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World's top PGM miner's annual profit down 38%
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South Africa output hit by power cuts
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Exiting Amplats CEO says will ensure stability and
continuity
(Recasts with comment from CEO)
By Nelson Banya
Feb 20 (Reuters) - South Africa's electricity crisis and
the impact of Russia's invasion of Ukraine will reduce the
global supply of platinum group metals (PGM) in 2023, Anglo
American Platinum (Amplats) chief executive officer
said on Monday.
South Africa, the world's top PGM producer, is experiencing
extended electricity cuts due to frequent breakdowns of its
coal-fired generating plants, a situation that could result in
Amplats's refined PGM output falling 5% in 2023, said Amplats
CEO Natascha Viljoen.
Russia, the world's number two PGM producer, is struggling
to maintain output due to problems accessing spares, despite
having avoided sanctions on its metal sales, she said.
"If you consider that the bulk of PGMs come from South
Africa and the other share coming from Russia, which has
geopolitical challenges, there is pressure on supply going into
2023," Viljoen told Reuters in an interview.
Viljoen, who is set to leave Amplats at the end of this year, said she was focused on "ensuring the stability and continuity of the business."
On Monday, Amplats reported a 38% fall in 2022 annual profit, after a two-month delay in its smelter rebuild hit sales of the metals. Its headline earnings per share (HEPS) — the main profit measure in South Africa — fell to 185.42 rand ($10.28), down from 300.42 rand in 2021. The Johannesburg-listed firm also said PGM sales volumes declined 25% to 3.8 million ounces last year, from a record 5.1 million ounces in 2021. The record 2021 production performance was driven by an increase in refined output after the rebuild and recommissioning of the Anglo Converter Plant Phase A unit.
The Polokwane smelter rebuild, which was due to be completed in October, was delayed until December after the delivery of sub-standard materials, the company said. Amplats declared a total dividend of 115 rand per share, down from 300 rand per share last year, returning $1.66 billion to shareholders. ($1 = 18.0504 rand) (Reporting by Nelson Banya; Editing by Tom Hogue and Uttaresh.V)
