3E: three elements: platinum, palladium and gold.
4E: four elements. The grade at Anglo American Platinum Limited mines is measured as the combined content of the four most valuable precious metals: platinum, palladium, rhodium and gold.
ACP: Amplats Converting Process, used at the Waterval Smelter complex in Rustenburg.
After-tax operating profit as a percentage of average operating assets: net profit excluding net investment income and income from associates as a percentage of average operating assets.
a.m.s.l.: above mean sea level.
Autocatalyst: a cylinder made from ceramic or metal and formed into a honeycomb. It is coated with a solution of chemicals and platinum group metals, and is mounted inside a stainless steel canister and installed in the exhaust line of vehicles between the engine and the silencer. Autocatalysts convert over 90% of hydrocarbons, carbon monoxide and oxides of nitrogen from gasoline engines into less harmful carbon dioxide, nitrogen and water vapour. They also reduce the pollutants in diesel exhaust by converting 90% of hydrocarbons and carbon monoxide and 30% to 40% of particulate into carbon dioxide and water vapour.
Average operating assets: average of the aggregate of total assets, minus capital work in progress, cash and cash equivalents, liabilities in the Platinum Producers’ Environmental Trust, and investments at the beginning and end of the financial year.
Base metal: a common metal that is not considered precious, such as copper, nickel, tin or zinc.
BBBEE: broad-based black economic empowerment. This represents a broadening of earlier BEE (see below) policy and attempts to spread the benefits of economic empowerment to the widest-possible spectrum of black South Africans.
BEE: black economic empowerment. BEE is a policy of the South African Government, aimed at increasing the access that black South Africans have to productive assets. It seeks to “promote new opportunities for and increase the levels of participation of black people in the ownership, management and control of economic activities”.
BRPM: Bafokeng-Rasimone Platinum Mine.
BSP: Bonus Share Plan.
Built-up head grade: the total 4E grams produced from the concentrating process from concentrate, metallics (where applicable) and tailings, divided by the total tonnes milled. See definition of 4E above.
Capital expenditure: total capital expenditure on mining and non-mining property, plant, equipment and capital work in progress.
CO: carbon monoxide.
CO2: carbon dioxide.
Concentrating: the process of separating milled ore into a waste stream (tailings) and a valuable mineral stream (concentrate) by flotation. The valuable minerals in the concentrate contain almost all the minerals found in base and precious metals. They are treated further by smelting and refining to obtain pure metals: Au, Cu, PGMs and Ni (see entries above and below for these metals).
CRT: cathode-ray tube.
Current ratio: current assets as a ratio of current liabilities.
Debt:equity ratio: interest-bearing borrowings, including the short-term portion payable as a ratio of shareholders’ equity.
Decline: a generic term used to describe a shaft at an inclination below the horizontal and usually at the same angle as the dip of the reef.
Development: any tunnelling operation that has as its object either exploration or exploitation.
Discretionary spend: spending for the long-term profitability of a company.
DMR: Department of Mineral Resources.
DWA: Department of Water Affairs.
EBITDA: earnings before interest, tax, depreciation and amortisation.
Effective tax rate: total income statement taxation as a percentage of profit before taxation.
EFTA: European Free Trade Association.
Equivalent refined platinum: mine production and purchases of metal in concentrate converted to equivalent refined platinum production using Amplats’ standard smelting and refining recoveries.
ETF: exchange-traded fund.
Exco: Amplats’ Executive Committee.
Face advance: the average distance a stope face advances per month; a measure of resource utilisation.
Facies: the sub-classification of a reef such as the Merensky Reef, based on its footwall lithology and/or other characteristics.
Flotation: in the flotation process, milled ore is mixed with water to form pulp, which is passed through a series of agitating tanks. Various chemicals are added to the pulp in a sequence that renders the valuable minerals hydrophobic (water-repellent) and the non-valuable minerals hydrophilic (possessing a strong affinity for water). Air is dispersed through the tanks and rises to the surface. The hydrophobic particles attach themselves to the rising air bubbles and are removed from the main volume of pulp as a soapy froth. In this manner, various combinations of flotation cells in series are utilised to produce a concentrated stream of valuable mineral particles, called the “concentrate”, and a waste pulp stream, called “tailings”.
