Circular to Amplats Shareholders - Anglo American Platinum

Before Adjustment AfterSix months for the Six monthsended Community ended30 June 2011 Development 30 June 2011Reviewed Transaction Notes UnauditedR’m R’m R’mShare of other comprehensive losses (4) – (4)Net loss on available-for-sale investments (153) – (153)Total comprehensive income for the period 3,328 (1,161) 3 2,167Profit attributable to:Owners of the Company 3,328 (1,161) 3 2,167Non-controlling interests 55 – 553,383 (1,161) 3 2,222Total comprehensive income attributable to:Owners of the Company 3,273 (1,161) 3 2,112Non-controlling interests 55 – 553,328 (1,161) 3 2,167Headline earnings 3,233 (1,161) 3 2,072EPS (cents) 1,273 (444) 4 829Diluted EPS (cents) 1,268 (447) 4 821HEPS (cents) 1,236 (444) 5 792Diluted HEPS (cents) 1,232 (447) 5 785Weighted average number of ordinaryshares in issue (million) 261.5 – 4 261.5Weighted average diluted number of ordinaryshares in issue (million) 262.5 1.4 5 263.9Number of ordinary shares in issue(net of Shares subject to repurchase) (million) 261.2 – 4 261.2Notes:1. The consolidated statement of comprehensive income before the issue of Amplats Shares as part of the Community DevelopmentTransaction has been extracted from the consolidated statement of comprehensive income included in Amplat’s published reviewedresults for the six months ended 30 June 2011.2. Accounting policies have been applied on the same basis as adopted by Amplats in the preparation of its Annual Financial Statements.3. The financial effects are calculated on the assumptions that:– IFRS 2 facilitation charge is measured at the grant date and the full charge is expensed on grant date as no vesting conditions areattached to the Subscription Shares.– There is no tax relief on the above IFRS 2 charge.– The once-off IFRS 2 facilitation charge of R1,161 million is derived using option pricing methodology, based on the derivedsubscription price. The eventual IFRS 2 charge will also include an amount that is dependent upon the difference between the shareprice on the Last Practicable Date and the share price on the date of the issue of the Subscription Shares. This latter amount cantherefore not be definitively calculated at the Last Practicable Date and is not included in the R1,161 million IFRS 2 charge disclosedabove. The key inputs in determining the IFRS 2 charge are as follows:(i) Market price of an Amplats Ordinary Share of R575.95;(ii) Volatility of 42.89%;(iii) Dividend yield of 3%; and(iv) Risk free rate of 5.2%.– The transaction costs of R34 million arising on the issue of the Subscription Shares ha ve been offset directly against equity.This is not expected to have a continuing impact on the Company.4. As the issue of the Subscription Shares is subject to repurchase by the Company, for accounting purposes this is similar to the Companyissuing an option over its own equity to the Trust. Therefore, the issue of the Subscription Shares does not have any impact on basicor headline earnings per share as it only impacts on diluted earnings per share .5. The financial effects also take into account the anticipated dilutionary effect of the issue of the Subscription Shares on the dilutedweighted average number of Shares in issue. The number of Subscription Shares issued for “no consideration” for diluted earningsand diluted headline earnings per share purposes, has been calculated by taking into account the difference between the numberof Subscription Shares issued and the derived subscription price of the Shares issued divided by the 6 -month VWAP of an Amplats’Ordinary Share.31