Amplats CEO on half-year earnings, load-shedding and outlook on PGMs
Anglo American Platinum records a reporting period of record prices on one hand, but some production constraint on the other for the six months ended June 202. Headline earnings per share came in at just over one hundred rand per share. Natascha Viljoen, CEO of Anglo American Platinum joins CNBC Africa for more.
Mon, 25 Jul 2022 18:49:39 GMT
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AI Generated Summary
- The impact of COVID-19 and supply chain disruptions on Anglo American Platinum's financial results
- The company's strategic focus on sustainability, renewable energy, and growth opportunities
- The measures taken to address load shedding challenges and ensure operational resilience
Anglo American Platinum, one of the world's leading producers of platinum group metals (PGMs), recently reported a period of record prices but also faced production constraints for the six months ending June 2022. The company's headline earnings per share surpassed 100 Rand, reflecting a strong performance in a challenging operating environment. In a recent interview with CNBC Africa, CEO Natascha Viljoen shared insights into the factors influencing the company's financial results and the outlook for the PGM market.
Viljoen highlighted the impact of the COVID-19 pandemic on the PGM industry, noting that 2021 saw record prices due to supply chain disruptions and market uncertainties. While the company delivered exceptional results in 2021, the comparison to the previous year's performance affected the perceived growth in 2022. Factors such as supply chain disruptions, chip shortages affecting the automotive sector, and ongoing COVID-19 related challenges contributed to a lower growth rate than expected in car manufacturing.
Despite these challenges, Viljoen expressed optimism about the future of PGMs, particularly in the transition to electric vehicles and other decarbonization efforts. With a focus on sustainable growth, the company remains committed to expanding its assets and investing in renewable energy sources. Anglo American Platinum has initiated projects to build renewable energy plants, signaling a strategic shift towards a greener and more efficient operation.
Load shedding, a frequent concern in South Africa, was also addressed during the interview. Viljoen acknowledged that while the company experienced minimal impacts from load shedding in the first half of the year, ongoing power disruptions could pose challenges, especially with a key furnace undergoing rebuilding. To mitigate the effects of load shedding, the company has implemented short-term strategies and is investing in renewable energy infrastructure to enhance resilience in the face of energy supply issues.
Looking ahead, Viljoen outlined the growth prospects for Anglo American Platinum, emphasizing the development plans for its existing assets and the potential for future expansions. The company's strategic approach to capital allocation considers not only financial factors but also environmental, social, and governance (ESG) considerations to ensure sustainable and responsible growth.
In conclusion, Viljoen expressed confidence in the short to medium-term outlook for the PGM basket price, citing resilience in the face of economic uncertainties and geopolitical challenges. Despite the current volatility in the global market, Anglo American Platinum remains poised to capitalize on the growing demand for PGMs and the increasing focus on decarbonization efforts worldwide.