Furnace matte: the product of the smelting process.
FVTPL: at fair value through profit or loss.
g/t: grams per tonne, the unit of measurement of grade. One gram per tonne is one part per million.
GBP: pound(s) sterling.
GHG: greenhouse gas.
GHG emissions, CO2 equivalent: quantity of CO2 from electricity purchased and internally generated.
Grade: the mass of desired metal(s) in a given mass of ore. Ores bearing PGMs are normally low-grade. Grades are usually expressed as grams per tonne, equivalent to parts per million.
Greenfield project: a project situated on a previously undeveloped mineral resource.
GRI: the Global Reporting Initiative. The GRI was established in 1997, with the mission of designing globally applicable guidelines for the preparation of sustainable development reports at enterprise level.
Gross profit margin: gross profit on metal sales expressed as a percentage of gross sales revenue.
HDSA: historically disadvantaged South African. Refers to “any person, category of persons or community, disadvantaged by unfair discrimination before the Constitution of the Republic of South Africa, 1993 (Act No 200 of 1993), came into operation”. The Company definition of HDSAs includes employees who are classified as African, Asian, coloured or women, regardless of citizenship status.
Head grade: the grade of the ore leaving a mine and entering a processing plant.
HIC: hybrid integrated circuit.
HTM: held to maturity.
IAS: International Accounting Standard.
IFRIC: International Financial Reporting Interpretations Committee. Now operating as the IFRS (see below) Interpretations Committee.
IFRS: International Financial Reporting Standard(s).
IFRS 2: specifies the financial reporting standard related to share-based financial transactions.
Immediately Available Ore Reserves: ground available for mining without any further development.
Incident: refers to any unplanned or unwanted event that results in an impact on the environment. In 2011 Amplats converted from a three-level classification system of incidents to a five-level system. In the new system, incidents are classified according to the actual severity of their impact. A level 1 incident has a minor impact on the environment, while a level 5 incident has a major impact. Level 1 and 2 incidents are reported, investigated and dealt with on site. Level 3 to 5 incidents, which are confirmed as capable of resulting in a medium, high or major impact on the environment, are reported to senior management and the relevant authorities, and result in a full investigation.
In situ: the original, natural state of the ore body before mining or processing of the ore takes place.
IPO: initial public offering.
ISO: International Organisation for Standardization; ISO Standard.
Joint venture: a contractual agreement between two or more parties for the purpose of executing a business undertaking. The parties agree to share in the profits and losses of the enterprise.
JORC: the Australian Institute of Mining and Metallurgy’s Joint Ore Reserves Committee Code.
JSE: JSE Limited, the Johannesburg-based securities exchange.
JV: joint venture. See definition of joint venture above.
King Report/King III: the King Committee on Corporate Governance in South Africa was formed in 1992 (under the auspices of the Institute of Directors in Southern Africa and with Mervyn King as chair) to promote the highest standards of corporate governance in South Africa. Corporate governance in the country has been institutionalised by the publication of the King Report on Corporate Governance in 1994, by the release of an updated version (King II) in 2002 and, more recently, by the release of King III in September 2009. The King Report features a Code of Corporate Practices and Conduct, which the JSE stipulates all listed companies must follow. The Global Reporting Initiative (see above) is referenced in this code.
kt: thousand tonnes.
ktpm: thousand tonnes per month.
LCD: liquid crystal display.
LHD: load-haul dump.
LOMP: life-of-mine plan.
Lost-time injury (LTI): any occupational injury that renders a person unable to perform his/her regular duties for one full shift or more following the day on which the injury was sustained, whether a scheduled work day or not.
LTIFR: lost-time injury-frequency rate. The number of lost-time injuries (see above) per 200,000 hours worked.
