Amplats HEPS plunges 71%

Anglo American Platinum, one of the world's largest producers of platinum-group metals (PGMs), reported a significant profit slump to R14 billion in the year ended December 2023. The staggering 71% decline in earnings compared to the previous year was attributed to a combination of factors, including falling PGM prices and a challenging cost environment. In a recent interview with CNBC Africa, Craig Miller, CEO of Anglo American Platinum, shed light on the key challenges facing the company and outlined strategies for future sustainability. Miller highlighted that the decline in PGM prices was influenced by macroeconomic uncertainties, geopolitical tensions, and rising interest rates. Palladium and rhodium, two essential PGMs, saw price reductions of 37% and 57%, respectively, impacting the company's revenue significantly. Additionally, structural cost factors such as higher energy prices, increased material imports, and inflationary pressures contributed to a 9 billion rand year-on-year rise in operational costs. In response to these challenges, Anglo American Platinum announced a restructuring process involving a 17% reduction in headcount and a comprehensive review of all operational costs to ensure long-term viability. Miller emphasized the company's commitment to driving cost efficiencies, optimizing capital expenditure, and generating future shareholder returns amidst the current market conditions. Despite the financial setbacks, Anglo American Platinum remains steadfast in its pursuit of sustainability and responsible mining practices. The company is actively pursuing decarbonization initiatives, including sourcing 35% of its energy requirements from renewable sources to achieve a 30% reduction in carbon emissions. By making its metal production greener, Anglo American Platinum aims to meet customer demands for environmentally conscious materials and strengthen its position in the market. Miller also underscored the company's unwavering focus on safety, noting two consecutive years without any fatalities—a significant milestone in the South African mining industry. As Anglo American Platinum navigates these turbulent times, Miller emphasized the importance of transparency, fairness, and upholding the organization's core values in driving operational efficiency and maintaining a strong safety record. While the road ahead may pose challenges, Miller expressed confidence in the company's ability to weather the storm and emerge stronger. As the mining industry continues to evolve, Anglo American Platinum remains committed to innovation, sustainability, and excellence in its pursuit of long-term success and value creation.