Entire Annual Report - Anglo American Platinum

L Boyd" CHAIRMANThe above factors, combined with inflationary pressures and the cost inefficiencies normally experienced during the earlystages of bringing expansions to production, adversely affected unit costs. The cash operating cost per ton milledincreased by 8,0%, and the cash operating cost per platinum refined ounce by 25,5%. Despite the increase in tons milled,output of platinum refined ounces declined by 7,5% as a result of a reduction in built-up head grade and lower recoveriesin the Process Division. Other metal revenue exceeded the cash operating cost of platinum production by some R1 700 perplatinum refined ounce.Other net income rose by R537,5 million because of a higher gain on the translation of foreign operations and highergains achieved on the repatriation of dollar revenues.The Group’s share in the earnings of Northam Platinum Limited, whichcontributed to profit before taxation for the first time this year, amounted toR157,6 million.The increase in the tax charge was primarily attributable to higher taxableincome, to the write-back of deferred taxation in 1999 following the change inthe company tax rate from 35% to 30%, and to increases in the State’s share ofprofit and secondary tax on companies.Cash reserveschairman’sstatementCash generated by operating activities amounted to R7,95 billion comparedwith R2,97 billion in 1999. Net cash applied in respect of investing activities,primarily capital expenditure, amounted to R1,63 billion (1999: R1,30 billion).Net cash applied in financing activities and the payment of dividendsamounted to R2,41 billion (1999: R985,5 million). Cash and cash equivalentsat the end of 2000 amounted to R6,12 billion.7