Anglo American Platinum reported results for the six months ended June 30, 2015. Headline earnings increased to R2.5 billion from R157 million in the first half of 2014 and headline earnings per share were 936 cents per share compared to 164 cents per share.
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Despite a steep decline in the dollar prices for most metals, the financial performance of the Company improved significantly over the comparative period in 2014, which was impacted by the five month long industrial action.
Net sales revenue increased 7% to R29.9 billion (2014: R27.8 billion) due primarily to increased sales volume, up 11% to 1.16Moz, and the impact of the weakening Rand/U.S. dollar exchange rate.
The average U.S. dollar basket price per platinum ounce sold decreased 13% in 1H 2015 to $2,157, as the strong dollar and macro-economic factors outweighed market fundamentals, whilst the average realised Rand basket price per platinum ounce was 3% weaker at R25,748.
The operational improvements and cash control initiatives introduced over the last two years resulted in all of the asset complexes in the portfolio being cash positive, and net debt declined R1.9 billion from the December 2014 close of R14.6 billion.
Total equivalent refined platinum production increased 55% to 1,108 koz versus the first half of 2014. On a strike-adjusted basis, and accounting for mines closed in 2014, equivalent refined production year-on-year showed operational momentum, and production closure was offset by improved operational performance. Mogalakwena mine continued its particularly strong performance, with a further improvement in production to 201koz, up 9%.
Rustenburg mines including Western Limb Tailings Retreatment was up 10% on a strike adjusted basis. Optimisation to take out marginal ounces, plus section 54 stoppages meant Union and Amandelbult were down 10% and 12% respectively on a strike adjusted basis, but will now ramp up to optimal output according to the optimisation plans at the mines.
Unki production increased by 6% and production from joint ventures and associates, inclusive of both mined and purchased production, decreased by 4%. ■