Market capitalisation: number of ordinary shares in issue multiplied by the closing share price as quoted on the JSE Limited.
MCP: magnetic concentration plant.
Merensky Reef: a layer in the Bushveld sequence.
Milling: the process of reducing broken ore to a size at which it can be concentrated.
Mining area: the area for which a mining authorisation/right has been granted.
Ml: million litres.
MLCC: multilayer ceramic capacitor.
Moz: million ounces.
MSZ: the Main Sulphide Zone, a layer in the Shurugwi Complex that is part of the Great Dyke geological formation in Zimbabwe.
Mt: million tonnes.
Net asset value: total assets less all liabilities, including deferred taxation, which equates to shareholders’ equity.
Net asset value as a percentage of market capitalisation: shareholders’ equity expressed as a percentage of market capitalisation.
Net liquid assets: cash and cash equivalents, and accounts receivable, less current liabilities.
NOx emissions: emissions of nitrogen oxides from diesel engines.
OHSAS 18000: an international system specification for the management of occupational health and safety. It comprises two parts, 18001 and 18002, and embraces a number of other publications.
Opsco: Amplats’ Operations Committee.
Ore: rock from which metal or minerals can be extracted at a financial profit.
Oz: troy ounce. A unit equal to 480 grains or one twelfth of a pound.
PET: polyethylene terephthalate.
PGI: Platinum Guild International. The organisation promotes and markets platinum jewellery in many countries.
PGMs: platinum group metals. This refers to six elemental metals of the platinum group nearly always found in association with one another and sometimes called PGEs (platinum group elements). The metals are platinum, palladium, rhodium, ruthenium, iridium and osmium.
Platreef: The northern Bushveld’s PGM-bearing reef.
PTA: purified terephthalic acid.
Pt oz: equivalent refined platinum ounce(s). Equivalent ounces are mined ounces expressed as refined ounces.
Rand revenue per platinum ounce sold: net sales revenue divided by platinum ounces sold.
Refined ounces: refined metal available for sale.
Refining: process whereby impurities or unwanted elements are removed from a metal in a refinery. Amplats’ two refineries undertake different levels of refining.
Regional Pothole Reef: Merensky Reef facies that has formed over a large area (several square kilometres) at a lower stratigraphic position than normal. It is a feature occurring at Union Mine and in the Amandelbult mining area.
Resource Cut: the mineral resources of the Merensky Reef and the UG2 Reef are quoted over a practical minimum mining cut suitable for the deposit.
Rest of world region: region involving countries or continents other than those specifically dealt with.
Return on average shareholders’ equity: net profit expressed as a percentage of average shareholders’ equity.
S&SD Committee: Amplats’ Safety & Sustainable Development Committee.
SAMREC: the South African code for the reporting of exploration results, Mineral Resources and Mineral Reserves.
Smelting: the process of heating and melting ore to separate valuable metals.
SO2: sulfur dioxide.
Stoping: operations directly associated with the extraction of reef.
Stripping ratio: the number of units of unpayable material that must be mined to expose one unit of ore.
Sweepings: the final process in stoping operations, in which the footwall is thoroughly cleaned to remove the last portion of broken ore and fines (powdered material).
Tailings: that portion of the ore from which most of the valuable material has been removed by concentrating. Although low in value, it remains available for future extraction pending developments in technology.
Tonne: unless otherwise defined, this refers to a metric tonne equal to 1,000 kg.
Total assets: the sum of non-current and current assets.
tpm: tonnes per month.
Transition zone: the area on plan that defines the changeover from Merensky Reef – at its normal stratigraphic elevation – down to Regional Pothole Reef at a lower stratigraphic elevation. The area has an irregular and constantly varying width. Owing to its undulating nature, it is mostly unmineable.
UG2 Reef: a chromite layer in the Bushveld sequence.
USD: United States dollar.
WBJV: Western Bushveld Joint Venture.
ZAR: South African rand.