Anglo American Platinum informed shareholders this morning that its half-year earnings for 2023 are expected to drop by between 65% and 75% compared to the first half of 2022.
The company is set to release its results for the six months ended 30 June 2023 next week. In a trading statement this morning, it advised shareholders that its earnings have decreased by more than 20%.
Basic earnings are likely to be between R6.6 billion and R9.3 billion (R26.7 billion in H1 2022), and earnings per share are expected to be between 2,506 cents and 3,531 cents per share (10,125 cents in H1 2022).
Headline earnings are likely to be between R6.7 billion and R9.4 billion (R26.7 billion in H1 2022), and headline earnings per share will decrease to between 2,544 cents and 3,569 cents per share (10,140 cents in H1 2022).
The company attributed this drop to a decline in revenue due to the lower average PGM basket price relative to the previous period.
The main contributors to this were declines in rhodium and palladium prices in US dollars, which were 47% and 29% lower, respectively.
However, the weakening ZAR/USD exchange rate partially mitigated the dollar price impact on the overall rand basket price, which decreased by 15% against the period ended 30 June 2022.
Furthermore, sales volumes from own production – excluding trading – were 12% lower compared to H1 2022.
- This reflected lower refined production due to the Polokwane smelter needing to ramp up in January following its rebuild.
- Scheduled annual maintenance and asset integrity work at the processing operations.
- The impact of Eskom load-curtailment, which resulted in deferred production of around 66,400 PGM ounces.
The company said continued inflationary pressure and exchange rate volatility also led to higher mining and processing costs.
However, costs incurred in the purchasing of concentrate decreased compared to H1 2022 due to lower prices and volumes.
As a result, headline earnings and headline earnings per share are likely to decrease by between 65% and 75% compared to the six months ended 30 June 2022.