Anglo Platinum has revealed record headline earnings for the 2008 calendar year despite reduced production, increased operating costs and the higher price of metal sourced from joint venture partners.

According to Neville Nicolau, the company's Chief Executive Officer, the impressive financial performance was due in large part to the year's high average metal price.

However, the price level started to fall in the second half of the year, and Mr Nicolau believes future refined platinum production will have to be assessed on a regular basis in the context of economic volatility.

"We will continue to monitor our production levels against global economic developments and will provide revised production guidance when appropriate," he commented.

Proposed production for 2009 is currently at the 2.4 million ounces mark, which would be in line with 2008 output.

Flooding at Amandelbult was one of the reasons why platinum production was restricted to 2.39 million ounces last year, although this was partially offset by improved output at the Mogalakwena and Kroondal mines.

Meanwhile, refined platinum sales in 2008 hit 2.2 million ounces.

"While we believe that our planned level of refined platinum production of 2.4 million ounces is appropriate for 2009, management will take appropriate action should economic conditions affecting net platinum demand either deteriorate further or improve," Mr Nicolau confirmed.

Anglo Platinum has also put a cap on capital expenditure and initiated cost and productivity programmes as part of an attempt to limit its exposure to the economic downturn.

The company hopes that these measures will ensure the impact on staffing levels is minimal, although it has not ruled out the future retrenchment of full-time employees.

Explaining Anglo Platinum's position at the results presentation, Mr Nicolau said production would be pegged at 2.4 million ounces due to weak demand from automotive and industrial sectors, Marketwatch reports.

While he expects this to improve as the year goes on, he says it is only likely to be "slightly better" before the year is out.

Platinum specialist Johnson Matthey sees world platinum demand falling by around five per cent this year, while output is set to increase by roughly the same proportion.

According to Reuters, Peter Duncan, General Manager for Market Research at Johnson Matthey, told a mining conference in Cape Town: "Production should be slightly up in 2009, it's not all doom and gloom; we should see some growth in 2009 of less than five per cent."

Anglo Platinum is the largest primary producer of platinum in the world.

Sources:

Anglo Platinum results for the year ended 31 December 2008 (09/02/09)
http://www.angloplatinum.com/def_main.asp?Id=press/display.asp&Id2=203&Related=true

Anglo Platinum 2008 profit up 8%, to cut spending (09/02/09)
http://www.marketwatch.com/news/story/Anglo-Platinum-2008-profit-up/story.aspx?guid={E16B0AD5-843A-4EBD-8AF4-1AB072663157}

Anglo Platinum Posts 15.5% Rise in Full-Year Profit (09/02/09)
http://www.bloomberg.com/apps/news?pid=20601116&sid=aAAZ7YOZlF78&refer=africa

Anglo Platinum Fiscal Year Net Profit ZAR14.24 Billion Vs Profit ZAR12.33 Billion (09/02/09)
http://www.easybourse.com/bourse-actualite/marches/anglo-platinum-fiscal-year-net-profit-zar1424-billion-612404

Anglo Platinum May Cut Output If Metal Extends Slide (Update2) (09/02/09)
http://www.bloomberg.com/apps/news?pid=20601116&sid=aQFSKQop6g.Y&refer=africa

DJ Angloplats Sees PGM Metals Demand Only Slightly Up In 2010 (09/02/09)
http://www.marketwatch.com/news/story/dj-angloplats-sees-pgm-metals/story.aspx?guid=%7BABF9A501-661F-48F0-824D-4B456D36B24E%7D&dist=msr_1

Johnson Matthey-platinum output to rise 5 pct in 2009 (09/02/09)
http://www.reuters.com/article/marketsNews/idUSL934336120090209