Platinum group metals (PGMs) miner Anglo American Platinum (Amplats) has informed shareholders that it expects to report a 67% to 77% year-on-year decrease in headline earnings and headline earnings per share (HEPS) for the 2023 financial year.

The company, which will publish its financial results on February 19, noted in a trading statement on February 8, that its headline earnings for the 12 months to December 31 were likely to be between R11.1-billion and R16-billion, compared with the headline earnings of R48.8-billion reported for 2022.

HEPS are expected to be between R42.16 and R60.77, compared with the HEPS of R185.42 reported for 2022.

Further, earnings and earnings per share (EPS) for the period are likely to have decreased by between 69% and 79%. Earnings are expected to be between R10.1-billion and R15-billion, compared with R49.2-billion in 2022, while EPS are expected to be between R38.36 and R56.97, compared with R186.67 in 2022.

The earnings and EPS include a loss on disposal of 50% interest in the Kroondal pool-and share agreement, as well as asset write-offs, which are excluded from headline earnings, Amplats points out.

Overall, Amplats attributed the decrease in earnings largely to a decline in revenue as a result of a 35% lower realised dollar PGMs basket price relative to 2022. The main contributors to this were declines in the palladium and rhodium dollar prices, which were 37% and 58% lower, respectively.

The decrease in revenue was partially offset by a 2% increase in PGM sales volumes.

In a separate production report, also published on February 8, Amplats reported having sold 3.93-million ounces of PGMs for 2023, compared with the 3.86-million ounces sold in 2022.

Refined PGMs production for the year decreased by 1% to 3.8-million ounces, from 3.83-million ounces in 2022.

Amplats has set its metal-in-concentrate PGMs production and its refined production guidance at between 3.3-million and 3.7-million ounces for 2024.

“Looking ahead and in response to the prevailing weakness of the PGMs basket price and persistent cost inflation, we reset our operational plans in December 2023 and are deploying a series of measures to improve our competitive position while preserving our long-term optionality.

“We are committed to safely delivering production with lower cost and capital requirements while deploying value over volume capital allocation discipline. These measures will allow us to capitalise on our industry-leading portfolio for the long-term benefit of our stakeholders,” says Amplats CEO Craig Miller.