review of this project, conducted in the last quarter of 2003, highlighted that, under the prevailing economic climate, the Twickenham project development should be slowed down. Operations at a reduced level will continue, pending the re-evaluation of the scope and project schedule.
Western Limb Tailings Retreatment

The tailings retreatment plant is situated near the Brakspruit Shaft and will draw feedstock from a number of tailings dams in the Klipfontein and Waterval areas. Construction progressed well throughout the year and the plant was commissioned at year-end. The full operating capacity of 450 000 tons per month for Phase 1 is expected to be achieved during the first quarter of 2004, which will yield an annual average output of 70 000 ounces of refined platinum and 17 000 ounces of refined palladium between 2004 and 2006. Phase 2 of the project, which entails a doubling of production to 900 000 tons per month, was deferred for a year in the light of unfavourable economic circumstances. However, de-bottlenecking of Phase 1 in 2004 should further improve capacity in the interim. Capital expenditure was approved at R1,6 billion (2003 terms). Phase 1 of the project has progressed as planned.
Above and below: Conveyor belt at Rustenburg Sections UG2 Plant
Pandora Joint Venture with Lonmin Platinum, Northam, and the Bapo Ba Mogale Tribe
The Pandora Project to exploit the UG2 reserves west of Brits was signed and ratified by the participants: Anglo Platinum
47
(45%), Lonmin Platinum (45%), Northam (5%), and the Bapo Ba Mogale Tribe (5%). The Competition Board and the Competition Tribunal approved the venture. The parties will cooperate as participants in the joint venture and intend to utilize the existing infrastructure at Eastern Platinum Mine (EPM) to gain access to the mineral rights area adjacent to EPM. The capacity of the existing EPM concentrator is to be expanded by 120 000 tons per month. A new 200 000 tons per month concentrator will be constructed on the Pandora mine area, adjacent to EPM, and decline shaft systems will be installed, all of which will enable the joint venture to attain full tonnage production some six years after commencement. Steady-state production is ultimately envisaged at 230 000 ounces of refined platinum and 110 000 ounces of refined palladium per annum. The capital cost of this project when originally announced in 2002 was R2,8 billion (R3,3 billion in 2004 terms). Anglo Platinum is responsible only for its portion of the capital expenditure in the joint venture and will refine only its portion of production. The surface rights authorizations have been secured. The only statutory matter still outstanding is the consent of the Department of Minerals and Energy. The delay in obtaining authorizations, together with the current unfavourable economic environment, has resulted in a slowing down and possible re-scoping of the project. It is now envisaged that the earliest production will be in 2006. The joint venture is however investigating the potential of early production initiatives and the staged implementation of the project.
annum at full capacity, with first production expected in 2007. The total project cost is estimated at US$92 million (2004 terms). The concentrate produced by the mine will be smelted and refined by Anglo Platinum in South Africa. Anglo Platinum will hold a majority shareholding in Unki and will also manage the operations. An interim management agreement has been reached pending finalization of the venture agreements. The parties will fund the initial development phase from existing cash resources and borrowing facilities. Discussions are being held with indigenous parties with a view to their acquiring an equity interest in Unki. Excavations for the Lucillia Poort Dam were completed and civil construction progressed satisfactorily on all areas of the site. The Zimbabwe Electricity Supply Authority completed the installation of a 33-kilovolt temporary power supply at the end of the year. The Rietfontein village relocation commenced.
Above: Rustenburg Sections 400 000 tons per month UG2 Plant
Pooling and Sharing Agreement (PSA) with Aquarius Platinum (South Africa)
Anglo Platinum and Aquarius Platinum (South Africa) announced in June 2003 that agreement had been reached to mine contiguous properties on their respective Rustenburg and Kroondal lease areas. The agreement provides for the parties to pool their assets, while retaining ownership thereof, and to share the proceeds equally. Anglo Platinum will provide access to a portion of the UG2 orebody on Rustenburg Platinum Mines (RPM) lease area and Aquarius Platinum (South Africa) will provide access to its existing Kroondal Platinum Mine (KPM) lease area and infrastructure. All outstanding conditions precedent were met in 2003. The parties will utilize the existing KPM infrastructure to gain access to the RPM orebody down-dip of KPM. A new 250 000 tons per month UG2 concentrator will be constructed for completion in 2005 and additional shaft capacity will be sunk. The venture will have mineable reserves and resources totalling 69 million tons, which are expected to allow mining until 2016. Production will initially be in the order of 140 000 annual ounces of refined platinum, rising to 280 000 ounces of refined platinum and 130 000 ounces of refined palladium during 2006. Aquarius Platinum (South Africa) will continue to honour its existing KPM lease area concentrate off-take agreement with
Unki
In April 2003, Anglo Platinum and Anglo American Corporation Zimbabwe Limited announced that they were to proceed with the initial phase of the development of the Unki Platinum Project, situated near Gweru on Zimbabwes Great Dyke. The project is still subject to certain Zimbabwean and South African regulatory and fiscal approvals, and the development costs are under review in light of the economic and exchange rate environment in Zimbabwe. The project involves the development of an 85 000 tons per month mine that will include an on-site concentrator. The mine will produce concentrate containing some 58 000 ounces of refined platinum and 40 000 ounces of refined palladium per
48
Impala Refining Services Ltd; this has been fixed at a total of some 586 000 ounces of platinum in concentrate. From 2005, Anglo Platinum will also treat concentrate from the new UG2 concentrator being constructed. It is estimated that production will become fully attributable to Anglo Platinum in 2009. The capital expenditure for the establishment of the venture is expected to be in the region of R810 million (2004 terms) and will be equally funded by Anglo Platinum and Aquarius Platinum (South Africa).
Der Brochen
As a consequence of the agreement reached with Government in 2002 in terms of the MPRDA and Mining Charter, the originally proposed mining area of the project, south of the Steelpoort fault, incorporating the farms Der Brochen, Richmond, Helena, Booysendal, and Buttonshope, was restructured. A 50:50 joint venture with a BEE consortium, Khumama Platinum (Pty) Ltd (Khumama), now to be absorbed into Mvelaphanda, was established over the Booysendal and Buttonshope areas. This project is known as the Booysendal Joint Venture. The Der Brochen Platinum Mine, 100% owned by Anglo Platinum, will now exploit the Der Brochen, Richmond, and Helena areas only. A mining authorization for these farms was granted in April 2003. The project is in the conceptual design phase, and site activities are limited to exploration drilling and land management. Current economic conditions necessitate further study of this project.
Above: View from the ACP Plant at Waterval, Rustenburg
Booysendal Joint Venture (JV)

Negotiations continue with the BEE JV partner, Khumama, so that agreements can be finalized that will allow further mine design and optimization of the exploitation strategy for the mining area. A mining authorization has been issued.
Ga-Phasha PGM Project

A mining authorization has been granted over the farms Paschaskraal and Klipfontein, but authorizations for the farms Avoca and De Kamp have yet to be finalized. Negotiations continue with the BEE JV partner, Pelawan, which will allow further mine design and optimization of the exploitation strategy for the mining area. Pelawan is in negotiation with Anooraq regarding various funding options.
49
OPERATIONS REVIEW > OVERVIEW: PROJECTS > PROCESSING PROJECTS IN DEVELOPMENT
Processing projects in development Anglo Platinum Converting Process (ACP) Plant

The objectives of the ACP project were to set a new global benchmark for the control of sulphur dioxide emissions (20 tons per day by the end of 2004), while increasing the available converter capacity for the Groups expansion programme. The plant, developed in conjunction with Ausmelt and others, utilizes a Sirosmelt process adapted to the requirements of nickel-copper matte smelting. This innovative technology was extensively tested during the project design and study phase. This has led to very successful results of the smelting carried out as part of the commissioning and rampup processes, which began in March 2002. Progress throughout 2003 continued according to plan and it is anticipated that ACP Phase A will be fully operational during the second quarter of 2004. The phasing out of the existing PierceSmith converters and old acid plant is planned once the second standby ACP reactor, Phase B, is commissioned. This is anticipated to occur during the fourth quarter of 2005, with the first slag tap scheduled for the first quarter of 2006. The project capital expenditure to the end of 2003 (originally announced at R1,45 billion in 2000 terms) was on budget, and is envisaged to be some R2,00 billion (2004 terms) upon the completion of Phase B.
The capital expenditure was announced at R1,31 billion (2001 terms). Cost escalation was below the inflation rate, the final cost being some R1,45 billion in 2004 terms.
Waterval Slag-cleaning Furnace

Under normal practice, slag is returned to the primary concentrate-smelting electric furnaces to recover contained metal values. However, with increasing UG2 concentrates being treated, the recycling of chrome creates constraints in the furnaces because of the elevated melting points of the slag. The project was designed to alleviate this condition, raise the recovery of the contained metal values, and create additional capacity in the primary furnaces. Construction was completed during the first quarter of 2003 and the facility was handed over to Waterval Smelter for operation. The capital cost of the project was as planned, at some R280 million (2004 terms).
Precious Metal Refinery (PMR) Expansion

The PMR continues to be involved in a number of de-bottlenecking and optimization projects, executed sequentially, that will enable the Groups annual PGM production targets to be met. During 2003, construction continued on the Gold Solvent Extraction and Insoluble Metals plants. The final phase of debottlenecking is expected to be complete by the end of 2005. In the light of the slowed expansion programme, the capital profile of this series of projects was modified to align them with the new build-up of production. It is envisaged that the total capital expenditure will be in the order of R1,25 billion in 2004 terms.
Polokwane Smelter
The smelter is now substantially complete, having been successfully commissioned in March 2003, and has performed exceptionally well. The furnace operated at design power levels (68 Megawatts) and chrome levels greater than 2% for sustained periods during the latter part of 2003.
Right: Sello Mojalefa, a technician at the Polokwane Smelter, tapping the molten matte into the casting machine
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OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > OVERVIEW OF EXPLORATION
Anglo Platinums exploration efforts on the Bushveld Complex are directly linked to the Groups expansion
Anglo Platinum drilling for alluvial platinum in the Urals
REVIEW OF MINERAL RESERVES AND RESOURCES The Bushveld Complex

The geological source of Anglo Platinums current production is the Bushveld Complex of South Africa, the largest known layered igneous complex of its type in the world. It extends some 350 kilometres from east to west and some 250 kilometres from north to south and is roughly saucer-shaped. At the rim of the saucer, pyroxenites, norites, gabbros, and chromitites are found inter-layered in a variety of combinations. Unique to the Bushveld is the presence of two strataform deposits that can be traced for hundreds of kilometres along the rim, containing economically exploitable quantities of PGMs. Since mining first began in the 1920s, the uppermost of the two layers, the Merensky Reef, has been the most important PGM source; it is especially rich in platinum, which makes up some 60% of the 4E grades quoted by Anglo Platinum. At a vertical distance of between 16 and 400 metres below the Merensky Reef, depending on location, the second PGMbearing layer known as the UG2 chromitite can be found. This has become an important alternative source of PGMs in recent years. Although narrow (the Merensky and UG2 reefs are generally mined at a stoping width of less than a metre), these tabular orebodies extend laterally over hundreds of square kilometres, resulting in extensive Mineral Resources. On the Northern Limb of the Bushveld, the UG2 is not developed on Anglo Platinums properties. A layer known as the Platreef, which is substantially thicker than the Merensky and UG2 reefs, occurs and can support open-pit mining operations to depths in excess of 200 metres. The Merensky and Platreef yield meaningful quantities of nickel and copper as by-products of PGMs. Although chromitite in the UG2 may hold potential for economic gain, this has not been considered in the contained monetary values for Reserve purposes. Other base metals in the UG2 are not significant but are recovered and the value obtained is accounted for in economic valuations.
Overview of exploration South Africa

Anglo Platinums exploration efforts on the Bushveld Complex are directly linked to the Groups expansion. Accordingly, there was an increase in the tempo and volume of exploration, which once again received a high level of focus during 2003. There was good progress on all fronts and achievement of targets for the year. The Eastern Limb saw the bulk of the activity, with several of the projects progressing well into feasibility studies. Since acquiring its portfolio of Bushveld mineral rights, the Group has systematically explored and categorized its Resources in preparation for expansion or replacement of depleting operations. This has meant that all current exploration is geared toward evaluation and feasibility studies, as opposed to grassroots discovery work. The programmes therefore focus on borehole drilling (mainly diamond drilling) and geophysical (mainly aeromagnetic and 3-dimensional seismic) surveys. By far the largest component of the exploration
South African Minerals Legislation

The South African Parliament passed the Mineral and Petroleum Resources Development Act on 26 June 2002 and the President signed it into law in October 2002. It brings about a radical departure from the common law concept of privately owned mineral rights and provides for a system in which, as in most other countries, the State grants and regulates prospecting and mining rights. Among others, the objectives of the Act are to: Promote equitable access to the nations mineral and petroleum resources by all the people of South Africa; Expand opportunities for historically disadvantaged South Africans to enter the mineral industry and to benefit from the exploitation of the nations mineral resources; Promote economic growth and mineral development in the Republic; Promote employment and advance the social and economic welfare of all South Africans; Provide for security of tenure in respect of present prospecting, exploration, mining, and production operations; and Ensure that holders of mining rights contribute towards the socio-economic development of the areas in which they operate.
The most important provisions of the Act for Anglo Platinum are those that provide for the transfer of the present privately held mineral rights to new-order mining rights under the Act. Anglo Platinum is ready to comply with the legislative requirements for conversion and has reached an agreement with the Government that secures new mining rights in respect of all its present mining operations and the expansions already announced.
52
A rock cutter in use at Rustenburg Sections Townlands Shaft
budget is consumed by drilling and, in 2003, 667 kilometres of exploration diamond drilling was completed in the South African exploration areas. A large volume of chemical analysis for PGMs and base metals, as well as detailed mineralogical examination, flowed from the drilling programme. Some of the highlights in 2003 were: The JSE adoption of the SAMREC code (which embodies many of the JORC principles) for the reporting of Mineral Resources and Reserves has prompted a fundamental revision of the Anglo Platinum approach to Resource and Reserve reporting. The manner and execution of Resource estimation and classification has been revised from first principles to a more international and SAMREC-compliant format, whereby a qualifiable risk-based (confidence) approach forms the foundation of much of the classification technique. Although there are several components of Resource classification, one of the primary considerations is the influence of estimation error. Estimation methodology involves estimating values at points between datasampling points; the estimation error is based on the sampling configuration, the spatial variography of the grades, and the block support being estimated and is particular to each deposit or geological subsets thereof, which are then used to determine and plan the desired sampling density requirements. The Resource classification reflects the competent persons assessment. Refer to the definitions of Reserves and Resources for more information on the level of confidence deemed acceptable. All projects and operations have been treated appropriately in the current transition to the new procedure of classification and reporting. Achieving quantifiable classification has been one of the main drivers of the dramatic
increase in Resource drilling accomplished in recent times. Several enhancements are under consideration for the 2004 Resource estimation and conversion to Reserve process. External auditing of the entire function has verified the integrity and completeness of the transition to the new Resource reporting process. As noted above, a total of 667 kilometres of diamond drilling was achieved in the year, with up to 45 rigs worked under tight production constraints to achieve the desired drilling tempo. This is a substantial achievement in any terms and far exceeds all previously known local and international records for a single corporate entity in a similar time period. Much of this coring was directed at Resource classification, estimation, and evaluation of known and identified deposits. A substantial portion was completed in rugged and tortuous terrain, where logistical support was difficult. 2004 will see a similar level of activity, continuing the process of asset verification and quantification. During the period, a total of 1,1 million manhours were worked. Anglo Platinum has developed, in partnership with others, an effective and robust geological database and logging system. The system has permitted the electronic accumulation of data, its safe storage, and the prompt transmission of data to a central storage facility aimed at compiling, validating, and consolidating data prior to the Resource modelling process. Coupled with this, all core was successfully logged and sampled, validated, and verified. Further system enchancement will continue in 2004. A central database was invaluable in facilitating the Resource estimation process already referred to.
Conditional simulation, a risk assessment tool, was introduced. This technique enables the geologist to assess and quantify the risk for various parameters of the Resource, such as tonnage, width, grade, and content. Mining rates and a variety of financial parameters can also be incorporated, assisting in the definition of extraction viability. Assay capacity has been steadily increased to accommodate the additional drilling load, along with a commensurate enhancement of quality procedures. This will receive additional emphasis with the introduction of new internationally certified standards, coupled with continued revision of sampling quality protocols. All samples are treated in duplicate (100% replication) and 10% of all sample material is subject to external laboratory re-assay. It is believed that corporate governance is well served by this exacting and exhaustive process. The revised sampling quality protocols will assist in strengthening confidence in the Groups processes and in its Resource quantification and classification. A comprehensive geographical information system was built and implemented, aimed at addressing the IT needs of the exploration, mineral rights, corporate, and mine design teams. It provides live status reporting and scalable image compilations of the Groups assets. Further development will link the mineral rights database with other datasets (geological, geochemical, geophysical, remote sensing, legal, mineral tenure, mineralogical, and similar) to assist in prompt decision-making. Three-dimensional seismic surveys were completed on Styldrift, Amandelbult
53
Section, and Rustenburg Sections deeper Resources. These contributed significantly to confidence in their Resources, mainly in respect of structures and continuity. Benefits include enhanced information on the full 3-dimensional volume of major stratigraphic horizons, resulting in a reduction of the risk of encountering unknown large, catastrophic-type structural features, such as potholes, faults, and replacement features. The surveys add value to the delineation of Resources and further enhance confidence in Resource estimates. In accordance with long-standing procedure, many of the geological holes drilled obtain additional reef intersections dedicated to mineralogical and metallurgical testing. These are aimed at enhancing the geological understanding of reef variations (including alteration zones and effects) and provide valuable metallurgical recovery information. High-resolution aeromagnetic surveys using the new-generation Midas system were flown over the majority of Anglo Platinums properties, enhancing structural interpretations and helping achieve the objectives of safe and productive mining. The surveys also provided information relating to strategic targets and assisted with Resource targeting, in turn increasing the efficiency of future exploration or Resource information retrieval. Core scanning was introduced as part of the geological core-logging procedure, ensuring a permanent high-quality digital record of all reef intersections and their immediate hanging-wall and footwall stratigraphy. Data in this format is scaled and may be used to correlate stratigraphic horizons and layers within a project area and indeed across the Bushveld Complex. Research and development is also being applied to the core scanner, which could include spectral scanning.
represents one of North Americas premier exploration projects and is certainly one of the newest and most exciting platinumpalladium discoveries in recent years. By the end of 2003, joint venture partners Pacific North West Capital Corporation and Anglo Platinum spent nearly CDN$12 million on mineral exploration at the River Valley property. Six phases of diamond drilling (2000 to 2003) primarily tested targets developed from surface exploration, with drilling designed to test the down-dip and strike extensions of known surface mineralization. More than 83 000 metres of drilling in 410 drill holes have been completed on the property. The River Valley intrusion, a Paleoproterozoic (~2,5 billion years) rift-related layered mafic intrusion, is located about 100 road kilometres (60 kilometres direct) northeast of the city of Greater Sudbury, Ontario, Canada. Work, since it started in June 1999, has revealed the presence of potentially commercial base metal sulphideassociated PGM deposits along the northern contact of the intrusion. The River Valley property covers over 5 184 hectares (52 square kilometres) and includes eight main areas of contact-type PGM-Cu-Ni sulphide mineralization (northwest to southeast): Dana Lake (North and South), Banshee Lake, Lismers Ridge (North and South), MacDonald, Varley, Azen Creek, Jacksons Flats, and Razor. An independent evaluation (October 2002) reports in-situ Measured and Indicated Resources of 825 900 ounces of platinum, palladium, and gold (3E) with Inferred Resources of 200 600 ounces, totalling 1 026 500 ounces in 23,44 million tons. Exploration for reef-type PGM targets has not yet begun on the property; almost all of the work to date has focused on the contact environment, where the igneous complex comes into contact with the wall rocks and represents a steeply dipping contact zone. However, there are indications that reef-type mineralization may be present, adding an entirely new dimension to the potential of the property and the intrusion. The exploration drilling programme has completed in-fill drilling of the known Mineral Resource and is now focusing on new target areas along the southeast contact of the intrusion; a more than 6-kilometre strike length with potential for further Resources. Results from the deeper drilling at the Dana Lake South deposit were extremely encouraging: drill hole DL-154 returned 3,7 grams of platinum and palladium per ton over 68 metres, including 5,0 grams of platinum and palladium per ton over 47 metres,
9,7 grams of platinum and palladium per ton over 13 metres, and 19,0 grams of platinum and palladium per ton over 3 metres; this represents the highest grade and width diamond-drill intersection to date. Early results from drilling in the southeastern part of the property are encouraging, and drilling is expected to continue late into 2004. An updated Mineral Resource study is currently underway. It must be noted that River Valley is a palladium-dominant deposit and that future exploration decisions will be affected by the palladium price.
Agnew Lake
The Agnew Lake property, located about 60 kilometres west of Sudbury, Ontario, Canada, covers the Agnew Lake intrusion, which is known to host anomalous and potentially economic concentrations of PGMs. The Agnew Lake intrusion is similar in age and composition to the River Valley intrusion: both contain contact-type sulphide-associated PGMs that are primarily hosted in fragment bearing rocks occurring proximal or at the margins of the intrusions. In July 2001, Anglo Platinum entered into an agreement with Pacific North West Capital Corporation and Platinum Group Metals Ltd, whereby Anglo Platinum may earn a 49,5% interest in the Agnew Lake Project by making certain cash payments and reimbursements (which have been made) and by completing CDN$6,0 million in exploration expenditure by 31 December 2004. Anglo Platinum can increase its interest in the property to 57% by completing a feasibility study, and to 60% by arranging 100% financing of the project to commercial production. To date, Anglo Platinum has financed approximately CDN$2,5 million in exploration at Agnew Lake. By entering into this agreement, Pacific North West Capital Corporation and Anglo Platinum have substantial interests in two of the three largest layered intrusions in the immediate Sudbury area. Most exploration activities, (diamond drilling, induced-polarization and magnetometer geophysical surveys, geological surveys, and prospecting) have concentrated on the contact region of the intrusion. Exploration activities at Agnew Lake in 2003 included diamond drilling, geological mapping, prospecting, and airborne geophysical surveying using the Spectrem Air multispectral AEM system. A diamond-drilling programme, aimed at following up some of the targets produced from the Spectrem survey, is planned for 2004.
International
Anglo Platinums partners took several exciting projects forward, including the joint venture with Pacific North West Capital Corporation (principally in the River Valley area near Sudbury, Ontario, Canada) and the Russian Urals project, a relationship with Eurasia Mining plc.
Canada
River Valley The River Valley PGM-Cu-Ni project
54
Surface grab samples from the prospective 15-kilometre intrusive contact region have assayed up to 8,4 grams of platinum and palladium per ton and diamond drilling has returned anomalous intersections of PGMs, including a 1-metre intersection of 5,1 grams of platinum and palladium per ton.
Russia Urals Platinum exploration

Fieldwork on the Tylai-Kosvinsky area at West Kytlim was hampered during 2003 by bureaucratic delays associated with the issue of the licence. To compensate for the delay, an application for an extension of the licence was made, which targets the recommencement of work at the beginning of the spring field season in April 2004. Budgeted work programmes include reconnaissance and traverse drilling, accompanied by trenching and bulk-sample processing using a 10 cubic metre per hour platinum washing plant. The objectives of this work are to establish grades and to test alternative recovery technologies targeting enhanced recovery of fine-grained platinum. It is planned to establish as rapidly as possible an initial small-scale, essentially self-funding, commercial operation. This will also provide scope for an early resolution of permitting and commercial issues, including sale of product, necessary for the establishment of any future operation. Preparation is also underway for a winter drilling programme on a second licence area at Sosva in the Northern Central Urals. The licence area covers a large alluvial basin at the junction of the Sosva and Sharp Rivers, which drain the platinum-bearing Denezhkin-Kamen layered intrusive complex. This work commenced in January 2004. Reconnaissance for buried, potentially highgrade, and previously unmined platinum placers is also in progress. This work has involved compilation and projection of geo-morphological and geological data characterizing the large Central Urals placer fields into the under-explored Northern and Sub-Polar Urals. The objective is to define additional new exploration areas.
Zone. This zone consists of a diffuse enrichment of PGMs that are typically found in association with base metal sulphide accumulations. There is a vertical stratigraphic relationship between the positions of the base metal and PGM peak values, which define the most desirable mining cut. This relationship characterizes the factors relevant to the success of recent Great Dyke PGM mining ventures. Resource drilling of the proposed mining footprint area continues with the purpose of improving the level of confidence for the final mine design.
South African operations Rustenburg Platinum Mines (RPM)

RPM holds mineral rights throughout the Bushveld Complex under various titles. These are being exploited on a fully operational basis at the Rustenburg, Amandelbult, and Union sections, covering a total of 39 111 hectares. BRPM is continuing under development on the farm Boschkoppie 104JQ and covers a total area of 3 362 hectares. The Modikwa JV with ARM Platinum is well advanced into the mining stage, although it is still under development. The mining licence covers an area of 16 661 hectares on portions of the farms Maandagshoek 254KT, Onverwacht 292KT, Winterveld 293KT, Driekop 253KT, and Hendriksplaats 281KT. The Merensky and UG2 reefs occur on RPMs properties.
Potgietersrust Platinums (PPRust)

PPRust is engaged in the mining of PGMs and base metals, which are an integral part of the Platreef. PPRust holds a mining licence over an area of 10 324 hectares on the Platreef in the Mokopane and Mokerong districts. The properties over which the Group has the rights to mine are situated on the Northern (Polokwane) Limb of the Bushveld Complex.
Lebowa Platinum Mines (Leplats)

Leplats is engaged in the mining of the UG2 and Merensky reefs on the farms Middelpunt 420KS, Umkoanestad 419KS, Brakfontein 464KS, Diamand 422KS, and Zeekoegat 421KS. The mining licences cover an area of 10 185 hectares. Rights to mine UG2 on portions of the farms Wintersveld 417 KS and Jagdlust 418 KS were obtained in 2003. These farms are adjacent to the Middelpunt Hill operations and will allow its optimal exploitation.
Zimbabwe Unki Platinum Project

Zimbabwes Great Dyke is the worlds second largest known repository of PGMs. It has several erosion-related remnants of sub-chambers, within which PGM-enriched zones are known to exist. Unki is located in the Shurugwi sub-chamber and will mine a PGM horizon known as the Main Sulphide
55
A Competent Person is a person who is a member of the South African Council for Natural Scientific Professions (SACNASP) and/or the Engineering Council of South Africa (ECSA) and/or the South African Council for Professional Land Surveyors and Technical Surveyors (PLATO) or any other statutory South African or international body that is recognized by SAMREC. A Competent Person should have a minimum of five years experience relevant to the style of mineralization and type of deposit under consideration and to the activity that person is undertaking. If the Competent Person is estimating or supervising the estimation of Mineral Resources, the relevant experience must be in the estimation, assessment, and evaluation of Mineral Resources. If the Competent Person is estimating or supervising the estimation of Mineral Reserves, the relevant experience must be in the estimation, assessment, evaluation, and economic extraction of Mineral Reserves.
Combined Mineral Reserves and Mineral Resources

The tables from page 59 list the combined Mineral Reserves and Resources status of Anglo Platinums operations and projects. The table includes Resources associated with several projects not detailed in previous annual reports and that are therefore additional to the table of Reserves and Resources pertaining to existing operations and announced projects. The Mineral Resources quoted in the tabulations are over a minimum mining cut appropriate to the ore deposit. Mineral Reserves and Resources were subject to reclassification during the course of 2003, the impact of which was to increase their total. Combined with additions from exploration successes and the conversion of brown-field sites to project status, this led to Mineral Reserves and Resources rising to 904,5 million ounces of 4E, from 712,6 million ounces of 4E in 2002. This move is summarized in the table below.
The SAMREC Code for the reporting of Reserves and Resources has been applied. This is consistent with the reporting basis used by Anglo American plc. Various Competent Persons, as defined by the SAMREC Code of Practice, have prepared the Resource and Reserve figures quoted in this Report. They were reviewed and signed off by the signatories below:
Keith Noble (Pr.Sci.Nat) General Manager: Mining & Geological Services Johannesburg 13 February 2004
Ron Hieber (Pr.Sci.Nat) Divisional Director: Resource Management & Development Johannesburg 13 February 2004 Reserves and Resources Moz 462,1 746,4 Mt 4 865,4 5 896,1 g/t 4E 4,56 4,77 Moz 712,6 904,5
Summary of changes in Reserves and Resources Reserves Mt 2002 2003 1 717,3 1 168,6 g/t 4E 4,54 4,21 Moz 250,5 158,1 Mt 3 148,1 4 727,5 Resources g/t 4E 4,57 4,91
Competent persons
Global Mineral Reserves and Resources Ron Hieber BSc (Geology), Pr. Sci. Nat. 400072/02, 31 years experience Keith Noble BSc (Geology), BSc (Hons) (Engineering), MSc (Engineering), Pr. Sci. Nat. 401336/83, 31 years experience Gordon Chunnett BSc (Hons) (Geology), Pr. Sci. Nat. 400002/88, 25 years experience Regional Mineral Resources Bruce Walters BSc (Hons) (Geology), 32 years experience Marshall Patterson BSc (Geology), GDE, 28 years experience Roger Johnson BSc (Hons), MSc (Engineering), Pr. Sci. Nat. 400022/96, 22 years experience Regional Survey Hans Kruger Frank Stevenson NHD (Mine Surveying), Government Survey Certificate of Competency, PLATO (PMS 0075), 27 years experience NHD (Mine Surveying), GDE (Mining Engineering), PLATO (PMS 0033), 14 years experience
Team of specialists involved in Mineral Reserve and Resource quantification
South Africa, Operations Rustenburg Section

Mineral Resources Paul Stevenson Alan Page Patrick Fann Jacobus Venter Derrick Marais Etienne Malherbe Kavita Chotoki Kabelo Thlapi BSc BSc BSc BSc BSc BSc BSc BSc (Geology), Dip. Prog., 26 years experience (1) (Hons) (Geology), 17 years experience (1) (Hons) (Geology), Pr. Sci. Nat. 400004/92, 15 years experience (Hons) (Geology), 10 years experience (1) (Hons), Pr. Sci. Nat. 400073/03, 8 years experience (Hons) (Geology), 8 years experience (1) (Hons) (Geology), 5 years experience (Hons) (Geology), 5 years experience
56
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > COMPETENT PERSONS
Competent persons South Africa, Operations Rustenburg Section

