Re-Imagining Mining to Improve People's Lives
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ANGLO AMERICAN PLATINUM LIMITED AUDITED ANNUAL FINANCIAL STATEMENTS 2019 ANGLO AMERICAN PLATINUM LIMITED PLATINUM AMERICAN ANGLO RE-IMAGINING MINING TO AUDITED ANNUAL FINANCIAL STATEMENTS 2019 STATEMENTS FINANCIAL ANNUAL AUDITED IMPROVE PEOPLE’S LIVES 2 3 4 5 1 Compliance and assurance PURPOSE: RE-IMAGINING MINING TO IMPROVE PEOPLE’S LIVES Amid ongoing challenges in the global mining industry, Anglo American Platinum (Amplats) has proven its resilience and ability to manage change through a focused strategy that is unlocking our full potential and positioning our group for a sustainable future. At the same time, we understand that our future is inextricably linked the wellbeing of all our stakeholders. At Amplats, we give life to our purpose because only by re-imagining mining can we unlock the potential of our precious metals and our people to create a positive impact on people’s lives and the environment. The heart of everything we do lies in our behaviours that will be consistent with our values of safety, care and respect, integrity, accountability, collaboration and innovation. Our strategic focus is on value – and we are intent on creating that value across our capitals as we re-imagine our industry and our world to improve people’s lives. CONTENTS 1 Compliance and assurance 3 Annexures 2 Directors’ responsibilities and approval of the 69 Annexures annual financial statements Anglo American Platinum Limited’s 3 Company secretary’s certificate 4 annual financial statements 4 Independent auditor's report 93 Anglo American Platinum Limited’s annual 8 Directors’ report financial statements 11 Audit and Risk Committee report 15 Significant accounting principles 5 Administration 98 Administration 2 Principal statements 18 Consolidated statement of comprehensive income 19 Consolidated statement of financial position 20 Consolidated statement of cash flows 21 Consolidated statement of changes in equity 22 Notes to the consolidated financial statements The preparation of the group’s audited results and the summarised consolidated financial statements for the year ended 31 December 2019 were supervised by the finance director, Mr CW Miller CA(SA) and have been audited in compliance with the Companies Act No 71 of 2008. Anglo American Platinum Limited Audited Annual Financial Statements 2019 1 DIRECTORS’ RESPONSIBILITIES AND APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS DIRECTORS’ RESPONSIBILITIES AND APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 December 2019 The directors are required to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial information included in this report. It is their responsibility to ensure that the financial statements fairly present the state of affairs of the group (the term 'group' refers to the company, its subsidiaries, associates, joint ventures and joint operations) as at the end of the financial year and the results of its operations and cash flows for that period, and conforming with International Financial Reporting Standards. The external auditors are engaged to express an independent opinion on the financial statements. The financial statements are prepared in accordance with International Financial Reporting Standards, Companies Act requirements and based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the group and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the board sets standards for internal control aimed at reducing the risk of error or loss cost effectively. These standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure 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 the group’s business is conducted in a manner that, in all reasonable circumstances, is above reproach. The focus of risk management 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 minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The directors believe, based on information and explanations from management, that the system of internal control is adequate for ensuring the: • Reliability and integrity of financial and operating information • Compliance of established systems with policies, plans, procedures, laws and regulations • Safeguarding of group assets against unauthorised use or disposition • Economic, effective and efficient use of resources • Achievement of established objectives and goals for operations or programmes. The directors believe, as a result of the comprehensive structures and controls in place and ongoing monitoring of the activities of executive and operational management, the board maintains effective control over the group’s affairs. The separate and consolidated annual financial statements are prepared on the going concern basis. Nothing has come to the attention of the directors to indicate that the group and company will not remain a going concern for the foreseeable future. Norman Mbazima Chris Griffith Chairman Chief executive officer Johannesburg 14 February 2020 2 Anglo American Platinum Limited Audited Annual Financial Statements 2019 2 3 4 5 1 Compliance and assurance COMPANY SECRETARY’S CERTIFICATE for the year ended 31 December 2019 In my capacity as the company secretary, I hereby certify to the best of my knowledge and belief that Anglo American Platinum Limited has lodged with the Companies and Intellectual Property Commission all returns required of a public company in terms of the Companies Act 71 2008. Further, I certify that such returns are true, correct and up to date. Elizna Viljoen Company secretary Anglo American Platinum Limited Johannesburg 14 February 2020 Anglo American Platinum Limited Audited Annual Financial Statements 2019 3 INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT Deloitte & Touche Buildings 1 and 2 Riverwalk Office Park Deloitte Place Block B Registered Auditors The Woodlands 41 Matroosberg Road Audit & Assurance – Woodlands Drive Ashlea Gardens X6 Gauteng Woodmead Sandton Pretoria, 0081 www.deloitte.com Private Bag X6 PO Box 11007 Gallo Manor 2052 Hatfield 0028 South Africa South Africa Docex 10 Johannesburg Docex 6 Pretoria Tel: +27 (0)11 806 5000 Tel: +27 (0)12 482 0000 Fax: +27 (0)11 806 5111 Fax: +27 (0)12 460 3633 INDEPENDENTINDEPENDENT AUDITOR’S AUDITOR’S REPORT REPORT To the Shareholders of Anglo American Platinum Limited To the shareholders of Anglo American Platinum Limited Report on the Audit of the Financial Statements Report on the audit of the consolidated and separate financial statements Opinion OPINION WeWe have have audited audited the consolidated the consolidated and separate and financial separate statements financial of Anglo statements American Platinumof Anglo Limited American (the group) Platinum set out Limitedon pages and15 toits 97, subsidiaries which comprise (“the the statementsGroup”) setof financial out on position pages as 15at 31 December to 87, which 2019, comprise and the statements the statement of comprehensives of financial income, position the statementsas at 31 ofDecember changes in 2016equity ,and and the the statements statement of cashs of flows comprehensive for the year then income ended, and, the notes statement to the financials of changesstatements in, including equity aand summary the statement of significants accountingof cash flows policies. for the year then ended, and the notes to the financial statements, including Ina oursummary opinion, theof significantconsolidated accountingand separate financialpolicies. statements present fairly, in all material respects, the consolidated and separate financial position of the group as at 31 December 2019, and its consolidated and separate financial performance and consolidated and separateIn our cashopinion, flows thefor the consolidated year then ended and in accordanceseparate financiawith Internationall statements Financial present Reporting fairly, Standards in alland material the requirements respects, of the the Companiesconsolidated Act ofand South separate Africa. financial position of the Group as at 31 December 2016, and its consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in BASIS FOR OPINION accordance with International Financial Reporting Standards (IFRSs) and the requirements of the Companies We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are Act of South Africa. further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the group in accordance with the sections 290 and 291 of the Independent Regulatory Board for Auditors’ CodeBasis of Professionalfor Opinion Conduct for Registered Auditors (Revised January 2018), parts 1 and 3 of the Independent