Anglo American Platinum, which is set to release results for the six months ended June 30, 2023 (H1 2023), has projected that its headline earnings and headline earnings per share (HEPS), as well as its basic earnings and basic earnings per share (EPS), dropped by more than 20%.
The precious metals miner said that earnings fell mainly due to weak revenue on the back of lower average platinum group metal (PGM) basket price relative to the corresponding six months in 2022.
It said headline earnings and HEPS are likely to decrease by between 65% and 75% compared to the six months ended June 30, 2022 (H1 2022).
Headline earnings are expected to be between R6.7 billion and R9.4 billion from R26.7 billion in H1 2022 and HEPS will drop to between 2,544 cents and 3,569 cents per share compared to 10,140 cents in H1 2022.
Anglo American Platinum said EPS for the period is also projected to ease by between 65% and 75% compared to H1 2022.
The main contributors to weak earnings were declines in rhodium and palladium US Dollar prices, which were 47% and 29% lower respectively.
The weakening South African Rand against the US Dollar exchange rate partially mitigated the US Dollar price impact on the overall rand basket price, which decreased by 15% against the period ended 30 June 2022.
Meanwhile, Anglo American Platinum said sales volumes from its production (excluding trading) were 12% lower in the first half of the year compared to the same period in 2022.
“This reflected lower refined production as a result of the Polokwane smelter needing to ramp up in January following its rebuild; scheduled annual maintenance and asset integrity work at the processing operations; and the impact of Eskom load-curtailment, which resulted in deferred production of [about] 66,400 PGM ounces,” it said.
“Continued inflationary pressure and exchange rate volatility have also led to higher mining and processing costs. Costs incurred in purchasing of concentrate decreased compared to H1 2022 due to lower prices and volumes.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
