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Tue 9 Mar 2010
Close: 69680c 
Day's move: -770c (-1.09%)
Volume: 367 288
Trades: 3 035
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Revenue decreased from R50.7 billion to R36.7 billion in 2009.Gross profit decreased to R1.9 billion (2008:R17.0 billion) and operating profit decreased to R921 million (2008:R17.6 billion). Profit attributable to ordinary shareholders decreased to R3.0 billion (R14.2 billion). Headline earnings on a per share basis decreased to 298cps (5 609cps).
Dividends per share
No final dividend was declared for the period under review.
Outlook
Anglo Platinum expects the platinum market in 2010 to return to a position of deficit as a result of a moderate increase in supply but a significant recovery in demand. South African production is expected to remain constrained as producers adapt to a safer working environment and as lower rand metal prices result in production being restricted at high cost operations across the industry. Vehicle sales in 2010 are expected to be similar to those in 2009. However, production levels in 2010 will be higher as fewer sales from inventory are expected in 2010 and production levels recover to match sales. Higher sales of larger sedan vehicles are expected as diesel fleet purchases re-commence. While demand for industrial products is expected to recover slowly, platinum demand will be enhanced by a substantial element of re-stocking. Another good year is expected from the investment segment, particularly as the US ETF has been launched.
Jewellery demand is expected to be lower in 2010 as inventory levels in the supply chain are adequate following the extra demand that re-built them in 2009. Whilst the higher price may discourage new jewellery demand in mature markets, the Chinese jewellery market continues to react positively to slow sustained price increases and remains the largest jewellery market. The platinum price in 2010 is expected to remain at above USD1,500 per ounce on average, as small improvements in the global economic recovery and re-stocking are likely to further increase the expected demand recovery in 2010.
Firm investment demand for palladium and the strong reliance on it of gasoline engines, more typical in smaller engines and in the growing Chinese market, is likely to see the price of the metal strengthen. Rhodium remains in demand for its particular catalytic properties but suffered demand loss due to thrifting at the very high prices during 2008. Operationally our top priority remains safety. The company will consolidate at the level achieved in the second half of 2009 and prepare to take the next major step in safety improvement. Given the market conditions the company believes that the appropriate level of production for 2010 is 2.5 million ounces of refined platinum and this remains the target. The company also aims to produce this volume at a unit cost of just over R11 000/oz, the same level as in the preceding two years. Our labour reductions are largely complete and the company will spend the year working on improved productivity.
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