Amplats impresses with 63% jump in headline earnings

Anglo American Platinum has reported a 63 per cent jump in headline earnings per share for the 2020 financial year compared to the previous year. The company's financial success has been attributed to the increase in the platinum group metals basket price. Natasha Viljoen, CEO at Anglo American Platinum, discussed the company's impressive results and future plans in an interview with CNBC Africa. Viljoen highlighted the positive impact of the current platinum price environment on the company's future outlook. She emphasized that Anglo American Platinum remains committed to value generation and aims to enhance asset performance to provide consistent returns to shareholders. The favorable market conditions have also presented growth opportunities for the company, which Viljoen expressed a willingness to explore. One key aspect of Anglo American Platinum's growth strategy is the mechanization of its mines. Viljoen revealed that 80% of the company's assets are already mechanized, with plans to reach 100% by 2030. She outlined the modernization efforts, including the adoption of innovative technologies to improve workplace safety and efficiency. Viljoen assured that the company's mechanization and modernization strategies would consider the impact on local communities, with commitments to create five jobs outside the mine for every job inside. In response to concerns about potential job losses due to mechanization, Viljoen emphasized the importance of community development and economic empowerment. Anglo American Platinum aims to collaborate with government entities to catalyze economic growth in local communities, focusing on creating sustainable opportunities beyond mining activities. Discussing energy costs, Viljoen acknowledged the significant impact of a 15% increase in tariffs on the company's operations. However, she highlighted the company's efforts to generate its own energy, citing the construction of a 75-megawatt hydrogen plant as a step towards reducing reliance on external energy sources. The initiative aligns with Anglo American Platinum's goal of achieving lower carbon emissions and promoting sustainability. Looking ahead, the company aims to increase its profit margin by 35 to 45 percent by 2030. Viljoen identified effective capital expenditure as a key factor in realizing this target, emphasizing the need for seamless investment in operational and growth initiatives. She expressed confidence in the supportive regulatory environment provided by the South African government, which facilitates strategic decision-making and operational efficiency. Addressing shareholder concerns about dividend payouts, Viljoen reassured investors that the company prioritizes sustainable financial practices. She explained that Anglo American Platinum follows a clear dividend policy based on a percentage of earnings, ensuring consistency in shareholder returns. While the company refrained from issuing a special dividend in the current economic climate, Viljoen emphasized a commitment to shareholder value and prudent capital allocation. In conclusion, Viljoen's strategic vision for Anglo American Platinum underscores a balanced approach to growth, innovation, and community impact. Despite economic challenges and market uncertainties, the company remains steadfast in its commitment to driving value for stakeholders and contributing to sustainable development in the mining sector.