Mineral Reserves Chris de Jager Mike Freer Phillipus Bothma Johan Booysen Duane Jordaan Neels Kotze Ryno Botha George Liebenberg Derrick Marais Jessica Marland-Mauve Government Survey Certificate of Competency, NHD (Mineral Resource Management), 24 years experience (2) NHD (Survey), Government Survey Certificate of Competency, 23 years experience (2) NHD (Survey), Government Survey Certificate of Competency, 20 years experience (2) Government Survey Certificate of Competency, PLATO, 19 years experience Government Survey Certificate of Competency, 18 years experience (2) Government Survey Certificate of Competency, PLATO, 17 years experience Government Survey Certificate of Competency, NHD (Mine Surveying), 11 years experience (2) Government Survey Certificate of Competency, 11 years experience (2) BSc (Hons), Pr. Sci. Nat. 400073/03, 8 years experience BSc (Hons) (Geology), 6 years experience (1)
Amandelbult Section
Mineral Resources Quartus Snyman Mineral Reserves Johan van der Ryst Quartus Snyman Casper Nel BSc (Hons) (Geology), 13 years experience (1) Mine Managers Certificate of Competency, Association of Mine Managers of South Africa, SAIMM, 42 years experience BSc (Hons) (Geology), 13 years experience (1) Government Survey Certificate of Competency, 25 years experience (1)
Union Section
Mineral Resources Stephan Stander Paul Stevenson Iain Colquhoun Mineral Reserves Andrew Smith Jens Kerneck BSc (Hons), GDE (Mining), BCom, Pr. Sci. Nat. 400089/96, 11 years experience BSc (Geology), Dip. Prog., 26 years experience (1) BSc (Hons) (Mineral Economics), Pr. Sci. Nat. 400097/00, 20 years experience BEng (Mining Engineering), 15 years experience ND (Mine Surveying), PLATO (PMS 0057), 18 years experience
PPRust
Mineral Resources Paul Stevenson Mike Phipps Mineral Reserves Simon Buyers BSc (Geology), Dip. Prog., 26 years experience (1) BSc (Hons) (Geology), 18 years experience (1) BSc (Hons) (Mining), GDE (Mining), Pr. Eng., 8 years experience
Leplats
Mineral Resources Dietmar Nowak Ian McCutcheon Mineral Reserves Gert Booysen Clive Ackhurst MSc (Geology), Pr. Sci. Nat. 400107/03, 19 years experience BSc (Hons), 1 year experience NHD (Survey), Government Survey Certificate of Competency, PLATO (PMS 0082), 26 years experience BSc (Hons) (Mining Engineering), Mine Managers Certificate of Competency, 13 years experience
BRPM
Mineral Resources Mark Lionnet Mineral Reserves David Sharpe Ken Lomberg BSc (Hons) (Geology), 11 years experience (1) BSc (Hons), Pr. Sci. Nat. 400018/91, 15 years experience BSc (Hons), Pr. Sci. Nat. 400038/01, 13 years experience

Mineral Resources Iain Colquhoun Paul Stevenson Mineral Reserves Brian Smith BSc (Hons) (Mineral Economics), Pr. Sci. Nat. 400097/00, 20 years experience BSc (Geology), Dip. Prog., 26 years experience (1) NHD (Mine Surveying), PLATO (PMS 0077), 16 years experience
Northam Platinum Mine

Mineral Resources/Reserves Richard Viring BSc Geology, BSc (Hons) Mineral Economics, MEng Mineral Resource Management, Pr Sci Nat No 400047/01, 10 years experience
57
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > COMPETENT PERSONS
Competent persons South Africa, Projects Brakfontein (Merensky Reef)

Mineral Resources Ray Brown David Gray BSc (Hons) (Geology), MSc (Geochemistry), Pr. Sci. Nat. 400062/03, 15 years experience BSc (Hons) (Geology), 11 years experience (1)
BRPM JV (Merensky Reef)

Mineral Resources David Gray Mineral Resources David Gray Mineral Resources Dietmar Nowak Mineral Resources David Gray BSc (Hons) (Geology), 11 years experience (1)
Der Brochen/Booysendal (Merensky and UG2 reefs)

BSc (Hons) (Geology), 11 years experience (1)
Elandsfontein 440JQ (UG2 Reef)

MSc (Geology), Pr. Sci. Nat. 400107/03, 19 years experience
Frischgewaagd/Elandsfontein (Merensky Reef)

BSc (Hons) (Geology), 11 years experience (1)
Kroondal PSA (UG2 Reef)

Mineral Resources Ina Cilliers Mineral Resources Dietmar Nowak Mineral Resources Dietmar Nowak MSc (Geology), Pr. Sci. Nat. 400032/02, 17 years experience
Leplats (Merensky and UG2 reefs)

Modikwa Platinum Mine (Merensky Reef)

Pandora JV (UG2 Reef)

Mineral Resources Janine Fleming Mineral Resources Dietmar Nowak BSc (Hons) (Geology), 8 years experience (1)
Ga-Phasha PGM project (Merensky and UG2 reefs)

Rooderand (UG2 Reef)

Mineral Resources Dietmar Nowak Mineral Resources David Gray Paul Stevenson Mineral Resources Dietmar Nowak Gernot Langwieder MSc (Geology), Pr. Sci. Nat. 400107/03, 19 years experience
Western Limb Tailings Dams

BSc (Hons) (Geology), 11 years experience (1) BSc (Geology), Dip. Prog., 26 years experience (1)
Twickenham Platinum Mine (Merensky and UG2 reefs)

MSc (Geology), Pr. Sci. Nat. 400107/03, 19 years experience MSc (Geology), Pr. Sci. Nat. 400020/03, 9 years experience
Canada, Projects River Valley

Mineral Resources Scott Jobin-Bevans Paul Stevenson MSc, P Geo. (ON) BSc (Geology), Dip. Prog., 26 years experience (1)
(1) Indicates Pr. Sci. Nat. application in process (2) Indicates PLATO application in process
External Auditors Snowden Mining Industry Consultants

Mineral Reserves and Resources Phil Snowden BSc (Hons), PhD, FAusIMM (CP), MAAIG Alastair Forbes MBL, BSc. Eng. (Mining), ARFM
58
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > BY REEF MINERAL RESERVES AND MINERAL RESOURCES BY REEF Mineral Reserves as at 31 December
Reef Category Reserves Mt 2003 2002 71,0 75,8 145,4 374,9 216,4 450,7 166,3 75,9 462,8 858,5 629,1 934,4 4,0 45,4 7,9 311,3 286,7 323,1 332,1 249,2 197,2 919,4 1 520,1 1 168,6 1 717,3 Metric Grade g/t 4E 2003 2002 5,62 5,94 6,18 5,65 6,00 5,70 4,34 4,39 4,40 4,66 4,38 4,64 3,03 3,29 3,23 2,65 2,57 2,67 2,67 4,65 4,73 4,09 4,51 4,21 4,54 Contained 4E t 2003 2002 399,4 450,5 899,0 2 119,3 298,4 2 569,8 721,7 333,5 034,0 4 000,4 755,7 4 334,0 12,0 149,5 25,5 826,1 737,6 863,6 887,1 158,6 933,6 759,0 6 857,4 917,7 7 790,9 Imperial Contained 4E Moz 2003 2002 12,8 14,5 28,9 68,1 41,7 82,6 23,2 10,7 65,4 128,6 88,6 139,3 0,4 4,8 0,8 26,6 23,7 27,8 28,5 37,3 30,0 120,9 220,5 158,1 250,5
Merensky Reef1
UG2 Reef 2,4
Platreef 1,3,4
All reefs 1,4
Proved Probable Total Proved Probable Total Proved Proved stockpiles Probable Total Proved Probable Total
1 2 2
1 3 4
General: Rounding of figures may result in computational discrepancies. 4E grade reported: sum of platinum, palladium, rhodium and gold grades. Reserves: Joint venture agreements are still being finalized. Once finalized, the above statement may be affected. 1. Merensky Reef Reserves changed because of Platreef being reported separately. Historically the Platreef and the Merensky Reef reserves were combined. From 2003, these two reefs are reported separately. For comparison, the 2002 figures have been split for the purposes of this document. 2. 3,85 Mt of UG2 opencast included in Reserves. 3. Platreef stockpiles included in Reserves. Platreef is mined by open pit. 4. Merensky Reef/UG2/Platreef change in Reserves because of an improved Reserve/Resource classification: Mineral Reserve tonnage differences are mainly because of the transfer of material previously declared as Reserves to Resources (refer to Mineral Resource table).
Mineral Resources as at 31 December

Reef Category Resources Mt 2003 2002 60,6 9,2 238,5 736,6 299,2 745,8 082,1 381,2 745,8 288,5 208,4 595,2 1 475,0 883,7 1 683,4 958,2 841,9 1 683,4 11,9 338,9 718,8 350,8 718,8 153,6 504,4 718,8 361,0 217,6 172,6 2 930,4 533,6 3 148,1 193,8 727,5 3 148,1 Metric Grade Contained 4E g/t 4E t 2003 2002 2003 2002 4,90 4,52 297,1 41,7 5,34 5,03 1 274,4 3 704,9 5,25 5,02 1 571,5 3 746,6 5,47 5 917,2 5,42 5,02 7 488,7 3 746,6 5,22 5,71 1 506,6 1 190,3 5,26 5,04 3 128,5 7 431,1 5,25 5,12 4 635,1 8 621,4 5,05 9 895,2 5,11 5,12 14 530,3 8 621,4 1,74 20,7 2,36 2,79 800,8 2 004,9 2,34 2,79 821,6 2 004,9 2,44 374,1 2,37 2,79 1 195,7 2 004,9 5,05 5,66 1 824,4 1 231,9 4,44 4,48 5 203,8 13 140,9 4,58 4,57 7 028,2 14 372,8 5,07 16 186,6 4,91 4,57 23 214,7 14 372,8 Imperial Contained 4E Moz 2003 2002 9,6 1,3 41,0 119,1 50,5 120,5 190,2 240,8 120,5 48,4 38,3 100,6 238,9 149,0 277,2 318,1 467,2 277,2 0,7 25,7 64,5 26,4 64,5 12,0 38,4 64,5 58,7 39,6 167,3 422,5 226,0 462,1 520,4 746,4 462,1
Merensky Reef1
UG2 Reef
Platreef1
All reefs2
Measured Indicated Measured Inferred Total Measured Indicated Measured Inferred Total Measured Indicated Measured Inferred Total Measured Indicated Measured Inferred Total
and Indicated 1 1
and Indicated 1 2
and Indicated
1 and Indicated 1 3 4
General: Rounding of figures may result in computational discrepancies. 4E grade reported: sum of platinum, palladium, rhodium, and gold grades. Resources: Joint venture agreements are still being finalized. Once finalized, the above statement may be affected. 1. Merensky Reef Resources changed because of Platreef being reported separately. Historically the Platreef and the Merensky Reef Resources were combined. From 2003, these two reefs are reported separately. The 2002 figures have been split to enable comparisons to be drawn. 2. Merensky Reef/UG2/Platreef change in Resources because of an improved Reserve/Resource classification. The substantial increase in measured Mineral Resources is because of the transfer of material previously declared as Reserves to Resources. Some material previously declared as Indicated Mineral Resources was transferred to Inferred Mineral Resources following the implementation of an improved classification. The Mineral Reserves and Resources quoted are held under mining licences or prospecting permits issued or about to be issued under the Minerals Act, 1991. These must be converted into rights under the new Mineral and Petroleum Resources Development Act, 2002 (the Act), which provides for a prospecting right to be granted for a period of up to five years, renewable for a further three years. Under the Act, a mining right may be granted for up to 30 years, renewable for a further 30 years subject to the holder meeting the requirements of the Act. Anglo Platinums rights are therefore subject to their conversion into new rights under the Act and, insofar as Reserves and Resources are in excess of its requirements for the 30 years referred to, its rights are subject to renewal under the Act.
59
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > RESERVES BY OPERATION MINERAL RESERVES BY OPERATION as at 31 December 2003 South Africa
Merensky Reserves Mine Rustenburg Section1 Category Proved Probable Total Amandelbult Section2 Proved Probable Total Union Section
3
UG2 Grade g/t 4E 5,56 5,55 5,56 6,42 6,59 6,56 6,75 6,64 6,67 Reserves Mt 26,9 115,7 142,6 82,1 249,5 331,5 13,1 34,1 47,1 Grade g/t 4E 4,22 4,10 4,12 4,61 4,65 4,64 4,01 3,90 3,93
UG2 opencast Reserves Mt Grade g/t 4E
Platreef Reserves Mt Grade g/t 4E
Mt 19,3 14,3 33,6 22,9 90,0 112,9 4,9 15,1 20,0
1,4 1,4
6,00 6,00
Proved Probable Total
PPRust
4,0 311,3 315,2 16,5 11,5 28,1 6,7 9,0 15,7 4,51 4,39 4,46 4,94 4,75 4,83 4,8 12,8 17,6 15,4 15,4 21,5 16,7 38,2 0,7 5,5 6,1 Reserves Mt 7,9 7,9 6,26 6,05 6,07 Grade g/t 4E 3,23 3,23 0,5 9,9 10,4 4,87 4,86 4,86 4,53 4,53 3,11 3,02 3,07 4,01 4,01 4,01 1,0 1,5 2,5 4,73 4,49 4,59 15,0 7,3 22,3 4,80 5,21 4,93
3,03 2,65 2,66
Leplats
BRPM5 (Reported: 50%; Attributable: 50%) Modikwa JV

6
Proved Probable Total Proved Probable Total Proved Probable Total Proved Probable Total Proved Probable Total Category Proved Total
(Reported: 50%; Attributable: 50%) Twickenham Platinum Mine Kroondal PSA

7
(Reported: 50%; Attributable: 50%) Northam8 (Reported: 22,5%; Attributable: 22,5%) Mine stockpile PPRust
60
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > RESERVES BY OPERATION
Africa
Metric Reserves Mine Unki, Zimbabwe
9
Imperial Contained 4E t 64,1 95,5 159,5 Contained 4E Moz 2,1 3,1 5,1
Grade g/t 4E 4,30 4,30 4,30
Category Proved Probable Total
Mt 14,9 22,2 37,1
General: Merensky Reef/UG2/Platreef change in Reserves because of an improved Reserve/Resource classification: Mineral Reserve tonnage differences are mainly because of the transfer of material previously declared as Reserves to Resources. 1. 2. Merensky Reef/UG2 change in Reserves because of revised Reserve/Resource classification. Change in Merensky Reef Reserves because of revised Reserve/Resource classification. Increase in UG2 Reserves because of revised Reserve/Resource classification. Change in Reserves because of revised Reserve/Resource classification. Change in Reserves because of revised Reserve/Resource classification. 50% of BRPM (Boschkoppie 104JQ), Styldrift 90JQ, and portions of Frischgewaagd 96JQ included. Changes in the revised Reserve/Resource classification necessitated a change in the Reserves. In respect of the BRPM JV, Anglo Platinum has negotiated the terms of a JV agreement, and once binding, Anglo Platinum will receive a share in the total Reserves. Substantial increase in Reserves because of recent exploration efforts. Kroondal UG2 figures as per the Kroondal PSA, managed by Aquarius Platinum South Africa. Reserves quoted as at end-June 2003. Merensky and UG2 Resources converted to Reserves, quoted as at end-June 2003. The terms of a JV are currently being negotiated and once binding, Anglo Platinum will receive a share in the total Resources. 51% of attributable interest will apply on conclusion of a JV.
3. 4. 5.
6. 7. 8. 9.
61
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > RESOURCES BY OPERATION MINERAL RESOURCES BY OPERATION as at 31 December 2003 South Africa
Merensky Resources Mine Rustenburg Section
1
UG2 Grade Resources g/t 4E Mt 13,1 7,2 g/t 4E 5,92 5,73 4,69 4,76 5,03 4,75 4,78 4,38 4,64 4,63
Platreef Grade Resources Mt Grade g/t 4E
Category Measured Indicated Inferred Total
Mt
111,6 111,6 20,8 92,3 113,0 3,8 27,9 31,7
6,28 6,28 7,81 7,84 7,83 9,00 8,04 8,16
285,1 305,4 26,4 233,5 259,9 5,8 153,6 159,4
Amandelbult Section
Measured Indicated Inferred Total
Union Section3
PPRust4
11,9 338,9 153,6 504,4 5,6 36,6 126,3 168,4 23,9 70,4 94,2 6,9 22,9 11,8 41,6 5,3 15,4 138,7 159,4 4,6 46,7 70,8 122,0 8,9 17,2 33,5 59,6 5,08 5,27 5,33 5,31 6,10 6,48 6,38 4,11 5,17 5,33 5,04 4,36 4,52 5,13 5,05 4,60 4,94 5,07 5,00 4,58 4,52 4,26 4,38 202,0 202,0 26,7 96,1 86,8 209,6 8,1 43,5 58,4 110,0 28,2 55,2 75,7 159,1 5,72 5,72 5,57 5,33 5,60 5,48 5,95 5,90 5,91 5,91 4,60 4,01 3,98 4,10 64,7 126,2 143,0 333,8 1,7 7,9 85,7 95,3 13,2 28,7 89,4 131,3 6,20 6,28 6,22 6,24 5,24 5,19 4,91 4,94 5,44 5,35 5,31 5,33
1,74 2,36 2,44 2,37
Leplats
BRPM
Modikwa Platinum Mine7
Modikwa Projects7
Twickenham Platinum8
Ga-Phasha PGM Project

8
Pandora JV
62
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > RESOURCES BY OPERATION
South Africa
Merensky Resources Mine Der Brochen Project
10
UG2 Grade Resources g/t 4E 5,22 4,61 4,43 4,56 5,64 5,15 4,69 4,73 Mt 99,7 131,3 98,0 329,0 28,3 45,1 339,0 412,4 g/t 4E 4,59 4,91 5,05 4,85 5,01 4,72 4,94 4,92
Platreef Grade Resources Mt Grade g/t 4E
Category Measured Indicated Inferred Total
Mt 24,3 39,0 133,7 197,1 5,2 12,3 247,7 265,2
Booysendal Project
10
Elandsfontein 102JQ Frischgewaagd 96JQ11
Measured Indicated Inferred Total 17,5 17,5 6,32 6,32 23,3 23,3 4,7 22,0 71,5 98,2 4,71 4,71 4,30 4,34 4,34 4,34
Elandsfontein 440JQ12
Rooderand
13
Measured Indicated Inferred Total Resources Grade g/t 4E 1,03 1,16 1,08 13,3 13,3 Mt 140,6 78,4 219,0 5,54 5,54
Mine Tailings Dam Union Section
14
Category Indicated Indicated Total
Rustenburg Section
Africa
Metric Resources Mine Unki, Zimbabwe15 Category Measured Indicated Measured and indicated Inferred Total Mt 19,5 29,1 48,6 11,6 60,2 Grade g/t 4E 4,98 4,98 4,98 4,98 4,98 Contained 4E t 97,1 144,9 242,0 57,8 299,8 Imperial Contained 4E Moz 3,1 4,7 7,8 1,9 9,6
Americas
Metric Resources Mine River Valley, Canada
17
Imperial Grade %Ni 0,19 Contained 3E t 21,6 25,7 6,2 31,9 Contained 3E Moz 0,7 0,8 0,2 1,0
Grade g/t 3E 0,66 1,42 1,16 1,36
Grade %Cu 0,03
Category Indicated Inferred Total
Mt 32,8 18,1 5,4 23,4
Pedra Branca, Brazil16 Inferred
63
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > RESOURCES BY OPERATION
General: Merensky Reef/UG2/Platreef change in Resources because of an improved Reserve/Resource classification. The substantial increase in measured Mineral Resources was because of the transfer of material previously declared as Reserves to Resources. Some material previously declared as Indicated Mineral Resources was transferred to Inferred Mineral Resources following the implementation of an improved classification procedure. 1. 2. 3. Increase in Resource tonnage because of Beestekraal 290JQ portions being included. The inclusion of Goevernements Plaats 417KQ has resulted in an increase in Resources. Merensky and UG2 Resources increased due to the inclusion of Grootkuil 409KQ. A new interpretation of recent aeromagnetic data has assisted in a revision of the Merensky and UG2 Resources. A revised depth limit below surface has resulted in a change in the Resources. The inclusion of additional portions of Diamant 422KS, Umkoanesstad 419KS, and Brakfontein 464KS has resulted in an increase in the Resources. 50% of BRPM (Boschkoppie 104JQ), Styldrift 90JQ, and portions of Frischgewaagd 96JQ included. Increase in Resources because of revised Reserve/Resource classification. BRPM JV: a JV Agreement has been negotiated and once binding, Anglo Platinum will receive a share in the total Resources. Modikwa Platinum Mine JV is quoted separately from the Modikwa project. Increase in Resource tonnage because of recent exploration efforts. Twickenham Platinum Mine is quoted separately from the Ga-Phasa PGM Project JV this year. The inclusion of Balmoral 508KS has resulted in an increase in the Resources in the Twickenham Platinum Project. Ga-Phasa PGM Project: Anglo Platinum is currently negotiating the terms of a possible joint venture agreement and once binding Anglo Platinums attributable ounces will be affected. Once the joint venture is finalized and binding, Anglo Platinums attributable Resource will be ~45% of the whole of the Pandora JV.
4. 5. 6.
7. 8.
9.
10. Der Brochen Project is quoted separately from the Booysendal Project this year. Substantial increase in Mineral Resource tonnage due to recent exploration efforts. Once the joint venture is finalized and binding, Anglo Platinums attributable Resource will be ~50% of the whole Booysendal JV, inclusive of Johannesberg 45JT and Sheeprun 50JT. 100% of the Resources reported above. 11. The inclusion of portions of Elandsfontein 102JQ and Frischgewaagd 96JQ has resulted in an increase of the Resources. 12. Resource changes because of revised geological modelling. 13. The inclusion of portions of Rooderand 46JQ has resulted in an increase in the Resources. 14. Mine tailings dams Resources are not included in Mineral Resource summary. 15. Anglo Platinum is currently negotiating the terms of a possible JV agreement and once binding will receive a share in the Resources. 51% of attributable interest will apply on conclusion of a JV. 100% of the Resources reported above. 16. 50% attributable interest will apply on conclusion of a JV. 3E grade reported: sum of platinum, palladium, and gold grades. 100% of the Resources reported above. 17. 50% attributable interest. 3E grade reported: sum of platinum, palladium, and gold grades. 100% of the Resources reported above.
64
OPERATIONS REVIEW > REVIEW OF MINERAL RESERVES AND RESOURCES > DEFINITIONS
Mineral Reserve and Resource definitions

