Anglo American sees headline earnings decline

by Trust Matsilele 0

[DATA AMS:Anglo American Platinum Limited] is set to report underlying earnings in respect of Anglo American Platinum Limited of 25 million US dollars for the year ended 31 December 2014, which takes into account certain adjustments.

According to the mining group, due to the industrial action, total lost production amounted to 424 koz equivalent refined platinum (equivalent ounces mined expressed as refined ounces) in the strike period to 24 June 2014.

(READ MOREStrikes put Anglo American platinum in the red)

“Rustenburg operations lost 165 koz; Amandelbult 167 koz; Union 87 koz; and affected third-party purchase volume situated at Rustenburg and Amandelbult concentrators lost 5 koz,” reported the company.

The company said the industrial action created an unprecedented environment of heightened risk operationally, financially, socially and in particular with regard to health and safety.

The company said it successfully managed the safety risks associated with the protracted period of industrial unrest, performing a safe shutdown once the strike notice was received.

It added, these measures ensured safety of working areas was maintained and making sure post-strike start-up plans were strictly enforced to prevent the occurrence of safety incidents.

“Affected operations were also inspected on a regular basis by available employees during the strike.”

(READ MOREAnglo American platinum HEPS set to drop)

The company’s lost-time injury-frequency rate (LTIFR) dropped significantly over the past year to 0.69 from 1.05 in 2013.

“Although the months on strike contributed to the reduction, the average of the month prior, and the six months post the strike, resulted in a LTIFR of 0.84 and a TRCFR of 1.41,” added the group.

The group said, despite short-term volatility in the market, all indications suggests that platinum is in its strongest position since 2005.

“The cumulative oversupply from 2006 has been eliminated in the past three years, and signs point to demand increasing. Supply is unlikely to increase materially in the next few years, and this could lead to an increase in the price for platinum and palladium,” added the group.  

“We are now in a position to focus on value and not volume and will continue to reduce costs and improve operating efficiencies. By repositioning our portfolio and exiting the assets that no longer fit the future strategy, we can optimise our business and grow at the appropriate time.”