JOHANNESBURG - Mining company Anglo American Platinum said on Monday it had delivered a strong financial performance in the first half of 2019, with increased earnings, returns and operating cash flows, benefiting from strong market fundamentals.
Headline earnings increased by 120 percent to R7.4 billion, primarily because of a higher rand basket price and a stock count adjustment gain of R1 billion in the period compared to a stock count adjustment loss of R0.4 billion in the comparative period.
The company strengthened its balance sheet to end the period with net cash of R6 billion from the R2.9 billion net cash position at the end of December, reflecting a R3.1 billion improvement after paying a final dividend of R2 billion for 2018 in March.
"‘Anglo American Platinum has delivered safe, responsible and profitable production in H1 2019," CEO Chris Griffith said.
He said Amplats continued to deliver platinum group metals industry leading returns and has increased earnings before interest, taxes, depreciation, and amortization by 82 percent to R12.4 billion.
Amplat's board declared an interim dividend based on a pay-out ratio of 40 percent of headline earnings of R3.0 billion, or R11 per share.
"This is a very much stronger business today because of the actions we have taken in recent years and I’m pleased to say that there are further opportunities to unlock full potential from our operations," Griffith said.