The Mineral Resources and Mineral Reserves of the Group are classified, verified, and reported in accordance with statutory, stock exchange, and industry/ professional guidelines. The classifications are based on the South African Code (SAMREC) and the Australian Institute of Mining and Metallurgy Joint Ore Reserves Committee Code (JORC Code). Reporting is by professionals with appropriate experience in the estimation, economic evaluation, exploitation, and reporting of Mineral Resources and Mineral Reserves relevant to the various styles of mineralization under consideration. The Groups experience with the various orebodies that it is engaged in evaluating and mining spans decades, resulting in a thorough understanding of the factors important to the assessment of their economic potential. Where Mineral Resources and Mineral Reserves are quoted for the same property, Resources are in addition to Reserves. Resources are by definition exclusive of any diluting materials that might arise as a consequence of the mining method and specific geological circumstances applicable to the mining of that Resource. Reserves, on the other hand, include all such expected dilution. Mineral Resource: a concentration or occurrence of material of economic interest in or on the earths crust in such form and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity, and other geological characteristics of a Mineral Resource are known, estimated from specific geological evidence and knowledge, or interpreted from a well-constrained and portrayed geological model. Mineral Resources are subdivided, in order of increasing confidence in respect of geoscientific evidence, into Inferred, Indicated, and Measured categories. Inferred Mineral Resource: that part of a Mineral Resource for which tonnage, grade,
and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified from geological and/or grade continuity. It is based on information gathered through appropriate techniques from outcrops, trenches, pits, workings, and drill holes that may be limited or of uncertain quality and reliability. A Mineral Resource is consistent with the Inferred Category when the risk associated with the accumulated metal estimate is greater than 20% (at a 90% confidence level). Indicated Mineral Resource: that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade, and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling, and testing information gathered through appropriate techniques from outcrops, trenches, pits, workings, and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed. A Mineral Resource is consistent with the Indicated Category when the risk associated with the accumulated metal estimate is between 10% and 20% (at a 90% confidence level). Measured Mineral Resource: that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade, and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling, and testing information gathered through appropriate techniques from outcrops, trenches, pits, workings, and drill holes. The locations are spaced closely enough to confirm geological and grade continuity. A Mineral Resource is consistent with the Measured Category when the risk associated with the accumulated metal estimate is less than 10% (at a 90% confidence level). Mineral Reserve: the economically mineable material derived from a Measured and/or Indicated Mineral Resource. It is inclusive of diluting materials and allows for losses that may occur when it is mined.
Appropriate assessments, which may include feasibility studies, have been carried out, including consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors. These assessments demonstrate at the time of reporting that extraction is justifiable. Mineral Reserves are subdivided, in order of increasing confidence, into Probable Mineral Reserves and Proved Mineral Reserves. Probable Mineral Reserve: the economically mineable material derived from a Measured and/or Indicated Mineral Resource. It is estimated with a lower level of confidence than a Proved Mineral Reserve. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, including consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified. Proved Mineral Reserve: the economically mineable material derived from a Measured Mineral Resource. It is estimated with a high level of confidence, inclusive of diluting materials, and allows for losses that may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, including consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified. Anglo Platinums Proved Mineral Reserves are contained within the limits of the five-year mining plans of its operations, this being the area of greatest understanding and certainty pertaining to the orebody.
65
OPERATIONS REVIEW > GROUP STATISTICS > TOTAL OPERATIONS
Total operations 2003 Refined production*: Platinum Palladium Rhodium Gold PGMs Nickel Copper Average market prices achieved: Platinum Palladium Rhodium Gold Nickel Copper Net sales revenue Net sales revenue Average exchange rate achieved on sales Exchange rate at year end Average market prices achieved: Platinum Palladium Rhodium Gold Nickel Copper Net sales revenue Net sales revenue Profitability statistics: Gross profit margin EBITDA Operating profit/average operating assets Return on equity Return on capital employed
the refinery.
2002
2001
2000 1 871,7 946,6 165,1 97,9 3 255,4 19,2 10,8 544 675 1 847 281 3,86 0,78 1 186 673 6,9881 7,5750 3 804 4 739 12 864 1 958 26,63 5,42 8 287 4 701 54,7 9 298,0 117,6 73,2 59,0
1999 2 022,7 1 017,2 171,7 106,9 3 521,4 19,6 10,7 377 358 894 278 2,58 0,66 709 420 6,1576 6,1547 2 317 2 206 5 553 1 726 15,82 4,08 4 366 2 586 36,1 3 582,4 49,2 45,4 41,3
000 oz 000 oz 000 oz 000 oz 000 oz 000 tons 000 tons US$/oz US$/oz US$/oz US$/oz US$/lb US$/lb US$/oz Pt sold US$/oz PGM sold R/US$ R/US$ R/oz R/oz R/oz R/oz R/lb R/lb R/oz Pt sold R/oz PGM sold % R millions % % %
2 307,8 1 190,9 232,5 116,1 4 161,5 22,1 12,9 696 198 527 366 4,07 0,77 948 526 6,6679 5 140 1 459 3 967 2 728 30,76 5,74 7 017 3 896 23,7 4 578,5 20,2 16,3 10,5
2 251,1 2 109,2 1 115,3 1 049,0 211,7 107,1 19,4 10,5 544 329 831 308 3,03 0,67 843 512 200,4 102,2 19,5 10,8 526 582 1 610 274 2,65 0,68 1 013 622 8,5434
3 947,6 3 673,6
7,4055 10,3101
8,5775 11,9610 5 567 3 403 8 683 3 247 31,92 7,08 8 690 5 281 46,5 66,3 45,0 43,1 4 531 4 936 13 410 2 425 23,14 5,80 8 654 5 318 51,4 120,0 66,2 64,0
9 376,1 12 507,4
* Refined metal produced by the refinery and appointed toll-treaters from mined material and purchased concentrate, as well as metals in product sold from
66
Total operations 2003 Operating contribution by mine: Rustenburg Section steady-state Amandelbult Section Union Section PPRust Leplats Total steady-state mines Ramp-up operations BRPM Rustenburg Section UG2 Project Modikwa Consolidated operating contribution Other costs Gross profit on metal sales Operating margin by mine: Rustenburg Section steady-state Amandelbult Section Union Section PPRust Leplats Total steady-state BRPM Rustenburg Section UG2 Project Modikwa Consolidated operating margin % 29,4 50,4 20,4 28,6 20,5 34,2 10,1 4,0 0,5 28,0 50,8 65,3 44,4 48,9 45,6 54,5 31,9 34,5 7,9 51,2 57,6 60,3 40,6 51,8 68,4 51,2 65,7 48,9 59,0 30,3 53,4 69,5 61,6 63,2 44,2 60,8 50,0 35,6 52,6 39,3 36,6 17,9 40,7 25,3 120,3 66,4 3,2 603,7 3 909,9 433,9 451,4 12,9 9 369,8 508,6 8 861,2 3 461,3 282,0 3 179,3 591,3 674,5 275,2 374,0 4,3 R millions 1 130,0 2 106,7 413,7 509,9 163,4 4 323,7 2 794,2 2 993,6 3 886,2 3 742,6 1 059,3 1 190,9 926,1 1 680,5 450,1 407,7 9 115,9 10 015,3 2 700,3 3 200,8 1 534,1 1 318,1 242,5 8 995,8 1 114,6 1 324,0 543,3 414,2 60,9 3 457,0 2002 2001 2000 1999
4 513,6 10 014,1 10 290,5 9 422,8 9 616,0
67
Refined production summary 2003 Refined production from mining operations: Platinum Palladium Rhodium Gold PGMs Nickel Copper Refined production from purchased metals in concentrate: Platinum Palladium Rhodium Gold PGMs Nickel Copper Total refined production *: Platinum Palladium Rhodium Gold PGMs Nickel Copper Pipeline calculation Equivalent refined platinum production ** Steady-state operations: Rustenburg Section, steady-state Amandelbult Section Union Section PPRust Leplats Ramp-up operations BRPM Rustenburg Section UG2 Project Modikwa Refined platinum production ** Mining Purchase of concentrate Platinum pipeline movement
refinery. ** Mines production of metal in concentrate converted to refined production using Anglo Platinums standard smelting and refining recoveries.
2002 2 238,5 1 103,1 210,0 106,7 3 920,6 19,4 10,5 12,6 12,2 1,7 0,4 27,0 2 251,1 1 115,3 211,7 107,1 3 947,6 19,4 10,5
2001 2 109,2 1 049,0 200,4 102,2 3 673,6 19,5 10,8
2000 1 871,7 946,6 165,1 97,9 3 255,4 19,2 10,8
1999 2 022,7 1 017,2 171,7 106,9 3 521,4 19,6 10,7
000 oz 000 oz 000 oz 000 oz 000 oz 000 t 000 t 000 oz 000 oz 000 oz 000 oz 000 oz 000 t 000 t 000 oz 000 oz 000 oz 000 oz 000 oz 000 t 000 t
2 264,7 1 150,6 225,2 114,8 4 059,0 21,9 12,8 43,1 40,3 7,3 1,3 102,5 0,2 0,1 2 307,8 1 190,9 232,5 116,1 4 161,5 22,1 12,9
2 109,2 1 049,0 200,4 102,2 3 673,6 19,5 10,8
1 871,7 946,6 165,1 97,9 3 255,4 19,2 10,8
2 022,7 1 017,2 171,7 106,9 3 521,4 19,6 10,7
000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz 000 oz
2 360,5 1 831,0 571,3 644,7 318,2 191,8 105,0 529,5 183,5 255,0 91,0 2 307,8 2 264,7 43,1 52,7
2 185,5 1 835,6 611,5 677,6 276,7 164,7 105,1 349,9 161,5 161,1 27,3 2 251,1 2 238,5 12,6 (65,6)
2 040,9 1 914,5 689,9 653,7 269,5 211,4 90,0 126,4 126,4
1 870,5 1 758,3 624,7 566,7 291,1 202,6 73,2 112,2 112,2
1 884,5 1 881,1 707,0 583,5 307,3 200,6 82,7 3,4 3,4
2 109,2 2 109,2 (68,3)
1 871,7 1 871,7 (1,2)
2 022,7 2 022,7 (138,2)
* Refined metal produced by the refinery and appointed toll-treaters from mined material and purchased concentrate, as well as metals in product sold from the
68
OPERATIONS REVIEW > GROUP STATISTICS > TOTAL STEADY-STATE OPERATIONS
Total steady-state operations* 2003 Refined production: Platinum Palladium Rhodium Gold PGMs Nickel Copper Production statistics and efficiency measures: Tons broken, underground mines Tons mined, open pit mine (PPRust) Tons milled Immediately available ore reserves Face advance Average number of mine employees Stoping and cleaning employee productivity UG2 mined of total output Built-up head grade Equivalent refined platinum production** Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin % m /employee/month
2
2002
2001
2000 1 756,7 915,5 161,2 90,9 3 082,6 18,6 10,3 19 003 30 183 23 042 14,5 8,5 38 238 36,4 27 5,08 1 758,3 199 2 605 3 116 1 776 29 377 451 257
1999 2 018,5 1 015,6 171,5 106,7 3 514,2 19,6 10,7 20 824 34 730 22 752 16,1 9,4 33 866 40,0 23 5,40 1 881,1 183 2 219 2 497 1 434 30 364 410 235 8 501,0 3 457,0 40,7
000 oz 000 oz 000 oz 000 oz 000 oz 000 tons 000 tons 000 000 000 Months m/month
1 799,1 905,5 171,2 94,5 3 214,6 18,1 10,5 20 134 48 444 25 349 16,0 9,5 34 277 37,3 32 4,86 1 831,0 253 3 497 4 304 2 409 34 463 570 319
1 918,5 1 979,0 937,6 1 004,7 176,8 90,8 16,8 9,1 20 179 39 672 24 587 15,4 10,3 34 527 37,2 28 4,91 233 3 123 3 599 2 053 22 298 343 196 192,9 96,1 18,5 10,2 21 519 29 631 24 952 14,2 8,8 37 396 37,6 28 5,06 217 2 825 3 254 1 852 25 328 378 215
3 363,0 3 478,0
% g/ton milled, 4E 000 oz R/ton milled R/oz equiv. refined Pt R/oz Pt refined R/oz PGM refined US$/ton milled US$/oz equiv. refined Pt US$/oz Pt refined US$/oz PGM refined R millions
1 835,6 1 914,5
12 637,6 16 724,4 16 971,8 14 789,0 4 323,7 34,2 9 115,9 10 015,3 54,5 59,0 8 995,8 60,8
(8 313,9) (7 608,5) (6 956,5) (5 793,2) (5 044,0)
* Includes all operations except BRPM, Rustenburg Section UG2 Project, and Modikwa, all of which were in a production ramp-up phase. ** Mines production of metal in concentrate converted to refined production using Anglo Platinums standard smelting and refining recoveries. Cost of sales excluding other costs.
69
OPERATIONS REVIEW > GROUP STATISTICS > STEADY-STATE OPERATIONS > RUSTENBURG SECTION
Rustenburg Section (100% owned) (excludes the UG2 Project) 2003 Refined production: Platinum Palladium Rhodium Gold PGMs Nickel Copper Production statistics and efficiency measures: Tons broken Tons milled Immediately available ore reserves Face advance Average number of mine employees Stoping and cleaning employee productivity UG2 mined of total output Built-up head grade Equivalent refined platinum production* Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin
Cost of sales excluding other costs. 2002 and 2003 exclude portions of the Brakspruit, Bleskop, and Paardekraal shafts, as well as the Waterval Mine, which were being expanded as part of the Rustenburg UG2 Project. These shafts, at a lower level of output, are included in the steady-state information for 2001 and before.
2002 655,5 272,7 43,1 39,0 6,8 3,9 7 014 7 031 17,0 10,7 14 780 39,9 2 5,31 611,5 296 3 400 3 822 2 325 28 324 365 222
2001 719,1 307,7 54,0 41,8 7,8 4,5 8 550 7 733 15,0 8,9 17 346 38,8 16 5,38 689,9 286 3 206 3 650 2 233 33 372 424 259
2000 630,8 277,3 43,6 39,4 1 028,5 7,6 4,4 7 734 7 215 16,1 8,6 17 719 36,7 15 5,32 624,7 264 3 055 3 580 2 196 38 442 518 318 5 060,6 2 700,3 53,4
1999 767,8 327,0 46,6 50,8 1 224,6 8,6 5,0 8 837 7 701 15,9 9,2 16 481 41,0 9 5,65 707,0 235 2 555 2 708 1 698 39 419 444 279 3 128,1 1 114,6 35,6
000 oz 000 oz 000 oz 000 oz 000 oz 000 tons 000 tons 000 000 Months m/month m /employee/month
2
557,3 230,0 38,5 37,2 927,9 6,0 3,7 6 360 6 511 15,6 9,9 14 540 37,2 0 5,17 571,3 316 3 604 4 366 2 623 42 478 579 348 3 845,9 1 130,0
1 077,7 1 175,6
5 504,2 5 780,6 2 794,2 2 993,6 50,8 51,8
(2 715,9) (2 710,0) (2 787,0) (2 360,3) (2 013,5) % 29,4
* Mines production of metal in concentrate converted to refined production using Anglo Platinums standard smelting and refining recoveries.
70
OPERATIONS REVIEW > GROUP STATISTICS > STEADY-STATE OPERATIONS > AMANDELBULT SECTION
Amandelbult Section (100% owned) 2003 Refined production: Platinum Palladium Rhodium Gold PGMs Nickel Copper Production statistics and efficiency measures: Tons broken Tons milled Immediately available ore reserves Face advance Average number of mine employees Stoping and cleaning employee productivity UG2 mined of total output Built-up head grade Equivalent refined platinum production* Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin
Cost of sales excluding other costs.
2002 711,0 314,7 71,9 23,6 4,2 2,1 7 539 7 072 18,0 10,7 9 607 37,5 44 5,86 677,6 212 2 210 2 533 1 466 20 211 242 140
2001 679,3 299,4 73,0 23,0 4,2 2,3 7 621 7 086 18,0 9,3 9 890 39,1 36 5,68 653,7 184 1 995 2 312 1 340 21 232 268 155
2000 570,8 261,1 57,2 22,1 981,9 4,1 2,3 6 505 6 412 19,0 8,9 9 908 36,2 32 5,56 566,7 167 1 886 2 252 1 309 24 273 326 189 4 603,0 3 200,8 69,5
1999 637,7 287,5 58,1 25,3 1 119,9 4,3 2,5 6 708 6 222 21,1 9,4 8 267 41,3 29 5,86 583,5 152 1 618 1 859 1 058 25 266 305 174 2 518,0 1 324,0 52,6
2
634,6 277,1 66,1 24,0 1 102,0 3,9 2,3 7 757 6 956 19,9 9,6 9 595 36,8 46 5,76 644,7 242 2 607 3 213 1 850 32 345 426 245 4 181,6 2 106,7
1 228,6 1 172,4
5 954,0 5 473,0 3 886,2 3 742,6 65,3 68,4
(2 074,9) (2 067,8) (1 730,4) (1 402,2) (1 194,0) % 50,4
71
OPERATIONS REVIEW > GROUP STATISTICS > STEADY-STATE OPERATIONS > UNION SECTION
Union Section (100% owned) 2003 Refined production: Platinum Palladium Rhodium Gold PGMs Nickel Copper Production statistics and efficiency measures: Tons broken Tons milled Immediately available ore reserves Face advance Average number of mine employees Stoping and cleaning employee productivity UG2 mined of total output Built-up head grade Equivalent refined platinum production* Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin
2002 284,7 125,8 40,2 5,2 514,7 1,0 0,4 3 707 4 562 20,0 8,5 6 240 29,1 64 4,34 276,7 235 3 876 4 246 2 349 22 370 405 224
2001 280,4 122,2 42,3 4,8 505,2 1,1 0,5 3 694 4 466 16,1 7,1 6 342 29,9 60 4,40 269,5 211 3 489 3 787 2 102 24 405 439 244
2000 288,8 137,7 42,1 5,3 528,5 1,4 0,7 3 497 4 159 13,4 7,0 7 212 36,9 69 4,89 291,1 195 2 786 3 182 1 739 28 403 460 252 2 491,5 (957,4) 1 534,1 61,6
1999 333,1 155,7 47,4 5,8 604,9 1,5 0,6 3 982 3 749 14,5 7,4 5 878 35,1 75 5,38 307,3 187 2 278 2 562 1 411 31 374 420 232 1 383,6 (840,3) 543,3 39,3
2
313,2 132,6 43,6 5,8 572,0 1,1 0,5 4 041 5 882 19,7 9,0 6 163 30,5 74 4,18 318,2 229 4 231 5 003 2 739 30 561 663 363 2 029,2 413,7
2 385,7 2 326,6 1 059,3 1 190,9 44,4 51,2
(1 615,5) (1 326,4) (1 135,7) % 20,4
72
OPERATIONS REVIEW > GROUP STATISTICS > STEADY-STATE OPERATIONS > PPRUST
PPRust (100% owned) 2003 Refined production: Platinum Palladium Rhodium Gold PGMs Nickel Copper Production statistics and efficiency measures: Tons mined Stripping ratio Tons milled Immediately available ore reserves* Average number of mine employees Built-up head grade Equivalent refined platinum production** Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin
* Within the pit. ** Mines production of metal in concentrate converted to refined production using Anglo Platinums standard smelting and refining recoveries. Cost of sales excluding other costs.
2002 165,3 159,0 12,1 17,1 349,4 3,4 1,9 39 672 17,7 4 375 6,1 1 112 3,53 164,7 147 3 903 5 298 2 507 14 373 506 239
2001 211,1 219,8 16,4 21,2 462,9 4,2 2,2 29 631 10,9 4 270 3,5 1 095 4,38 211,4 139 2 815 3 688 1 682 16 327 428 195
2000 194,1 203,7 13,9 19,6 424,0 4,4 2,3 30 183 8,7 4 177 6,7 1 172 4,33 202,6 126 2 605 3 654 1 673 18 377 528 242 2 085,7 (767,6) 1 318,1 63,2
1999 201,1 210,2 14,9 19,7 438,4 3,9 1,9 34 730 7,9 4 059 1,3 1 174 4,59 200,6 120 2 423 3 228 1 481 20 398 530 243 1 131,5 (717,3) 414,2 36,6
000 oz 000 oz 000 oz 000 oz 000 oz 000 tons 000 tons 000 000 Months g/ton milled, 4E 000 oz R/ton milled R/oz equiv. refined Pt R/oz Pt refined R/oz PGM refined US$/ton milled US$/oz equiv. refined Pt US$/oz Pt refined US$/oz PGM refined R millions
188,9 196,9 12,5 21,4 411,0 5,7 3,2 48 444 13,0 4 465 5,3 1 124 3,99 191,8 183 4 249 5 964 2 741 24 563 790 363 1 782,6 (1 272,7) 509,9
1 892,6 2 558,6 (966,5) 48,9 (878,1) 65,7 926,1 1 680,5
28,6
73
OPERATIONS REVIEW > GROUP STATISTICS > STEADY-STATE OPERATIONS > LEPLATS
Leplats (100% owned) 2003 Refined production: Platinum Palladium Rhodium Gold PGMs Nickel Copper Production statistics and efficiency measures: Tons broken Tons milled Immediately available ore reserves Face advance Average number of mine employees Stoping and cleaning employee productivity UG2 mined of total output Built-up head grade Equivalent refined platinum production* Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin
2002 102,0 65,4 9,5 5,9 192,6 1,4 0,8 1 919 1 547 15,6 9,0 2 788 39,4 38 4,46 105,1 285 4 197 5 027 2 663 27 401 480 254 987,9 (537,8) 450,1 45,6
2001 89,1 55,6 7,2 5,3 161,9 1,2 0,7 1 654 1 397 13,8 9,4 2 723 39,7 38 4,26 90,0 256 3 983 4 540 2 498 30 462 527 290 833,0 (425,3) 407,7 48,9
2000 72,2 35,7 4,4 4,5 119,7 1,1 0,6 1 267 1 079 12,4 9,0 2 227 35,0 18 4,26 73,2 244 3 601 4 179 2 520 35 521 604 364 548,2 (305,7) 242,5 44,2
1999 78,8 35,2 4,5 5,1 126,4 1,3 0,7 1 297 1 021 15,2 9,0 2 066 38,4 0 4,56 82,7 232 2 860 3 475 2 166 38 469 570 355 339,8 (278,9) 60,9 17,9
2
105,1 68,9 10,5 6,1 201,7 1,4 0,8 1 976 1 535 16,6 9,0 2 855 40,7 39 4,61 105,0 327 4 779 5 499 2 866 43 633 729 380 798,3 (634,9) 163,4
20,5
74
OPERATIONS REVIEW > GROUP STATISTICS > RAMP-UP OPERATIONS > BRPM
BRPM (100% owned, but to form part of a 50:50 JV with Royal Bafokeng Resources) 2003 Refined production: Platinum Palladium Rhodium Gold PGMs Nickel Copper Production statistics and efficiency measures: Tons broken Tons milled Immediately available ore reserves Face advance Average number of mine employees Stoping and cleaning employee productivity UG2 mined of total output Built-up head grade Equivalent refined platinum production* Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin
2002 162,1 68,2 10,5 9,4 261,5 1,7 1,0 2 159 2 491 6,7 8,9 3 267 45,3 13 4,22 161,5 284 4 382 5 045 3 127 27 418 481 298 1 358,4 (924,5) 433,9 31,9
2001 130,2 44,3 7,5 6,1 195,6 1,0 0,6 1 256 1 892 7,3 7,2 2 554 29,8 24 4,42 126,4 285 4 266 4 638 3 087 33 495 538 358 907,1 (631,9) 275,2 30,3
2000 115,0 31,1 3,9 7,0 172,8 0,6 0,5 610 1 533 3,0 5,4 1 433 15,4 9 4,61 112,2 232 3 164 3 458 2 302 34 458 500 333 748,0 (374,0) 374,0 50,0
1999 4,2 1,6 0,2 0,2 7,2 0,0 0,0 101 178 3,4 139 4 118 3 643 2 125 23 676 598 349 17,0 (12,7) 4,3 25,3
2
177,6 69,1 11,2 10,8 280,9 2,0 1,3 2 681 2 481 10,3 9,3 3 457 45,4 8 4,50 183,5 329 4 456 5 221 3 301 44 590 692 437 1 186,4 (1 066,1) 120,3
10,1
75
OPERATIONS REVIEW > GROUP STATISTICS > RAMP-UP OPERATIONS > MODIKWA
Modikwa Platinum Mine (50:50 JV with African Rainbow Minerals-led consortium) 2003 Refined production: Platinum Palladium Rhodium Gold PGM Nickel Copper Production statistics and efficiency measures: Tons broken Tons milled Immediately available ore reserves Face advance Average number of mine employees Stoping and cleaning employee productivity UG2 mined of total output Built-up head grade Equivalent refined platinum production* Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin
Cost of sales excluding other costs
2002 25,1 24,4 3,3 0,7 53,7 0,1 0,0 459 488 4,0 11,2 850 18,0 100 2,52 27,3 185 6 598 7 880 3 683 18 630 752 352 163,3 (150,4) 12,9 7,9
2
86,2 80,6 14,6 2,5 204,9 0,4 0,3 1 484 1 211 2,9 14,3 1 057 19,1 100 3,23 91,0 303 8 057 9 268 3 898 40 1 068 1 228 517 616,1 (612,9) 3,2
0,5
76
OPERATIONS REVIEW > GROUP STATISTICS > PROJECTS IN RAMP-UP PHASE > RUSTENBURG UG2 PROJECT
Rustenburg Section UG2 Project (100% owned) 2003 Refined production: Platinum Palladium Rhodium Gold PGMs Nickel Copper Production statistics and efficiency measures: Tons broken Tons milled Immediately available ore reserves Face advance Average number of mine employees Stoping and cleaning employee productivity UG2 mined of total output Built-up head grade Equivalent refined platinum production* Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Cash on-mine costs Cash on-mine costs Cash operating costs Cash operating costs Operating income statement: Net sales revenue Operating cost of sales Operating contribution Operating margin
2002 145,4 85,1 21,1 6,2 269,4 0,8 0,4 3 951 3 786 12,3 10,7 3 422 41,7 92 3,24 161,1 221 5 205 6 415 3 462 21 497 612 330 1 306,6 (855,2) 451,4 34,5
2
244,9 135,7 35,5 8,3 461,1 1,6 0,8 7 035 5 716 11,8 11,8 4 506 41,8 93 3,38 255,0 252 5 647 6 661 3 538 33 748 883 469 1 660,3 (1 593,9) 66,4
4,0
77
OPERATIONS REVIEW > GROUP STATISTICS > ANALYSIS OF GROUP CAPITAL EXPENDITURE
2003 R millions Mining: Rustenburg Section Amandelbult Section Union Section PPRust Leplats BRPM (including Styldrift) JV Modikwa JV Kroondal PSA Twickenham Pandora JV Western Limb Tailings Retreatment Unki JV Total mining Processing: Waterval Smelter Polokwane Smelter RBMR PMR Total processing Other Total capital expenditure Capitalized interest Grand total 78,3 1,3 28,4 97,0 205,0 247,1 3 952,7 222,1 491,7 54,9 536,1 1 304,8 385,4 3 270,4 300,4 493,0 83,3 633,1 1 509,8 632,5 7 223,1 200,5 7 423,6 39,6 33,6 93,8 149,1 2 140,9 20,6 3 500,6 1 434,3 434,8 605,8 338,7 266,6 254,0 166,4 112,7 43,6 52,7 2,2 736,7 33,9 597,5 0,9 1 580,2 1 547,0 434,8 605,8 338,7 266,6 297,6 219,1 2,2 736,7 33,9 597,5 0,9 5 080,8 1 898,0 607,7 290,8 420,0 213,1 102,6 256,1 7,7 Ongoing Expansion Total Ongoing
2002 Expansion 539,6 15,0 226,7 4,3 12,8 60,7 831,9 231,5 1,2 49,7 1 973,4 586,1 860,1 31,7 165,5 1 643,4 236,4 3 853,2 Total 1 147,3 305,8 646,7 217,4 115,4 316,8 839,6 231,5 1,2 49,7 3 871,4 606,7 860,1 71,3 199,1 1 737,2 385,5 5 994,1 5 994,1
78
ANNUAL FINANCIAL STATEMENTS > CONTENTS
Approval of annual financial statements Declaration by the Company Secretary Report of the independent auditors Directors Report Financial results and nature of business Listings Compliance with accounting standards Reporting in United States dollars Dividend Corporate governance Corporate code of conduct Black economic empowerment (BEE) initiatives Expansion programme Directorate Interests of Directors Directors remuneration Shares repurchased Share capital Dematerialization of shares (STRATE) Property Auditors Administration Subsidiary companies Holding company and ultimate holding company Remuneration Report Role of the Remuneration Committee and terms of reference Members of the Remuneration Committee Remuneration policy Other matters affecting remuneration of Directors Directors remuneration Principal accounting policies Consolidated financial statements Consolidated income statement Segmental information Consolidated balance sheet Group statement of changes in equity Consolidated cash flow statement United States dollar equivalent consolidated financial statements Notes to the consolidated financial statements Annexure A: Mining property, plant and equipment Annexure B: Non-mining property, plant and equipment Annexure C: Equity compensation benefits Anglo Platinum Share Option Scheme Annexure D: Investments in subsidiaries, joint ventures, associates and other Appendix 1: Annual financial statements: Anglo American Platinum Corporation Limited
80 80 81 82 82 82 82 82 82 83 84 84 85 85 86 86 86 86 87 87 87 87 87 87 88 88 88 88 90 91 98 104 104 105 106 107 108 109 112 132 133 134
136
138
79
ANNUAL FINANCIAL STATEMENTS > APPROVAL OF ANNUAL FINANCIAL STATEMENTS
Approval of annual financial statements for the year ended 31 December 2003
The annual financial statements, which appear on pages 82 to 141, were approved by the Board of Directors on 13 February 2004 and are signed on its behalf by:
Barry Davison Chairman Johannesburg 13 February 2004
Ralph Havenstein Chief Executive Officer Johannesburg 13 February 2004
Declaration by the Company Secretary In Terms of Section 268(G)(d) of the South African Companies Act 1973, as amended
I declare that, to the best of my knowledge, the Company has lodged with the Registrar of Companies all such returns as are required of a public company in terms of the Companies Act and that all such returns are true, correct, and up to date in respect of the financial year reported upon.
Rohan Venter Company Secretary Johannesburg 13 February 2004
80
ANNUAL FINANCIAL STATEMENTS > REPORT OF THE INDEPENDENT AUDITORS
Report of the Independent Auditors To the members of the Anglo American Platinum Corporation Limited
We have audited the Group annual financial statements and annual financial statements of Anglo American Platinum Corporation Limited set out on pages 82 to 141 for the year ended 31 December 2003. These financial statements are the responsibility of the Companys Directors. Our responsibility is to express an opinion on the financial statements based on our audit.
Scope
We conducted our audit in accordance with Statements of South African Auditing Standards. These standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit includes: Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; Assessing the accounting principles used and significant estimates made by management; and Evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
Audit opinion
In our opinion, these financial statements fairly present, in all material respects, the financial position of the Group and of the Company as at 31 December 2003 and the results of their operations and cash flows for the year then ended in accordance with International Financial Reporting Standards, as well as South African Statements of Generally Accepted Accounting Practice, and in the manner required by the Companies Act of South Africa.
Deloitte & Touche Chartered Accountants (S.A.) Registered Accountants and Auditors Johannesburg 13 February 2004
81
ANNUAL FINANCIAL STATEMENTS > DIRECTORS REPORT DIRECTORS REPORT

The Directors have pleasure in submitting their report and the annual financial statements of the Group and the Company for the year ended 31 December 2003. In the context of the financial statements, the term Group refers to the Company and its major wholly owned subsidiaries: Anglo Platinum Management Services (Proprietary) Limited; Rustenburg Platinum Mines Limited (RPM); Potgietersrust Platinums Limited (PPRust); Lebowa Platinum Mines Limited (Leplats); and all other subsidiaries. The Directors are of the opinion that stakeholder interests are best served by separating the Group annual financial statements from those of the Company. The latter financial statements therefore appear in Appendix 1.
Financial results and nature of business

The financial statements set out fully the financial results of the Company and the Group. The Company is the holding company of the Group. The nature of the Groups business is described at the front of this Business Report.
Listings
The abbreviated name under which the Company is listed on the JSE Securities Exchange, South Africa (JSE) is AngloPlat and the Companys JSE Clearing House Code is AMS. The Company, which is the sole listed entity for the Group, is also listed on The Stock Exchange, London. International Depositary Receipts in respect of the Companys shares are listed on the Brussels Bourse. These depositary receipts are issued by SOGSDEWAAY, the issuing company of Bank Brussels Lambert SA.
Compliance with accounting standards

The Groups and the Companys annual financial statements comply with International Financial Reporting Standards, as well as South African Statements of Generally Accepted Accounting Practice, the South African Companies Act, and the JSEs listings requirements.
Reporting in United States dollars

For the convenience of users, the income statement, balance sheet, and cash flow statement of the Group have been translated into United States dollars and are presented on pages 109 to 111.
Dividend
The Companys dividend policy is to declare an interim and a final dividend in respect of each financial year. At its discretion, the Board may declare a special dividend where appropriate. Interim dividend On Tuesday 29 July 2003, the Board declared an interim cash dividend (number 101) of 370 cents per ordinary share (2002: 900 cents) to shareholders registered on Friday 29 August 2003. This dividend was paid on Wednesday 3 September 2003. Final dividend On Friday 13 February 2004, the Board declared a final cash dividend (number 102) of 270 cents per ordinary share (2002: 900 cents) (the cash dividend). In addition, the Board has proposed that shareholders be given the option to elect (the reinvestment election) to use the proceeds of the cash dividend to subscribe for new ordinary shares in Anglo Platinum (the subscription shares). The number of subscription shares to which shareholders will become entitled will be determined by the ratio that 270 cents per share multiplied by 1,05 bears to the issue price. The issue price is defined as the weighted average traded price of the ordinary shares of the Company on the JSE for the five business days ending Thursday, 4 March 2004. To the extent that shares cannot be subscribed for using the proceeds of the cash dividend, that portion of the cash dividend which is insufficient to subscribe for a whole share or an additional whole share (the cash dividend portion) will be posted to shareholders on the payment date. The subscription shares will be issued on Tuesday, 23 March 2004, and the adjusted number of shares will be listed on the JSE on that date. Documentation dealing with the subscription shares and election will be posted to shareholders around 16 February 2004. Only shareholders recorded in the register on Friday, 19 March 2004 will be entitled to receive the cash dividend and be able to make the reinvestment election.
82
ANNUAL FINANCIAL STATEMENTS > DIRECTORS REPORT
The salient dates Circular incorporating a form of election posted to shareholders Election period opens at 09:00 Last day to trade to receive cash dividend and to be entitled to the reinvestment election Ordinary shares trade ex-dividend Maximum number of new ordinary shares listed on the JSE Securities Exchange South Africa (JSE) in respect of the reinvestment election Election period closes at 12:00 (see note) Record date to receive the cash dividend for the reinvestment election Dividend cheques or, where applicable, share certificates and cheques in respect of the cash dividend portion posted to certificated shareholders Safe custody accounts with the CSDP or broker credited and/or updated Results announcement published on SENS Results announcement published in the press Adjusted number of new ordinary shares listed on the JSE, on or about
2004 Monday, 16 February Monday, 16 February Friday, 12 March Monday, 15 March
Monday, 15 March Friday, 19 March Friday, 19 March Tuesday, Tuesday, Tuesday, Wednesday, Wednesday, 23 23 23 24 24 March March March March March
No dematerialization or rematerialization of share certificates may take place between Monday, 15 March 2004 and Friday, 19 March 2004, both days inclusive. Note: Dematerialized shareholders are required to notify their duly appointed CSDP or broker of their acceptance of the offer in the manner and time stipulated in the agreement governing the relationship between the shareholder and his/her CSDP or broker. Total dividends for the year The above-mentioned interim and final dividends resulted in dividends for the year totalling 640 cents per ordinary share (2002: 1 800 cents). The Board is satisfied that the capital remaining after the payment of the final dividend, together with anticipated borrowings, will be sufficient to support the current operations and to facilitate future development of the business.
Corporate governance Directors responsibilities in respect of annual financial statements

The Directors are required by the South African Companies Act to maintain adequate accounting records and to prepare annual financial statements that fairly present the state of affairs of the Group and the Company as at the end of the financial year and the profit or loss for that year. Furthermore, in order to achieve fair presentation, these financial statements are drawn up to comply with International Financial Reporting Standards and South African Statements of Generally Accepted Accounting Practice. The financial statements are the responsibility of the Directors and it is the responsibility of the independent auditors to report thereon. To enable the Directors to meet these responsibilities, the Board sets standards and implements systems of internal control aimed at reducing the risk of error or loss in a cost-effective manner. The controls include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures, and adequate segregation of duties, ensuring an acceptable level of risk. These controls are monitored throughout the Group and all employees are required to maintain the highest ethical standards in ensuring that the Groups business is conducted in a manner that in all reasonable circumstances is above reproach. Particulars relating to the Groups internal controls and audit approach, embracing the role and function of the Audit Committee, are set out in the section on corporate governance in the Sustainable Development Report. The audit approach entails a thorough comprehension of the Groups financial and business objectives, and analysis of the underlying systems and procedures. The focus of risk management in the Group is on identifying, assessing, managing, and monitoring all known forms of risk across the Group. While operating risk cannot be fully eliminated, the Group endeavours to minimize it by ensuring that the appropriate infrastructure, controls, systems, and ethics are applied throughout the Group and managed within predetermined procedures and constraints. The Directors are of the opinion, based on the information and explanations given by management and the internal auditors and on comment by the independent auditors on the results of their audit, that the internal controls are adequate to ensure: The reliability and integrity of financial and operating information; The compliance of established systems with policies, plans, procedures, laws, and regulations;
83
Corporate governance (continued)

The safeguarding of the Groups assets against unauthorized use or disposition; The economic, effective, and efficient utilization of resources; and The accomplishment of established objectives and goals for operations or programmes.
Nothing has come to the attention of the Directors to indicate that any material breakdown in the functioning of these controls, procedures, or systems occurred during the year under review. Accordingly, the financial records may be relied upon for preparing the financial statements and maintaining accountability for assets and liabilities. In preparing the financial statements, the Group complied with International Financial Reporting Standards and used appropriate accounting policies, supported by reasonable and prudent judgements and estimates. The Directors are of the opinion that the financial statements fairly present the financial position of the Company and of the Group as at 31 December 2003 and the results of the operations and cash flow information for the year then ended. The Directors have reviewed the Groups cash flow forecast for the year to 31 December 2004 and, in the light of this review and the current financial position, they are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Group continues to adopt the goingconcern basis in preparing the annual financial statements. The Directors believe, as a result of the comprehensive structures and controls that are in place and the ongoing monitoring of the activities of executive and operational management, that the Board maintains effective control over the Groups affairs. The internal auditors and the independent external auditors concur with these statements by the Directors. The Board considers that the Company and its subsidiaries complied during the financial year in all material respects with the principles of the Code of Corporate Practices and Conduct contained in the 1994 King Committee Report on Corporate Governance (the 1994 Code). With effect from March 2002, the second King Report on Corporate Governance in South Africa (King 2) replaced the 1994 Code. Since the release of King 2, the Board has reviewed the Companys corporate governance in detail and has taken steps to ensure compliance. On 1 July 2003, Ralph Havenstein was appointed the CEO, separating this role from that of Chairman. The Board is of the view that the Company and its subsidiaries are now fully compliant with the recommendations set out in the Code of Corporate Practices and Conduct contained in King 2. Details of the Groups corporate governance structures and practices are set out in the Sustainable Development Report.
Corporate code of conduct

The Group is committed to promoting the observance of the highest standards of ethical behaviour among its Directors, management, and employees. In accordance with this objective, a Code of Ethics and Business Principles has been circulated throughout the Group to provide a clear guide to the behaviour expected of all employees in their dealings with each other and with the Groups stakeholders. All employees of the Group are required to maintain the highest ethical standards, ensuring that the Groups business practices are conducted in a manner that is above reproach. Having regard to the provisions of the Insider Trading Act, the Company operates closed periods prior to the publication of its interim and year-end financial results, during which Directors, officers, and other employees of the Group may not deal in the shares or other instruments pertaining to the shares of the Company or in any investment relating to the Companys shares. This principle is also applied at other times whenever warranted by circumstances.
Black economic empowerment (BEE) initiatives Modikwa Platinum Mine

