The company, which recorded a 4% increase in PGM production said its focus would remain driving value and earnings of the business by developing the market for PGMs and taking the performance of the operations to world best practice.
“Anglo American Platinum’s strategy to restructure and reposition the portfolio is essentially complete and has simplified and improved the business,” said Chris Griffith, CEO, Anglo American Platinum.
“The portfolio is now positioned with 70% of production in the first half of the cost curve, outperforming input cost inflation, improved operating free cash flows and delivering a return on capital employed of 22.4%.
“The balance sheet has been de-leveraged with net debt reducing from R14.8 billion in 2014, to a net cash position of R500 million in H1 2018, and we are paying an interim cash dividend of R1 billion.”
Anglo saw a strong performance from its operations, with the Mogalakwena operation increasing production 19% in H1 2018.
Mogalakwena contributed R2.1 billion in economic free cash flow, up from R812 million in H1 2017 and remains the world’s most significant PGM operation.
Meanwhile, the company said the turnaround plan at Amandelbult was showing early benefits – namely, a total PGM production increase by 9% to 432,600 PGM ounces.
Unki mine in Zimbabwe produced a record 92 600 PGM ounces, an increase of 9%. The Unki smelter, a project in execution, is expected to be completed in Q3 2018.
Safety comes first
Griffith noted during the period, there was a fatality at the Amandelbult mine. He assured that management was committed to maintaining safe operations, and the benefits of company-wide initiatives in pursuit of safe production were delivering results.
“Safety indicators highlight the significant improvements that have been made, with total
recordable injury frequency rate (TRCFR) the lowest on record, down 42% to 2.93 per one million hours worked (H1 2017: 5.08).
“We will continue to seek to deliver these strategic priorities in a safe, values driven and socially responsible way,” concluded Griffith.