News Bureau

PGM production up 1% at Anglo American

Anglo American Platinum delivers on commitments to restructure portfolio and reposition business. Company reinstates dividend yet the year 2017, a year of Tragic deaths of six colleagues during 2017, R2.4 billion free cash flow generated from operations & Return on capital employed doubled to 18%!

Strong balance sheet with net debt further reduced to R1.8 billion from R7.3 billion though Repositioned the portfolio with 70% of production in the first half of the cost curve: 1: R1 billion sale of long-dated Amandelbult mineral resources completed, 2: Pandora JV stake sale completed and operational control of Baobab concentrator secured for three years.

Union mine divestment completed of R400 million upfront proceeds received. Bokoni placed on care and maintenance – 470,000 platinum ounces of loss making production removed since 2012. Total PGM production up 1% despite removing loss-making production from Bokoni and Maseve as well as the unplanned stoppage at Mototolo to complete remedial work on the tailings facility.

Chris Griffith CEO of Anglo American Platinum commented: “I am pleased to present a strong set of results for the 2017 financial year. We have delivered on our commitments of improving operational performance, repositioning the portfolio, ensuring industry-leading cost-control and through disciplined capital allocation.

Anglo American Platinum is now a fundamentally different business, having restructured and repositioned the business.  We have seen our productivity increase by 58% since 2012, and now have 70% of our production in the first half of the cost curve and generated an EBITDA margin and ROCE of 18% respectively. We are a more efficient and more competitive business, generating better returns.”

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