Wrap Text
Anglo American Platinum – 2024 Interim Results Short Form Announcement
Anglo American Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
("The Company" or "Anglo American Platinum")
22 July 2024
Anglo American Platinum –2024 Interim Results Short Form Announcement
Highlights
• Stringent safety measures implemented to prevent recurrence of two tragic fatalities and improve safety
• Refined PGM production up 5% in H1 2024 to 1.78 million ounces compared to the prior period, while
metal-in-concentrate down 5% to 1.76 million ounces
• Sales volumes increased 9%, due to draw down of inventory
• R12.3 billion EBITDA, down 8% on the prior period, despite a 24% decline in realised PGM dollar basket
prices to $1,442, inflation and once-off restructuring costs, which were partially offset by cost reductions
and higher sales
• On track to meet R10 billion capital expenditure and cost out target for 2024, with ~R4.7 billion of savings in
H1 2024, of which ~R2.9 billion were operating costs and ~R1.8 billion stay in business capital
• Achieved an all-in sustaining cost (AISC) of $957 per 3E ounce, well ahead of the 2024 target of below
~$1,050; on track to sustain cash generation through a low PGM price cycle
• Restructuring progressing at pace, with statutory employee consultation complete and Mortimer Smelter
on care and maintenance from end of April 2024
• Strong net cash position of R14.5 billion, including the customer prepayment
• Interim dividend of R2.6 billion, or R9.75 per share, equivalent to 40% payout of headline earnings in line
with capital allocation framework
H1 2024 overview
Key metrics H1 2024 H1 2023 %
Fatalities 2 0 100
Total recordable injury frequency rate (TRIFR) 1.66 1.58 5
Metal-in-concentrate (M&C) PGM production (koz) 1,755 1,844 (5)
Refined PGM production (koz) 1,782 1,700 5
Sales PGM volumes (excluding trading) (koz) 1,974 1,807 9
Dollar basket price per PGM ounce sold 1,442 1,885 (24)
Rand basket price per PGM ounce sold 26,802 34,764 (23)
Revenue (R billion) 52.2 64.7 (19)
Adjusted EBITDA (R billion) 12.3 13.4 (8)
Mining EBITDA margin (%) 28 42 (14pp)
Basic earnings (R billion) 6.3 7.7 (18)
Basic earnings per share (R/share) 24.02 29.40 (18)
Headline earnings (R billion) 6.5 7.9 (18)
Headline earnings per share (R/share) 24.56 29.84 (18)
Net cash (R billion) 14.5 23.9 (39)
Dividend per share (R/share) 9.75 12.00 (19)
Craig Miller, CEO of Anglo American Platinum, said:
"Safety is our main priority, so it is with great regret that we experienced two tragic work-related fatalities at Dishaba on 7 June
2024. Our sincere condolences go out to the families, friends, and colleagues of Mr. Tshepiso Terrence Mokale and Mr. Euzmen
Ndlebe. We are implementing stringent measures to prevent any recurrence in future. We are committed to ensuring that our
worker safety improves across all measures, and that we achieve new safety milestones across Anglo American Platinum.
We continue to focus on our strategic priority of going beyond resilience to thrive through change as we navigate through an
ever-evolving operating landscape. The company responded decisively to an uncertain macro-economic and a low PGM price
cycle by restructuring the business in pursuit of operational excellence, increased levels of productivity, as well as ensuring cash
generation. This is our value over volume strategy. As we set out in February, we are taking disciplined and decisive actions to
reposition the business to ensure its long-term sustainability as a leading producer of PGMs. We are improving our competitive
position, while preserving growth optionality from our world-class mineral endowment, for the benefit of all our stakeholders.
We achieved ~R4.7 billion of savings (comprising ~R2.9 billion operating costs and ~R1.8 billion stay-in-business capital savings)
in the first half of the year, demonstrating pleasing progress against our 2024 cost reduction target of R10 billion. We are also
making good progress, with the consultation process for Section189A restructuring already complete and the Mortimer Smelter
placed on care and maintenance at the end of April 2024.
Despite the PGM basket price being down ~24% compared to the first half of 2023, and once-off restructuring costs and inflation,
we have delivered EBITDA of R12.3 billion which translates into headline earnings for the first six months of R6.5 billion.
We have ended the first half with a strong R14.5 billion net cash position, with our restructuring and cost savings measures well
on track. So, I am delighted that the board has declared an interim dividend of R9.75 per share, or R2.6 billion equivalent to a 40%
payout of headline earnings in line with our capital allocation policy. Of these dividends ~R70 million will go to our employees via
Thobo (our employee ownership scheme) and to the community ownership scheme trusts."
