H1 2023 overview

Natascha Viljoen, CEO of Anglo American Platinum, commented:

“In the first half of 2023, and despite the challenging global macro-economic and operating environment, we have achieved results in line with expectations following the change in guidance, disclosed in 2022.

Safety one of our fundamental values and is embedded in everything we do. We are consistently working towards safe, stable, and capable operations, as this is a critical foundation for zero-harm production. In the first half, we recorded no fatalities and reached a record low total recordable case frequency rate of 1.58 per 1 million hours worked. This represents a year-on-year improvement of 34% and an 85% improvement from 2012.

Total PGM production from own-managed mines and owned volume from joint operations decreased by 8%, primarily due to expected lower grade at Mogalakwena; infrastructure closures in 2022 at Amandelbult and poor ground conditions at Dishaba; and the ramp-down of Kroondal. The decline was marginally offset by increased production from Mototolo and Unki.

Refined production was 13% lower, primarily due to the ramp-up of the Polokwane smelter in January following its rebuild; scheduled annual maintenance and asset integrity work at our processing operations; and the impact of Eskom load-curtailment, which resulted in deferred production of c.66,400 PGM ounces.

Despite lower production and a 29% decrease in the PGM dollar basket price, we have delivered a robust mining EBITDA margin of 42% and EBITDA of R13 billion.

Our strategy and our culture work together to achieve our purpose to “re-imagine mining to improve people’s lives”. Our strategy guides our choices, and our culture enables every one of us to feel and be at our best .

We have diversified uses for our metals which include industrial, automotive, technology, battery storage, food preservation, investments, and jewellery. Additionally, we see many other emerging uses including the development of green hydrogen technology, which is PGM intensive.

Our four strategic priorities have positioned us to be agile in a fast-changing and complex world.

First, we continue to build on our existing areas of excellence to become a leader in ESG in the mining sector. Our ESG plan is deeply integrated into everything that we do, and it is pleasing to see external recognition for our focus on this critical work. I’d like to thank all our stakeholders, whose contributions have been invaluable in achieving these results.

Second, we are building resilience across our business, with the aim of increasing our ability to thrive through major disruptions. These initiatives are helping us facilitate the successful execution of our strategy.

Third, we will maximise value from our core portfolio of mining and processing assets. This means investing in and deploying innovative technologies to drive efficiencies and value, with targeted investments that define the future of our world-class assets.

Lastly, our market development work is fundamental to ensure our products have a sustainable and positive impact on the world. We are leveraging capabilities through these activities and capturing value from adjacent value chains.

Simply put, our purpose and what we do matters.

Our disciplined capital allocation framework underpins our strategy and has demonstrated our ability to retain a strong balance sheet and deliver consistent returns to our shareholders that can be maintained through cycles. We also remain confident about the long-term fundamentals including our diverse suite of metals, resources, and operations. The optionality and flexibility of our operations ensure that we can make the right decisions at the right time, and thereby continuously strengthen our long-term cost curve position.

I want to express my heartfelt gratitude to all my colleagues for their hard work and dedication. Together, we have delivered incredible results during particularly challenging times, from safety and operational efficiency to environmental stewardship and community relationships. We continue to build a high-performance culture rooted in our values, ensuring that our workplaces are physically and psychologically safe for every team member. I am immensely proud of the work we have done, the partnerships we have built, and the significant difference you will continue to make in people’s lives.

Every day it is a privilege to lead this exceptional business.“

Short form announcement

This short-form announcement is the responsibility of the directors. It is only a summary of the information contained in the interim results and does not contain full or complete details. Any investment decision should be based on the interim results accessible from Monday, 24 July 2023, via the JSE link and available on the Company’s website at www.angloamericanplatinum.com.

This short-form announcement has not been audited or reviewed by the company’s auditors however the financial information included herein has been extracted from the interim results, which have been reviewed by the Groups auditors PricewaterhouseCoopersInc who expressed an unmodified conclusion thereon. The interim results containing the review report can be obtained on the Company’s website at www.angloamericanplatinum.com.

Copies of the interim results may also be requested by contacting Anglo American Platinum Investor Relations by email at [email protected] and are available for inspection at the Company’s registered office at no charge, by appointment, subject to the prevailing restrictions.

The JSE link is as follows:
https://senspdf.jse.co.za/documents/2023/jse/isse/ANANP/HY23result.pdf

Johannesburg
24 July 2023

Sponsor:
Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities