Anglo Platinum H1 core earnings drop

Anglo Platinum’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped 32% in the first half of 2022 to R43 billion.
The impact of lower prices reduced EBITDA by R14 billion, while the effect of the lower sales volumes, due to the benefit in 2021 of the release of work-in-progress inventory, was to reduce EBITDA by a further R6 billion.
The company recorded an EBITDA margin of 59% during the period, despite lower sales volumes compared to the prior period.
Anglo Platinum said its net sales revenue also dropped 20% to R85.6 billion in the first half lower than R107.5 billion in the first half of 2021. 
Meanwhile, Total PGM production from own-managed mines and owned volume from joint operations (comprising platinum, palladium, rhodium, iridium and ruthenium metal in concentrate, and gold) decreased by 7% to 1,3 million PGM ounces in the first half compared to 1,4 million PGM ounces, a year earlier.
Anglo Platinum chief executive Natascha Viljoen said full-year metal-in-concentrate production is expected to remain unchanged at between 3.9 million PGM ounces and 4.3 million PGM ounces, and refined production will also remain at between 4 million ounces and 4.4 million ounces. 
“In the PGM markets, the forecast is for platinum’s surplus to gradually move towards a deficit due to a significant increase in automotive platinum demand, as some platinum replaces palladium in gasoline catalysts,” she said.
“Palladium is likely to move into surplus for the opposite reason, though to what extent will depend on what happens to automotive production. Rhodium should head back into deficit after two years of surplus.”

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