Anglo American Platinum (Amplats) shares took a breather on Wednesday after jumping as much as 40% in the three months to January 2.
Amplats outperformed its peers by far over the time horizon, as well as the JSE-top 40, even though the outperformance came off a very low base.
Like its peers, Amplats is caught up in the depressed platinum group metals (PGM) market even though prices perked up in December amid signs that central banks could cut interest rates to boost global growth.
Some industry players have already announced potential job cuts to relieve pressure on their high-cost base.
Amplats’ share price fell 6.9% on Wednesday to R878.05, but is still up31% since October 2, according to Infront data.
“The recent surge in its share price can be attributed to a combination of factors,” Nitrogen Fund Managers portfolio manager Willem Oldewage said.
“The company has undergone significant changes in management and has restructured its business model, outlining a promising trajectory for the next three years. Contributing to the recent positive momentum is Amplats’ strategic response to the decline in PGM prices.”
He said the company demonstrated a relatively low cost per ounce, underscoring its efficiency and competitiveness.
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