Amplats H1 HEPS down 18%

Anglo American Platinum, one of the world's leading producers of platinum group metals (PGMs), reported an 18% drop in half-year earnings due to lower metal prices impacting the company's financial performance. The CEO of Anglo American Platinum, Craig Miller, highlighted the challenging operating environment characterized by a 24% decline in PGM prices compared to the previous year. Despite these challenges, the company implemented a reconfiguration and transformation process to enhance efficiency and reduce costs. In the first half of the year, Anglo American Platinum successfully achieved a reduction of R4.7 billion in capital and operating costs, making significant progress towards its goal of cutting costs by R10 billion in 2024. This cost-saving initiative, combined with strategic decision-making, positioned three out of four mining assets in the lower half of the cost curve, ensuring long-term sustainability and cash generation for the business. The company's commitment to disciplined capital allocation led to the declaration of a dividend of 9.75 RAND per share, demonstrating confidence in the future outlook and the ability to deliver returns to shareholders. As Anglo American Platinum transitions to become a standalone PGM producer separate from the Anglo-American group, capital discipline remains a key pillar of its investment ethos. Looking ahead, despite the current market conditions with PGM prices experiencing a 24% decline, the company anticipates stabilization and potential price uplift in the coming months. The shift towards hybrid vehicles and the slower growth of battery electric vehicles have positively impacted PGM demand, particularly in the automotive sector. This trend, coupled with growing deficits in platinum supply, indicates a more balanced market in the near future. As Anglo American Platinum focuses on its vision to be a leader in the PGM sector, key strategies include driving operational excellence, maximizing asset value, and investing in growth opportunities. The company plans to maintain its capital expenditure levels, with a focus on sustaining capital and long-term growth projects such as the Mahalakwena and Mototolo mines. In line with its commitment to environmental, social, and governance (ESG) initiatives, Anglo American Platinum aims to achieve carbon neutrality by 2040. The company has already made progress towards this goal by securing renewable energy sources and reducing carbon emissions. By entering into a renewable energy agreement with INVUSA, Anglo American Platinum expects to meet its target of a 30% reduction in carbon emissions by 2030. In conclusion, Anglo American Platinum's proactive cost-saving measures, strategic focus on sustainability, and commitment to ESG goals position the company for long-term success and resilience in a challenging market environment.