In the first half of 2022, Anglo American Platinum, a South African precious metals company majority owned by Anglo American PLC, experienced a decline in pretax profit and headline earnings. The company’s pretax profit decreased to ZAR10.93 billion ($608.8 million) compared to ZAR37.20 billion in the same period last year.
Headline earnings for the company totaled ZAR7.9 billion, a significant decrease from ZAR26.7 billion, resulting in headline earnings per share of ZAR29.84 compared to ZAR101.40 per share in the previous year.
Several factors contributed to the decline. Platinum group metals production fell by 7% due to lower grades at the Mogalakwena mine and an unplanned maintenance shutdown at the Baobab plant. Furthermore, basket prices experienced a 29% decline to $1,885 per ounce due to an uncertain macroeconomic environment.
Adjusted earnings before interest, taxes, depreciation, and amortization also dropped to ZAR13.445 billion from ZAR42.06 billion. This decline was attributed to significantly lower prices, lower sales volumes, higher costs, and a 24% decrease in gross revenue to ZAR64.69 billion.
Despite these challenges, Anglo American Platinum remains confident in its full-year guidance.
