ANGLO American Platinum (Amplats) booked R3.5bn in costs partly related to its demerger from Anglo American, which is expected to be completed by mid-year.
The platinum group metal miner also recognised a R1.9bn asset write down related to its coarse particle recovery technology at Mokgalakwena.
The two non-recurring costs hit earnings and headline earnings for the 2024 financial year by R17 and R11 per share respectively, it said in a trading update today.
Headline earnings for the 12 months ended December would be 36% and 46% lower coming in at between R7.6bn to R9bn. Headline share earnings would be between R28,89 and R34,21/share.
On a basic share earnings level, Amplats would report between R23,95 and R28.89 per share for the year.
The biggest culprit behind the lower earnings is the average PGM basket price, down 13%. “Most notably, palladium and rhodium realised US dollar prices decreased 24% and 30% respectively,” the group said.
Of R3.5bn in non-recurring costs, R1.5bn related to a Section 189 restructuring effort, announced in the first half of Amplats’ financial year. Direct demerger costs totalled R700,000, a spokesperson for the company said.
Amplats also provided fourth quarter production numbers. Metal-in-concentrate production mined by Amplats increased 7% in the fourth quarter compared to the third as it recovered from a primary mill breakdown in July at Mogalakwena.
But the performance was marred by fatalities at Amandelbult and Modikwa mines during the fourth quarter. Various measures have been taken to address unsafe working practices and other high risk activities in the workplace,” said Craig Miller, CEO of Amplats.
Total metal-in-concentrate production came in at 3,55 million ounces for the year while refined PGMs totalled 3.9 million oz, both in line with guidance. This reflected “improvements in our operating performance and the stability of our processing business”, said Miller. This enabled Amplats to draw down work-in-progress material, he said.
Commenting on production guidance for the next three years, Amplats said it was unchanged at between three million to 3.4 million oz but quite likely trending up in 2027 as benefits from higher grades at Mogalakwena and Dishaba (Amandelbult) projects come online, the group said. There would also be a steady ramp up of Der Brochen.