The Group previously announced the development of a PGM mine on the farms Maandagshoek, Driekop, Winterveld, Hendriksplaats, and Onverwacht on the Eastern Limb of the Bushveld Complex to exploit the Merensky and UG2 reefs. It was also stated that the mining of these properties would be undertaken in cooperation with a BEE consortium in accordance with the Groups policy of supporting and encouraging meaningful empowerment of historically disadvantaged South Africans. On 21 August 2001, the Group announced that negotiations with African Rainbow Minerals as leader for such a consortium had been concluded and an agreement had been reached, in terms of which the parties would participate equally in a joint venture to turn the above-mentioned properties to account. In terms of that agreement, the parties each provided half the estimated R1,35 billion capital cost of the mine (2000 money terms), which will produce 162 000 ounces of platinum per annum.
84
Northam Platinum Limited (Northam)

As at 31 December 2003, the Groups beneficial shareholding in Northam was 52 096 216 shares (52 020 516 shares as at 31 December 2002).
Pandora Joint Venture (Pandora)

As at 31 December 2003, the Groups intention was for a beneficial shareholding in Pandora of 45%, subject to further negotiation.
Bafokeng-Rasimone Platinum Mine and Styldrift Joint Venture

An agreement in respect of the joint venture has been concluded. Certain suspensive conditions remain outstanding.
Booysendal JV
In July 2003, Anglo Platinum and Khumama Platinum (Pty) Ltd, a BEE consortium, announced their agreement in principle to establish a 50:50 joint venture to develop the Booysendal Platinum Project on the Eastern Limb of the Bushveld Complex in Mpumalanga. The conclusion of the joint venture agreement is still subject to certain conditions, including the obtaining of the necessary regulatory and statutory consents and authorizations, as well as board approvals.
Expansion programme Expansion of mining capacity and process facilities announced in 2003
In February 2003, the Group announced that it had concluded an agreement to establish a joint venture with Cluff Mining plc (Cluff) to prospect and potentially develop the Shebas Ridge Platinum Project in the Mpumalanga Province. After certain cash payments and the issue of Cluff shares to Anglo Platinum, Anglo Platinum holds a 35% interest in the project, with the balance held by Cluff, who will continue to fund the exploration programme. Upon completion of a feasibility study and Cluff taking the decision to mine, Cluff will make a further payment of US$12,5 million to Anglo Platinum, thereby increasing Cluffs interest in the joint venture to 87,5%. When this occurs, the parties will finalize the terms for Anglo Platinum to purchase the concentrate to be produced by the mine. The conclusion of the Joint Venture Agreement is subject to certain conditions, including the obtaining of the necessary regulatory and statutory consents and authorizations. In April 2003, Anglo Platinum and Anglo American Corporation Zimbabwe Limited announced that they were to proceed with the initial phase of the development of the Unki Platinum Project, situated near Gweru on Zimbabwes Great Dyke. The project is still subject to certain Zimbabwean and South African regulatory and fiscal approvals. The project involves the development of an 85 000 tons per month mine that will include an on-site concentrator. The mine will produce concentrate containing some 58 000 ounces of refined platinum per annum at full capacity, with first production expected in 2007. The total project cost was estimated at some US$90 million (2003 terms). The concentrate produced by the mine will be smelted and refined by Anglo Platinum in South Africa. Anglo Platinum will hold a majority shareholding in Unki and will also manage the operations. Anglo Platinum and Anglo American Corporation Zimbabwe Limited will fund the initial development phase from existing cash resources and borrowing facilities. Discussions are being held with indigenous parties with a view to their acquiring an equity interest in Unki. In June 2003, Anglo Platinum and Aquarius Platinum (South Africa) announced that they had reached agreement to mine contiguous properties on their respective Rustenburg and Kroondal lease areas. The agreement provides for the parties to pool their assets, while retaining ownership thereof, and to share the proceeds equally. Anglo Platinum will provide access to a portion of the UG2 orebody on Rustenburg Platinum Mines (RPM) lease area and Aquarius Platinum (South Africa) will provide access to its existing Kroondal Platinum Mines (KPM) lease area and infrastructure. KPMs production will be expanded from 140 000 to 280 000 ounces of refined platinum per annum by utilizing the KPM infrastructure, constructing an additional 250 000 tons per month concentrator for completion in 2005, and the establishment of additional shaft capacity. The venture will have a mine life extending to 2016. The capital expenditure for establishment of the venture is expected to be in the region of R750 million (2003 terms) and will be equally funded by Anglo Platinum and Aquarius Platinum (South Africa). In December 2003, Anglo Platinum presented the results of a review of its expansion plans in light of deteriorating economic conditions, particularly those accompanying the strengthening of the rand against the US dollar. The review confirmed that current and future demand for platinum remained robust, and the Group consequently confirmed its commitment to expanding its production base. However, it announced its intention of slowing down the rate of implementation of some of its expansion projects by between one and three years. Instead of producing 3,4 million ounces of platinum in 2006, the revision of the project scheduling would result in a lower expanded production in that year of approximately 2,9 million ounces of platinum.
Directorate
Changes in the Directorate that occurred during the year are set out hereunder:
1 May 2003
Mr RG Mills was appointed Executive Director: Projects.
1 July 2003
Mr BE Davison resigned as Chief Executive Officer and remains as Non-executive Chairman of the Board. Mr R Havenstein was appointed as Chief Executive Officer. Dr BA Khumalo was appointed as an Independent Non-executive Director.
85
Directorate (continued) 31 July 2003

Mr PJ Kinver resigned as Alternate Director.
10 November 2003
Mr PL Zim was appointed as a Non-executive Director.
31 December 2003
Mr BE Ngubane resigned as Executive Director: Human Resources. Subsequent to the end of the financial year, Mr JA Dreyer retired as an Executive Director, with effect from 1 February 2004, and Mr AM Thebyane joined as Executive Director: Human Resources, on 13 February 2004. In terms of the Articles of Association, Messrs Havenstein, Boyd, Mills, Nairn, Thebyane, Zim, and Dr Khumalo retire as Directors at the forthcoming Annual General Meeting and, being eligible, are available for re-election. The Board as it is currently constituted is set out on pages 144 and 145.
Interests of Directors
The shareholdings of the Directors and Alternate Directors in the ordinary shares of the Company as at 31 December that did not individually exceed 1% of the Companys issued share capital were: Number of shares held beneficially* 2003 Leslie Boyd Colin Brayshaw Barry Davison Dorian Emmett Mike King Bill Nairn Roeland van Kerckhoven Tom Wixley Total
* No Director had non-beneficial interests in any shares in 2003 or 2002.
2002 300 22 067 1 619 1 200 759 4 300 26 249
963 300 22 067 1 619 1 200 759 4 300 27 212
In addition to the above, the Directors and their Alternates who held office on 31 December 2003 were interested in 334 371 options to acquire ordinary shares in the Company at that date, at an average price of R169,44 cents per share. Subsequent to the year-end, none of the Directors exercised any options to shares. No other material change in the aforegoing interests has taken place between 31 December 2003 and the date of this Report. Save for the Share Option Scheme, no arrangements to which the Company was a party existed at the end of the financial year, or at any time during the year, that would have enabled the Directors or their families to acquire benefits by means of the acquisition of shares in the Company. There were no contracts of significance during or at the end of the financial year in which any Directors or Alternate Directors of the Company were materially interested.
Directors remuneration
Details of Directors remuneration are set out in the Remuneration Report starting on page 88.
Shares repurchased
As a consequence of the Groups capital expansion programme, no share repurchases took place during the year under review.
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Share capital
The authorized and issued share capital of the Company as at 31 December was as follows:
Authorized
2002 and 2003 400 000 000 ordinary shares of 10 cents each R40 000 000
Issued
2002 214 933 207* ordinary shares of 10 cents each R21 493 320
*Net of 1 673 400 shares referred to above, which were purchased by the Company and transferred from the wholly owned subsidiary to the Company in August 2002 and, thereafter, cancelled and de-listed in accordance with the provisions of the Companies Act and the JSE rules.
2003 215 393 567 ordinary shares of 10 cents each
R21 539 357
At the Annual General Meeting, which is to be held on 30 March 2004, members will be requested to consider an ordinary resolution placing the authorized but unissued ordinary shares of the Company, other than those needed to meet the requirements of the Share Option Scheme, under the control of the Directors until the 2005 Annual General Meeting.
Dematerialization of shares (STRATE)

Shareholders are again requested to note that, following the transfer to STRATE, the Companys share certificates are no longer good for delivery. Dematerialization of the Companys share certificates is now a prerequisite to dealing in its shares.
Property
The register of land and buildings is available for inspection at the registered office of the Company during normal business hours.
Auditors
Deloitte & Touche continued in office as auditors of Anglo American Platinum Corporation Limited and Anglo Platinum Management Services (Proprietary) Limited, and Ernst & Young continued in office as auditors of RPM, PPRust, and Leplats. At the Annual General Meeting on Tuesday, 30 March 2004, shareholders will be requested to appoint Deloitte & Touche as auditors of Anglo American Platinum Corporation Limited and to hold office for the ensuing year.
Administration
Mr Rohan Venter was appointed as Company Secretary upon the resignation of Mr Costa Mutzuris. Anglo Platinum Management Services (Proprietary) Limited continues to act as the administrative, financial, and technical adviser to the Company. Anglo American Services (UK) Limited continues in office as London Secretaries to the Company. Computershare Limited and Capita IRG plc are respectively South African and United Kingdom Registrars of the Company.
Subsidiary companies
Details of major subsidiary companies in which the Company has a direct or indirect interest are set out on pages 136 and 137. The aggregate after-tax earnings attributable to the Company from its subsidiaries were: R millions Earnings 2003 2 116,1 2002 5 471,6
Holding company and ultimate holding company

The Companys holding company is Anglo South Africa Capital (Proprietary) Limited. The ultimate holding company is Anglo American plc, which is incorporated in the United Kingdom.
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ANNUAL FINANCIAL STATEMENTS > REMUNERATION REPORT REMUNERATION REPORT Role of the Remuneration Committee and terms of reference
The Remuneration Committee (the Committee) is responsible for considering and making recommendations to the Board on: The Companys general policy on executive and senior management remuneration; The specific remuneration packages for Executive Directors of the Company including, but not limited to, basic salary, performancebased short- and long-term incentives, pensions, and other benefits; and The operation of the Companys share incentive schemes.
Membership of the Remuneration Committee

The Committee included the following Non-executive Directors during the period since the previous Annual General Meeting: Tom Wixley (Chairman); Colin Brayshaw; Barry Davison (appointed July 2003); Hixonia Nyasulu (appointed January 2004); and Tony Trahar.
The Committee met five times during 2003. The Chief Executive Officer attends the Committee meetings and assists the Committee in its deliberations, except when issues relating to his own compensation are discussed. No Director is involved in deciding his or her own remuneration. In 2003, the Committee was advised by CB Corrin (Group Human Resources, Anglo American plc), the Companys Finance function, and PricewaterhouseCoopers, who were appointed by the Company with the agreement of the Committee in June 2003 to advise on the design of executive incentive schemes and assist with their implementation. The Companys auditors, Deloitte & Touche, have not provided advice to the Committee.
Remuneration policy
Principles of executive remuneration Anglo Platinums remuneration policy is formulated to attract and retain high-calibre executives and motivate them to develop and implement the Companys business strategy in order to optimize long-term shareholder value creation. It is the intention that this policy should conform to best practice standards. The policy is framed around the following key principles: Total rewards will be set at levels that are competitive within the relevant market; Total incentive-based rewards will be earned through the achievement of demanding performance conditions consistent with shareholder interests over the short, medium, and long term; Incentive plans, performance measures, and targets will be structured to operate soundly throughout the business cycle; and The design of long-term incentives is prudent and does not expose shareholders to unreasonable financial risk.
Elements of Executive Director remuneration Executive Director remuneration comprises the following four principal elements: Base salary; Annual bonus plan; Share Option Scheme; and Benefits.
The Committee seeks to ensure an appropriate balance between the fixed and performance-related elements of Executive Director remuneration, and between those aspects of the package linked to short-term financial performance and those linked to longer-term shareholder value creation. The Committee considers each element of remuneration relative to the market and takes into account the performance of the Company and the individual Executive Director in recommending quantum and design.
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ANNUAL FINANCIAL STATEMENTS > REMUNERATION REPORT
The policy relating to each component of remuneration is summarized below: Base salary The base salary of the Executive Directors is subject to annual review and is set to be competitive at the median level with reference to external market practice in similar companies, which are comparable in terms of size, market sector, business complexity, and international scope. Company performance, individual performance, and changes in responsibilities are also taken into consideration when determining annual base salaries. Annual bonus plan All Executive Directors are eligible to participate in an annual bonus plan, with payment levels based on corporate and individual performance. Bonus potentials are set on an individual basis each year and have not normally exceeded 60% of base salary for the Executive Chairman (while that role existed), 60% for the Chief Executive Officer, 40% for the Chief Operating Officer, and 30% for other Directors. The bonus plan is non-contractual and not pensionable. The Committee retains the discretion to make adjustments to bonuses earned at the end of the year on an exceptional basis, taking into account both Company performance and the overall and specific contribution of individual Executive Directors to the Companys success. The performance measures for the annual bonus plan include measures of corporate (and, where applicable, divisional) performance, as well as the achievement of specific individual objectives. The corporate element is based upon stretching production and profitability targets, and is reduced by failure to achieve safety targets. The Committee reviews measures annually, after consultation with the CEO, to ensure that the measures and targets set are appropriate given the economic context and the performance expectations for the Company. It is the Committees usual policy to base 70% of each annual bonus award on the corporate or divisional measure and the remaining 30% on the defined personal key performance indicators. Share Option Scheme Options over Anglo Platinum shares were granted in March 2003 to Executive Directors, which allocation was based on performance criteria similar to those used for the annual bonus. The options are allocated at the middle market price ruling on the trading day prior to the date of allocation, vest after stipulated periods, and are exercisable up to a maximum of 10 years after the date of allocation. Retirement schemes Executive Directors participate in contributory retirement schemes established by the Group. Other benefits Executive Directors are entitled to the provision of either a car allowance or a fully expensed car, medical insurance, death and disability insurance, social club membership, and reimbursement of reasonable business expenses. The provision of these benefits is considered to be market competitive in South Africa for executive director positions. Proposals for new long-term incentive plans Following the withdrawal of the Executive Directors in 2002 from participation in long-term incentive plans provided by Anglo American plc, the Committee has developed proposals for implementation in 2004 of a range of new long-term incentive plans that embody the following elements: Executive share appreciation scheme (ESAS) It is intended that the Anglo Platinum Share Option Scheme will be replaced by a new scheme, under which Executive Directors will receive annual allocations of rights to a cash bonus that depend upon appreciation in the market value of the Companys shares. The right will normally vest after three years, subject to a performance condition to be set by the Committee, initially based on an increase in earnings per share over the vesting period. Although under present tax legislation an ESAS is preferable to a share option scheme from the Companys point of view, shareholders will also be asked to approve the establishment of a new Share Option Scheme in the event that circumstances change and the use of such an alternative scheme should prove desirable. Long-term incentive plan (LTIP) The Committee proposes in future to make awards of conditional shares annually to Executive Directors under a new plan to be known as the LTIP. These awards are discretionary and are considered on a case-by-case basis. The Committee intends to make annual awards of LTIP interests over Anglo Platinum shares with a face value of 120% of basic salary for the CEO and 100% of basic salary for the other Executive Directors. However, in exceptional circumstances and in order to accommodate changing market conditions, awards may be made to each Executive Director of up to a maximum of two times basic salary per annum. LTIP awards are subject to the achievement of stretching performance measures relating to total shareholder return (TSR) against a group of comparable companies and to an operating measure, initially return on capital employed (ROCE), over a fixed three-year period. 50% of the award for all Directors will be subject to the Group TSR measure and 50% to a Group ROCE measure. These performance conditions are selected on the basis that they clearly foster the creation of shareholder value. There is no provision for retesting should the conditions not be met at the end of the performance period.
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The Committee may amend the performance condition applying to any award, provided that the amended conditions are no less demanding and will be a fairer measure of performance or will provide a more effective incentive to the participant, and that circumstances merit such a change. At the end of each performance period, the level of performance achieved and the level of award earned will be published and be subject to external verification by the Companys auditors. The LTIP closely aligns the interests of shareholders and Executive Directors by rewarding superior shareholder and financial performance and by encouraging Executive Directors to build up a shareholding in Anglo Platinum. Deferred bonus plan In order to further encourage Directors to build up a significant personal stake in the Company, the Committee has proposed to shareholders that a portion of the Executive Directors annual bonus be taken in shares and that a share match be used. Directors will be required to defer 50% of their bonus (net of tax) and may, at the discretion of the Committee on a year-by-year basis, defer 100% of their bonus to acquire shares in Anglo Platinum. If these shares are held for three years, they will be matched by the Company on a one-for-one basis, conditional upon the Executive Directors continued employment. Use of this share match will allow Anglo Platinum to maintain competitiveness in annual bonus plan levels and encourage executives to invest in the shares of the Company, thus increasing the proportion of Executive Director rewards linked to both short-term performance and longer-term total shareholder returns. The bonus deferral and share match will also act as a retention tool and ensure that Executive Directors share a significant level of personal risk with the Companys shareholders. Executive shareholding targets Within five years of their appointment, Executive Directors are expected to acquire a holding of shares with a value of one and a half times base salary in the case of the CEO and one times base salary in the case of other Executive Directors.
Other matters affecting remuneration of Directors Sourcing of shares for share plans
It is not intended to issue any new shares to satisfy requirements in terms of the new long-term incentive plans, but rather to acquire any such shares on the open market.
External appointments
Executive Directors are not permitted to hold external directorships or offices without the approval of the Board; if approved, they may retain the fees payable from one such appointment.
Non-executive Directors
The Board, in reviewing Non-executive Directors fees annually, makes recommendations to shareholders in the light of fees payable to non-executive directors for comparable companies and the importance attached to the retention and attraction of high-calibre individuals as non-executive directors. Levels of fees are also set by reference to the responsibilities taken by the Non-executive Directors in chairing the Board and its committees.
Directors fees
For 2003, each of the Non-executive Directors received Directors fees at the rate of R60 000 per annum (2002: R50 000). The Chairman received an additional sum of R60 000 per annum (2002: R50 000). The Deputy Chairman received a fee of R90 000 per annum (2002: R75 000). Non-executive Directors who serve on the Anglo Platinum Group committees each received fees per annum as follows: Audit Committee R20 000 (2002: R10 000); Corporate Governance Committee R15 000 (2002: R10 000); Nomination Committee R15 000 (2002: R10 000); and Remuneration Committee R15 000 (2002: R5 000). The chairman of each committee received an additional R15 000 per annum (2002: R10 000), except for the chairman of the Audit Committee, who received R40 000 per annum (2002: R10 000), and the chairman of the Remuneration Committee, who received R30 000 (2002: R10 000). Details of recommended increases for 2004 are set out on page 93.
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Directors remuneration
The table below provides an analysis of the emoluments paid to Executive and Non-executive Directors of the Company. Emoluments paid by Anglo American plc to Barry Davison are only disclosed to the extent that these pertain to Anglo Platinum.
Remuneration during 2003

Rands Salary and benefits Retirement benefits Bonuses
Gain on share options exercised
Directors fee
Committees
Total emoluments 2003
Executive Directors: Barry Davison* (6 months to June 2003) John Dreyer Dorian Emmett Ralph Havenstein # Robin Mills # Eric Ngubane $ Roeland van Kerckhoven Sandy Wood Alternate Directors: Mike Halhead Peter Kinver + Richard Pilkington Chris Sheppard Non-executive Directors: Leslie Boyd Colin Brayshaw * Barry Davison *++ (6 months to December 2003) Mike King Bongani Khumalo # Bill Nairn # Hixonia Nyasulu * Tony Trahar * Tom Wixley * Lazarus Zim Alternate Directors: Vincent Uren Total 20 998 526 3 140 196 4 451 990 16 776 924 583 982 20 000 20 000 1 328 889 202 636 60 000 60 000 65 000 60 000 30 000 60 000 55 667 60 000 60 000 8 315 26 667 30 000 140 000 30 000 30 000 85 000 90 000 145 000 1 596 525 90 000 30 000 60 000 82 334 90 000 200 000 8 315 1 455 761 1 293 592 1 347 979 1 564 797 148 204 137 933 179 201 126 257 195 015 239 865 282 386 193 846 1 268 960 1 798 980 2 940 350 1 809 566 1 884 900 1 512 051 1 693 701 2 413 980 1 422 248 1 437 177 1 833 367 2 067 292 1 627 692 230 746 255 140 358 248 381 819 357 388 219 784 302 123 240 717 1 046 958 346 878 573 646 567 728 249 430 387 818 368 420 13 300 964 2 207 000 65 000 2 854 755
15 596 683 3 345 874 2 371 795 1 794 565 2 302 581 4 964 233 2 236 829
361 667 46 313 285
Salary and benefits include cash, medical, car scheme, personal computer scheme, and entertainment allowances. Retirement benefits include provident fund, pension fund, flexi-pension, and deferred compensation. * Remuneration Committee member Audit Committee member Nomination Committee member Corporate Governance Committee member # Safety, health and environment Committee member Retired as Executive Director on 30 June 2003 $ In addition to the emoluments set out, Eric Ngubane received a severance package of R4 million + Resigned as an Alternate Director 1 August 2003 ++ 50% of salary and retirement benefits received from Anglo American South Africa has been included due to services rendered to the Company An amount of R567 728 was paid to Ralph Havenstein upon joining the Company as an enlistment incentive. Ralph was appointed 1 July 2003. Bonuses pertain to the year ended 31 December 2002 and paid in March 2003.
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The table below provides an analysis of the emoluments paid to Executive and Non-executive Directors of the Company in 2002 for the purposes of comparison to the 2003 table shown on the previous page. Emoluments paid by Anglo American plc to Barry Davison are only disclosed to the extent that these pertain to Anglo Platinum.
Remuneration during 2002

Rands Salary and benefits Retirement benefits Bonuses Gain on Directors Committees fee Total emoluments 2002
share options
exercised Executive Directors: Barry Davison+ John Dreyer+ Dorian Emmett Eric Ngubane + Roeland van Kerckhoven Sandy Wood Alternate Directors: Mike Halhead Peter Kinver Richard Pilkington Chris Sheppard Non-executive Directors: Leslie Boyd # Colin Brayshaw *# Mike King # Bill Nairn + Tony Trahar *# Tom Wixley *# Alternate Directors: Vincent Uren 15 326 983 2 298 631 3 587 284 52 539 421 650 000 10 000 50 000 50 000 50 000 50 000 50 000 50 000 8 333 67 222 11 111 36 111 11 111 1 184 831 1 294 920 1 044 341 1 090 887 122 640 190 080 154 674 109 208 251 684 96 160 175 347 104 491 6 583 204 1 680 000 1 768 320 3 425 424 1 393 448 1 824 519 1 211 088 1 489 796 1 367 729 498 961 239 691 311 573 209 852 255 779 206 173 1 039 502 324 700 640 000 170 600 459 800 325 000 7 789 238 10 817 677 6 290 414 13 530 820 4 079 748 100 000 50 000 50 000 50 000 50 000 50 000
12 853 125 12 825 516 9 116 506
15 172 360 6 335 123 1 948 902
8 142 359 3 261 160 3 142 682 1 304 586
61 111 86 111 61 111 50 000 58 333 117 222
10 000
143 888 74 546 207
Salary and benefits include medical, car scheme, personal computer scheme, and entertainment allowances. Retirement benefits include provident fund, pension fund, flexi-pension, and deferred compensation. * Remuneration Committee member Audit Committee member # Nomination Committee member Corporate Governance Committee member + Safety, Health, and Environment Committee member Bonuses pertain to the year ended 31 December 2001 and paid in March 2002. All remuneration costs incurred by the Company and its subsidiaries have been fully disclosed in the above schedules of emoluments. The Company and its subsidiaries have made no undisclosed payments to any entity or third party, in which a Director has an interest, outside the normal course of business.
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Increase in Directors fees

At the Annual General Meeting on Tuesday, 30 March 2004, members will be requested to consider ordinary resolutions to approve the following: An increase in fees payable to Directors of the Company from R60 000 to R120 000 per annum. An increase in the fee payable to the Deputy Chairman of the Board from R90 000 to R180 000 per annum. An increase in the fee payable to the Chairman of the Board from R120 000 to R400 000 per annum (inclusive of all Board and committee responsibilities). An increase in the fees payable to Non-executive Directors serving on the committees of the Board as follows: Audit Committee: members fee from R20 000 to R50 000 per annum; chairmans fee from R40 000 to R75 000 per annum. Corporate Governance Committee: members fee from R15 000 to R25 000 per annum; chairmans fee from R30 000 to R40 000 per annum. Nomination Committee: members fee from R15 000 to R25 000 per annum; chairmans fee from R30 000 to R40 000 per annum. Remuneration Committee: members fee from R15 000 to R25 000 per annum; chairmans fee from R30 000 to R40 000 per annum. SHE Committee: members fee to be paid for the first time at R25 000 per annum, with the chairmans fee at R40 000 per annum.
The reason for the increase in Directors fees is the need to remain competitive in order to attract and retain Non-executive Directors of high calibre with the skills required to meaningfully contribute to the operation of the Board and its committees. In arriving at the proposed fees, cognisance was taken of market trends and the increased responsibilities of Non-executive Directors in terms of new corporate governance and JSE requirements. The Non-executive Directors do not participate in the Companys annual bonus plan, share option schemes, or long-term incentive plan. Directors service contracts It is the Companys policy that the period of notice required for Executive Directors does not exceed 12 months. In order properly to reflect their spread of responsibilities, all the Executive Directors have contracts with Anglo American Platinum Corporation Limited. None of the Non-executive Directors have a contract of employment with the Company. Their appointments are made in terms of the Companys Articles of Association and are initially confirmed at the first Annual General Meeting of shareholders following their appointment, and thereafter at three-year intervals.
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Share Option Scheme

A summary of shares subject to option in terms of the Share Option Scheme is provided below in accordance with the provisions of the Companys Share Option Scheme. Maximum number of shares that may be allocated, 5% of issued ordinary share capital Number of options allocated as at 31 December 2002 Add: options allocated during the year Less: Number of options lapsed since 1 January 2003 Number of options exercised during the year Number of options allocated as at 31 December 2003 (1,48% of issued share capital) Number of options still reserved for the option scheme as at 31 December 2003 10 769 678 2 582 332 1 174 664 3 756 996 575 975 115 615 460 360 3 181 021 7 588 657
In terms of the rules of the Share Option Scheme, the aggregate number of shares that may be subject to options for the purposes of the scheme and the maximum number of options that any one participant may hold shall not exceed 5% and 0,125% respectively of the Companys issued ordinary share capital from time to time.
Share options
Executive Directors participate in the Share Option Scheme, designed to recognize the contributions of senior staff to the growth in the Companys equity. Within limits imposed by shareholders, options are allocated to Directors and senior staff in proportion to their contributions to the business. The options are allocated at the middle market price ruling on the trading day prior to the date of allocation, vest after stipulated periods, and are exercisable up to a maximum of 10 years from the date of allocation. The equity compensation benefits for Executive Directors are set out below.
Anglo Platinum Share Option Scheme for Executive Directors

Directors name Balance of share options as at 1 January 2003 38 325 Number of share options allocated during the year Date of allocation Lapses Number of share options exercised during the year Date of exercise Balance Exercisable Allocation of share number of price options of share as at options 31 Dec 2003 38 325 337 337 36 639 338 674 1 1 1 1 2 59 348 11 1 11 1 22 1 2 1 1 1 3 Ralph Havenstein 50 000 01 Jul 03 50 000 15 9 15 7 2 632 266 100 100 100 200 968 008 370 008 369 016 370 739 500 500 500 000 600 100 400 800 100 131,40 131,40 67,80 131,40 131,40 131,40 131,40 268,86 268,86 268,86 268,86 67,80 67,80 131,40 67,80 131,40 67,80 131,40 131,40 268,86 268,86 268,86 268,86 236,43 236,43 236,43 236,43 236,43 Exercisable date
Executive Directors: Barry Davison*
23 Jun 23 Jun 01 Feb 23 Jun 23 Jun 23 Jun 23 Jun 12 Mar 12 Mar 12 Mar 12 Mar 01 Feb 01 Feb 23 Jun 01 Feb 23 Jun 01 Feb 23 Jun 23 Jun 12 Mar 12 Mar 12 Mar 12 Mar 01 01 01 01 01 Oct Oct Oct Oct Oct
01 02 03 03 04 03 04 05 06 07 08 00 01 01 02 02 03 03 04 05 06 07 08 03 04 05 06 07
John Dreyer
49 171
5 500 12 Mar 03
37 702 11 Feb 03 8 938 11 Feb 03 633 11 Feb 03
7 398
Dorian Emmett
51 848
7 500 12 Mar 03
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Share options (continued)

Directors name Balance of share options as at 1 January 2003 21 556 Number of share options allocated during the year Date of allocation Lapses Number of share options exercised during the year Date of exercise Balance Exercisable Allocation of share number of price options of share as at options 31 Dec 2003 25 856 702 214 213 427 860 860 860 1 720 1 8 1 2 1 1 1 2 1 1 1 2 110 043 110 220 280 280 280 560 180 180 180 360 8 3 3 6 64,02 131,40 131,40 131,40 268,86 268,86 268,86 268,86 131,40 67,80 131,40 131,40 268,86 268,86 268,86 268,86 268,86 268,86 268,86 268,86 131,40 204,70 138,40 67,80 131,40 204,70 138,40 131,40 204,70 138,40 204,70 279,42 279,42 279,42 279,42 Exercisable date
Eric Ngubane
4 300 12 Mar 03
01 Apr 23 Jun 23 Jun 23 Jun 12 Mar 12 Mar 12 Mar 12 Mar 23 Jun 01 Feb 23 Jun 23 Jun 12 Mar 12 Mar 12 Mar 12 Mar 12 12 12 12 Mar Mar Mar Mar
02 02 03 04 05 06 07 08 02 03 03 04 05 06 07 08 05 06 07 08 02 02 02 03 03 03 03 04 04 04 05 05 06 07 08
Roeland van Kerckhoven
22 483
6 400 12 Mar 03
5 000 09 Sep 03 5 000 10 Dec 03
18 883
Sandy Wood
5 900 12 Mar 03
5 900
Alternate Directors: Mike Halhead
36 646
8 300 06 Mar 03
44 946
1 000 246 6 283 6 280 1 000 247 6 284 2 000 246 12 567 493 1 660 1 660 1 660 3 320
23 Jun 14 Jul 01 Sep 01 Feb 23 Jun 14 Jul 01 Sep 23 Jun 14 Jul 01 Sep 14 Jul 06 Mar 06 Mar 06 Mar 06 Mar
Peter Kinver
51 500 11 300 22 600
17 600 07 Aug 03
Richard Pilkington
25 818
17 809 01 Aug 03
43 627
252 6 139 252 6 140 252 12 279 504 3 562 3 562 3 562 7 123 1 1 1 1 1 1 1 4 1 2 3 1 4 2 4 8 151 636 151 636 075 151 635 156 074 302 272 075 156 149 156 313
204,70 193,00 204,70 193,00 204,70 193,00 204,70 233,24 233,24 233,24 233,24 289,60 264,10 289,60 264,10 324,14 289,60 264,10 324,14 233,24 289,60 264,10 324,14 233,24 324,14 233,24 233,24
14 Jul 01 Jun 14 Jul 01 Jun 14 Jul 01 Jun 14 Jul 01 Aug 01 Aug 01 Aug 01 Aug 19 Mar 01 Aug 19 Mar 01 Aug 01 Aug 19 Mar 01 Aug 01 Aug 01 Aug 19 Mar 01 Aug 01 Aug 01 Aug 01 Aug 01 Aug 01 Aug
02 03 03 04 04 05 05 05 06 07 08 03 03 04 04 04 05 05 05 05 06 06 06 06 07 07 08
Chris Sheppard
19 307
20 781 01 Aug 03
40 088
Total
316 654
126 490
(33 900)
(74 873)
334 371
334 371
*Retired as Executive Director 30 June 2003
Resigned as Alternate Director 31 July 2003
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Gains on share options exercised by Executive Directors in 2003

