AGPPF - Anglo American Platinum Limited (ANGPY) Q4 2023 Earnings Call Transcript

2024-02-19 16:02:06 ET

Anglo American Platinum Limited (ANGPY)

Q4 2023 Results Conference Call

February 19, 2024 04:00 AM ET

Company Participants

Theto Maake - Head of Investor Relations

Craig Miller - CEO

Sayurie Naidoo - Acting CFO

Hilton Ingram - Executive Head of Marketing PGMS

Agit Singh - Executive Head of Processing Technical

Wade Bickley - Head of Underground Mining

Conference Call Participants

Nkateko Mathonsi - Investec Bank

Chris Nicholson - RMB Morgan Stanley

Leroy Mnguni - HSBC

Arnold Van Graan - Nedbank

Catherine Cunningham - JPMorgan.

Richard Hatch - Berenberg

Adrian Hammond - SBG

Dominic O'Kane - JPMorgan

Myles Allsop - UBS

Presentation

Theto Maake

Good morning, ladies and gentlemen. My name is Theto Maake. I am the Head of Investor Relations at Anglo American Platinum. Thank you for taking the time to join us today for our annual results, both in person as well as online. I would like to draw your attention to the cautionary statement that is actually on screen. And I would appreciate if you could actually ready it in full at your own time. We have at the end allocated time for Q&A at the end of the presentation.

So with that said I will now hand over to our CEO, Craig Miller; followed by Sayurie Naidoo, our acting CFO to take us through the presentation. Thanks, Craig, over to you.

Craig Miller

Thanks, Theto. Good morning and welcome to the presentation of our 2023 annual results. I'd like to acknowledge our Chairman, Norman Mbazima and some of the members of our Board who are here today, as well as our Regional Director for Africa, Australia, Themba Mkhwanazi, John Vice, Steve Phiri, who are with us in the room as well as the Anglo Platinum Management Committee.

I'll take you through our operational and market performance for the year. Sayurie will then take you through the financial results, after which we'll spend some time looking ahead and then taking your questions.

So before I get into the results for the year, I'd like to start by giving you a sense of the several external factors which influenced our results in the year, many of which remain out of our control. The global market volatility, the exchange rate and interest rate uncertainties and above CPI cost increases and notably a 35% decrease in the PGM dollar basket price all had a significant impact on our results. Despite this tough operating environment, we delivered on a number of our commitments. However, in responding to the challenges we are working to improve our competitiveness and ensure our long-term sustainability of our business. These initiatives include capital and cost optimization which we outlined in December and the proposed restructuring of the business, which we announced earlier this morning.

So, let's start with an overview of our performance for 2023. We're pleased to report and we're very grateful that we've had no fatalities at our operations in the last 2 years, our longest fatality-free period. We also achieved a record low injury frequency rate of 1.61 per million man hours worked, which represents a 31% improvement year-on-year. We produced 3.8 million PGM ounces with an EBITDA of ZAR 24 billion and a mining margin of 35%. We ended the year in a net cash position of ZAR 15 billion, including the customer prepayments. These results were against the backdrop of that dollar PGM basket price of $1,657 per PGM ounce, the lowest level since 2019.

So to provide more detail on safety, we remain committed to zero harm at our operations and are constantly working on ensuring that our operations are safe, stable and sustainable. Mogalakwena, Mototolo and Unki have recorded more than 11 years fatality-free mining, and Amandelbult has recorded 3 years without the fatality....

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