HomeNewsAmplats profit plummets by 180%

Amplats profit plummets by 180%

Amplats CEO
Chris Griffiths
Johannesburg, South Africa — 07 February 2013 – Anglo American Platinum (Amplats) has reported a R6.3 billion loss for the 2012 financial year. This represents a 180% drop in profit from the R7.9 billion recorded in 2011.

In a report released here the company described the period as “a year that was marred by illegal and violent industrial action across the mining industry, and where continued high levels of inflation and a subdued macroeconomic environment, particularly in Europe, led to severe margin contraction.”

The report added: “Anglo American Platinum, together with its share of joint venture and associate production, lost 305,600oz of equivalent refined platinum production as a result of the initial safety suspension, subsequent illegal industrial action, and the ramp up period, which commenced on 16 November 2012. The company reported an 8% decrease in equivalent refined platinum production year-on-year, to 2.22Moz, mainly due to the illegal industrial action.

Company CEO Chris Griffiths commented, “While we are not pleased with the operational and financial performance, it is important to put things in context. Operationally, 2012 was a challenging year for Anglo American Platinum and the platinum industry as a whole.

“The year was characterised by lower prices, illegal industrial action which impacted production, unit cost, labour productivity and, of course, profitability and earnings. In a challenging year, characterised by increasingly volatile markets due to macro-economic weakness combined with supply disruptions, our revenue was impacted by a lower US dollar basket price,” he added.

Source: Anglo American Platinum. For more information, click here.