Options exercised Executive Directors: John Dreyer 633 8 938 37 702 5 000 5 000 17 600 74 873 66,40 163,00 235,10 348,90 Allocation price, rands 131,40 67,80 66,40 67,80 67,80 163,00 Exercise price, rands 348,90 348,90 348,90 275,00 302,00 235,10 Gain on share options, rands 137 678 2 512 472 10 650 814 1 036 000 1 171 000 1 268 960 16 776 924
Roeland van Kerckhoven Alternate Directors: Peter Kinver Total Range
Anglo American plc schemes

In addition to the Anglo Platinum Incentive Plans, the Executive Directors continue to enjoy a limited participation in the following Anglo American plc schemes: Share option scheme; Long-term incentive plan; and Deferred share bonus scheme.
However, participation by the Executive Directors in these Anglo American plc schemes is now restricted to the extent of any entitlement arising from previous awards or grants made under those schemes before a decision was taken that, for reasons of sound governance, the Executive Directors should not participate in any Anglo American plc schemes, including those listed above. Allocations to Barry Davison by Anglo American plc in terms of the above schemes are excluded for the reason that he is an executive director of Anglo American plc and is therefore entitled to participate in the Anglo American plc schemes. Details of his participation and allocations under the various Anglo American plc schemes appear in the Anglo American plc annual report. The following details are applicable to the Executive Directors restricted participation in the Anglo American plc schemes:
Share option scheme

Anglo American plc operates a share option scheme and Executive Directors of Anglo American Platinum Corporation Ltd were eligible in 2001 and 2002 to participate in it in accordance with the scheme rules. Grants of options are made annually. Options are not granted at a discount and are not pensionable. The exercise of options is subject to Anglo American plcs earnings per share increasing by at least 6% above the UK Retail Price Index over a three-year period. Options are normally exercisable, subject to satisfaction of performance conditions, between three and ten years from the date of grant.
Anglo American plc Share Option Scheme

Number of options Balance as at 1 January 2003 70 000 91 000 67 200 66 000 66 000 34 000 394 200 30 000 90 000 30 000 5 Mar 03 36 000 18 000 5 Sept 11 Sept Allocated during 2003 Date of allocation Exercised during 2003 36 000 Date exercised 17 Oct Balance as at 31 Dec 2003 34 000 91 000 97 200 30 000 48 000 34 000 334 200 Weighted Earliest average exercisable price, date 8,97 9,44 24 Jun 02 24 Jun 02
John Dreyer Dorian Emmett Robin Mills* Eric Ngubane Roeland van Kerckhoven Sandy Wood Total
9,70 23 Mar 03 8,82 23 Mar 02 9,89 24 Jun 02
9,65 13 Sep 04
* Awarded before being appointed to the Group.
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Long-term incentive plan

Executive Directors became entitled in 2001 and 2002 to receive shares in Anglo American plc subject to the satisfaction of certain performance criteria over a three-year period. Awards are conditional upon the satisfaction of performance criteria that foster shareholder wealth creation and that are within the Executive Directors scope of influence. For the first award, two performance measures were selected: the first based on the Companys total shareholder return relative to a weighted group of international natural resource companies; and the second based on an underlying operating measure that focuses on raising the Groups return on capital employed in the medium term.
Anglo American plc long-term incentive scheme

Number of shares conditionally awarded John Dreyer Robin Mills Dorian Emmett Roeland van Kerckhoven Sandy Wood Total 10 350 8 000 10 350 10 350 16 375 16 375 10 350 10 350 10 350 8 000 110 850 Date of award 26 Jun 01 22 Apr 02 26 Jun 01 22 Apr 02 26 Jun 01 22 Apr 02 26 Jun 01 22 Apr 02 26 Jun 01 22 Apr 02
Deferred share bonus scheme

Executive Directors were eligible in 2001 and 2002 to participate in an annual bonus plan based on the achievement of short-term performance targets set for each Executive Director. These Directors were eligible to receive shares in Anglo American plc for a minimum value of 50% of the bonus (after tax) or, at their election 100%, that if held for three years will be matched by the Company on a one-for-one basis conditional upon the Executive Directors continued employment.
Anglo American plc deferred share bonus scheme

Number of shares John Dreyer 1 204 1 208 679 Dorian Emmett 1 340 1 592 1 279 Roeland van Kerckhoven 1 164 1 600 959 Sandy Wood Total 519 11 544 Date of award 31 Jan 00 31 Jan 01 1 Jan 02 31 Jan 00 31 Jan 01 1 Jan 02 31 Jan 00 31 Jan 01 1 Jan 02 1 Jan 02
Approval
This Directors remuneration report has been approved by the Board of Directors of Anglo Platinum. Signed on behalf of the Board of Directors
Tom Wixley Deputy Chairman
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ANNUAL FINANCIAL STATEMENTS > PRINCIPAL ACCOUNTING POLICIES PRINCIPAL ACCOUNTING POLICIES Basis of preparation
The financial statements are prepared on the historical cost basis, except for certain financial instruments that are fairly valued. Significant details of the Companys and the Groups accounting policies are set out below, which are consistent with those applied in the previous year except for the change set out below. The financial statements comply with International Financial Reporting Standards of the International Accounting Standards Board, South African Statements of Generally Accepted Accounting Practice and the Companies Act in South Africa.
Change in accounting policy

The Group is increasingly entering into agreements to purchase significant quantities of concentrate from joint venture partners. When such material is on hand at the end of a reporting period, it is recognized as inventory on the Groups balance sheet. To ensure that the accounting treatment of purchased and produced concentrate is congruent, the Group has changed its accounting policy to recognize its own production of metals in concentrate within inventory. This change in accounting policy results in improved matching of costs with revenue. The change in accounting policy resulted in a net credit to accumulated profits at 1 January 2002 of R215,4 million, after tax of R106,7 million. Opening retained earnings, inventory, and taxation have been restated, but no restatement of the earnings for the year ended 31 December 2002 was carried out as the change in accounting policy is not material to those results. R million Effect of the change in accounting policy with respect to recognizing purchased and produced concentrate inventory: Opening retained earnings 2002 Earnings for the year ended 31 December 2003 322,1 110,9 (106,7) (33,3) 215,4 77,6 Gross Taxation Net
1.
Consolidation
The consolidated financial statements include the results and financial position of Anglo American Platinum Corporation Limited, its subsidiaries, joint ventures, and associates. The results of any subsidiaries acquired or disposed of during the year are included from the date control was acquired and up to the date control ceased to exist. Where an acquisition of a subsidiary is made during the financial year, any excess or deficit of the purchase price compared to the fair value of the attributable net identifiable assets is recognized respectively as goodwill or negative goodwill and accounted for as described in the Goodwill accounting policy note 4. All intra-Group transactions and balances are eliminated on consolidation. Unrealized profits that arise between Group entities are also eliminated.
2.
Investments in associates
An associate is an entity over which the Group exercises significant influence but does not control. These investments are accounted for using the equity method. Equity accounting involves recognizing in the income statement the reporting entitys share of the associates profit or loss for the period. The carrying amount of the investment in an associate in the balance sheet represents the Groups share of the net assets and includes goodwill or negative goodwill on acquisition. Adjustments for impairment are recorded when they occur.
3.
Joint ventures
The Groups interests in jointly controlled entities are accounted for through proportionate consolidation. Under this method, the Group includes its share of the joint ventures individual income and expenses, and 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 recognizes 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.
4.
Goodwill
Goodwill is the excess of the purchase consideration over the fair value of the Groups share of the attributable net identifiable assets at the date of acquisition in a business combination. Goodwill is amortized on a straight-line basis over the lesser of the goodwills useful life or twenty years. Goodwill is assessed for impairment annually. Amortization and impairment are charged against net profit. The remaining useful life of goodwill is assessed annually. Negative goodwill is the excess of the Groups share of the fair value of the attributable net identifiable assets at the date of acquisition over the purchase consideration in a business combination.
98
ANNUAL FINANCIAL STATEMENTS > PRINCIPAL ACCOUNTING POLICIES
Negative goodwill that relates to expectations of future losses and expenses identified in the acquirers plan for the acquisition and that can be measured reliably but does not represent identifiable liabilities at the date of acquisition, is recognized as income when the future losses and expenses occur. Thereafter, the portion of negative goodwill not exceeding the fair value of acquired identifiable non-monetary assets is recognized as income on a systematic basis over the remaining weighted average useful life of the identifiable acquired depreciable/amortizable assets. Any amount of negative goodwill in excess of the fair value of the acquired identifiable non-monetary assets is recognized immediately as income.
5.
Property, plant and equipment Mining and process

Mine development cost is capitalized to capital work-in-progress and transferred to mining property, plant and equipment when the mining venture reaches commercial production. Capitalized mine development costs include expenditure incurred to develop new mining operations, to define further mineralization in existing orebodies, to expand the capacity of the mine, and to maintain production. Costs include interest capitalized during the construction period, where financed by borrowings, and the present value of future decommissioning costs. Items of mining and process property, plant and equipment are amortized on a straight-line basis over the lesser of thirty years or their expected useful lives to estimated residual values. Amortization is first charged on mining ventures from the date on which they reach commercial production quantities.
Non-mining
Non-mining assets are stated at historical cost less accumulated depreciation. Depreciation is charged on the straight-line basis over the useful lives of these assets at the following annual rates: Plant and equipment Motor vehicles Office furniture and equipment Land is not depreciated. 10% to 25% 20% to 25% 10% to 50%
Impairment
An impairment review of mining and process and non-mining assets is carried out annually by comparing the carrying amount of assets to their recoverable amounts when impairment indicators exist in relation to a cash-generating unit. The recoverable amount is the higher of value in use or net selling price. Each business unit constitutes a separate cash generating unit. Value in use of mining and process assets is determined by applying a discount rate to the anticipated pre-tax cash flows for the remaining life of mine, to a maximum of thirty years. The discount rate used is the Group's weighted average cost of capital as determined by the capital asset pricing model. The recoverable amounts of non-mining assets are determined by reference to market values. Where the recoverable amount is less than the carrying amount, the impairment, when identified, is charged against net profit to reduce the carrying amount of the affected assets to their recoverable amounts. The revised carrying amounts are amortized on a systematic basis over the remaining useful lives of such affected assets.
6.
Leases
A finance lease transfers substantially all the risks and rewards of ownership of an asset from the Group. Assets subject to finance leases are capitalized as property, plant, and equipment at fair value of the leased assets at inception of the lease, with the related lease obligation recognized at the same amount. Capitalized leased assets are depreciated over their estimated useful lives. Finance lease payments are allocated between finance cost and the capital repayment, using the effective interest rate method. Operating lease rentals are charged against operating profit on a straight-line basis over the lease term.
7. 8.
Investments
Investments in subsidiaries are reflected at cost less impairment in the Companys financial statements.
Inventories Refined metals

Metal inventories are measured at the lower of cost on the weighted average basis or net realizable value. The cost per ounce or ton is determined as follows:
99
Platinum, palladium, rhodium, and nickel are measured by dividing the mine output into total mine production cost less net revenue from sales of other metals in the ratio of the contribution of these metals to gross sales revenue. Gold, copper, and cobalt sulphate are measured at net realizable value.
Work-in-process
Work-in-process is valued at the cost of production less net revenue from sales of other metals. Work-in-process includes purchased and produced concentrate.
Stores and materials

Stores and materials consist of consumable stores and are valued at average cost. Obsolete and redundant items are written off to operating costs.
9.
Revenue recognition
Revenue from the sale of metals and intermediary products is recognized when the risks and rewards of ownership are transferred to the buyer. Gross sales revenue represents the invoiced amounts excluding value-added tax. Dividends are recognized when the right to receive payment is established. Interest is recognized on a time-proportional basis, which takes into account the effective yield on the asset over the period it is expected to be held. Royalties are recognized when the right to receive payment is established.
10. Dividends declared

The liability for dividends proposed and related taxation thereon are only raised when the dividend is declared.
11. Provisions
A provision is recognized when there is a legal or constructive obligation as a result of a past event for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
12. Taxation
The charge for current tax is based on the results for the year, as adjusted for items that are exempt or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Current and deferred tax is charged or credited to the income statement, except when it relates to items credited or charged directly to equity, in which case the taxation effect is also recognized within equity. Deferred tax is provided on the balance sheet liability method. Deferred tax assets and liabilities are measured using tax rates that are expected to apply to the period when the asset is realized and the liability is settled. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences or assessed and calculated losses can be utilized. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax asset and liabilities on a net basis.
13. Research and exploration cost

Research cost is expensed when incurred. Exploration cost is expensed when incurred, except when it is probable that a mining asset will be developed as a result of the exploration work. In such a case, the capitalized exploration expenditure is amortized over the shorter of the useful life of the constructed mining asset or thirty years.
14. Leased metal

When metal is leased to fulfil marketing commitments, the equivalent cost of production at the inception date of the lease is charged to the income statement as an on-mine cost and reflected as a current liability in the balance sheet. On maturity of the lease, the liability is credited to on-mine costs. The leasing costs associated with borrowed metal are charged to other costs included in the cost of sales on a time-proportional basis.
100
15. Financial instruments

The Groups financial instruments consist primarily of cash and cash equivalents, accounts receivable, borrowings, accounts payable, and certain derivative instruments.
Cash and cash equivalents

Cash and cash equivalents consist of cash, cash deposits with banks, and money-market instruments. The carrying amount of cash, cash deposits with banks, and money-market instruments approximates their fair value. Gains or losses arising from marking to market or a change from carrying amount to fair value at reporting intervals is included in the determination of other net income.
Accounts receivable
Accounts receivable are stated at the gross invoice value adjusted for payments received and an allowance for doubtful debts where considered appropriate. Bad debts are written off when identified.
Borrowings
Long-term borrowings are initially recorded at the fair value of the consideration received, net of issue costs. It is subsequently measured at amortized cost using the effective interest rate method. Amortized cost is calculated taking into account any issue costs and any discount or premium on settlement. Gains and losses are recognized in net profit or loss when the liabilities are extinguished.
Accounts payable
Accounts payable are initially recorded at cost, and subsequently carried at cost less payments made. Settlement discounts are recognized in net profit when they are granted.
Derivative instruments
In the ordinary course of its operations, the Group is exposed to fluctuations in metal prices, volatility of exchange rates, and changes in interest rates. The Group engages in a number of activities to manage these risks. These activities include hedging a portion of these exposures through the use of derivative financial instruments. Forward sales contracts and option contracts are utilized for managing metal and currency exposures. The Group does not speculate, acquire, hold for, or issue derivative instruments for trading purposes. Derivatives are initially measured at cost. All forward and option contracts are marked to market at financial reporting dates and any changes in their fair values are included in other net income in the period to which they relate. Commodity contracts that are entered into and continue to meet the Groups expected purchase, sale, or usage requirements, and were designated for that purpose at their inception and are expected to be settled by delivery, are recognized in the financial statements when they are delivered into. Gains and losses arising on all other contracts not spanning a reporting interval are recognized and included in the determination of other net income at the time that the contract expires. Where the conditions in IAS39 for special hedge accounting are met, the derivative is recognized on the balance sheet as either a derivative asset or liability and recorded at fair value. In the case of cash flow hedges, the effective portion of the gains or losses on the hedging instrument is recognized in equity until the underlying transaction occurs, upon which the gains or losses are recognized in earnings.
16. Foreign currencies

The South African rand is the measurement currency of the Group, thus reflecting the economic substance of the underlying events and circumstances. Foreign currency transactions are recorded at the spot rate of exchange on the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange ruling at the reporting date. Foreign exchange gains or losses arising from foreign exchange transactions are included in the determination of net profit. Foreign subsidiaries are regarded as foreign operations forming an integral part of the operations of the Group. The balance sheets and income statements of foreign subsidiaries are translated on the following basis: Monetary items of these operations are translated using the closing rate of exchange. Non-monetary items are translated at the rate of exchange at the historical transaction date. Income and expense items are translated at the weighted average rate of exchange for the reporting period.
All translation gains or losses are included in the determination of net profit.
101
17. Environmental rehabilitation

Estimated long-term environmental obligations, comprising pollution control, rehabilitation, and mine closure, are based on the Group's environmental management plans in compliance with current technology, environmental, and regulatory requirements.
Decommissioning costs
The discounted amount of estimated decommissioning costs that embody future economic benefits is capitalized as a decommissioning asset when commercial production is reached and concomitant provisions are raised. These estimates are reviewed annually and discounted using a pre-tax risk-free rate that reflects current market assessments of the time value of money. The increase in decommissioning provisions following the passage of time is charged to interest paid. Decommissioning assets are amortized on a straight-line basis over the lesser of thirty years or the expected benefit period.
Restoration costs
Changes in the discounted amount of estimated restoration costs are charged to income during the period in which such changes occur. Estimated restoration costs are reviewed annually and discounted using a pre-tax risk-free rate that reflects current market assessments of the time value of money. The increase in restoration provisions due to the passage of time is charged to net investment income.
Ongoing rehabilitation costs

Expenditure on ongoing rehabilitation costs is recognized as an expense when incurred.
Platinum Producers' Environmental Trust

The Group annually contributes to the Platinum Producers' Environmental Trust, which was created to fund the estimated cost of pollution control, rehabilitation, and mine closure at the end of the lives of the Groups mines. Contributions are determined on the basis of the estimated environmental obligation over the life of a mine. Contributions made are reflected as a non-current monetary asset. Income earned on monies paid to the Trust is accounted for as interest received.
18. Borrowing costs

Borrowing costs are charged to interest paid. When borrowings are utilized to fund qualifying capital expenditure, the borrowing costs are capitalized in the period in which the capital expenditure and related borrowing costs are incurred. (Also refer policy note 5).
19. Employee benefits Short-term employee benefits

Remuneration to employees in respect of services rendered is recognized as an expense. Accruals are made for accumulated leave.
Equity compensation plans

Where employees exercise share options in terms of the rules and regulations of the Anglo American Platinum Corporation Limited Share Option Scheme, shares are issued to participants as beneficial owners. The Directors procure a listing of these shares on the primary stock exchange on which the Company's shares are listed and quoted. In exchange, employees entitled to such share options pay in cash a consideration equal to the option price allocated to them. The nominal value of shares issued is credited to share capital and the difference between the nominal value and the option price is credited to share premium.
Termination benefits
Termination benefits are charged against net profit when the Group is demonstrably committed to terminating the employment of an employee or group of employees before their normal retirement date.
Post-employment benefits
Defined contribution plans: retirement, provident, and pension funds Contributions to defined contribution plans in respect of services rendered are recognized as an expense.
Defined benefit plans: pension fund

The current service cost in respect of the defined benefit plan is recognized as an expense systematically over the periods during which services were rendered. The fund is actuarially valued every three years using the projected unit credit method. Actuarial gains and losses as a result of experience adjustments and/or the effects of changes in actuarial assumptions are recognized as income or expenditure over the expected average remaining working lives of the employees when the cumulative unrecognized actuarial gains or losses exceed the greater of 10% of the defined benefit obligation or the fair value of the plan assets.
102
Defined benefit plans: post-retirement medical aid liability The post-retirement medical aid liability is recognized as an expense systematically over the periods during which services are rendered using the projected unit credit method. Independent actuarial valuations are conducted at least every three years, or sooner if necessary. Actuarial gains and losses as a result of experience adjustments and/or the effects of changes in actuarial assumptions are recognized as income or expenditure systematically over the remaining service period of employees participating to the extent that it falls outside the corridor defined in IAS19. Adjustments pertaining to retired employees are recognized immediately as income or an expense.
20. Segmental information

The Group produces PGMs primarily in South Africa. The risks and rewards associated with the individual operations are not sufficiently dissimilar to warrant identification of separate geographical segments. Therefore, the Directors consider that the primary reporting format is by business segment. Two business segments have been identified: firstly, mining, extraction, and production of PGMs; and secondly, the purchase of metals in concentrate for further treatment and refining.
103
ANNUAL FINANCIAL STATEMENTS > CONSOLIDATED FINANCIAL STATEMENTS > INCOME STATEMENT
Consolidated income statement for the year ended 31 December

2003 Notes Rm 16 508,6 (408,2) 16 100,4 (12 190,5) 3 909,9 5 (269,3) (257,5) 3 383,1 6 14 7 8 (236,9) 35,0 3 181,2 (1 089,3) 2 091,9 2 091,7 2002 Rm 20 285,7 (733,0) 19 552,7 (10 129,9) 9 422,8 (754,7) (266,5) 8,401,6 155,7 181,6 8 738,9 (2 998,9) 5 740,0 5 630,4
Gross sales revenue

Commissions paid
Net sales revenue Cost of sales (Segmental information) Gross profit on metal sales
Other net expenditure Market development and promotional expenditure
Operating profit
Net interest (paid)/received Income from associates
Profit before taxation

Taxation
Net profit Headline earnings

Number of ordinary shares in issue (millions) Weighted average number of ordinary shares in issue (millions) Earnings per share (cents) Basic Headline Diluted (basic) Diluted (headline) Dividends per share (cents) Interim Final Dividend cover (headline earnings) Reconciliation between basic and headline earnings Net profit Adjustments: Profit on disposal of mineral rights Goodwill amortization Negative goodwill amortization Scrapping of property, plant and equipment Carrying amount Deferred taxation effect Headline earnings 5 14 14 9
215,4 215,1
214,9 214,5
972,5 972,4 971,2 971,1 640 370 270* 1,5
2 676,0 2 624,9 2 671,0 2 620,0 1 800 900 900 1,5
2 091,9
5 740,0
(64,6) 13,1 (11,6) 62,9 89,8 (26,9) 2 091,7
(98,0) (11,6) 5 630,4
*Proposed ordinary dividend.
104
ANNUAL FINANCIAL STATEMENTS > CONSOLIDATED FINANCIAL STATEMENTS > SEGMENTAL INFORMATION
Segmental information for the year ended 31 December

Purchased metals in Mined Notes Rm concentrate Rm Total Rm
2003 Gross sales revenue

Commissions paid 16 161,3 (399,2) 15 762,1 (11 923,1) (9 968,9) 2 3 (9 027,1) (941,8) (1 015,9) 2 3 (891,5) (124,4) (857,2) 2 3 (781,1) (76,1) 511,0 4 (592,1) 3 839,0 23,8 5 305 347,3 (9,0) 338,3 (267,4) (291,6) (21,2) (18,6) (2,6) (16,9) (15,2) (1,7) 73,9 (11,6) 70,9 20,4 5 735 16 508,6 (408,2) 16 100,4 (12 190,5) (9 968,9) (9 027,1) (941,8) (291,6) (1 037,1) (910,1) (127,0) (874,1) (796,3) (77,8) 584,9 (603,7) 3 909,9 23,7 5 313
Net sales revenue Cost of sales

On-mine Cash operating costs Amortization Purchase of metals in concentrate Smelting Cash operating costs Amortization Treatment and refining Cash operating costs Amortization Increase in metal inventories Other costs
Gross profit on metal sales

Gross profit margin (%) Cost of sales per Pt ounce sold (R)
2002 Gross sales revenue

Commissions paid 20 194,4 (723,3) 19 471,1 (10 049,2) (8 017,7) 2 3 (7 369,4) (648,3) (690,0) 2 3 (633,6) (56,4) (808,3) 2 3 (750,2) (58,1) 55,4 4 (588,6) 9 421,9 46,7 4 485 91,3 (9,7) 81,6 (80,7) (121,9) (7,8) (7,0) (0,8) (2,0) (1,8) (0,2) 53,7 (2,7) 0,9 1,0 8 495 20 285,7 (733,0) 19 552,7 (10 129,9) (8 017,7) (7 369,4) (648,3) (121,9) (697,8) (640,6) (57,2) (810,3) (752,0) (58,3) 109,1 (591,3) 9 422,8 46,5 4 502
Net sales revenue Cost of sales

On-mine Cash operating costs Amortization Purchase of metals in concentrate Smelting Cash operating costs Amortization Treatment and refining Cash operating costs Amortization Increase in metal inventories Other costs
Gross profit on metal sales

Gross profit margin (%) Cost of sales per Pt ounce sold (R)
105
ANNUAL FINANCIAL STATEMENTS > CONSOLIDATED FINANCIAL STATEMENTS > BALANCE SHEET
Consolidated balance sheet as at 31 December

2003 Notes Rm 2002 Rm
Assets
Non-current assets
Property, plant and equipment Capital work-in-progress Platinum Producers' Environmental Trust Investment in associates Non-current accounts receivable 11 12 13 14 16 22 493,9 14 550,8 7 249,2 113,4 484,0 96,5 5 295,7 17 18 19 2 439,6 2 286,7 569,4 27 789,6 16 192,3 10 503,1 4 941,5 89,3 557,6 100,8 5 017,6 1 819,9 1 617,7 1 580,0 21 209,9
Current assets
Inventories Accounts receivable Cash and cash equivalents
Total assets
Equity and liabilities

Share capital and reserves
Share capital Share premium Unrealized hedging deficit Accumulated profits before proposed ordinary dividend and related secondary tax on companies (STC) Accumulated profits after proposed ordinary dividend and related STC Proposed ordinary dividend STC in respect of proposed ordinary dividend 27 20 21,5 796,3 (164,0) 11 768,9 11 114,6 581,6 72,7 12 422,7 5 560,8 21 22 23 24 4 438,9 308,7 488,9 324,3 9 806,1 25 26 27 30 7 168,1 1 903,4 336,2 398,4 27 789,6 21,5 754,0 12 408,6 10 232,7 1 934,1 241,8 13 184,1 4 687,5 3 870,0 192,8 488,3 136,4 3 338,3 1 857,4 36,3 1 444,6 21 209,9
Shareholders equity Non-current liabilities

Deferred taxation Environmental obligations Employees' service benefit obligations Obligations due under finance leases
Current liabilities
Interest-bearing borrowings Accounts payable Other financial liabilities Taxation
Total equity and liabilities
106
ANNUAL FINANCIAL STATEMENTS > CONSOLIDATED FINANCIAL STATEMENTS > CHANGES IN EQUITY
Group statement of changes in equity

Share capital Share premium Unrealized hedging deficit Rm Balance as at 31 December 2001 previously reported Change in accounting policy with respect to recognizing metals in concentrate as inventory on the balance sheet Gross Taxation Balance as at 31 December 2001 restated Net profit Dividends paid in cash (Note 10) Share capital issued Repurchase of ordinary shares Cost of shares sold by wholly owned subsidiary to Company Unrealized after-tax Group profit on disposal of Company shares Shares repurchased by Company from wholly owned subsidiary (cancelled) Balance as at 31 December 2002 After-tax changes in forward metal prices (Note 27) Net profit Dividends paid in cash (Note 10) Share capital issued Balance as at 31 December 2003 * 21,5 42,3 796,3 (164,0) 11 768,9 (0,2) 21,5 (524,4) 754,0 (164,0) 2 091,9 (2 731,6) 12 408,6 (524,6) 13 184,1 (164,0) 2 091,9 (2 731,6) 42,3 12 422,7 27,7 27,7 0,2 491,8 492,0 0,1 74,8 (524,4) 519,5 21,4 1 203,6 215,4 322,1 (106,7) 11 512,0 5 740,0 (5 362,9) 215,4 322,1 (106,7) 12 737,0 5 740,0 (5 362,9) 74,9 (4,9) 21,4 Rm 1 203,6 Rm Rm 11 296,6 Rm 12 521,6 Accumulated profits Total
* Less than R50 000.
107
ANNUAL FINANCIAL STATEMENTS > CONSOLIDATED FINANCIAL STATEMENTS > CASH FLOW STATEMENT
Consolidated cash flow statement for the year ended 31 December

2003 Notes Rm 2002 Rm
Cash flows from operating activities

Cash receipts from customers Cash paid to suppliers and employees Cash from operations Interest paid Taxation paid Net cash from operating activities 30 29 15 476,5 (12 117,2) 3 359,3 (277,4) (1 474,9) 1 607,0 20 004,9 (10 387,5) 9 617,4 (35,4) (3 304,1) 6 277,9
Cash flows used in investing activities

Purchase of property, plant and equipment Proceeds from sale of plant, equipment and mineral rights Investment in associates Interest received Growth in Platinum Producers' Environmental Trust Capital reduction by Northam Platinum Limited Dividends received Net cash used in investing activities 6 6 14 31 (7 423,6) 134,8 (1,5) 106,7 11,2 28,7 47,3 (7 096,4) (5 994,1) 778,4 (312,4) 195,4 7,7 39,0 89,7 (5 196,3)
Cash flows from/(used in) financing activities

Proceeds from the issue of share capital Increase in share premium Raised from current interest-bearing borrowings Dividends paid Net cash from/(used in) financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 19 10 * 42,3 7 168,1 (2 731,6) 4 478,8 (1 010,6) 1 580,0 569,4 0,1 74,8 (5 362,9) (5 288,0) (4 206,4) 5 786,4 1 580,0
Movement in net debt

Net cash at beginning of year Net cash from operating activities Net cash used in investing activities Other Net (debt)/cash at end of year Made up as follows: Cash and cash equivalents Interest-bearing borrowings Obligations due under finance leases 569,4 (7 168,1) (324,3) (6 923,0) 1 580,0 (136,4) 1 443,6 1 443,6 1 607,0 (7 096,4) (2 877,2) (6 923,0) 5 786,4 6 277,9 (5 196,3) (5 424,4) 1 443,6
* Less than R50 000.
108
ANNUAL FINANCIAL STATEMENTS > UNITED STATES DOLLAR EQUIVALENTS Consolidated income statement for the year ended 31 December
Supplementary information for convenience of users
2003 US$m 2002 US$m 1 936,1 (70,0) 1 866,1 (966,7) 899,4 (72,0) (25,4) 802,0 14,9 17,3 834,2 (286,1) (221,3) (103,5) (117,8) (64,8) 548,1 (511,8) 398,2 962,5 944,5 18,0 49,6 1 446,6 10,4778 214,9 214,5 255,5 250,5 254,9 250,1 171,8 85,9 85,9
Gross sales revenue

