JOHANNESBURG (miningweekly.com) – Platinum mining company Anglo American Platinum (Amplats), which had all of its mines operating at a cash positive level in the six months to June 30, will continue to manage its operations for the low platinum price environment caused by global macroeconomic factors out of its control.

The company said it was continuing to work on either a separate listing or sale of its Rustenburg and Union mines.

Having increased headline earnings to R2.5-billion from R157-million in the first half of the strike-hit 2014, Amplats reported a back-to-normal performance, despite the steep decline in the dollar prices for most of its metals.

Headline earnings a share were 936c a share compared with 164c a share in the corresponding period last year.

Net sales revenue rose 7% to R29.9-billion on increased sales volumes of an 11% higher 1.16-million ounces in spite of average dollar basket prices per platinum ounce being 13% lower at $2 157/oz.

The average realised rand basket price a platinum ounce was 3% weaker at R25 748.

The company cut debt to R1.9-billion from the December 2014 close of R14.6-billion and boosted total equivalent refined platinum production by 55% to 1 108 000 oz.

Mogalakwena mine continued its particularly strong performance, with a further 9% improvement in production to 201 000 oz.

Rustenburg mines, including Western Limb Tailings Retreatment, rose 10% on a strike-adjusted basis.

Production from the Union mine was down 10% and Amandelbult down 12% on a strike adjusted basis, but would now ramp up to optimal output, Amplats said.

Unki production in Zimbabwe increased by 6% and production from joint ventures and associates, inclusive of both mined and purchased production, decreased by 4%.

“Our financial position is much improved,” said Amplats CEO Chris Griffith.

But cash conservation and capital discipline remained key.

Amplats is still working on either a separate listing or sale of its Rustenburg and Union mines.

Looking ahead, the macroeconomic and price environment remained challenging with the global platinum market expected to go into a slight deficit.

All expansionary projects were being delayed and capital expenditure forecasts for the year had been revised down to between R4-billion and R4.5-billion, excluding production costs, capitalised waste stripping and interest.

New financial director Ian Botha began on May 1.

Sales of refined palladium increased by 27% and rhodium by 25%.

Nickel sales declined by 11% as the tolling of nickel copper matte finished at the end of 2014.

Projects that have been redesigned into lower capital options include the Unki smelter, Twickenham mechanised mine and the low-capital Amandelbult ore-replacement projects.

Amplats said it was continuing to focus on value over volume, and had reduced production by over 350 000 oz from the consolidation of Rustenburg mines from five to three mines and Union from two to one mine.

Significant employee reductions had occurred since the beginning of the restructuring in 2013, with 11 000 positions having been removed.

In addition, the latest phase of restructuring through the removal of nearly 400 managerial positions would ensure further cost savings for the business.

Two Amplats employees, Michael Malesa and Joseph Khesa, were killed during the period.