Platinum group metals (PGM) miner Anglo American Platinum (Amplats) expects a significant drop in headline earnings for the year to end-December, citing lower rand PGM prices as the primary culprit.
According to a trading statement on Thursday, headline earnings per share (HEPS) are set to decrease by 36%-46% compared to the 2023 year, with headline earnings expected to come in at R7.6bn-R9bn.
The drop was attributed primarily to a 13% decrease in rand PGM prices. The price of platinum remains suppressed, as does that of palladium and rhodium, with realised dollar prices falling 24% and 30% in the period.
The group’s recent operational and corporate restructuring, including its demerger from parent Anglo American and losses from associates, resulted in it reporting R3.5bn in non-recurring costs, which further weighed on earnings.
Basic earnings were dragged lower due to a R1.9bn writedown of assets, mainly relating to the coarse particle recovery technology at the Mogalakwena operation in Limpopo, the group said.
In line with the headline earnings decrease, PGM sales volumes were down 14% year on year at about 1-million ounces in the fourth quarter, with refined production decreasing by 14% as work-in-progress inventory built up from previous years has now been released.
The group reported full-year PGM output at 2.192-million ounces, around the midpoint of its production guidance, with refined PGM production at 3,916,300oz — the upper end of that guidance.
Higher refined production and a drawdown of finished goods enabled full-year sales volume of 4.077-million ounces.
“We continue to progress towards a responsible and orderly separation from Anglo American, which we are aiming to complete by mid-2025,” said Amplats CEO Craig Miller.
The group will release annual results on February 17.
By market close Amplats’ share price was down 4% to R658.40.
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