Commissions paid
2 187,5 (54,1) 2 133,4 (1 615,3) 518,1 (35,7) (34,1) 448,3 (31,4) 4,6 421,5 (144,4) (99,2) (14,4) (84,8) (45,2) 277,1 (362,0) 403,3 1 446,6 1 446,6 1 765,0 7,5467 215,4 215,1 128,9 128,8 128,6 128,6 84,8 49,0 35,8*
Net sales revenue Cost of sales Gross profit on metal sales

Other net expenditure Market development and promotional expenditure
Operating profit
Net interest (paid)/received Income from associates

Taxation Normal Current Deferred STC
Net profit
Dividends paid in cash Exchange rate translation adjustment Accumulated profits at beginning of year as restated As previously stated Change in accounting policy translated at 2001 closing rate Repurchase of shares by Company from wholly owned subsidiary
Accumulated profits at end of year

Average rand/US$ exchange rate Number of ordinary shares in issue (millions) Weighted average number of ordinary shares in issue (millions) Earnings per share (cents) Basic Headline Diluted (basic) Diluted (headline) Dividends per share (cents) Interim Final Reconciliation between basic and headline earnings Net profit Adjustments: Profit on disposal of mineral rights Goodwill amortization Negative goodwill amortization Scrapping of property, plant and equipment Carrying amount Deferred taxation effect Headline earnings
277,1 (8,6) 1,7 (1,5) 8,3 11,9 (3,6) 277,0
548,1 (9,4) (1,1) 537,6
Income statement items were translated at the average exchange rate for the year. * Proposed ordinary dividend.
109
ANNUAL FINANCIAL STATEMENTS > UNITED STATES DOLLAR EQUIVALENTS Consolidated balance sheet as at 31 December
2003 US$m 2002 US$m
Assets
Non-current assets
Property, plant and equipment Capital work-in-progress Platinum Producers' Environmental Trust Investment in associates Non-current accounts receivable 3 373,5 2 182,2 1 087,2 17,0 72,6 14,5 794,1 365,9 342,8 85,4 4 167,6 1 887,8 1 224,5 576,1 10,4 65,0 11,8 584,9 212,1 188,6 184,2 2 472,7
Current assets
Inventories Accounts receivable Cash and cash equivalents
Total assets

Share capital and reserves
Share capital Share premium Unrealized hedging deficit Accumulated profits before proposed ordinary dividend and related secondary tax on companies (STC) Accumulated profits after proposed ordinary dividend and related STC Proposed ordinary dividend STC in respect of proposed ordinary dividend 3,2 119,4 (24,6) 1 765,0 1 666,9 87,2 10,9 1 863,0 833,9 665,7 46,3 73,3 48,6 1 470,7 1 075,0 285,6 50,4 59,7 4 167,6 6,6679 2,5 87,9 1 446,6 1 192,9 225,5 28,2 1 537,0 546,5 451,2 22,5 56,9 15,9 389,2 216,6 4,2 168,4 2 472,7 8,5775
Shareholders equity Non-current liabilities

Deferred taxation Environmental obligations Employees' service benefit obligations Obligations due under finance leases
Current liabilities
Interest-bearing borrowings Accounts payable Other financial liabilities Taxation
Total equity and liabilities

Closing rand/US$ exchange rate
Balance sheet items have been translated at the closing exchange rate.
110
ANNUAL FINANCIAL STATEMENTS > UNITED STATES DOLLAR EQUIVALENTS Consolidated cash flow statement for the year ended 31 December
2003 US$m 2002 US$m
Cash flows from operating activities

Cash receipts from customers Cash paid to suppliers and employees Cash from operations Interest paid Taxation paid Net cash from operating activities 2 050,8 (1 605,7) 445,1 (36,8) (195,3) 213,0 1 909,3 (991,4) 917,9 (3,4) (315,2) 599,3
Cash flows used in investing activities

Purchase of property, plant and equipment Proceeds from sale of plant, equipment and mineral rights Investment in associates Interest received Growth in Platinum Producers' Environmental Trust Capital reduction by Northam Platinum Limited Dividends received Net cash used in investing activities (983,7) 17,9 (0,2) 14,1 1,5 3,8 6,3 (940,3) (572,0) 74,3 (29,8) 18,6 0,7 3,7 8,6 (495,9)
Cash flows from/(used in) financing activities

Proceeds from the issue of share capital Increase in share premium Raised from current interest-bearing borrowings Dividends paid Net cash from/(used in) financing activities Net decrease in cash and cash equivalents Exchange rate translation adjustment Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year * 5,6 949,8 (362,0) 593,4 (133,9) 35,1 184,2 85,4 * 7,1 (511,8) (504,7) (401,3) 101,7 483,8 184,2
Average rand/US$ exchange rate
7,5467
10,4778
Cash flow items were translated at the average exchange rate for the year. * Less than US$50 000.
111
ANNUAL FINANCIAL STATEMENTS > NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements for the year ended 31 December
2003 Rm 2002 Rm
1.
Gross sales revenue

Sales revenue emanates from the following principal regions: Precious metals Europe Asia North America Africa Base metals Africa Europe Asia Other Other Africa Asia 14 903,0 6 206,0 5 103,9 1 934,6 1 658,5 1 539,7 1 340,0 100,4 82,2 17,1 65,9 50,0 15,9 16 508,6 Gross sales revenue by metal: Platinum Palladium Rhodium Nickel Other Gross sales revenue 11 793,5 1 746,7 923,1 1 357,0 688,3 16 508,6 12 527,4 3 773,9 1 862,5 1 325,2 796,7 20 285,7 18 662,7 8 646,7 6 700,2 1 697,6 1 618,2 1 549,3 1 278,2 135,9 115,4 19,8 73,7 48,4 25,3 20 285,7
Gross sales revenue by metal
> 2003
> 2002
Platinum 71% Palladium 11% Rhodium 6% Nickel 8% Other 4%
Platinum 62% Palladium 19% Rhodium 9% Nickel 6% Other 4%
112
ANNUAL FINANCIAL STATEMENTS > NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
2.
Cash operating costs Cash operating costs consist of the following principal categories:
On-mine* Smelting Treatment & refining Rm Rm Rm
2003
Labour Stores Utilities Contracting Sundry Toll-refining 9 027,1 3 915,7 2 619,5 588,4 942,0 961,5 191,2 252,1 220,7 60,7 185,4 910,1 273,3 259,4 52,0 2,4 102,2 107,0 796,3
2002
Labour Stores Utilities Contracting Sundry Toll-refining 7 369,4 *On-mine costs comprise mining and concentrating costs. 3 382,0 2 122,4 510,0 572,2 782,8 138,7 153,7 113,2 115,4 119,6 640,6 252,2 239,4 43,2 1,6 90,1 125,5 752,0
2003 Rm
2002 Rm
3.
Amortization of operating assets

Amortization of mining and process property, plant and equipment consists of the following categories: Mining Smelting Treatment and refining 941,8 127,0 77,8 1 146,6 648,3 57,2 58,3 763,8
4.
Other costs
Other costs consist of the following principal categories: Research Corporate costs Exploration Contributions to educational and community development Transport of metals Royalties paid Special projects Regional Services Council levies and other 203,1 144,8 91,3 54,9 38,2 21,6 14,3 35,5 603,7 151,8 124,9 139,3 62,8 39,9 31,1 24,2 17,3 591,3
113
2003 Rm
2002 Rm
5.
Other net expenditure

Other net (expenditure)/income consists of the following principal categories: Realized and unrealized foreign exchange losses Restructuring costs* Profit on commodity contracts Profit on disposal of mineral rights (Note 7) Other (417,2) (111,4) 157,3 64,6 37,4 (269,3)
*Restructuring costs mainly relate to costs incurred as a result of the slowdown of expansion projects.
(879,1) 98,0 26,4 (754,7)
6.
Net interest (paid)/received

Net interest (paid)/received consists of the following principal categories: Interest expensed Interest paid Less: capitalized Time value of money adjustment to environmental obligations (Note 22) Decommissioning Restoration Interest received Growth in Platinum Producers' Environmental Trust (Note 13) Dividends received (286,9) (487,4) 200,5 (68,3) (62,9) (5,4) 106,7 11,2 0,4 (236,9) (35,4) (35,4) (13,4) (10,7) (2,7) 195,4 7,7 1,4 155,7
7.

Profit before taxation is arrived at after taking account of: Auditors' remuneration Audit fees Other services Internal audit projects, tax compliance, and accounting work Shared services consultation Assurance services with respect to trading updates, acquisitions, and sustainable development Human resources consulting Other/Special investigations Amortization and depreciation (Note 11) Mining and process assets Operating assets (Note 3) Amortization included in other costs Depreciation non-mining Operating lease charges buildings Profit on disposal of plant, equipment and mineral rights Mining and process Non-mining Mineral rights (Note 5) 6,2 3,6 2,6 1,2 0,4 0,6 0,3 0,1 1 226,6 1 184,8 1 146,6 38,2 41,8 15,2 68,5 2,3 1,6 64,6 5,3 2,9 2,4 0,8 0,6 0,4 0,3 0,3 797,2 763,8 763,8 33,4 13,7 102,4 4,4 98,0
114
2003 Rm
2002 Rm
8.
Taxation
Current Deferred 449,5 639,8 1 089,3 Comprising: South African normal taxation Secondary tax on companies (STC) Foreign and withholding taxation 634,6 340,9 113,8 1 089,3 A reconciliation of the standard rate of South African normal taxation compared with that charged in the income statement is set out in the following table: South African normal taxation STC % 30,0 10,7 40,7 Foreign income Disallowed items Other Effective taxation rate (9,2) 1,1 1,6 34,2 % 30,0 7,8 37,8 (3,1) 0,3 (0,7) 34,3 2 217,4 679,2 102,3 2 998,9 1 764,1 1 234,8 2 998,9
Rm Unredeemed capital expenditure that is available for offset against future taxable income 4 922,8
Rm 759,3
9.
Earnings per share

The calculation of basic and headline earnings per share is based on earnings of R2 091,9 million and R2 091,7 million respectively (2002: R5 740,0 million and R5 630,4 million) and a weighted average of 215 068 863 (2002: 214 482 014) ordinary shares in issue during the year.
The calculation of diluted earnings per share, basic and headline, is based on earnings of R2 091,9 million and R2 091,7 million respectively (2002: R5 740,0 million and R5 630,4 million) and a diluted weighted average of 215 428 748 (2002: 214 932 619) ordinary shares in issue during the year.
The basis for calculating the diluted weighted average ordinary shares in issue is the weighted average number of ordinary shares in issue during the year to which is added the theoretical number of shares to be issued for no consideration based on the year-end market price. Share options that are out-of-the-money at the year end are not taken into account in the calculation of diluted earnings per share.
2003 Rm
2002 Rm
10. Dividends
Dividends paid in cash were as follows: Dividend No. 98 and special dividend Dividend No. 99 Dividend No. 100 Dividend No. 101 1 935,4 796,2 2 731,6 5 362,9 3 430,3 1 932,6
115
2003 Rm
2002 Rm
11. Property, plant and equipment

Mining and process (Annexure A) Mining and process property, plant and equipment comprise expenditure on mineral rights, qualifying exploration cost, properties, shaft-sinking, development, equipment, plant, buildings, decommissioning and mining projects. Cost Opening balance Transfer from capital work-in-progress (Note 12) Disposals 13 556,8 5 212,3 (143,8) 18 625,3 Addition to decommissioning asset (Note 22) Closing balance Accumulated amortization Opening balance Charge for the year (Note 7) Disposals Closing balance Carrying amount mining and process (Annexure A) 3 175,0 1 184,8 (89,7) 4 270,1 14 401,5 2 434,5 763,8 (23,3) 3 175,0 10 381,8 46,3 18 671,6 9 353,5 4 253,8 (55,6) 13 551,7 5,1 13 556,8
Non-mining (Annexure B) Non-mining property, plant and equipment comprise freehold land, plant, equipment, motor vehicles and office equipment. Cost Opening balance Additions at cost (Note 31) Transfer from capital work-in-progress (Note 12) Disposals Closing balance Accumulated depreciation Opening balance Charge for the year (Note 7) Disposals Closing balance Carrying amount non-mining (Annexure B) Total carrying amount 154,8 41,8 (54,8) 141,8 149,3 14 550,8 134,6 33,4 (13,2) 154,8 121,3 10 503,1 276,1 72,1 9,9 (67,0) 291,1 223,9 80,3 (28,1) 276,1
12. Capital work-in-progress

Opening balance Additions at cost (Note 31) Transfer to mining and process property, plant and equipment (Note 11) Transfer to non-mining property, plant and equipment (Note 11) Disposal of 50% of the capital work-in-progress of the Modikwa Platinum Mine at cost Transfer of cost related to the Ga-Pila relocation to non-current accounts receivable (Note 16) Closing balance 4 941,5 7 529,9 (5 212,3) (9,9) 7 249,2 3 912,9 6 050,2 (4 253,8) (662,7) (105,1) 4 941,5
116
2003 Rm
2002 Rm
13. Platinum Producers Environmental Trust

Opening balance Contributions Growth in Platinum Producers' Environmental Trust (Note 6) Closing balance (Note 22) 89,3 12,9 11,2 113,4 69,5 12,1 7,7 89,3
14. Investment in associates

Listed Ordinary shares (market value: R 515,8 million (2002 : R 972,8 million)) Unlisted (Directors' valuation: R 243,4 million (2002: R 298,3 million)) Ordinary shares Redeemable preference shares 240,6 243,4 159,8 83,6 484,0 The movement for the year in the Group's investment in associates was as follows: Investment in listed and unlisted ordinary shares Carrying amount opening balance Cost of acquiring investment Cost of maintaining shareholding Net profit after taxation Income from associates Net profit before taxation Goodwill amortized Negative goodwill amortized Taxation Current STC Deferred Dividends received Capital reduction Carrying amount closing balance Investment in redeemable preference shares 460,9 1,5 13,6 35,0 36,5 (13,1) 11,6 (21,4) (15,4) (5,4) (0,6) (46,9) (28,7) 400,4 83,6 484,0 Unamortized negative goodwill included in the carrying amount Unamortized goodwill included in the carrying amount (184,7) 118,0 265,7 201,6 2,0 118,9 181,6 170,0 11,6 (62,7) (12,2) (16,7) (33,8) (88,3) (39,0) 460,9 96,7 557,6 (196,3) 131,1 259,3 298,3 201,6 96,7 557,6
Listed investment: Northam Platinum Limited (Northam) As at 31 December 2003, the Group held 52 096 216 (2002: 52 020 516) shares in Northam representing a 22,5% interest. Northam operates a mine and processing plants on the Bushveld Complex of South Africa.
117
2003 Rm
2002 Rm
14. Investment in associates (continued)

The summarized financial statements of Northam for the 12 months ended 31 December are outlined below: Income statement Gross sales revenue Net profit before taxation Taxation Net profit after taxation Balance sheet Non-current assets Current assets Non-current liabilities Current liabilities Equity Unlisted investment: Johnson Matthey Fuel Cells Limited (JMFC) As at 31 December 2003, the Group held a 17,5% equity and 43% voting rights in JMFC, incorporated in the United Kingdom. The interest is represented by 35 ordinary shares (acquired for 13 million) and 7 million redeemable preference shares (acquired for 7 million). JMFC carries on research and development for the enhancement and development of fuel cells and all associated hydrogen generation technology from fuels and the commercial exploitation thereof, including manufacture and sale of fuel cell related products. Investment in redeemable preference shares The subscription for the redeemable preference shares in JMFC is treated as initial funding by the Group. Johnson Matthey also provides initial funding in the form of interest bearing debt. The economic return on the redeemable preference shares matches the economic return of the initial funding provided by Johnson Matthey, which will equate to United Kingdom market returns. The redeemable preference shares are redeemable proportional to the repayment of the initial funding of Johnson Matthey. 1 352,8 783,2 2 136,0 348,3 227,3 1 560,4 2 136,0 1 261,0 890,4 2 151,4 313,1 137,6 1 700,7 2 151,4 1 499,7 318,9 (124,2) 194,7 1 745,7 755,8 (278,4) 477,4
2003 Rm The summarized financial statements of JMFC for the 12 months ended 31 December are outlined below: Income statement Net loss before taxation Taxation Net loss after taxation Balance sheet Non-current assets Current assets 360,0 61,3 421,3 Non-current liabilities Current liabilities Equity 231,6 16,7 173,0 421,3 (201,7) 60,3 (141,4)
2002 Rm
379,8 19,0 398,8 108,0 30,3 260,5 398,8
118
15. Joint ventures

Jointly controlled operation The Group and African Rainbow Minerals (ARM) have established a 50:50 jointly controlled operation, known as the Modikwa Platinum Mine Joint Venture, to undertake mining at Maandagshoek on the Eastern Limb of the Bushveld Complex. Pooling and Sharing Arrangement (PSA) The Group and Aquarius Platinum (South Africa) (Proprietary) Limited (Aquarius) have pooled certain mineral rights and infrastructure. From 1 November 2003, the two parties share 50:50 in the profits from the jointly controlled mine, which is managed by Aquarius (also see Note 33).
2003 Rm
2002 Rm
16. Non-current accounts receivable

Non-current portion of prepaid operating lease rentals Prepaid operating lease rentals to Ga-Pila (Proprietary) Limited, a company registered in terms of section 21 of the Companies Act in South Africa Less: short-term portion transferred to accounts receivable (Note 18) 100,8 (4,3) 96,5 105,1 (4,3) 100,8
17. Inventories
The amounts attributable to the different categories are as follows: Refined metals At cost At net realizable value Work-in-process at cost Total metal inventories Stores and materials at cost 866,4 821,2 45,2 1 246,7 2 113,1 326,5 2 439,6 621,6 597,7 23,9 906,6 1 528,2 291,7 1 819,9
18. Accounts receivable

Trade accounts receivable Other receivables and prepaid expenses 1 615,4 667,0 2 282,4 Short-term portion of non-current accounts receivable (Note 16) 4,3 2 286,7 991,5 621,9 1 613,4 4,3 1 617,7
19. Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, balances with banks, and money-market instruments 569,4 1 580,0
20. Share capital

2002 400 000 000 2003 400 000 000 Authorized Ordinary shares of 10 cents each Issued 214 095 872 837 335 214 933 207 214 933 207 460 360 215 393 567 Ordinary shares of 10 cents each at 1 January Issued in terms of the Share Option Scheme Balance as at 31 December 21,5 * 21,5 21,4 0,1 21,5 40,0 40,0
The unissued ordinary shares (excluding shares reserved for the Share Option Scheme) are under the control of the Directors until the forthcoming Annual General Meeting. * Less than R50 000.
119
2003 Rm
2002 Rm
21. Deferred taxation

Deferred taxation is attributable to temporary differences relating to: Deferred taxation liabilities Mining property, plant and equipment Other Deferred taxation assets Provision for leave pay Forward metal contracts designated as cash flow hedges Provision for post-retirement medical aid benefits Other Net position as at 31 December The movement for the year in the Group's net deferred taxation position was as follows: Deferred taxation liabilities As at 1 January Income statement movement As at 31 December Deferred taxation assets As at 1 January Income statement movement Equity movement (Note 27) As at 31 December Net position as at 31 December (260,6) 74,5 (70,3) (256,4) 4 438,9 (349,1) 88,5 (260,6) 3 870,0 4 130,6 564,7 4 695,3 2 911,4 1 219,2 4 130,6 4 695,3 4 668,8 26,5 (256,4) (129,4) (70,3) (18,9) (37,8) 4 438,9 4 130,6 4 115,1 15,5 (260,6) (118,4) (48,3) (93,9) 3 870,0
22. Environmental obligations

Provision for decommissioning cost Opening balance Movement for the year Discounted amount for decommissioning of expansion projects (Note 11) Charged to interest paid (Note 6) Provision for restoration cost Opening balance Movement for the year Discounted amount for increase in restoration obligation charged to income statement Charged to interest paid (Note 6) Environmental obligations gross Environmental obligations before funding Less: Platinum Producers' Environmental Trust (Note 13) Unfunded environmental obligations Undiscounted amount of environmental obligations 238,4 129,2 109,2 46,3 62,9 70,3 63,6 6,7 1,3 5,4 308,7 308,7 113,4 195,3 1 175,7 129,2 113,4 15,8 5,1 10,7 63,6 60,9 2,7 2,7 192,8 192,8 89,3 103,5 974,2
120
2003 Rm
2002 Rm
23. Employee benefits

Employees' service benefit obligations Provision for post-retirement medical aid benefits Accrual for leave pay 63,2 425,7 488,9 Number of permanent employees Mining At work On leave, in training and other Process Shared services Transactional and specialized Supply Chain Central office Operations office Corporate office Total Group employees as at 31 December 43 938 36 165 7 773 1 702 259 129 130 145 53 92 46 044 43 390 35 012 8 378 1 750 158 118 40 138 52 86 45 436 107,4 380,9 488,3
Aggregate earnings The aggregate earnings of employees including Directors were: Salaries, wages and other benefits Retirement benefit costs Medical aid contributions 4 518,2 374,6 89,0 4 981,8 Directors' emoluments Remuneration for Executive Directors Fees Salaries, benefits, performance-related bonuses and other emoluments Remuneration for Non-executive Directors Fees Other emoluments Paid by Company and subsidiaries Paid by subsidiaries Profit on share options exercised Directors remuneration is fully disclosed in the Remuneration Report. Termination benefits Retrenchment benefits paid and expensed Equity compensation benefits The Directors Report and Remuneration Report set out details of the Companys Share Option Scheme and Annexure C provides details of share options issued and exercised during the year by participants. The details pertaining to share options issued to and exercised by Directors during the year are disclosed in the Remuneration Report. 1,0 0,3 0,5 0,4 33,5 32,5 16,8 0,3 0,1 22,0 21,3 52,5 0,1 32,5 0,4 21,2 3 775,7 304,6 54,1 4 134,4
121
23. Employee benefits (continued)

Retirement funds Separate funds, independent of the Group, provide retirement and other benefits to all employees. These funds consist of defined contribution plans and a defined benefit plan. All funds are subject to the Pension Funds Act, 1956. The Amplats Officials Pension Fund, the Amplats Employees Pension Fund, the MRR Pension Fund, and the Platmed Provident Fund are in the process of being wound up, whereupon the administration of pensioners will be outsourced and active members will be transferred to an appropriate retirement fund. Defined contribution plans Contributions are made to the following defined contribution plans: Number of members* Number of pensioners Employer Market value
contributions of fund assets Rm Rm
2003 Amplats Retirement Fund Amplats Mines Retirement Fund MRR Retirement Fund Amplats Group Provident Fund Amplats Officials Pension Fund 1 041 9 470 802 34 416 25 45 754 2002 Amplats Retirement Fund Amplats Mines Retirement Fund MRR Retirement Fund Amplats Group Provident Fund Amplats Officials Pension Fund Amplats Employees Pension Fund Platmed Provident Fund 483 6 944 750 35 689 23 325 44 214
* Certain members are not in the employ of the Group, while others are members of more than one fund. The above funds have provided their members with the choice of selecting an investment risk profile that best suits their individual needs. These funds currently offer the following categories of investment portfolios: Aggressive growth; Balanced growth; Conservative growth; and A specialist portfolio. A specialist portfolio consists of a fully vested guaranteed product, a money market fund, and an offshore fund. Two multi-asset managers manage the investment portfolios. In addition to the multi-asset managers, six professional asset managers from the asset management industry manage the benefit funds' investments.
34,4 133,5 16,9 185,0 183 183 0,3 370,1
265,8 1 084,0 251,7 1 188,0 186,7 2 976,2
25,5 112,9 13,1 138,2 282 16 0,3 3,0 298 293,0
171,2 794,4 184,4 844,3 168,2 146,8 8,6 2 317,9
Post-retirement medical aid benefits The post-retirement medical aid obligation is actuarially valued at least every three years by an independent firm of consulting actuaries, unless events like plan curtailments necessitate more regular valuations. The obligation was last valued as at 31 December 2003 using the projected unit credit method. The assumptions used in the valuation included estimates of life expectancy and long-term estimates of the increase in medical costs, appropriate discount rates, and the level of claims based on the Group's experience.
122
2003
2002
23. Employee benefits (continued)

Post-retirement medical aid benefits (continued) The principal actuarial assumptions used were as follows: Actuarial assumptions Discount rate Health care cost trend Expected return on reimbursive rights Membership In-service members Continuation members 581 1 028 Rm Fund status Fair value of plan assets (reimbursive rights) Present value of obligations Net unfunded liability Movements in the net liability Opening balance Amounts recognized in income statement Current service cost Interest cost Curtailment gains Release of deferred service gain Return on reimbursive rights Contributions to reimbursive rights Pre-funding to provident fund Closing balance 107,4 (12,5) 0,6 11,2 (14,4) (5,8) (4,1) (26,1) (5,6) 63,2 218,5 (99,2) 3,5 21,7 (119,0) (5,4) (11,9) 107,4 (70,7) 133,9 63,2 (44,6) 152,0 107,4 944 1 136 Rm 9,5% 7,0% 9,0% 12,0% 9,5% 12,5%
24. Obligations due under finance leases

The Group finances certain housing requirements through finance leases. The Group holds a call option to acquire legal title to the land and houses at the end of the lease term. Group Five Limited (Group Five) holds a put option to put legal title of the remaining land and houses back to the Group. The implicit interest rate is linked to JIBAR (Johannesburg Inter Bank Acceptance Rate) and an average rate of 13,7% (2002: 15,2%) was paid for the year under review. No arrangements have been entered into for contingent rent payments. The fair value of the Group's lease obligations approximates its carrying amount. The Group's obligations are secured by the aforementioned put option that Group Five holds as well as the guarantee disclosed in Note 33. 2003 Rm Finance lease obligations relating to houses 324,3 2002 Rm 136,4
123
24. Obligations due under finance leases (continued)

Reconciliation of future minimum lease payments under finance leases Minimum lease payments Present value of minimum lease payments 2003 Rm 2002 Rm 2003 Rm 2002 Rm
Amounts payable under finance leases: Within one year Within two to five years Thereafter 44,4 177,7 724,3 946,4 Less : Future finance charges Present value of leasing obligations (622,1) 324,3 20,7 82,9 343,8 447,4 (311,0) 136,4 324,3 136,4 324,3 324,3 136,4 136,4
25. Interest-bearing borrowings

2003 Rm Facility Bank overdrafts: * Committed: ABN AMRO Anglo American Corporation of South Africa Limited ABSA Limited Investec Bank Limited FirstRand Limited Nedbank Limited Standard Bank Limited 9 436,6 400,0 1 000,0 2 000,0 400,0 1 636,6 2 000,0 2 000,0 6 688,4 390,0 1 555,9 371,8 1 583,3 1 779,4 1 008,0 2003 Rm Utilized 2002 Rm Utilized
**Uncommitted: ABN AMRO Citibank, N. A. JHB Credit Agricole Indosuez
737,0 167,5 234,5 335,0 10 173,6
479,7 156,9 60,5 262,3 7 168,1
As at 31 December 2002, the Group had borrowing facilities of R2 735 million available, none of which had been utilized. The weighted average borrowing rate as at 31 December 2003 was 8,6925%. * Committed facilities are defined as the bank's obligation to provide funding until maturity of the facility, by which time the renewal of the facility is negotiated. The committed facilities are annual facilities subject to review in November and December 2004. ** Uncommitted facilities are callable on demand and will be renegotiated at various dates during 2004. Borrowing powers The borrowing powers in terms of the Articles of Association of the Company and its subsidiaries are unlimited.
124
2003 Rm
2002 Rm
26. Accounts payable

Trade accounts Related parties (Note 28) Other Other payables and accrued expenses 737,7 6,2 731,5 1 165,7 1 903,4 712,0 14,4 697,6 1 145,4 1 857,4
27. Other financial liabilities

Fair value of forward foreign exchange contracts
90,4 245,8 234,3 11,5 336,2
36,3 36,3
Fair value of forward metal contracts designated as cash flow hedges # Changes in forward metal prices recognized in the unrealized hedging deficit Changes in exchange rate recognized in the income statement
Forward foreign exchange contracts (FECs): The fair value of FECs represent the movement between contracted rates and year-end forward rates. These movements are recognized in the income statement.
# Forward metal contracts:
Changes in the value of forward metal contracts caused by movements in forward prices since inception of the contracts are recognized in the unrealized hedging deficit. The net amount of R164,0 million charged to the unrealized hedging deficit is made up of R234,3 million less deferred taxation of R70,3 million (Note 21). Changes in the value caused by translating the value of the forward contracts to rand are recognized in the income statement. This amounts to a charge of R11,5 million less taxation of R3,5 million.
At 31 December 2003, the Group held forward contracts to fix the US$ price of future sales relating to a nickel supply agreement. The objective is to hedge the Group against variability in future cash flows. The terms of the forward contracts are to sell 11 088 tons of nickel at US$12 540 per ton. The forward metal contracts are valued using forward metal prices that match the contractual maturity dates.
28. Related party transactions

The Company and its subsidiaries, in the ordinary course of business, enter into various sale, purchase, service, and lease transactions with the ultimate holding company, Anglo American plc, its subsidiaries, joint ventures, and associates. Certain deposits and borrowings are also placed with the ultimate holding company. These transactions are concluded at arms length. Material related party transactions were as follows: 2003 Rm Amounts owed to related parties as at 31 December (Note 26) Purchase of goods and services for the year Deposits as at 31 December Interest received for the year Borrowings as at 31 December Interest paid for the year Directors: Details relating to Directors' emoluments and shareholding in the company are disclosed in the Remuneration Report. Shareholders: The principal shareholders of the Company are detailed in Note 36 Analysis of shareholders. 6,2 193,5 520,2 6,3 19,1 2002 Rm 14,4 355,2 762,9 20,5
125
2003 Notes Rm
2002 Rm
29. Reconciliation of profit before taxation to cash from operations

Profit before taxation Adjustments for: Interest received Growth in Platinum Producers' Environmental Trust Dividends received Interest expensed Amortization and depreciation of property, plant and equipment Profit on disposal of plant, equipment and mineral rights Income from associates Exchange losses on translation of redeemable preference shares Unrealized foreign exchange losses Movement in non-current items Increase/(decrease) in employees' service benefit obligations Addition to decommissioning asset (Annexure A) Increase in Platinum Producers' Environmental Trust Decrease in non-current accounts receivable Increase in provision for environmental obligations Working capital changes Increase in metal inventories Increase in stores and materials (Increase)/decrease in accounts receivable Increase in accounts payable Cash from operations 17 17 18 26 13 16 22 23 6 6 6 6 7 7 14 (106,7) (11,2) (0,4) 286,9 1 226,6 (68,5) (35,0) 13,1 65,6 4 551,6 50,4 0,6 (46,3) (24,1) 4,3 115,9 (1 242,7) (584,9) (34,8) (669,0) 46,0 3 359,3 (195,4) (7,7) (1,4) 35,4 797,2 (102,4) (181,6) 12,1 118,1 9 213,2 164,3 (41,4) (5,1) (19,8) 212,1 18,5 239,9 (109,1) (62,3) 367,3 44,0 9 617,4 3 181,2 8 738,9
30. Taxation paid

