Amplats earnings plunge over 70%
Anglo American Platinum interim earnings have plunged an astounding 71% for the six months to end June, dropping to R7.9 billion, compared with R26.7 billion in the first half of 2022.The dive in earnings was mainly attributable to a 29% decrease in the platinum group metals (PGM) dollar basket price, which averaged US$1 885 (R33 900) per ounce sold, down from US$2 671. The materially lower basket price was mainly due to a decline in rhodium and palladium prices, which both hit multi-year lows.
Total PGM production from own-managed mines and owned volume from joint operations decreased by 8%, primarily due to expected lower grade at Amplats' flagship Mogalakwena mine; infrastructure closures in 2022 at Amandelbult and poor ground conditions at Dishaba; and the ramp-down of Kroondal. The decline was marginally offset by increased production from the Mototolo and Unki operations.
Refined production was 13% lower, primarily due to the ramp-up of the Polokwane smelter in January following its rebuild; scheduled annual maintenance and asset integrity work at processing operations; and the impact of Eskom load-curtailment, which resulted in deferred production of around 66 400 PGM ounces.
Despite the interim results, Amplats CEO Natascha Viljoen said the company achieved results in line with expectations following the change in guidance, disclosed in 2022. This was "despite the challenging global macro-economic and operating environment", she said.
Dividend
The company board approved the declaration of a gross final dividend of R3.2 billion, or R12 per share - down from R41 declared for the first half of 2022. In line with the company's dividend policy, the payout is equal to 40% of headline earnings.
The miner recorded no fatalities in the first half of the year and reached a record low total recordable case frequency rate of 1.58 per 1 million hours worked. This represents a year-on-year improvement of 34% and an 85% improvement from 2012.
"Our disciplined capital allocation framework underpins our strategy and has demonstrated our ability to retain a strong balance sheet and deliver consistent returns to our shareholders that can be maintained through cycles," said Viljoen, noting the company still holds R24 billion in cash – although this has declined from R42 billion in the comparative half.
"We also remain confident about the long-term fundamentals including our diverse suite of metals, resources, and operations. The optionality and flexibility of our operations ensure that we can make the right decisions at the right time, and thereby continuously strengthen our long-term cost curve position."
Viljoen will step down as company CEO next year. She said an announcement regarding her successor was imminent.-Fin24