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HARARE (Reuters) -South Africa’s Anglo American Platinum Ltd (Amplats) on Monday reported an 160% jump in full-year profit, driven by higher prices and sales volumes.
Its headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - rose to 300.42 rand ($19.93) for the year ended Dec. 31 from 115.54 rand a year ago.
The company, which is the biggest producer of platinum group metals (PGM) in the world, announced a dividend of 125 rand per share, taking its full year dividend to 300 rand per share.
Prices of the three main PGM metals - platinum, palladium and rhodium - have touched record highs on the back of tight supply and rising demand from electric vehicle makers.
This helped PGM companies cut debt, deliver huge profits and declare bumper dividends.
Amplats said the rand price of its platinum group metals (PGM) basket had increased by 22%, while sales volumes were up 82% for the year, leading to a near doubling in full year revenue to 215 billion rand.
The sharp rise in Amplats’ 2021 volumes was due to the sale of built-up of inventory which could not be processed in 2020.
Chip shortages in the second half 2021 saw a slowdown in automotive production and demand, especially for platinum and palladium, dampening the first half’s strong price run.
Amplats expects demand to improve in 2022, but is worried that rising inflation could eat into profits.
“Our unit cost increased by 9%, with production gains partially being offset by a steep increase in input cost inflation, which is being seen globally and across all sectors,” Amplats CEO Natascha Viljoen said in a statement.
($1 = 15.0705 rand)