Amount unpaid at beginning of year Current taxation provided Group Associate current Associate STC Capital gains tax recognized in equity Amount unpaid at end of year Payments made 8 14 14 1 444,6 428,7 449,5 (15,4) (5,4) (398,4) 1 474,9 3 008,6 1 735,2 1 764,1 (12,2) (16,7) 4,9 (1 444,6) 3 304,1
31. Purchase of property, plant and equipment

Additions to mining and process capital work-in-progress Less: houses held under finance leases non-cash transactions Additions to non-mining plant and equipment Cash purchases are made up as follows: To maintain operations To expand operations Interest capitalized 3 952,7 3 270,4 200,5 7 423,6 2 140,9 3 853,2 5 994,1 11 12 7 529,9 (178,4) 7 351,5 72,1 7 423,6 6 050,2 (136,4) 5 913,8 80,3 5 994,1
126
2003 Rm
2002 Rm
32. Commitments
Mining and process property, plant and equipment Contracted for Not yet contracted for Authorized by the directors Allocated for expansion of capacity within one year thereafter Maintenance of capacity within one year thereafter Other Operating lease rentals buildings Due within one year Due within two to five years Thereafter Information technology service providers Due within one year Due within two to five years 711,5 35,6 160,5 515,4 126,6 33,4 93,2 177,7 25,1 64,5 88,1 139,4 42,9 96,5 1 800,0 11 943,4 13 743,4 7 424,8 2 844,3 4 580,5 6 318,6 3 457,9 2 860,7 2 094,3 14 850,6 16 944,9 13 913,9 5 013,9 8 900,0 3 031,0 1 570,1 1 460,9
These commitments will be funded from existing cash resources, future operating cash flows, borrowings and any other funding strategies embarked on by the Group.
33. Contingent liabilities

Letters of comfort have been issued to financial institutions to cover certain banking facilities. There are no encumbrances of Group assets, other than the houses held under finance leases by the Group as disclosed in Note 24.
The Group provided guarantees in favour of Changing Tides 166 (Proprietary) Limited, a wholly owned subsidiary of Group Five. The guarantee provides security for lease payments to Group Five by the Anglo Platinum Housing Trust (APHT). This finance lease obligation is reflected in Note 24 to these financial statements. The probability of any obligation arising under this guarantee is considered remote.
The Group provided a guarantee in favour of Nedcor Limited (Nedcor) for financing provided by Nedcor to Salene Mining (Proprietary) Limited (Salene). The Group provided the guarantee to enable Salene to put mining infrastructure in place. The guarantee is valid until 1 July 2006 or earlier, on repayment by Salene of the loan. Salene will sell all ore production from the mine to the Group. The facility granted by Nedcor to Salene is for a maximum amount of R120 million. In the event that Nedcor calls up the guarantee, the Group holds bonds over sufficient assets of Salene to make good any obligations that may be incurred. It is unlikely that the Group will incur obligations under this guarantee.
As a result of the slowdown of capital projects, contracts with certain suppliers are being renegotiated. As a result of the negotiations, certain cancellation cost may occur. The amount of this will only be known and recognized during the course of 2004.
Aquarius holds a put option to put its interest in the PSA (Note 15) to the Group in the case of termination of that relationship. The probability of the option being exercised is considered remote. The amount of such an obligation is dependent on a discounted cash flow valuation at that point in time.
127
34. Financial risk management

The Group does not trade in financial instruments but, in the normal course of its operations, the Group is exposed to currency, metal price, investment, credit, interest rate, and liquidity risk. In order to manage these risks, the Group may enter into transactions that make use of financial instruments. The Group has developed a comprehensive risk management process to facilitate, control, and monitor these risks. This process includes formal documentation of policies, including limits, controls, and reporting structures. Controlling risk in the Group The Executive Committee and the Financial Risk Sub-committee are responsible for risk management activities within the Group. Overall limits have been set by the Board. The Executive Committee is responsible for setting individual limits. In order to ensure adherence to these limits, activities are marked to market on a daily basis and reported to the Group Treasurer. The Finance Risk Sub-committee, composed of Marketing and Treasury executives, meets weekly to review market trends and develop strategies to be submitted for Executive Committee approval. The Treasury is responsible for managing investment, currency, interest rate, and liquidity risk within the limits and constraints set by the Board. The Marketing Department is responsible for managing metal price risk, also within the laid-down limits and constraints set by the Board. Currency risk The Group operates in the global business environment and many transactions are priced in a currency other than South African rand. Accordingly, the Group is exposed to the risk of fluctuating exchange rates and seeks to actively manage this exposure through the use of financial instruments. These instruments typically comprise forward exchange contracts and options. Forward contracts are the primary instruments used to manage currency risk. Forward contracts require a future purchase or sale of foreign currency at a specified price. Current policy prevents the use of option contracts without Executive Committee approval. Options provide the Group with the right but not the obligation to purchase (or sell) foreign currency at a pre-determined price, on or before a future date. Few contracts of this nature were entered into during the year, and no such contracts were in existence at year-end. Forward exchange contracts
2003
Nominal amount of forward exchange contracts (i.e. nominal amount in South African rand) Maturing within twelve months Currency United States dollar Euro British pound Australian dollar Total Rm Buy 498,4 8,7 0,7 3,7 511,5 142,2 Sell 142,2 Average rates Buy 8,3118 8,3745 11,3071 5,0357 Sell 6,7738
2002
Nominal amount of forward exchange contracts (i.e. nominal amount in South African rand) Maturing within twelve months Currency United States dollar Euro Australian dollar Canadian dollar Total Rm Buy 305,3 69,6 13,5 12,9 401,3 260,6 Sell 260,6 Average rates Buy 10,4316 9,8950 5,4675 7,0225 Sell 9,3059
The difference between the contracted rates and forward rates at year end has been recognized. (Note 27).
128
34. Risk management (continued)

Metal price risk Metal price risk arises from the risk of an adverse effect on current or future earnings or uncertainty resulting from fluctuations in metal prices. The ability to place forward contracts is restricted owing to the limited size of the financial market in PGMs. Financial markets in certain base metals are, however well-established. The Group places contracts where opportunities present themselves to increase/reduce the exposure to metal price fluctuations. Historically, the Group has made use of forward contracts to manage this exposure. Forward contracts enable the Group to obtain a pre-determined price for delivery at a future date. Refer to Note 27 in this respect.
Investment, liquidity risk, and interest rate risk The borrowed position of the Group exposes it to interest rate risk. Where necessary, the Group covers these exposures by means of derivative financial instruments. No such financial instruments existed at the balance sheet date.
Fluctuations in interest rates impact on the value of short-term cash investments, giving rise to interest rate risk. Other than ensuring optimum money market rates for deposits, the Group does not make use of financial instruments to manage this risk. Formal policies, procedures, and limits have been put in place for derivative instruments. The Groups cash position is set out in the table below:
Cash and cash equivalents Amount as at Period (days) less than 31 December 2003 Rm 30 569,4 Interest rate as at 31 December 2003 % 8,60 Amount as at 31 December 2002 Rm 1 580,0 Interest rate as at 31 December 2002 % 13,58
Liquidity risk is the risk that the Group will be unable to meet a financial commitment in any location or currency. This risk is minimized through the holding of cash balances and sufficient available borrowing facilities (refer Note 25). In addition, detailed cash flow forecasts are regularly prepared and reviewed by Treasury. The cash needs of the Group are managed according to its requirements.
Credit risk Credit risk arises from the risk that a counterparty may default or not meet its obligations timeously. The Group minimizes credit risk by ensuring that counterparties are banking institutions of the highest quality. Where possible, management ensures that netting agreements are in place. Counterparty limits are reviewed annually by the Executive Committee.
Trade accounts receivable involve a small group of international companies. The financial condition of these companies and the countries they operate in are regularly reviewed.
Fair value of financial instruments Carrying amount as at Type of instrument 31 December 2003 Rm Cash and cash equivalents Accounts receivable Obligations due under finance leases Accounts payable Interest-bearing borrowings 324,3 1 903,4 7 168,1 136,4 1 857,4 324,3 1 903,4 7 168,1 136,4 1 857,4 569,4 2 286,7 2002 Rm 1 580,0 1 617,7 Fair value as at 31 December 2003 Rm 569,4 2 286,7 2002 Rm 1 580,0 1 617,7
129
2003
2002
35. Exchange rates to South African rand

Year end rates: US dollar British pound Euro Average rates for the year: US dollar British pound Euro 7,5467 12,3430 8,5464 10,4778 15,7603 10,6905 6,6679 11,9362 8,4102 8,5775 13,8141 9,0098
36. Analysis of shareholders

An analysis of the share register at year end showed the following: 2003 Number of Size of shareholding 1 1 001 10 001 50 001 100 001 1 000 10 000 50 000 100 000 1 000 000 shareholders 14 842 1 650 277 41 55 13 16 878 Category of shareholder Companies Individuals Pension and provident funds Insurance companies Bank, nominee, and finance companies Trust funds and investment companies Other corporate bodies 707 12 581 323 41 2 777 371 78 16 878 Shareholder spread Public shareholders Non-public shareholders Directors Persons interested, directly or indirectly, in 10% or more 7 1 16 878 0,01 73,94 100,00 7 1 19 938 66,75 100,00 16 870 26,05 19 930 33,25 74,46 2,04 4,25 2,30 10,35 6,56 0,04 100,00 347 18 369 148 148 355 368 203 19 938 67,96 17,30 1,46 6,31 4,04 2,00 0,93 100,00 Percentage of issued capital 1,22 2,29 2,79 1,35 7,43 84,92 100,00 2002 Number of shareholders 17 418 1 985 383 67 70 15 19 938 Percentage of issued capital 1,36 2,82 3,87 2,33 8,05 81,57 100,00
1 000 001 and over
130
36. Analysis of shareholders (continued)

Major shareholders According to the Companys share register at year end, the following shareholders held shares equal to or in excess of 5% of the issued ordinary share capital of the Company:
2003 Number of shares Anglo South Africa Capital (Proprietary) Limited Old Mutual Asset Management Geographical analysis of shareholders 159 265 366 73,94 Percentage
2002 Number of shares 143 435 706 13 200 002 66,75 6,14 Percentage
Resident shareholders held 196 039 727 shares (91,01%) (2002: 89,79%) and non-resident shareholders held 19 353 840 shares (8,99%) (2002: 10,21%) of the Companys issued share capital of 215 393 567 shares at 31 December 2003 (2002: 214 933 207).
37. Comparative figures

Comparative figures have been restated in accordance with the change in accounting policy.
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ANNUAL FINANCIAL STATEMENTS > NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS > ANNEXURE A
Annexure A Mining and process property, plant and equipment

31 December 2003 Cost Accumulated amortization Rm Owned and leased assets Mining development and infrastructure Plant and equipment Land and buildings Motor vehicles Furniture, fittings and equipment 5 154,5 11 503,6 1 561,1 241,5 78,7 18 539,4 Decommissioning asset Note 11 132,2 18 671,6 1 088,2 2 760,5 260,8 108,0 37,7 4 255,2 14,9 4 270,1 4 066,3 8 743,1 1 300,3 133,5 41,0 14 284,2 117,3 14 401,5 4 012,5 8 423,0 797,9 173,2 64,3 13 470,9 85,9 13 556,8 825,3 2 062,2 169,8 74,2 33,0 3 164,5 10,5 3 175,0 3 187,2 6 360,8 628,1 99,0 31,3 10 306,4 75,4 10 381,8 Rm Carrying amount Rm Rm Cost 31 December 2002 Accumulated amortization Rm Carrying amount Rm
The carrying amount of mining and process assets can be reconciled as follows: Carrying amount at beginning of year Rm 2003 Owned and leased assets Mining development and infrastructure Plant and equipment Land and buildings Motor vehicles Furniture, fittings and equipment 3 187,2 6 360,8 628,1 99,0 31,3 10 306,4 Decommissioning asset Note 11 75,4 10 381,8 1 246,3 3 096,2 763,3 89,9 16,6 5 212,3 46,3 5 258,6 (34,3) (4,5) (0,1) (14,0) (1,2) (54,1) (54,1) (332,9) (709,4) (91,0) (41,4) (5,7) (1 180,4) (4,4) (1 184,8) Note 7 2002 Mining development and infrastructure Plant and equipment Land and buildings Motor vehicles Furniture, fittings and equipment 2 148,1 4 234,7 371,5 68,6 23,0 6 845,9 Decommissioning asset Note 11 73,1 6 919,0 1 244,0 2 598,2 282,8 97,2 31,6 4 253,8 5,1 4 258,9 (6,6) (12,2) (13,5) (32,3) (32,3) (198,3) (459,9) (26,2) (53,3) (23,3) (761,0) (2,8) (763,8) Note 7 3 187,2 6 360,8 628,1 99,0 31,3 10 306,4 75,4 10 381,8 4 066,3 8 743,1 1 300,3 133,5 41,0 14 284,2 117,3 14 401,5 Additions Rm Disposals Rm Amortization Rm Carrying amount at end of year Rm
132
ANNUAL FINANCIAL STATEMENTS > NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS > ANNEXURE B
Annexure B Non-mining property, plant and equipment

31 December 2003 Cost Accumulated depreciation Rm Owned assets Freehold land Plant and equipment Motor vehicles Office furniture and equipment Note 11 5,5 151,6 44,2 89,8 291,1 74,6 18,5 48,7 141,8 5,5 77,0 25,7 41,1 149,3 5,5 107,1 41,8 121,7 276,1 59,0 15,3 80,5 154,8 5,5 48,1 26,5 41,2 121,3 Rm Carrying amount Rm Rm Cost 31 December 2002 Accumulated depreciation Rm Carrying amount Rm
The carrying amount of non-mining assets can be reconciled as follows: Carrying amount at beginning of year Rm 2003 Owned assets Freehold land Plant and equipment Motor vehicles Office furniture and equipment Note 11 5,5 48,1 26,5 41,2 121,3 46,0 17,7 18,3 82,0 (1,3) (8,0) (2,9) (12,2) (15,8) (10,5) (15,5) (41,8) Note 7 2002 Freehold land Plant and equipment Motor vehicles Office furniture and equipment Note 11 5,5 20,8 21,5 41,5 89,3 38,7 20,5 21,1 80,3 (0,6) (6,7) (7,6) (14,9) (10,8) (8,8) (13,8) (33,4) Note 7 5,5 48,1 26,5 41,2 121,3 5,5 77,0 25,7 41,1 149,3 Additions Rm Disposals Rm Depreciation Rm Carrying amount at end of year Rm
133
ANNUAL FINANCIAL STATEMENTS > NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS > ANNEXURE C
Annexure C Equity compensation benefits

Anglo Platinum Share Option Scheme
2003 Directors Outstanding share options at 1 January Number of share options allocated Number of share options exercised Number of share options lapsed Outstanding share options at 31 December Extent to which entitlement to share options are vested Number of share options allocated during the year: Expiry date Allocation price per share (R) Aggregate proceeds if shares were to be issued (Rm) Number of share options exercised Allocation price per share (R) Exercise price per share (R) Aggregate issue proceeds (Rm) 31,1 74 873 66,40-163,00 275,00-348,90 6,7 276,4 385 487 35,35-205,00 35,6 307,5 460 360 35,35-205,00 42,3 1,7 121 041 60,33193,00 9,3 62,8 716 294 29,93310,41 65,6 64,5 837 335 29,93310,41 74,9 126 490 2013 233,24-279,42 1 048 174 2013 1 174 664 2013 5 373 2012 324,14 153 782 2012 159 155 2012 139 445 1 004 693 1 144 138 54 137 734 906 789 043 334 371 2 847 670 3 182 041 316 654 2 265 678 2 582 332 316 654 126 490 (74 873) (33 900) 2 265 678 1 048 174 (385 487) (80 695) 2 582 332 1 174 664 (460 360) (114 595) 432 322 5 373 (121 041) 2 853 705 153 782 (716 294) (25 515) 3 286 027 159 155 (837 335) (25 515) Employees and others
(1)
2002 Total Directors Employees (1) and others Total
201,20-354,63 201,20-354,63
321,97500,16 321,97500,16
220,00-349,50 220,00-349,50 481,00530,80
312,28548,00 312,28548,00
(1) Consists of employees of the Company, JCI Limited, and Johnnic Holdings Limited.
134
ANNUAL FINANCIAL STATEMENTS > NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS > ANNEXURE C
Annexure C Equity compensation benefits (continued)

Terms of the options outstanding at 31 December Allocation Price R Expiry date 31 December 2003 31 December 2004 31 December 2005 31 December 2006 31 December 2007 31 December 2008 31 December 2009 31 December 2010 31 December 2011 31 December 2012 31 December 2013 Options are exercisable as follows: 20% 2 years after allocation 40% 3 years after allocation 60% 4 years after allocation 100% 5 years after allocation Subject to certain circumstances, which include, inter alia, the retrenchment or death of a participant, each option granted will remain in force for a period of ten years from the date of the granting of such option. Where employees retire, options vest on date of retirement. 35,3542,02 55,0967,50 29,9361,96 44,5771,00 60,5981,52 62,4091,70 80,80184,00 163,00319,20 264,10414,75 321,97500,16 201,20-354,63 30 503 45 156 58 616 47 853 497 474 526 366 565 090 130 135 131 491 1 149 357 3 182 041 5 000 42 476 45 156 67 446 89 375 752 053 633 541 662 893 133 803 150 589 2 582 332 2003 Number 2002 Number
135
ANNUAL FINANCIAL STATEMENTS > NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS > ANNEXURE D
Annexure D Investments in subsidiaries, joint ventures, associates and other

Nature of business Direct investments Anglo Platinum Limited Anglo Platinum Shared Services (Proprietary) Limited Lebowa Platinum Mines Limited Potgietersrust Platinums Limited Rustenburg Platinum Mines Limited Amplats (Isle of Man) Limited(i) Indirect investments Anglo Platinum Housing Trust Anglo Platinum Management Services (Proprietary) Limited Bafokeng-Rasimone Management Services (Proprietary) Limited Bleskop-Waterval Mining Management Services (Proprietary) Limited Blinkwater Farms 244 KR (Proprietary) Limited Brakspruit Platinum (Proprietary) Limited Dithaba Platinum (Proprietary) Limited Een van Twee Nul Vier Brooklyn (Eiendoms) Beperk E.L. Ramsden Bleskop (Proprietary) Limited Eland Platinum Mining Company Limited Geluksanker Boerdery (Eiendoms) Beperk Jumeseco Properties (Proprietary) Limited La Chaine DAssurance Limited(ii) Maandagshoek Platinum (Proprietary) Limited Matthey Rustenburg Refiners (Proprietary) Limited Messina Nickel Mining and Exploration Company of Africa (Proprietary) Limited Micawber 146 (Proprietary) Limited Micawber 207 (Proprietary) Limited Micawber 277 (Proprietary) Limited Micawber 278 (Proprietary) Limited Middelpunt Hill Management Services (Proprietary) Limited Norbush Properties (Proprietary) Limited Norsand Holdings (Proprietary) Limited Penultimate Holdings (Proprietary) Limited PGI SA(iii) PGI (Italia) S.r.I.(iv)* PGI KK(v) PGI (United Kingdom) Limited(vi) Platinum Gilde International Deutschland Gmbh(vii) PGM (Brakspruit) (Proprietary) Limited Platinum Air Services Limited Platinum Mines Expansion Services (Proprietary) Limited Platinum Open Cast Services (Proprietary) Limited Platinum Prospecting Company (Proprietary) Limited Platmed Properties (Proprietary) Limited Platmed (Proprietary) Limited Precious Metal Refiners (Proprietary) Limited Pyramid Platinum Limited Rustenburg Base Metals Refiners (Proprietary) Limited Rustenburg Platinum Mines (Cyprus) Limited(viii) Transvaal Land and Development Company (Proprietary) Limited UNKI HI (Mauritius)(ix) Whiskey Creek Management Services (Proprietary) Limited Jointly controlled operations Modikwa Platinum Mine Joint Venture (Note 15) Jointly controlled entities Modikwa Mining Personnel Services (Proprietary) Limited Modikwa Platinum Mine (Proprietary) Limited Pooling and Sharing Agreement Kroondal Platinum Mine (Note 15) Associate companies Northam Platinum Limited Johnson Matthey Fuel Cells Limited(vi) All companies are incorporated in the Republic of South Africa except where otherwise indicated.
i ii iii iv v vi vii viii ix * Incorporated in the Isle of Man Incorporated in the Cayman Islands Incorported in Switzerland Incorporated in Italy Incorporated in Japan Incorporated in the United Kingdom Incorporated in Germany Incorporated in Cyprus Incorporated in Mauritius Represents a 100% membership
E E A A A E L E E E I N C N F N I N J N B N E E E E A C C N K K K K K C G F A N I H B C B E N E E A F C A A, B, C, D M
136
ANNUAL FINANCIAL STATEMENTS > NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS > ANNEXURE D
Number of shares held 2003 2002
Carrying amount 2003 Rm 580,7 228,6 739,0 842,2 2002 Rm 580,7 228,6 739,0 842,2
Holding company current account 2003 2002 Rm Rm 165,7 (0,5) 27,3 0,3 (577,9) (385,1) Note 6 & Note 10 115,7 835,8 14,8 17,4 983,7 Note 6
180 709 809 1 129 568 618 129 762 372 426 288 2 000 Not applicable 23 250 1 000 100 100 250 000 525 000 100 5 100 100 100 120 000 450 000 1 360 100 1 000 1 100 100 100 1 000 375 000 14 500 100 R12 451 40 000 2 50 000 200 000 100 100 1 508 000 100 100 1 000 1 000 1 000 50 000 220 100 1 000
180 709 809 1 129 568 618 129 762 372 426 288 2 000 Not applicable 23 250 1 000 100 100 250 000 525 000 100 5 100 100 100 120 000 450 000 1 360 100 1 000 1 100 100 100 1 000 375 000 14 500 100 R12 451 40 000 2 50 000 200 000 100 100 1 508 000 100 100 1 000 1 000 1 000 220 1 000
0,1
2 390,5 Note 5
2 390,6 Note 5
Nature of business A Mining B Treatment and refining C Minerals and surface rights holding D Metals trading E Financial F Recruitment G Air chartering H Medical facilities
I Property J Insurance K Marketing L Housing M Further processing N Dormant
137
ANNUAL FINANCIAL STATEMENTS > ANGLO AMERICAN PLATINUM CORPORATION LIMITED
Appendix 1: Anglo American Platinum Corporation Limited Income statement for the year ended 31 December
2003 Notes Operating (loss)/profit Net investment income Profit before taxation Taxation Net profit 1 2 3 Rm (2,6) 2 013,4 2 010,8 (24,7) 1 986,1 2002 Rm 867,5 4 868,2 5 735,7 (599,4) 5 136,3
Balance sheet as at 31 December

Assets
Non-current assets Investments Current assets Accounts receivable Cash and cash equivalents Total assets 6 7 5 2 390,5 209,8 209,7 0,1 2 600,3 2 390,6 999,9 998,1 1,8 3 390,5

Share capital and reserves Share capital Share premium Non-distributable reserve Accumulated profits before proposed ordinary dividend and related secondary tax on companies (STC) Accumulated profits after proposed ordinary dividend and related STC Proposed ordinary dividends receivable from subsidiaries Proposed ordinary dividend payable STC in respect of proposed ordinary dividend Shareholders equity Current liabilities Accounts payable Taxation Total equity and liabilities 10 12 9 8 21,5 796,3 1 174,0 1 174,0 (581,6) 581,6 1 991,8 608,5 604,0 4,5 2 600,3 21,5 754,0 518,4 1 401,1 565,6 (1 191,5) 1 934,1 92,9 2 695,0 695,5 17,6 677,9 3 390,5
138
Statement of changes in equity

Share capital Share premium Nondistributable reserve Rm Balance as at 31 December 2001 Net profit Dividends paid in cash (Note 4) Share capital issued Repurchase of ordinary shares 1 673 400 shares repurchased by the Company from a wholly owned subsidiary (cancelled) Balance as at 31 December 2002 Net profit Dividends paid in cash (Note 4) Share capital issued Transfer from non-distributable reserve to accumulated profits Balance as at 31 December 2003 21,5 796,3 * 42,3 (518,4) 518,4 1 174,0 (0,2) 21,5 (524,4) 754,0 518,4 1 401,1 1 986,1 (2 731,6) (524,6) 2 695,0 1 986,1 (2 731,6) 42,3 1 991,8 0,1 (0,2) 74,8 (524,4) 21,6 Rm 1 203,6 Rm 518,4 Rm 1 627,7 5 136,3 (5 362,9) Rm 3 371,3 5 136,3 (5 362,9) 74,9 (524,6) Accumulated profits Total
Cash flow statement for the year ended 31 December

2003 Notes Cash flows from/(used in) operating activities Cash from/(used in) operations Taxation paid Net cash from/(used in) operating activities Cash flows from investing activities Proceeds on disposal of investments Interest received Dividends received Net cash from investing activities Cash flows used in financing activities Proceeds from the issue of share capital Increase in share premium Own shares purchased Dividends paid Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 7 4 * 42,3 (2 731,6) (2 689,3) (1,7) 1,8 0,1 0,1 74,8 (524,6) (5 362,9) (5 812,6) 1,8 1,8 0,1 2,9 2 010,5 2 013,5 1 899,7 4 868,2 6 767,9 11 12 1 372,2 (698,1) 674,1 (227,1) (728,2) (955,3) Rm 2002 Rm
*Less than R50 000.
139
Notes to the financial statements for the year ended 31 December

2003 Rm 1. Net investment income Interest received Dividends received 2,9 2 010,5 2 013,4 4 868,2 4 868,2 2002 Rm
2.
Profit before taxation Profit before taxation is arrived at after taking account of: Foreign exchange gains Directors' emoluments Remuneration as executive directors Remuneration as non-executive directors 1,0 0,1 0,9 866,4 0,7 0,4 0,3
3.
Taxation Current taxation for the year Comprising: Secondary tax on companies Prior year overprovision of South African normal taxation Foreign and withholding taxation 93,0 (68,3) 24,7 A reconciliation of the standard rate of South African normal taxation compared with that charged in the income statement is set out in the following table: % South African normal taxation Secondary tax on companies 30,0 4,6 34,6 Dividends received Overprovision prior year Other Effective taxation rate (30,0) (1,0) (2,4) 1,2 % 30,0 6,7 36,7 (25,5) (0,7) 10,5 381,6 170,4 47,4 599,4 24,7 599,4
4.
Dividends Dividends paid in cash were as follows: Dividend No. 98 and special dividend Dividend No. 99 Dividend No. 100 Dividend No. 101 1 935,4 796,2 2 731,6 5 362,9 3 430,3 1 932,6
5.
Investments Investment in wholly-owned subsidiaries at cost (Annexure D) 2 390,5 2 390,6
140
Notes to the financial statements for the year ended 31 December (continued)
2003 Rm 6. Accounts receivable Other receivables and prepaid expenses Subsidiary companies' current accounts (Annexure D) 16,4 193,3 209,7 7. Cash and cash equivalents Cash and cash equivalents consist of balances with banks. Borrowing powers In terms of the Articles of Association, the Company has unlimited borrowing powers. 8. Share capital 2002 400 000 000 215 769 272 837 335 (1 673 400) 214 933 207 2003 400 000 000 214 933 207 460 360 215 393 567 Authorized Ordinary shares of 10 cents each Issued Ordinary shares of 10 cents each at 1 January Issued in terms of the Share Option Scheme Own shares purchased Balance as at 31 December 21,5 * 21,5 21,6 0,1 (0,2) 21,5 40,0 40,0 0,1 1,8 14,4 983,7 998,1 2002 Rm
The unissued ordinary shares (excluding shares reserved for the Share Option Scheme) are under the control of the Directors until the forthcoming Annual General Meeting. * Less than R50 000. 9. Non-distributable reserve General capital reserve 10. Accounts payable Other payables and accrued expenses Subsidiary companies current accounts (Annexure D) 25,6 578,4 604,0 11. Reconciliation of profit before taxation to cash from/(used in) operations Profit before taxation Adjustments for: Dividends received (Note 1) Interest received (Note 1) Working capital changes Decrease/(increase) in accounts receivable Increase/(decrease) in accounts payable (2 010,5) (2,9) (2,6) 1 374,8 788,4 586,4 1 372,2 12. Taxation paid Amount unpaid at beginning of year Current taxation provided Amount unpaid at end of year Payments made 677,9 24,7 (4,5) 698,1 806,7 599,4 (677,9) 728,2 (4 868,2) 867,5 (1 094,6) (981,7) (112,9) (227,1) 2 010,8 5 735,7 17,6 17,6 518,4
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GLOSSARY OF TERMS
Finance
After-tax operating profit as a percentage of average operating assets: net profit excluding net investment income and income from associates as a percentage of average operating assets. Average operating assets: average of the aggregate of total assets less capital work-in-progress, cash and cash equivalents, Platinum Producers Environmental Trust, and investments at the beginning and end of the financial year. Average ordinary shareholders equity: average of the aggregate of share capital, share premium, non-distributable reserves, and accumulated profits at the beginning and end of the financial year. Capital expenditure: total capital expenditure on mining and non-mining property, plant, equipment, and capital work-in-progress. Current ratio: current assets as a ratio of current liabilities. Debt equity ratio: interest-bearing borrowings, including the short-term portion payable, as a ratio of shareholders equity. Effective tax rate: current taxation, deferred taxation, and tax normalization as a percentage of profit before taxation. Gross profit margin: gross profit on metal sales expressed as a percentage of gross sales revenue. Market capitalization: number of ordinary shares in issue as at 31 December multiplied by the closing share price as quoted on the JSE Securities Exchange South Africa. Net asset value: total assets less all liabilities including deferred taxation, which equates to shareholders equity. Net asset value as a percentage of market capitalization: shareholders equity expressed as a percentage of market capitalization at close of business on 31 December. Net debt: interest-bearing borrowings, plus obligations due under finance leases, less cash and cash equivalents. Net liquid assets: accounts receivable and cash and cash equivalents less current liabilities. Rand revenue per platinum ounce sold: net sales revenue divided by platinum ounces sold. Return on average shareholders equity: net profit expressed as a percentage of average ordinary shareholders equity. ROCE (return on average capital employed): net profit as a percentage of average shareholders equity, plus average interest bearing borrowings and average other financial liabilities at the end of the year. Total assets: the sum of non-current and current assets.
Operations
Arisings: the valuable product after a stage in processing. Bench: the equivalent of a level in an underground mine, most noticeable as the step-like features in an open-pit wall. The open-pit bench height is calculated to match the rock strength, pit economics, and capabilities of the open-pit machinery. Typical bench heights in open-pit mines range from 10 to 20 metres. Best cut: the optimum stoping width for mining of the reef at prevailing metal prices and costs. Built-up head grade: the total 4E grams produced from the concentrating process from concentrate, metallics (where applicable), and tailings, divided by the total tons milled. See definition of 4E below. Concentrating: the process of separating milled ore into a waste stream (tailings) and a valuable mineral stream (concentrate) by flotation. The valuable minerals in the concentrate contain almost all the base metal and precious metal minerals; these minerals are treated further by smelting and refining to obtain the pure metals (PGMs, Ni, and Cu). Decline: a generic term used to describe a shaft at an inclination below the horizontal and usually at the same angle as the dip of the reef. Development: any tunnelling operation that has for its object either exploration or exploitation. Equivalent refined platinum production: Mines production and purchases of metal in concentrate converted to equivalent refined platinum production using Anglo Platinums standard smelting and refining recoveries. Face advance: the average distance stope faces advance per month: a measure of resource utilization.
142
GLOSSARY OF TERMS
Flotation: in the flotation process, milled ore mixed with water or pulp is passed through a series of agitated tanks. Various chemicals are added to the pulp in sequence to render the valuable minerals hydrophobic (water-repellent) and the non-valuable minerals hydrophilic (water-loving). Air is dispersed throughout the agitated tanks and rises to the surface. The hydrophobic particles attach to the rising air bubbles and are removed from the main volume of pulp as a soapy froth. In this manner, various combinations of flotation cells in series are utilized to produce a concentrated stream of valuable mineral particles, called the concentrate, and a waste pulp stream, called tailings. g/t: grams per ton, the unit of measurement of grade. One gram per ton is one part per million. Immediately available ore reserves: ground available for mining without any further development. In situ: the original, natural state of the orebody before mining or processing of the ore takes place. JORC: the Australian Institute of Mining and Metallurgy Joint Ore Reserves Committee Code. Merensky Reef: a band in the Bushveld sequence often containing economic grades of PGMs. Milling: a process for reducing broken ore to a size at which concentrating can be undertaken. Mining area: the area for which a mining authorization/permission to mine has been granted. Oxidized ore: ore that has decomposed by exposure to surface and near-surface elements. Oz: Troy ounce. Pd: palladium. PGMs: platinum group metals, six elemental metals of the platinum group nearly always found in association with each other. Some texts refer to PGE (platinum group elements). These metals are platinum, palladium, rhodium, ruthenium, iridium, and osmium. Platreef: the name of the ore mined at PPRust. Pt: platinum. Refined product/production: refined metal produced by the refinery and appointed toll-treaters from mined material and purchased concentrate, as well as metals in product sold from the refinery. Semivariogram: a geostatistical function describing in numerical terms (and represented graphically for ease of quantification) the predictability relationship between points of data at some distance from each other. This predictability constrains the confidence within which the estimation of a value (in this case the content value of a deposit) is made, and therefore an estimate of the risk is quantified. Stoping: operations directly associated with the extraction of reef. Stripping ratio: the number of units of unpayable material that must be mined to expose one unit of ore. SAMREC: the South African Mineral Resources Committee. Sweepings: the final process in stoping operations, in which the footwall is thoroughly cleaned to remove the last portion of broken ore and fines. Tailings: that portion of the ore from which most of the valuable material has been removed by concentrating and that is therefore low in value and rejected. Tailings grade: the 4E content of the tailings produced by milling and concentrating. When compared to head grade, it is a measure of the efficiency of the concentrating process. Ton: metric ton, equal to 1 000kg, unless otherwise defined. UG2: a chromite reef in the Bushveld sequence often containing economic values of PGMs. Unoxidized ore: ore that has not undergone changes/degradation by weathering close to the surface. 3E: three elements, platinum, palladium, and gold. 4E: four elements. The grade at Anglo Platinum mines is measured as the combined content of the four most valuable precious metals: platinum, palladium, rhodium, and gold.
143
ANNUAL FINANCIAL STATEMENTS > DIRECTORATE
Executive directors Dorian Theodore Gerald Emmett (52)

