| A record financial performance |
This was my first full year at the helm of the Board. Some of the highlights include a record
financial performance and the in-principle conclusion of significant black economic
empowerment or BEE transactions.
These will be concluded during 2008, paving the way for the regulatory authorities to consider
our applications for conversion of our mining rights. |
|
| We still face serious challenges, especially in safety performance,
cost containment and efficient production, which will require a great
deal of dedication and attention from the leadership team now and
in future. |
|
| |
| Our safety performance |
 In 2007, 25 people at our managed and four at non-managed operations lost their lives due to accidents. Measured
against our target of zero harm to our people, this performance is unacceptable. I extend the Board's condolences
to the families of the deceased.
The rate at which injuries occurred at our operations decreased during the year. This is a very pleasing
development.
Actions have been taken to address safety and, in 2008, the leadership team will continue to set the tone for an
improved safety performance centered on zero harm to our people. Safety is our first priority. The review on pages
40 and 41 contains more detail about initiatives under way. |
| |
| Corporate citizenship |
The fight against HIV/AIDS continues with a high-profile campaign that involved voluntary counselling and testing of
more than 70% of our workforce in 2007.
I am pleased to report that community engagement has received significant focus during the year, specifically as it
relates to the relocation of communities on the Eastern Limb of the Bushveld Complex. |
| |
| Our leadership |
 During 2007, significant changes were made to the Board. The number of
executive directors was reduced retaining only the chief executive and chief
financial officer as executive Board members. The size of the Board has been
reduced from 20 to 13 members. The executive directors who left the Board
were appointed executive heads and continue to serve on the Company's
Executive Committee. I believe this will lead to a more effective demarcation of
accountability between the Board and the executive.
During the year, Ralph Havenstein resigned as chief executive officer and I take
this opportunity to express my appreciation for his contribution to Anglo
Platinum. I also extend my appreciation to Norman Mbazima and Duncan Wanblad who have jointly taken the
responsibility for leading the Company since 1 August 2007. The process of appointing a new chief executive officer
is ongoing.
Roeland van Kerckhoven, Mike Halhead and Robin Mills retired after many years with the extended Group.
Following senior management changes at Anglo American plc, Cynthia Carroll, René Médori and Russell King joined
the Anglo Platinum Board, and David Hathorn, David Barber and Anthony Trahar resigned. Non-executive directors
Bill Nairn, Colin Brayshaw and Hixonia Nyasulu resigned. Subsequent to the year end, Valli Moosa and Sonja Sebotsa
have joined the Board. I welcome those joining our Board and thank our outgoing directors for their respective
contributions.
I am satisfied to report that the Board is executing its duties as described in the King II report on corporate
governance. More details about corporate governance are contained in both the Business and Sustainable
Development Reports. |
| |
| Our foundation for future production |
During 2007, we continued our work on transformation, aimed at fulfilling the requirements of the mining charter. To
create more focus, the Board has formed a transformation committee which will begin its work in 2008. The inprinciple
conclusion of two significant BEE transactions and the establishment of a broad-based employee share
ownership plan underline our commitment to transformation. We believe these transactions will benefit a broad
spectrum of South Africans and deliver returns for our shareholders.
We continue to execute various mining and processing projects to meet our stated growth objectives. We are
pleased to report that the project pipeline is in the main being executed within budget and on time during a period
of high inflation pressure in the construction environment which poses a risk to achieving initial capital budgets.
Execution of these projects will ensure that the capacity for future growth is available. |
| |
| Current operations |
The economic and operating environment in South Africa was tough during 2007.
Safety failures and related concerns led to intermittent closure of certain of our mines. This affected production for
the year.
Cost containment remains a challenge for several reasons. A large proportion of production costs are fixed. Labour
costs increased ahead of inflation and skills shortages in the labour market fuelled salary and wage increases. The
continued buoyancy of the commodity cycle translates into price increases for mining and processing supplies that
far exceed the inflation rate.
The combination of these factors led to unit production costs increases far in excess of inflation. We do not expect
cost increases to remain at these levels in future. Production volumes are expected to increase in 2008 and cost
containment on all fronts will remain a priority.
The electricity crisis that arose during the latter part of January 2008 poses a serious risk to the safety of our people
as well as to our production ability. Management has engaged Eskom and the responsible government departments
to establish the way forward as well as how we can contribute to saving on electricity consumption. |
| |
| The market |
The market's strong upward momentum continued throughout 2007. This has, in the main, contributed to a year in
which record earnings and cash generation were achieved.
Although the world economy appears to show signs of a slowdown, the unique properties of platinum group metals
that allow them to be used in a variety of applications that range from environmental protection to medicine,
industrial uses and attractive jewellery continue to secure a tight supply and demand balance which underpins
their price. |
| |
| In closing |
Despite safety, production and cost challenges this year, a record financial performance was achieved, and full earnings
for the year will be distributed to shareholders.
We, as a Board, will strive to improve Anglo Platinum's safety record significantly during 2008. We will continue to
strike a balance, as best we can, in performing our duties towards all the stakeholders of the Group.
To the employees - thank you. |
| |
 |
| Fred Phaswana |
| Chairman |
| |
| Johannesburg |
| 7 February 2008 |
|
