Anglo American Platinum’s net cash more than doubled in the six months through June, as the company benefited from a rally in some of its key metals and a weaker rand.
Net cash at the end of June was R6 billion, compared with R2.9 billion at the end of December. Basic earnings surged to R7.3 billion in the six months, from R2.2 billion a year earlier.
- Amplats had already indicated it expected basic earnings to more than triple, buoyed by a rally in palladium and rhodium prices and a weaker rand.
- As the cash pile grows, there didn’t appear to be any fresh guidance on what Amplats plans to do with the money. The company maintained its dividend payout at 40% of so-called headline earnings, equating to R3 billion, or R11 per share.
- The bumper profit comes as Amplats and other producers are negotiating new wage agreements with labor organisations including the Association of Mineworkers and Construction Union. The union has said that higher metals prices justify its demands.
© 2019 Bloomberg L.P.