Anglo American Platinum (Amplats) will ascertain in 2017 whether its operational turnaround of cash-generative mines is sustainable so that it can resume dividend payments after a hiatus since 2011. Both CEO Chris Griffith and chief financial officer Ian Botha said the world’s largest platinum miner had benefited enormously from one-off cash inflows in 2016 and would do so again in 2017, but the board wanted to get a sense if the operations were performing in a sustainable way that would underpin the steady payment of dividends. Amplats had free cash flow in 2016 of R3.5bn from its mines, which, combined with inflows from asset sales and advanced platinum purchases, contributed to net debt falling to R7.3bn at the end of 2016 from R12.8bn the year before. Amplats did not declare a dividend. Amplats would reduce net debt to "comfortably below R5bn" by the end of 2017, with R1.25bn of inflows from asset sales, a $100m upfront payment from a client and cash from its assets, Botha said ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.