Anglo American Platinum (AMS), or Amplats, is the second largest platinum producing company in the world (after Sibanye), producing a large portion of the world's platinum. It is owned 77,62% by Anglo American. Amplats was one of the first platinum mining companies in South Africa to move away from expensive deep-level mining towards shallower, more mechanised mining. The company has reduced the number of mines it is operating from 18 to 7 over the past 5 years, decreased overheads by 50% and its number of employees by 50%. This shift is now paying handsome dividends.
The Mogalakwena open-cast operation is a palladium-rich operation with costs in the lowest quartile in the platinum group metals (PGM) industry world-wide. A new project at Mogalakwena will see platinum production up by 250 000 ounces and palladium production up by 270 000 ounces. Amplats also recently bought out Glencore's 40,2% stake in their joint venture Mototolo mine and the adjacent Der Brochen property for R1,5bn. Mototolo is a highly mechanised shallow mine which can be extended into Der Brochen without putting in new surface infrastructure. The platinum price is plagued by an effective re-cycling industry which produces about 2 million ounces a year by recovering from old auto catalysts. We believe AMS is the best of the PGM shares on the JSE - but it remains a commodity share and thus volatile and unpredictable.
As part of its plans to boost production at Mogalakwena, the company has plans to relocate 1000 families of its employees which could result in unrest. On 10th December 2021 the company announced a R3,9bn extension to the life of its Mototolo/De Brochen mines to beyond 30 years. On 15th February 2023 the company announced that CEO, Natascha Viljoen, would resign but would serve out her 12 month notice period.
In its results for the six months to 30th June 2024 the company reported tonnes milled down 7%, production of refined PGMs up 5% and revenue down 19%. Headline earnings fell 18% and the company said, "Realised PGM dollar basket price fell 24% to an average of US$1,442 per PGM ounce due to declining realised palladium and rhodium metal prices, which were 34% and 49% lower respectively."
This share is a speculation on the international prices of the platinum groups metals that it produces and hence very volatile. Technically, the share has been falling since March 2022. This mainly due to the challenges faced by the industry including loadshedding and the falling prices that they are getting for their production. We recommend that you wait for a clear upside break through the downward trendline before investigating further. On 19th February 2023 the company announced the possible retrenchment of 3700 employees.
The Mogalakwena open-cast operation is a palladium-rich operation with costs in the lowest quartile in the platinum group metals (PGM) industry world-wide. A new project at Mogalakwena will see platinum production up by 250 000 ounces and palladium production up by 270 000 ounces. Amplats also recently bought out Glencore's 40,2% stake in their joint venture Mototolo mine and the adjacent Der Brochen property for R1,5bn. Mototolo is a highly mechanised shallow mine which can be extended into Der Brochen without putting in new surface infrastructure. The platinum price is plagued by an effective re-cycling industry which produces about 2 million ounces a year by recovering from old auto catalysts. We believe AMS is the best of the PGM shares on the JSE - but it remains a commodity share and thus volatile and unpredictable.
As part of its plans to boost production at Mogalakwena, the company has plans to relocate 1000 families of its employees which could result in unrest. On 10th December 2021 the company announced a R3,9bn extension to the life of its Mototolo/De Brochen mines to beyond 30 years. On 15th February 2023 the company announced that CEO, Natascha Viljoen, would resign but would serve out her 12 month notice period.
In its results for the six months to 30th June 2024 the company reported tonnes milled down 7%, production of refined PGMs up 5% and revenue down 19%. Headline earnings fell 18% and the company said, "Realised PGM dollar basket price fell 24% to an average of US$1,442 per PGM ounce due to declining realised palladium and rhodium metal prices, which were 34% and 49% lower respectively."
This share is a speculation on the international prices of the platinum groups metals that it produces and hence very volatile. Technically, the share has been falling since March 2022. This mainly due to the challenges faced by the industry including loadshedding and the falling prices that they are getting for their production. We recommend that you wait for a clear upside break through the downward trendline before investigating further. On 19th February 2023 the company announced the possible retrenchment of 3700 employees.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.