Amplats sees 71% earnings drop, slashes dividend 

Anglo American

Anglo American Platinum reported a 71% drop in its headline earnings for the first half of 2023 and cut its dividend by more than 80%.

The world’s largest primary producer of platinum released its interim results for the six months ended 30 June 2023 today.

Before releasing these results, the company informed shareholders that its half-year profits would decrease by almost 75% due to Eskom’s load curtailment and smelter rebuild costs. This news saw Amplats’ shares fall by nearly 7%.

The company’s profits decreased by 70% in the reporting period compared to the six months ended June 2022. Its profits for the year fell from R26.73 billion to R7.92 billion.

Amplats’ basic earnings per share also dropped by 71% to 2,940 cents.

Amplats CEO Natascha Viljoen said, “In the first half of 2023, and despite the challenging global macro-economic and operating environment, we have achieved results in line with expectations following the change in guidance, disclosed in 2022.”

She attributed the company’s results to an 8% decline in total PGM production from its own-managed mines and owned volume from joint operations. 

“This was primarily due to expected lower grade at Mogalakwena; infrastructure closures in 2022 at Amandelbult and poor ground conditions at Dishaba; and the ramp-down of Kroondal,” she said.

However, the decline was marginally offset by increased production from Mototolo and Unki.

Refined production was also 13% lower, primarily due to the ramp-up of the Polokwane smelter in January following its rebuild and scheduled annual maintenance and asset integrity work at the company’s processing operations.

The company also pointed to the impact of Eskom load-curtailment, which resulted in the deferred production of around 66,400 PGM ounces.

Amplats declared a dividend per share (ordinary and special) of 1,200 cents – an 85% decrease from the 8,100 cents it declared in the comparative period.