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Anglo American Platinum (OTCPK:ANGPY) said Monday it expects 2022 annual profit will plunge by as much as 52%, due to a decline in sales of platinum group metals after the delayed rebuilding of a smelter, as well as higher mining and processing costs.
Amplats (OTCPK:ANGPY) cited a two-month delay in the rebuild of its Polokwane smelter in South Africa due to delivery of sub-standard materials.
The South African company, which is majority owned by Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY), said full-year platinum group sales volumes fell 26% following a 25% drop in refined metals production to 3.8M oz from a record 5.14M oz in 2021, resulting in headline earnings and basic earnings of 38B-53B South Africa rand ($2.12B-$2.96B) compared with 79B rand in 2021.
FY 2022 headline EPS are seen decreasing to between 14,431 South African cents/share and 20,128 cents/share, from 30,042 cents in 2021.
Anglo Platinum (OTCPK:ANGPY) “has a stronghold over the global platinum supply, and most systemic challenges to its operations will probably be offset by higher PGM prices,” Pearl Gray Equity and Research writes in an analysis posted recently on Seeking Alpha.