Action Plan
Our Action Plan announced in February encompasses decisive measures to improve our operational excellence and organisational
effectiveness, as well as ensuring cash generating ability through a low PGM price cycle (our value over volume strategy), while
maintaining the future growth optionality of our operations (our pathways to value).These initiatives include our sustainable cost-
out programme that is expected to deliver R10 billion annual cost savings from operating costs and stay-in-business capital from
a 2023 baseline. Approximately R4.7 billion has been achieved in the first half of the year.
These measures are expected to result in a cash operating unit cost of R16,500 – R17,500 per PGM ounce, as well as an all-in
sustaining cost (AISC) of below ~$1,050 per 3E ounce in 2024. Our operating unit cost was R18,280 per PGM ounce in H1 2024
due to lower production, but as we deliver on planned savings in the second half alongside increased production, we remain on
track to be within our unit cost guidance. We achieved an AISC of $957 per 3E ounce in the first half of the year, well below our
overall target.
The decision to rephase growth at Mogalakwena and the consequential stoppage of the third concentrator was the key driver
behind the Mogalakwena pit optimisation work which aims to reduce waste tonnes and step up near-term cash performance.
A new bench cut sequence progressed during the first half of the year, which resulted in associated extraction of higher waste
tonnes in the short term, with mined ore supplemented by low-grade ore stockpiles. The optimised mine plan and extraction
sequence supports the mine achieving anticipated 2024 average built-up head grade of 2.7 - 2.9 grams per tonne.
At Amandelbult, prior to the fatalities, the turnaround initiatives to improve safety, productivity and efficiencies were progressing,
with consistent improvements achieved in the second quarter of the year.
The restructuring process in terms of Section 189A of the Labour Relations Act, 66 of 1995 has been completed, the largest impact
being at Amandelbult. Of the ~3,700 jobs affected (including permanent and fixed-term positions) across the South African
operations, approximately 75% had exited the company by the end of June 2024, with the remaining ~25% expected to leave in
the second half of the year.
We have finalised ~60% of the review of the affected contracting company base. The process included the renegotiation and, in
some cases, terminating vendor and contractor services.
Mortimer Smelter was placed on care and maintenance from the end of April 2024 on the back of the ongoing footprint
optimisation and mass pull reduction strategy. Studies are underway to convert the smelter to slag cleaning duty with an
appropriate SO2 abatement solution in the medium term, which would enable the processing of historical converter slag tails,
potentially unlocking further value.
During this period, we established programmes to help our people through this difficult restructuring process, as well as a
comprehensive social impact mitigation programme, including community initiatives around our operations.
H1 2024 performance
Safety is our most important value and we remain steadfast in our commitment to eliminating fatalities. However, we sadly
experienced a tragic fatal incident at Dishaba in June 2024 whereby two of our colleagues lost their lives in an ore pass related
incident. A full investigation of the circumstances behind the incident is underway and lessons learned from this tragedy were
promptly shared across the business as part of our immediate call to action. We are implementing measures to prevent any
recurrence in future.
Consequentially, our total recordable injury frequency rate (TRIFR) of 1.66 per million hours worked at our operations represents
a year-on-year regression of 5%.
Total PGM production decreased by 5% but is expected to be within the guidance for 2024. Refined production was 5% higher,
primarily due to a larger release of work-in-progress inventory in H1 2024 compared to H1 2023. Sales volumes increased by 9%
owing to the draw down of inventory.
Although PGM production from Amandelbult was down 5% year-on-year, early-stage improvements have started to come through
in the second quarter with higher throughput and improved grades. These benefits were partially offset by lower plant
performance as a result of the metallurgical challenges caused by the blending of open pit ore. Following the two fatalities,
Amandelbult imposed safety stoppages across the mine, in addition to complying with the Section 54 issued by the South Africa's
Department of Mineral Resources (DMRE). This is to ensure that there are no repeats of the fatalities and lessons learned are
embedded. It is anticipated that the stoppages will have ~5% impact on the Amandelbult 2024 M&C production.
The Mogalakwena North Concentrator's primary mill experienced an electrical failure on 1 July 2024 with repairs and mitigation
plans underway and expected to be largely complete by the end of July 2024. It is expected that this will have a ~5% impact on
Mogalakwena 2024 M&C production.
Our realised dollar PGM basket price declined by 24% to $1,442 per PGM ounce compared to first half of 2023. This reduction
was predominantly caused by a decline in palladium and rhodium metal prices, which reduced by 34% and 49%, respectively.
