Anglo American Platinum's Earnings Fall as Prices Remain Low

By Christian Moess Laursen

Anglo American Platinum's earnings fell 8% as a steep drop in prices was only partially offset by lower costs and higher sales.

The world's largest platinum-metals producer said Monday that its adjusted earnings before interest, taxes, depreciation and amortization in the first six months of the year stood at 12.3 billion South Africa rand ($670.3 million), 8% lower than in the same period last year. Revenue fell 19% to ZAR52.2 billion.

This is amid a persistent price rout of platinum metals, with the average realized basket price tumbling 24% in the period. A reduction in costs and higher sales partially offset the price fall, Amplats said.

However, the company--majority-owned by mining giant Anglo American--remains optimistic about the demand outlook for platinum-group metals, or PGM.

"The automotive demand outlook for PGM containing catalytic converters is firmer as production plans and sales of pure battery-electric vehicles stall, with hybrids--which contain PGMs--gaining market share," Chief Executive Craig Miller said.

The company proposed an interim dividend of ZAR9.75 a share, in line with its payout policy.

It also said its restructuring outlined in December is progressing according to plan, and its on track to meet the ZAR10 billion capital-expenditure and cost-cut target for 2024.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

July 22, 2024 03:09 ET (07:09 GMT)

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