Africa-Press – South-Africa. Despite the highest rand-dollar platinum group metals (PGM) basket price on record, Anglo American Platinum reported a 38% drop in annual headline earnings as operational challenges hit production and sales in 2022.
The platinum miner reported annual headline earnings had dropped from R79 billion in 2021 to R48.8 billion for the year ended in December 2022. Amplats’ earnings before interest, taxes, depreciation and amortisation (Ebitda) declined almost a third to R74 billion.
The group’s total PGM production – comprising platinum, palladium, rhodium, iridium, ruthenium and gold – decreased by 6% to 4 million ounces, principally due to lower grade at Mogalakwena and the impact of planned infrastructure closures at Amandelbult, partially offset by increased production from Mototolo and Unki.
A delay in the completion of the rebuild of the Polokwane smelter because of substandard materials, as well as Eskom load-shedding, resulted in total refined production falling 25% to 3.8 million PGM ounces.
The company’s profitability was also impacted by above-inflation cost increases in utilities and consumables, in line with inflationary trends globally. Unit cost performance increased to R15 300, up from R12 831 in 2021.
“This financial year has seen us navigate a complex operating environment, with macro-economic challenges, supply chain disruptions, socio-economic unrest, and electricity load-curtailment, as well as some operational headwinds of our own,” said CEO Natascha Viljoen in a statement. “However, we have seen good levels of resilience across our operations, and the team has worked through these challenges to deliver our mined production, refined production, and sales numbers for the year.”
The Amplats board declared a gross dividend of R9 billion or R34 per share, for the second half of the year, bringing the total dividend to R30 billion or R115 per share, translating to a total payout ratio of 62%, and well below the R300 per share for 2021.
Looking ahead, Amplats expect metal-in-concentrate and refined production to be between 3.6 million and 4 million ounces, while unit costs are forecast between R16 800 and R17 800 per PGM ounce.
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