Anglo American Platinum (Amplats) yesterday reported a 43 percent fall in half-year profit due to weaker platinum group metal (PGM) prices, and lower volumes compared with record sales a year ago.
Amplats’ headline earnings per share - the main profit measure in South Africa - fell to R101.40 for the half year that ended June 30, from R176.47 a year ago.
Amplats chief executive Natascha Viljoen said inflationary pressures and tightening monetary policy would continue to have an impact on the mining industry.
Amplats maintained its guidance for 2022 unit cost of production at between R14 000 and R15000 per PGM ounce, based on an oil price of around $100 (R168) per barrel. That would represent a year-on-year cost increase of between 9.1 percent and 16.9 percent.
Capital expenditure guidance for the full year was reduced to R16 billion and R17.5 billion.
PGM prices have come off historical highs seen during early 2021 as the global economy recovered from pandemic-related disruptions, but Amplats said the basket price in the first half of 2022 is the second-highest average price on record, showing strong underlying market fundamentals despite the price volatility.
Amplats, the world’s biggest PGM producer, ended 2020 with a backlog of around one million ounces of PGM as it rebuilt and recommissioned its converter plant. Most of this inventory was refined and sold during 2021, resulting in higher-than-normal sales and earnings.
The company declared an interim dividend of R81 per share, compared to R175 per share last year.
- Reuters