Amplats out of a deep loss into profit on back of mine sales
The platinum producer has sold two of its large mines and expects R1.25bn from asset sales, as well as a reduction of net debt
Anglo American Platinum, the world’s largest producer of the metal, swung out of a deep loss into profit in 2016 and forecast a reduction of net debt to below R5bn as capital poured in from asset sales and cash flows from all its mines, which are cash positive for the second year running. Amplats, which is 80% owned by Anglo American, has sold two of its large mines, Rustenburg and Union, and it expects to receive R1.25bn from asset sales during the course of this year, $100m from customer pre-payments, the cash from its mines, as well as reduced expenditure to contribute towards lowering net debt to below R5bn by the end of this year, said chief financial officer Ian Botha on Wednesday. Amplats had free cash flow in 2016 of R3.5bn. At the end of 2016, net debt had fallen to R7.3bn from R12.8bn the year before. