Platinum group metals (PGMs) miner Anglo American Platinum (Amplats) more than doubled its earnings before interest, taxes, depreciation and amortisation (Ebitda) to R108-billion for 2021, compared with Ebitda of R41-billion in 2020.

CEO Natascha Viljoen attributed the record Ebitda to a solid performance from the company’s own-managed operations, as well as from all processing assets, and robust underlying fundamentals for PGMs.

Amplats achieved a record PGMs basket price of R44 511/oz, or $2 761/oz, for 2021, up 22% from 2020’s average basket price of R33 320/oz, or $2 035/oz.

Individually, all PGMs had higher average prices in 2021 than in 2020. The average dollar price for platinum over the year was $1 086/oz, 23% higher than in 2020, and its highest since 2014.

Palladium prices hit a record high of $2 981/oz in May last year, and averaged more than $2 300/oz for most of the year, 9% higher than in 2020.

Rhodium again broke records in 2021, recording an all-time high of $30 000/oz in March, and averaging $20 109/oz over the full-year, 79% higher than in 2020.

Amplats’ headline earnings totalled R79-billion, which was a 160% increase compared with the R30-billion in headline earnings posted in 2020.

Viljoen mentioned that Amplats’ sales volumes were up 82% year-on-year in 2021 to just over 5.2-million PGM ounces, as the company processed built-up inventory from the Anglo Converter Plant (ACP) shutdowns in 2020.

Viljoen explained that, given the value distribution to other stakeholders, the company’s strong balance sheet, a healthy market outlook and confidence in the underlying cash generation of the business, the board declared a second-half dividend, consisting of both a base dividend and a special dividend, amounting to R33-billion, or R125 a share, which is a 100% pay-out ratio of headline earnings.

This took the full-year dividend to R300 a share, or R80-billion.

The final gross dividend of R125 apiece comprises of a R49-a-share base dividend, equal to 40% of headline earnings, minus a R9.80-a-share dividend tax and a R76-a-share special cash dividend, equal to 60% of headline earnings as an additional divided, from which R15.20 a share of dividend tax will be deducted.

Amplats had net cash of R49-billion at year-end, compared with net cash of R18.7-billion at the end of 2020.

Return on capital employed increased to 183% in 2021, compared with 72% in 2020.

The company plans to invest R18-billion in capital expenditure this year, of which R14-billion will comprise sustaining capital and about R4-billion will entail expansion capital.

PRODUCTION PERFORMANCE

Amplats delivered record refined production of 5.1-million PGM ounces in 2021, marking a strong 89% recovery after experiencing processing backlogs in 2020.

The company had to rebuild its ACP Phase A unit following an explosion in March 2020, which was completed and ramped up towards the end of the year, while the Phase B unit had experienced on-and-off issues with water leaks and was also undergoing a rebuild. 

Amplats increased its metal-in-concentrate production by 13% year-on-year to 4.3-million PGM ounces, which was in line with production of 2019 – a baseline of pre-pandemic performance. 

Total PGMs in-concentrate production from the company’s own-mined operations increased by 12% year-on-year to 2.8-million ounces.

Refined PGMs production guidance for this year has been set at between 4.2-million and 4.6-million ounces, while metal-in-concentrate production is expected to range between 4.1-million and 4.5-million ounces.