Anglo records EBITDA of R63 bln in H1

Anglo Platinum has recorded earnings before interest, taxes, depreciation, and amortisation (EBITDA) of R63.3 billion in the first six months of 2021, a 385% increase from R13.1 billion in the first half of 2020.
It said the mining EBITDA margin was 71% from 44%, a year earlier driven by higher prices for its commodities and steady sales volume performance. 
The company’s balance sheet was strong, with net cash of R57.6 billion, after paying H2 2020 dividends of R9.4 billion and R16.6 billion in taxes and royalties.
Net sales revenue increased by 155% to R107.5 billion from R42.2 billion, a year earlier, mainly driven by robust PGM prices, and higher production and sales. 
The PGM dollar basket price increased by 47% to $2,884 per PGM ounce, attributable to a 34% increase in the platinum price and a 177% increase in the price of rhodium. 
The stronger US dollar basket price, partially offset by a 12% strengthening of the rand against the US dollar, resulted in a 29% higher rand basket price of R41,400 per PGM ounce sold from the previous year’s R32,166.
Meanwhile, Anglo said platinum is likely to be in surplus in 2021 but will shift towards a deficit in the next few years, as substitution of palladium in gasoline catalysts will mean significant increases in automotive platinum demand.
“Palladium’s deficit, again substantial in 2021, will gradually shrink for the opposite reason,” it said. “Rhodium, which is likely to be near to balance in 2021, looks set to have a widening deficit as automotive demand improves.”

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished