News

Earnings Decline for Anglo American Platinum in 2023

1 2 3 4 5

4.9

Andrew R. Michaud

• February 08, 2024

Anglo American Platinum has reported a decline in earnings for 2023, primarily attributed to the significant drop in palladium and rhodium prices, as well as increased mining and processing costs.

Decrease in Prices for Platinum Group Metals

As the world's largest platinum miner, Anglo American Platinum revealed on Thursday that earnings had fallen in 2023 due to a 35% decrease in prices for platinum group metals compared to the previous year. The major contributors to this decline were the plummeting prices of palladium and rhodium, which experienced respective drops of 37% and 58%.

Partial Offset by Increase in PGM Sales Volumes

Despite the decrease in revenue, Anglo American Platinum managed to partially offset the impact through a 2% increase in sales volumes of platinum group metals. This South African mining company, majority-owned by Anglo American, remains optimistic about future production.

Production Figures

Amplats reported a 6% decrease in PGM production during the fourth quarter, with a total of 932,200 ounces produced. Annual production figures for 2023 were also affected, dropping to 3.81 million ounces from 4.02 million ounces.

Production Outlook for 2024

Despite the decline in production, Anglo American Platinum is still aiming to produce between 3.3 million and 3.7 million ounces in 2024. They anticipate costs per unit to range between 16,500 and 17,500 rand ($873-$926) per ounce.

Operational Plans for Improved Competitive Position

To address the weak PGM basket price and ongoing cost inflation, Chief Executive Craig Miller stated that operational plans were reset in December 2023. Anglo American Platinum is implementing a series of measures to enhance their competitive position while maintaining long-term flexibility.