BSc (Electrical Engineering) Wits MBL (cum laude) UNISA Chief Operating Officer Joined the Group in 1975 Appointed a Director in 1991 Dorian joined Johannesburg Consolidated Investment Company Limited (Johnnies) in 1975 and held various engineering positions. He was later appointed Consulting Engineer and Technical Director of Anglo Platinum. In January 1996, he was appointed Anglo Platinums Executive Director: Commercial. He is also a director of Anglo Platinum Group subsidiaries and a director of Northam Platinum. Appointed Chief Operating Officer in March 2001.
through various senior and executive positions, which he has held over many years in large corporations. He was an executive director of Iscor Ltd before joining Anglo Platinum.
Roeland Herman Hendrik van Kerckhoven (51)

Belgian BCom UNISA MBL UNISA Executive Director: Finance and Corporate Development Joined the Group in 1977 Appointed a Director in 1994 After joining Johnnies in 1977, Roeland occupied various Johnnies Group financial positions. He became Financial Director of Johnnies (Platinum Division) in 1994 and was appointed Anglo Platinum Executive Director: Finance in the same year. He is also a director of Anglo Platinum Group subsidiaries and a director of Northam Platinum.
Ralph Havenstein (47)

BSc (Chemical Engineering), UP MSc (Chemical Engineering), UP B Comm, UNISA AMP, UNISA Stanford Executive Program, Stanford Business School Chief Executive Officer Joined the Group in 2003 Appointed a Director in 2003 Until 30 June 2003, Ralph was responsible for Sasol Chemical Industries and a director of companies in the Sasol group. Appointed Chief Executive Officer of Anglo American Platinum Corporation Ltd on 1 July 2003. He is also a director of Anglo Platinum Group subsidiaries and a director of Northam Platinum.
Alexander Ian Wood (52)

British BSc (Chemical Engineering) MBA Executive Director: Commercial Joined the Group in 2001 Appointed a Director in 2001 From 1975 to 1980, Sandy held various metallurgical responsibilities at Anglo American Corporation of South Africas (AACSA) gold, diamond, and coalmines. During his service with Johnnies from 1981 to 1997, he was General Manager, Marketing and Planning (Platinum Division), General Manager (Coal and Base Metals Division), and CEO: Consolidated Metallurgical Industries. From 1997 to 1998, he was Chief Operating Officer: JCI Limited (Non-gold).
Robin Mills (56)

BSc (Eng) Rand. Mining, CEng FIMM, FSAIMM Executive Director: Projects Joined the Group in 2003 Appointed a Director in 2003 Robin joined the greater Anglo American Group in 1965. He has served locally and internationally in the fields of mining engineering, project, and general management across most of the mineral commodities represented in that group. At an executive level, he has served as a director of several related companies and was appointed to the Board of Anglo Platinum and Group subsidiaries in May 2003.
Non-executive Directors Leslie Boyd (66)

CEng FIM (UK) Appointed a Director in 1995 Leslie retired in 2001 as Chairman of Anglo Platinum, executive vice-chairman of Anglo American plc, deputy chairman of AACSA, and chairman of Highveld Steel and Vanadium and of Ford Motor Company of South Africa. He is chairman of Imperial Holdings and Datatec; and non-executive director of AACSA, Acerinox (Spain), Aspen Pharmacare, Lie & Fung (Hong Kong), Tongaat Hulett, Highveld Steel and Vanadium, and Kersaf Investments. He is: past president of SEIFSA; past chairman of The Corporate Forum; last president of the SA Federated Chamber of Industries;
Abram Makwadi Thebyane (43)

BAdmin, University of the North HDip, Human Resources, Wits Executive Director, Human Resources Joined the Group and appointed a Director in 2004 Abe has acquired extensive human resources and overall business experience
144
ANNUAL FINANCIAL STATEMENTS > DIRECTORATE
founding president of SACOB; past chairman of Business South Africa; and past president of the South Africa Foundation.
Anthony John Trahar (54)

BCom CA (SA) Appointed a Director in 1999 Tony is the chief executive officer of Anglo American plc, chairman of Mondi Limited, and a director of AngloGold, Highveld Steel and Vanadium, Scaw Metals, and the Tongaat Hulett Group.
Barry Erskine Davison (58)

BA Wits Non-executive Chairman Joined the Group in 1973 Appointed a Director in 1988 During his period of service with Johnnies from 1973 to 1994, Barry was an executive director of that company and held various directorships of Johnnies Group companies. He is a director of Anglo Platinum Group subsidiaries and AACSA. He was appointed a member of the executive committee of Anglo American plc in December 2000 and an executive director of Anglo American plc on 15 May 2001. On 25 May 2001, he was appointed Executive Chairman of Anglo Platinum and was appointed president of the Chamber of Mines of South Africa on 15 November 2001. Barry is employed by Anglo American plc and, in pursuit of good corporate governance, relinquished his role of Chief Executive Officer of Anglo Platinum in July 2003, retaining his role as Non-executive Chairman.
Polelo Lazarus Zim (43)

MCom Appointed a Director in 2003 Lazarus is the deputy chief executive officer of AACSA. He was previously the managing director of MTN Group Limited.
Independent Non-executive Directors Colin Bertram Brayshaw (68)

CA (SA) FCA Appointed a Director in 1996 Colin is the retired managing partner and chairman of Deloitte & Touche. He is a nonexecutive director of various companies, including AngloGold, Coronation Holdings, Datatec, Johnnic Holdings, AEL, and Highveld Steel and Vanadium.
Michael Wallis King (66)

CA (SA) FCA Appointed a Director in 1979 Mike retired from executive duties as Executive Vice-Chairman, Anglo American plc, in 2001. He was previously Deputy Managing Director of The Merchant Bank, Union Acceptances Limited and left to join Anglo American Corporation in 1974, becoming Executive Deputy Chairman in 1997. He serves as non-executive director on various boards, including FirstRand Limited, Harmony Gold Mining Company Limited, Sturrock and Robson Holdings Limited, and Tongaat Hulett.
Bongani Augustine Khumalo (51)

MA (Corporate and Political Communications) MBA Appointed a Director in 2003 Bongani is the chairman of Transnet. He is a non-executive director of various companies and serves on a number of statutory bodies. He has recently been appointed to the Higher Education Restructuring Group.
Thembalihle Hixonia Nyasulu (49)

Appointed a Director in 2003 Hixonia has been a director of various South African companies for 12 years. She is a non-executive director of AEL, Anglovaal Industries, Development Bank of Southern Africa, Nedcor, and The Tongaat Hulett Group.
William Alan Nairn (59)

BSc (Mining Engineering) Wits Appointed a Director in 2000 Bill joined the Johnnies Group in 1964, became chairman of the Gold Division companies in 1994, and Managing Director of JCI Limited. He was appointed a director of AACSA in 1997. In December 2000, he was appointed a member of the Anglo American plc executive committee and then an executive director of Anglo American plc on 15 May 2001. He is a director of AngloGold, Western Areas Limited, and the Chamber of Mines of South Africa.
Thomas Alexander Wixley (63)

BCom CA (SA) Appointed a Director and Non-executive Deputy Chairman in 2001 Tom is the retired chairman of Ernst & Young. He is a non-executive director of African Life Assurance Company, Corpcapital, and Johnnic Communications. He is a member of the Department of Justice and Constitutional Development Board.
145
ANNUAL FINANCIAL STATEMENTS > MANAGEMENT AND ADMINISTRATION
Corporate Office Chief Executive Officer

Ralph Havenstein Chief Executive Officer
Human Resources
Abe Thebyane Executive Director: Human Resources Andr Geldenhuys General Manager: Human Resources Henry Kemp Group Human Resource Development Manager Henry Zondi Employee Relations Consultant Pumlani Tyali Senior Manager: Socio-economic Development
Commercial
Sandy Wood Executive Director: Commercial Tim Aiken General Manager: Marketing Peter von Zahn Business Manager: RPM Zug
Operations: Corporate Office

Dorian Emmett Chief Operating Officer Rodney Baxter Divisional Director: Continuous Business Improvement John Johnston Group Safety, Health, and Environment Manager
Administration
Rohan Venter Company Secretary
Mines Division, Western Limb

Chris Sheppard Divisional Director: West Richard Phillips Regional Advisor: Metallurgy Brian OConnor Divisional Engineering Manager: West James Whitley Divisional Engineering Manager: West
Projects
Robin Mills Executive Director: Projects Lester Napier General Manager: Mines Expansions Nic du Toit Manager: Concentrator Projects Sean Chelius Manager: Process Projects
Finance and Corporate Development

Roeland van Kerckhoven Executive Director: Finance and Corporate Development Leon Bekker Head: Legal Services Martin Prinsloo General Manager: Corporate Finance & Development Johan Serfontein Chief Information Officer Trevor Raymond Senior Manager: Investor Relations Simon Scott Business Manager: Anglo Platinum Shared Services Lettie La Grange Group Medical Consultant John Martin General Manager: Group Audit Services Mike Mtakati Group Manager: Corporate Communications Paul Brogan Head: Sustainable Business Strategy Charles Buchanan Group Treasurer Andr Botes Group Tax Consultant
Mines Division, Eastern Limb

Dean Pelser Divisional Director: East Marius van der Schyff Regional Advisor: Engineering
Technical Services
Mike Halhead Director: Technical Services Peter Charlesworth Divisional Director: Research and Development Ron Hieber Divisional Director: Resource Management and Development Mike Rogers Divisional Director: Mine Technical Services Chris Rule General Manager: Concentrator Technology Duncan Wanblad General Manager: Process Technology Deon Mocke General Manager: Supply Chain Jan Botha Manager: Group Engineering Services
Process Division
Richard Pilkington Divisional Director: Process Operations Piers Halton Divisional Advisor: Process
Mine and Process management Rustenburg Section

Sean OConnor Business Manager: Rustenburg East Mine Rudi Rudolph Business Manager: Rustenburg West Mine Johan Schoeman Business Manager: Metallurgy Robert van Niekerk Business Manager: Waterval Mine PO Box 8208, Rustenburg 0300 Telephone (014) 598-9111 Facsimile (014) 567-1383
146
ANNUAL FINANCIAL STATEMENTS > MANAGEMENT AND ADMINISTRATION
Amandelbult Section
Francois Uys Business Manager PO Box 2, Chromite 0362 Telephone (014) 784-1111 Facsimile (014) 784-1230
PO Box 1341, Steelpoort 1133 Telephone (013) 230-2000 Facsimile (013) 230-2036
Financial, administrative, and technical advisors Anglo Platinum Management Services (Proprietary) Limited
Corporate and Divisional Office, Registered Office, business and postal addresses of the Secretary and Administrative Advisors: 55 Marshall Street, Johannesburg 2001 PO Box 62179, Marshalltown 2107 Telephone (011) 373-6111 Facsimile (011) 834-2379 (011) 373-5111
Twickenham Platinum Mine

Peet Snyders Business Manager Piet Coetzer Senior Planning Manager PO Box 1035, Driekop 1129 Telephone (015) 619 9807/9 Facsimile (015) 619 9182
Union Section
Noel Williams Business Manager Private Bag 351, Swartklip 0370 Telephone (014) 786-1000 Facsimile (014) 786-0223
Waterval Smelter
Deryck Spann Business Manager PO Box 331, Kroondal 0350 Telephone (014) 591-5000 Facsimile (014) 591-5008
South African Registrars

Computershare Limited 70 Marshall Street, Johannesburg 2001 PO Box 61051, Marshalltown 2107 Telephone (011) 370-7700 Facsimile (011) 836-0792 (011) 836-6145
PPRust
Stephan Muller Business Manager Private Bag X2463, Makopane 0600 Telephone (015) 418-2000 Facsimile (015) 418-2018
Polokwane Smelter
July Ndlovu Business Manager Private Bag X9557, Polokwane Smelter 0699 Telephone (015) 299-2550 Facsimile (015) 418-3401
London Secretaries
Anglo American Services (UK) Limited 20 Carlton House Terrace, London SW1Y 5AN, England Telephone (0207) 698-8888 Facsimile (0207) 698-8755
Leplats
Dawid Stander Business Manager PO Box 1, Atok 0749 Telephone (015) 619-0044 Facsimile (015) 619-0010
Rustenburg Base Metals Refiners

Wayne Venter (acting) Business Manager PO Box 483, Rustenburg 0300 Telephone (014) 591-4000 Facsimile (014) 591-1102
United Kingdom Registrars

Capita IRG plc Balfour House, 390-398 High Road, Ilford, Essex IG1 1NQ, England Telephone (0181) 478-8241 Facsimile (0181) 478-7717
Precious Metals Refiners

Nic Schoeman Business Manager PO Box 331, Kroondal 0350 Telephone (014) 567-9111 Facsimile (014) 567-9261
Bafokeng-Rasimone Platinum Mine

Chris Griffith Business Manager PO Box 4971, Rustenburg 0300 Telephone (014) 573-1300 Facsimile (014) 573-1474
Anglo Platinum Research Centre

Sandy Lambert Manager: Minerals Technology PO Box 6540, Homestead 1412 Telephone (011) 871-9800 Facsimile (011) 828-8990
Auditors to Anglo Platinum and Anglo Platinum Management Services (Proprietary) Limited
Deloitte & Touche

Mike Jooste Business Leader
Deloitte & Touche Place, The Woodlands, Woodmead, Sandton 2196
147
ANNUAL FINANCIAL STATEMENTS > NOTICE TO MEMBERS
Annual General Meeting

The Annual General Meeting of members of Anglo American Platinum Corporation Limited (the Company) will be held on the ground floor, 44 Main Street, Johannesburg, on Tuesday, 30 March 2004, at 14:00 for the following purposes:
Special Business
Ordinary resolution No. 1 Placing unissued capital under the control of the Directors RESOLVED: That subject to the provisions of the Companies Act, 1973, as amended, and the Listings Requirements of the JSE, the authorized but unissued ordinary shares of 10 cents each in the capital of the Company (excluding for this purpose those ordinary shares over which the directors have been given specific authority to meet the requirements of the Anglo Platinum Share Option Scheme) be placed under the control of the Directors, who are hereby authorized at their discretion to allot and issue all or any portion of such shares upon such terms and conditions as they may determine as and when deemed fit to do so. Ordinary resolution No. 2 Approving the Non-executive Directors fees RESOLVED: that the increase of the fees payable to Non-executive Directors as described in the Remuneration Report on page 93 be approved. By order of the Board
Ordinary business
1) To receive and consider the Groups annual financial statements for the year ended 31 December 2003. 2) To re-elect Directors retiring by rotation and who have been appointed during the year and are retiring in terms of the Articles of Association and who are eligible and offer themselves for reelection as directors of the Company. Directors retiring by rotation: a) Mr L Boyd b) Mr WA Nairn Directors who have been appointed during the year: c) Mr R Havenstein d) Dr BA Khumalo e) Mr RG Mills f) Mr AM Thebyane g) Mr PL Zim
(Please see footnote)
3) To appoint Deloitte and Touche as auditors of the Company to hold office for the ensuing year.
Rohan Venter Company Secretary Johannesburg 13 February 2004

Footnote Particulars of the age, qualifications, Group service, and/or business experience of the Directors who are subject to retirement by rotation in terms of the Articles of Association and who are eligible and available for re-election to the Board of Directors, appear on pages 144 and 145 of this Business Report.
148
ANNUAL FINANCIAL STATEMENTS > SHAREHOLDERS DIARY
Annual General Meeting
Tuesday, 30 March 2004, at 14:00
Reports:
Interim Report for the half-year to 30 June 2004 published Preliminary Report for the year to 31 December 2004 published Annual Report for year to 31 December 2004 released Annual General Meeting (2004 year) July 2004 February 2005 February 2005 March 2005
Dividends:
Interim Final Declared July 2004 Payable September 2004 Declared February 2005 Payable March 2005 Shareholders are reminded to notify the South African or the United Kingdom Registrars of any change of address.
Registered Office
55 Marshall Street Johannesburg, 2001 (PO Box 62179, Marshalltown, 2107)
London Secretaries
Anglo American Services (UK) Limited 20 Carlton House Terrace London SW1Y 5AN England
South African Registrars

Computershare Limited 70 Marshall Street, Johannesburg, 2001
149
150
ANNUAL FINANCIAL STATEMENTS > FORM OF PROXY
Anglo American Platinum Corporation Limited

Incorporated in the Republic of South Africa. Date of incorporation: 13 July 1946. Registration number: 1946/022452/06. JSE Code: AMS. ISIN: ZAE000013181 (Anglo Platinum or the Company)
For use ONLY by shareholders who have not dematerialized their shares, Central Securities Depository Participants (CSDP) nominee companies, brokers nominee companies, and shareholders who have dematerialized their shares and who have elected own-name registration in the sub-register through a CSDP or broker at the Annual General Meeting of shareholders to be held on the ground floor, 44 Main Street, Johannesburg on Tuesday, 30 March 2004, at 14:00. Shareholders who have dematerialized their shares and not elected own-name registration in the sub-register through a CSDP or broker must NOT complete this form of proxy and must provide their CSDP or broker with their voting instructions, in terms of the custody agreement entered into between such shareholders and the CSDP or broker. Shareholders who have not dematerialized their shares, or have dematerialized their shares and have elected own-name registration in the sub-register through a CSDP or broker must complete this form of proxy and return it to the registrars of Anglo Platinum, Computershare Limited in South Africa, or Capita IRG plc in the United Kingdom, so as to be received by not later than 14:00 on Friday, 26 March 2004. I/We
(name in block letters please)
of Telephone:
(home) (area code and number)
Telephone:
(work) (area code and number)
being the holder/s or custodian of (see note 1): 1. 2. 3. The Chairman of the Annual General Meeting
shares in Anglo Platinum, hereby appoint or failing him/her or failing him/her
as my/our proxy to attend and speak for me/us and on my/our behalf at the Annual General Meeting of the Company and at any adjournment thereof, and to vote or abstain from voting as indicated below on the resolutions to be considered at the said meeting in respect of the shares registered in my/our name(s) in accordance with the following instructions (see note 2): ORDINARY BUSINESS 1. To adopt the Groups annual financial statements for the year ended 31 December 2003 2. (a) To re-elect Mr L Boyd as a Director of the Company (b) To re-elect Mr WA Nairn as a Director of the Company (c) To re-elect Mr R Havenstein as a Director of the Company (d) To re-elect Dr BA Khumalo as a Director of the Company (e) To re-elect Mr RG Mills as a Director of the Company (f) To re-elect Mr AM Thebyane as a Director of the Company (g) To re-elect Mr PL Zim as a Director of the Company 3. To appoint Deloitte & Touche as auditors of the Company to hold office for the ensuing year SPECIAL BUSINESS 4. Ordinary Resolution No. 1: to authorize the Directors to allot and issue the unissued ordinary shares 5. Ordinary Resolution No. 2: to approve the increase in Non-executive Directors fees For Against Abstain
Please indicate with an X in the spaces above how you wish your votes to be cast. If no indication is given, the proxy will vote or abstain at his discretion. Any member of the Company entitled to attend and vote at the meeting may appoint a proxy or proxies to attend, speak, and vote in his stead. A proxy need not be a member of the Company. Every person present and entitled to vote at an Annual General Meeting shall, on a show of hands, have one vote only, but in the event of a poll, every share shall have one vote. Please read the notes appearing on the reverse hereof Signed at Signature(s) on Assisted by me 2004
Full name(s) of signatory/ies if signing in a representative capacity (see note 6.2)

(please use block letters)
ANNUAL FINANCIAL STATEMENTS > FORM OF PROXY
NOTES
11 A shareholder may insert the name of a proxy or the names of two alternative proxies of the shareholders choice in the space(s) provided, with or without deleting the words the Chairman of the Annual General Meeting, but any such deletion must be signed in full by the shareholder. The person whose name appears first on the form of proxy and has not been deleted and who is present at the Annual General Meeting will be entitled to act as proxy to the exclusion of those whose names follow. In the event that no names are indicated, the Chairman of the Annual General Meeting shall exercise the proxy. 12 A shareholders instructions to the proxy must be indicated by the insertion of an X in the appropriate box provided. Failure to comply with the above will be deemed to authorize the proxy to vote or to abstain from voting at the Annual General Meeting as he/she deems fit in respect of all the shareholders votes exercisable thereat. Where the proxy is the Chairman, such failure shall be deemed to authorize the Chairman to vote in favour of the resolutions to be considered at the Annual General Meeting in respect of all the shareholders votes exercisable thereat. 13 In order to be effective, completed proxy forms must reach the Companys South African Registrars, Johannesburg, not less than 48 hours before the time appointed for the holding of the meeting, or the offices of the United Kingdom Registrars not less than 48 hours before the time appointed for the holding of the meeting. 14 The completion and lodging of this form of proxy shall in no way preclude the shareholder from attending, speaking, or voting in person at the Annual General Meeting to the exclusion of any proxy appointed in terms hereof. 15 Should this form of proxy not be completed and/or received in accordance with these notes, the Chairman may accept or reject it, provided that in respect of its acceptance the Chairman is satisfied as to the manner in which the shareholder wishes to vote. 1 6.1 Documentary evidence establishing the authority of a person signing this form of proxy in a representative or other legal capacity (such as a power of attorney or other written authority) must be attached to this form of proxy unless previously recorded by the Companys Registrars or waived by the Chairman of the Annual General Meeting. 6.2 The Chairman shall be entitled to decline to accept the authority of a person signing the proxy form: 6.2.1 6.2.2 Under a power of attorney, or On behalf of a company unless that persons power of attorney or authority is deposited at the offices of the Companys South African Registrars or the United Kingdom Registrars not less than 48 hours before the meeting. 17 Where shares are held jointly, all joint holders are required to sign the form of proxy. 18 His/her parent or guardian must assist a minor unless the relevant documents establishing his/her legal capacity are produced or have been registered by the Companys South African or United Kingdom Registrars. 19 Any alteration or correction made to this form of proxy must be signed in full and not initialled by the signatory/ies. 10 On a show of hands, every shareholder present in person or represented by proxy shall have only one vote, irrespective of the number of shares he/she holds or represents. 11 On a poll, every shareholder present in person or represented by proxy shall have one vote for every share held by such shareholder. 12 A resolution put to vote shall be decided by a show of hands, unless before or on the declaration of the results of the show of hands, a poll shall be demanded by any person entitled to vote at the Annual General Meeting.
VOTING INSTRUCTION FORM only for use by members who have dematerialized their Anglo Platinum shares through STRATE
Anglo American Platinum Corporation Limited

Incorporated in the Republic of South Africa. Date of incorporation: 13 July 1946. Registration number: 1946/022452/06. JSE Code: AMS. ISIN: ZAE000013181 (Anglo Platinum or the Company)
For use in respect of the Annual General Meeting of the Company to be held on the ground floor, 44 Main Street, Johannesburg on Tuesday, 30 March 2004, at 14:00. Members who have already dematerialized their Anglo Platinum shares may use this form to advise their CSDP or broker of their voting instructions on the proposed resolutions in the spaces provided below. However, should such members wish to attend the Annual General Meeting in person, then they will need to request their CSDP or broker to provide them with the necessary authority in terms of the custody agreement entered into between the dematerialized shareholder and the CSDP or broker. Members who have dematerialized their shares and have elected own-name registration must not use this voting instruction form but must use the form of proxy attached. I/We
(name in block letters please)
of
being a member(s) of the Company, who has/have dematerialized my/our shares in Anglo Platinum, do hereby indicate in the spaces provided below to my/our CSDP/broker my/our voting instructions on the resolutions to be proposed at the Annual General Meeting of the Company to be held at 14:00 on Tuesday, 30 March 2004.
Voting Instruction:
ORDINARY BUSINESS 1. To adopt the Groups annual financial statements for the year ended 31 December 2003 2. (a) To re-elect Mr L Boyd as a Director of the Company (b) To re-elect Mr WA Nairn as a Director of the Company (c) To re-elect Mr R Havenstein as a Director of the Company (d) To re-elect Dr BA Khumalo as a Director of the Company (e) To re-elect Mr RG Mills as a Director of the Company (f) To re-elect Mr AM Thebyane as a Director of the Company (g) To re-elect Mr PL Zim as a Director of the Company 3. To appoint Deloitte & Touche as auditors of the Company to hold office for the ensuing year SPECIAL BUSINESS 4. Ordinary resolution No.1: to authorize the Directors to allot and issue the unissued ordinary shares 5. Ordinary resolution No.2: to approve the increase in Non-executive Directors fees For Against Abstain
Notes:
1. Please indicate in the appropriate spaces above the number of votes to be cast. Each share carries the right to one vote. 2. All the votes need not be exercised and neither need all votes be cast in the same way, but the total of the votes cast and in respect of which abstention is directed may not exceed the total of the votes exercisable. 3. Any alteration or correction made to this voting instruction form must be signed in full by the signatory/ies. 4. When there are joint holders of shares, all joint holders must sign the voting instruction form. 5. Completed voting instruction forms should be forwarded to the CSDP or broker through whom the Anglo Platinum shares have been dematerialized. Members should contact their CSDP or broker with regard to the cut-off time for lodging of voting instruction forms. 6. This voting instruction form is only for use by members with dematerialized shareholdings via STRATE. Registered members and those with shares held in CREST should use the proxy form attached.
Signed at Signature(s)
on Assisted by me
2004
Full name(s) of signatory/ies if signing in a representative capacity (see note 6.2)
(please use block letters)

Contents of The Business Report - Volume 1: 1 Anglo Platinum Business Report 2003 1 Anglo Platinum Business Report 2003

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CONTENTS OF THE BUSINESS REPORT VOLUME 1

Review of Mineral Reserves and Resources

Finance review Financial performance

Principal accounting policies Consolidated financial statements

Treasury Information Technology (IT)

Annual financial statements Approval of annual financial statements

Report of the independent auditors Directors report

142 144 146 148 149

ANGLO PLATINUM BUSINESS REPORT 2003

Operational highlights, steady-state mines*

> Equivalent refined platinum production from mines#

> Earnings and dividends per share

1500 000 oz 1000

The impact of the strengthening rand on our performance

Safety at our operations

> Anglo Platinum refined platinum production

2000 2001 2002 2003

1 871,7 2 109,2 2 251,1 2 307,8

Economic conditions in our key markets

Continuing issues in respect of legislative change

Above: Polokwane smelter

ANGLO PLATINUM BUSINESS REPORT 2003

Barry Davison Non-executive Chairman Johannesburg 13 February 2004

CHIEF EXECUTIVE OFFICERS REVIEW

Safety, health, and environment

CHIEF EXECUTIVE OFFICERS REVIEW

Operating and financial performance

ANGLO PLATINUM BUSINESS REPORT 2003

CHIEF EXECUTIVE OFFICERS REVIEW

Prospects Capital expenditure and funding

CHIEF EXECUTIVE OFFICERS REVIEW

Ralph Havenstein Chief Executive Officer Johannesburg 13 February 2004

ANGLO PLATINUM BUSINESS REPORT 2003

MARKET REVIEW > PLATINUM SUPPLY AND DEMAND

Platinum supply and demand

2000 2001 2002 2003

Source: Johnson Matthey

> Platinum supply and demand

3 180 (650) 2 450 1 600 10 6 590 (480)

2 640 (570) 2 820 1 590 80 6 560 (590)

Source: Johnson Matthey

MARKET REVIEW > PLATINUM SUPPLY AND DEMAND

> Platinum demand: autocatalysts

ANGLO PLATINUM BUSINESS REPORT 2003

MARKET REVIEW > PLATINUM SUPPLY AND DEMAND

> Platinum demand: jewellery

> Platinum demand: jewellery

Source: Johnson Matthey

MARKET REVIEW > PLATINUM SUPPLY AND DEMAND

> Palladium supply and demand

2002 160 930 990 170 250

2 280 2 2 950 1 850 240 6 320 5

ANGLO PLATINUM BUSINESS REPORT 2003

> Palladium supply and demand

2000 2001 2002 2003

MARKET REVIEW > OTHER METALS

> Rhodium supply and demand