Amplats records muted 2013 FY results - CNBC Africa

Amplats records muted 2013 FY results


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A platinum nugget. PHOTO: Getty Images

The platinum company, which released results on Monday, recorded an operating loss of 1.9 million rand in 2013 compared to 6.3 million rand in 2012.

Platinum demand and production continues albeit significantly stunted due to labour tensions in South Africa over wage demands.

[DATA AMA:Anglo American] is a South African company and the largest platinum producer in the world, accounting for 38 per cent of the world’s annual platinum supply.

“The largest contributors to the operating profit for the year were a 7 per cent increase in platinum sales volumes and increases in the volumes of "minor metals" sold, which had a 3.3 billion rand positive impact on revenue,” the company said in a statement.

“The average rand / US dollar exchange rate of 9.71 rand: 1.00 dollar was weaker than the 8.22 rand during 2012, and resulted in a positive contribution of some R6.8 billion.”

Gross sales revenue increased to 52.8 million rand in 2013 from 43.1 million rand in the previous comparative year.

The loss for the year was recorded at 1.5 million rand, compared to the significantly larger figure of 6.7 million rand in 2012.

Gross sales revenue for the company’s metal sales was reported at 52.2 million rand in 2013 from 43.1 million rand in the previous comparative year.

The company generated 7.3 billion rand in cash from its operations, 4.6 billion rand more than the 2.7 billion rand generated in 2012. The company however suffered six work-related fatalities in 2013.

“Despite these tragic losses, Anglo American Platinum has continued to show an improvement in safety performance. [Last year] was its best ever safety performance, with the lowest number of fatalities and lowest injury frequency rates recorded,” the company explained.

The Association of Mineworkers and Construction Union (Amcu) have since declared a continuation of their strike until their wage demands are met.

The National Union of Metalworkers of South Africa last week also announced their submission of a strike notice. The National Union of Mineworkers (NUM) is however not currently involved in any strike activity.

“A new recognition agreement was signed with Amcu on 25 February 2013 and NUM was derecognised as the Company's majority union in July 2013,” Amplats said.

“The company implemented a major restructuring in 2013, creating a difficult environment for many Anglo American Platinum employees and resulting in a challenging year for labour relations.”