Amplats numbers, debt grows some more

AngloPlats have reported results for their first half this morning. The headlines will read, "Amplats reports 88 percent jump in earnings for first half". And it is true, on a per share basis the company reported 514 cents headline earnings per share. 1.341 billion Rand, versus 713 million Rand for the first half of 2012. And this after a loss of 1.468 billion Rand at the full year stage, 2012 was a very forgettable year for the platinum mining community. I have a sense that it won't be forgotten in a hurry, the horror of Marikana still clouds us all, in less than a month (16th of August), it will be one year on from that fateful Thursday. It will be a Friday, and a day of inward reflection.


Oh, and remember that the company was recapitalised in 2010, February 2010 there was an announcement from parent and main shareholder: Anglo American supports Anglo Platinum's $1.6 billion rights offer. Current interest bill, 347 million Rand every six months. Parent company Anglo own 79.72 percent of AngloPlats, so it is their shareholders that have endured the worst of it. They (AngloPlats) owe Anglo American 10.6 billion Rand. And the current debt load is a creaking 15.88 billion Rand. Wow.


Average basket price of PGM's were 18 percent lower than the prior reporting period, luckily the Rand was weaker by 17 percent, so it was the higher volumes that saw them through a tricky period. Average platinum mined per employee increased two percent, even if metres squared mined per employee per month was 1 percent lower to 6.5. Six and a half metres squared, that sounds weird, surely it should be cubic metres?


I am not too sure what to conclude, other than we seem to have bottomed here, in terms of production. Not necessarily on costs, and more importantly we have not seen motor vehicle sales in Europe bottom. There were some encouraging signs. But it is going to be a long and tricky road for the next 18 to 24 months. Volatile!