'Sub-standard materials' delays Amplats smelter rebuild, PGM sales off 26%

Kitco Media
By Michael McCrae
Published
Updated
Kitco News
The Leading News Source in Precious Metals

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

Anglo American Platinum (JSE:AMS) said today that it expects a decrease in earnings due to delayed smelter work.

The company, also referred to as Amplats, released its performance for 2022.

Amplats forecast a decrease in headline earnings and basic earnings primarily driven by a 26% decrease in platinum group metal sales volumes.

"[The] second half of 2022 was impacted by the planned structural rebuild of the Polokwane smelter – a process that was extended by approximately two months following the receipt of sub-standard materials identified through our quality assurance processes, leading to a build-up in work-in-progress inventory," wrote the company.

Amplats also cited inflationary pressures that led to higher mining and processing costs.

The company said that earnings per share are likely to decrease by between 33% and 52% compared to the prior period.

Anglo American Platinum is a member of the Anglo American Group and is a leading primary producer of platinum group metals. Its mining, smelting and refining operations are based in South Africa. Elsewhere in the world, the group owns Unki Platinum Mine and a smelter in Zimbabwe.

Kitco Media

Michael McCrae

Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties. He was co-founder and publisher of MINING.com, an award-winning news site. Before coming to media, McCrae worked in IT and banking. Please reach out: mmccrae@kitco.com or (514) 670-1383. You can also follow him at @michaelmccrae.

Mdi Earth Logo

Share

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.