EBITDA decreased by 8% to R12.3 billion as a result of lower PGM prices, once-off restructuring costs and inflation, partially offset
by the cost reduction initiatives and higher sales volumes. Mining EBITDA margin declined from 42% to 28%. Headline earnings
for the first six months were R6.5 billion, 18% lower than the previous year. We ended the half in a net cash position of R14.5
billion, including the customer prepayment.
Looking ahead
Craig Miller, CEO of Anglo American Platinum said, "We are optimistic about the demand outlook for PGMs. These metals all play
an important role in creating a greener world - whether in internal combustion, hybrid or hydrogen electric vehicle drivetrains.
The automotive demand outlook for PGM containing catalytic converters is firmer as production plans and sales of pure BEV
vehicles stall, with hybrids (which contain PGMS) gaining market share, and the largest automakers adapt their drivetrain
strategies in line with consumer demand, extending their timeframes for internal combustion engine production and include
various forms of hybrid vehicles in their product offering. Additionally, there are a growing number of uses for our metals – from
new battery technologies to emerging medical technologies.
"The opportunities before us as a stand-alone company are both numerous and exciting. The planned demerger from Anglo
American will create a more focused, independent global leader in the PGM industry, with the scale and robust foundations to
maximise the potential from our outstanding business, assets, and people.
"We will build upon our strong foundations across the PGM value chain, which include industry-leading mineral endowments,
world class mines, well established and fully invested processing infrastructure and globally recognised marketing capabilities. We
are in parallel focusing on enhancing our leadership in sustainability, innovation and market development. All of this will still be
from an organisation proudly based in South Africa. We are confident in the future and look forward to working alongside our
stakeholders to continue building a highly successful PGM business that creates superior and sustainable value for the long term.
We are working to deliver a responsible and orderly separation from Anglo American, considering the best interests of all
stakeholders and shareholders, by the end of 2025. Our management team and Independent Board is already working alongside
a dedicated team from with Anglo American to achieve this".
Short-form announcement
This short-form announcement is the responsibility of the directors. It is only a summary of the information contained in the
reviewed interim financial statements and does not contain full or complete details. Any investment decision should be based on
the reviewed interim financial statements accessible from Monday, 22 July 2024, via the JSE link and available on the Company's
website at www.angloamericanplatinum.com.
This short form announcement has not been audited or reviewed by the Company's auditors, however the financial information
included herein has been extracted from the reviewed interim financial statements, which have been reviewed by the Group's
auditors, PricewaterhouseCoopers Inc. who expressed an unmodified opinion thereon. The reviewed interim financial
statements, containing the interim review opinion, together with additional interim results commentary and performance data
can be obtained on the Company's website: www.angloamericanplatinum.com
Copies of the reviewed interim financial statements may also be requested by contacting Anglo American Platinum Investor
Relations by email at theto.maake@angloamerican.com and are available for inspection at the Company's registered office at no
charge, by appointment, subject to prevailing restrictions.
JSE link: https://senspdf.jse.co.za/documents/2024/jse/isse/ANANP/hy24result.pdf
Johannesburg
22 July 2024
Sponsor:
Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities
For further information, please contact:
Investors: Media:
Theto Maake Keitumetse Masike
(SA) +27 (0)83 489 515 (SA) +27 (0)66 484 0227
theto.maake@angloamerican.com keitumetse.masike.@angloamerican.com
platinumIR@angloamerican.com
Marcela Grochowina
(SA) +27 (0) 82 400 3222
marcela.grochowina@gloamerican.com
platinumIR@angloamerican.com
Notes to editors:
Anglo American Platinum Limited is a member of the Anglo American plc Group and is a leading primary producer of platinum
group metals. The company is listed on the Johannesburg Securities Exchange (JSE). Its mining, smelting and refining operations
are based in South Africa. Elsewhere in the world, the Group owns Unki Platinum Mine in Zimbabwe. Anglo American Platinum
is committed to the highest standards of safety and continues to make a meaningful and sustainable difference in the
development of the communities around its operations.
www.angloamericanplatinum.com
Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of
modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides
many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing
every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the
latest technologies to discover new resources and to mine, process, move and market our products to our customers – safely
and sustainably.
As a responsible producer of copper, nickel, platinum group metals, diamonds (through De Beers), and premium quality iron ore
and steelmaking coal – with crop nutrients in development – we are committed to being carbon neutral across our operations
by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a
healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business
partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities
and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to
improve people's lives.
www.angloamerican.com
Date: 22-07-2024 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
