Q2 2024 Anglo American Platinum Ltd Earnings Call Transcript
Key Points
- Anglo American Platinum Ltd (AGPPF) delivered a resilient financial performance with an EBITDA of ZAR12 billion and a mining margin of 28% despite lower PGM prices.
- The company achieved significant cost savings, realizing ZAR4.7 billion in the first half of the year, with a ZAR5 billion cost-saving program for 2024.
- Refined PGM production increased by 5% to 1.78 million ounces, and sales volumes rose by 9% to 1.97 million ounces due to inventory drawdown.
- The company maintained a strong balance sheet with net cash of ZAR15 billion and declared an interim dividend of ZAR2.6 billion, representing a 40% payout of headline earnings.
- Operational excellence initiatives are ensuring that the company is on track to deliver on its full-year guidance, with positive momentum gained in the second quarter of the year.
- Total PGM production was down 5% compared to the prior period, indicating challenges in maintaining production levels.
- The company faced significant cost pressures and geopolitical tensions, requiring decisive actions to ensure long-term sustainability.
- The tragic loss of two colleagues at the Amandelbult mine in June highlighted ongoing safety challenges, despite efforts to improve safety protocols.
- Revenue generated was ZAR52 billion, a 19% drop compared to the comparative period, primarily due to a 24% decrease in the PGM basket price.
- The Mogalakwena North Concentrator experienced an electrical failure, which is expected to have a 5% impact on Mogalakwena's metal and concentrate production in 2024.
(Music)
Good morning once again, ladies and gentlemen. I'm Theto Maake, Head of Investor Relations for Anglo American Platinum. Thank you for this, taking the time to join us for 2024 interim results, both in person and online. For those in person, welcome back to our offices. I would like to draw your attention to the cautionary statement, and would appreciate if you could read this in full in your own time. We have also allocated time for Q&A at the end at the end of the presentation.
I am going to hand over to our Chairman, Norman Mbazima, who is actually the Chairman of our Board, as well as of that of the newly constituted Independent Board for some brief opening remarks before Craig and Sayurie. Norman, over to you.
Thank you, Theto. Good morning and welcome to the presentation of our 2024 interim results. Before I do that, let me start by acknowledging my fellow Board members, both
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