Anglo American Platinum's earnings before interest, taxation, depreciation, and amortisation (EBITDA) decreased by 69% to R13.4 billion ($730 million) in the first half of 2023 compared to R42.8 billion in the same period a year earlier.
This was primarily due to a 29% decline in the PGM dollar basket price and a 12% decline in sales volumes (excluding trading).
The platinum miner attributed lower sales volumes to lower refined production, primarily due to planned asset integrity work at the processing operations, 8% lower metal-in-concentrate from own mined volumes, the impact of Eskom load curtailment of approximately 66,400 PGM ounces (oz), and the ramp-up of the Polokwane Smelter following its rebuild in the fourth quarter of 2022.
EBITDA was also negatively impacted by higher mining and processing costs and the lower valuation of the purchase of concentrate (POC) inventory due to lower PGM prices, which resulted in a negative POC margin.
As recently forecasted by Anglo American Platinum, headline earnings totalled R7.9 billion, with headline earnings per share (HEPS) of R30 compared to R101 in the first half of 2022.
After paying dividends of R9 billion in the second half of 2022 and taxes and royalties totalling R3.4 billion in the first half of 2023, the company's balance sheet reportedly remained solid, with net cash of R23.9 billion.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
