Anglo American Platinum (Amplats) recorded savings of R4.7 billion ($256 million) in the first half of the year as part of disciplined and decisive actions taken in February to reposition the business to ensure its long-term sustainability as a leading producer of platinum group metals (PGMs).
Company chief executive Craig Miller said the first half savings show progress against their 2024 cost reduction target of R10 billion ($545 million).
These measures, said Amplats, are expected to result in a cash operating unit cost of between R16,500 ($899.86) and R17,500 (954.40) per PGM ounce, as well as an all-in sustaining cost (AISC) of below $1,050 per 3E ounce in 2024.
The company’s operating unit cost was R18,280 ($996.66) per PGM ounce in the first half of 2024 due to lower production and achieved an AISC of $957 per 3E ounce in the same period, well below the overall target.
“We continue to focus on our strategic priority of going beyond resilience to thrive through change as we navigate through an ever-evolving operating landscape,” he said.
“The company responded decisively to an uncertain macro-economic and a low PGM price cycle by restructuring the business in pursuit of operational excellence, increased levels of productivity, as well as ensuring cash generation.”
Meanwhile, Amplats delivered EBITDA of R12.3 billion ($671 million), which translates into headline earnings for the first six months of R6.5 billion despite the PGM basket price being down 24% compared to the first half of 2023 and once-off restructuring costs and inflation.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
