Anglo American Platinum Overcomes Hurdles, Foresees Improved Performance

Anglo American Platinum (Amplats), South Africa’s leading platinum group metals (PGM) company, faced operational hurdles that caused a 71% decline in first-half profit. However, CEO Natascha Viljoen assured investors that the issues have been resolved, and the company’s performance will improve in the second half of the year.

During the half-year period ending June 30, Amplats’ headline earnings per share (HEPS), a key indicator of corporate profit in South Africa, dropped to 29.84 rand ($1.66), compared to 101.40 rand in the previous year. The decline was attributed to production challenges and weaker prices for PGMs.

The company’s realized basket price per PGM ounce of $1,885 was 29% lower than the same period last year, exacerbating the impact of production challenges. Viljoen cited an 11-week plant breakdown, lower grades, and electricity supply disruptions at the Mogalakwena mine, the company’s largest operation, as major challenges. Additionally, the Amandelbuilt mine, the second most productive, was impacted by infrastructure closures and poor ground conditions.

Despite the difficulties, Viljoen expressed confidence in the company’s operational outlook for the second half, stating that the production is already rebounding. Amplats maintained its production guidance for 2023, targeting between 3.6 million ounces and 4 million ounces, despite a 13% decline in refined output in the first half.

As Viljoen is set to join Newmont Corp as the chief operating officer, Amplats is expected to announce her successor soon. The company declared a dividend of 12 rand per share, a decrease from 81 rand per share in the same period last year, returning 3.2 billion rand to shareholders.