Anglo American Platinum, a leading PGM mining company, is expecting a decrease in earnings for the first six months of the year due to lower prices of PGM. The company predicts that basic earnings will be between R5.8 billion and R6.6 billion, with earnings per share between 2 204c and 2 508c per share.
The decrease in earnings is attributed to a 24% lower rand PGM basket price compared to the same period last year. The main contributors to this decline are the significant price drops of palladium and rhodium. Despite the decrease in revenue, the company managed to increase PGM sales volumes by 9%, offsetting some of the losses.
CEO Craig Miller highlighted the company’s cost-saving efforts and performance improvements in the second quarter. However, Miller expressed regret over two tragic work-related fatalities at Dishaba mine, emphasizing the company’s ongoing commitment to workplace safety.
Production numbers for the second quarter showed a slight decrease compared to the previous year but an increase from the first quarter. Anglo American Platinum remains focused on operational excellence, with efforts underway to address challenges and improve efficiencies at its various mines.
Looking ahead, the company maintains its production guidance and cost targets for the year. Despite facing challenges such as metallurgical issues and electrical failures, Anglo American Platinum remains optimistic about its prospects in the PGM market.
