Johannesburg - Anglo American Platinum has grown earnings before interest and tax to R1.5 billion, despite revenue only growing 3 percent.
In a statement released on Monday, the listed company said income gained to R30.7 billion in the six months to June.
However, earnings before interest and tax gained 12 percent R1.5 billion, after stripping out stock gains of R2.2 billion in the first half of last year.
Headline earnings were R1 billion and headline earnings per share were R3.99.
CEO Chris Griffith says Amplats is “delivering on our promises and making progress on our value driven strategy”. He points out the company reduced debt by R2.9 billion.
The company says pricing during the half remained weak, with the average dollar basket price per platinum ounce dropping 24 percent to $1 632 from $2 157 for the same six months in 2015.
However, this decline was partially mitigated by a weaker rand, which caused the basket in rand to decline just 3 percent.
“Within this pricing environment, the company continued to make progress in implementing its value driven strategy and improving its operational performance,” it says.
It says, since 2013, it has reduced unprofitable platinum production by about 350 000oz. R1 billion of overhead cost savings have been identified through the reduction of 400 managerial roles and non-labour overhead savings, and R400 million of this was achieved in the first half.
By the end of the year, it will have saved another R600 million, and capex on all major projects remains on hold for now.
Amplats adds its cash operating costs of R17.8 billion increased by 5 percent, below the level of mining inflation, and unit costs of R19 436 per platinum ounce increased by 1.8 percent when compared to the first half of 2015.
Platinum production (on a metal in concentrate basis) increased 2 percent.
For the full year, the miner expects platinum production expected to be towards the upper end of the previously guided range of 2.3 - 2.4 million ounces, and unit cash cost guidance is unchanged at between R19 250 and R19 750 per platinum ounce.
IOL