Anglo American Platinum Reports 8% Earnings Drop Amid Price Decline
Anglo American Platinum, the world's largest producer of platinum metals, announced an 8% decrease in earnings, impacted by a significant drop in prices. For the first six months of the year, the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 12.3 billion South African rand ($676.5 million), compared to the same period last year. Revenue also saw a decline, falling 19% to ZAR52.2 billion ($2.87 billion).
The average realized basket price for platinum metals plummeted by 24% during this period. However, this price drop was somewhat mitigated by reductions in costs and increased sales, the company reported.
Despite these challenges, Anglo American Platinum, which is majority-owned by Anglo American, remains positive about the future demand for platinum-group metals (PGM). Chief Executive Craig Miller highlighted that the demand for PGM-containing catalytic converters is expected to remain strong. This is due to a stall in the production and sales of pure battery-electric vehicles, with hybrids—which use PGMs—gaining market share.
The company has proposed an interim dividend of ZAR9.75 ($0.54) per share, consistent with its payout policy. Additionally, Anglo American Platinum's restructuring plan, announced in December, is on track. The company aims to meet its ZAR10 billion ($550 million) capital-expenditure and cost-cutting target for 2024.
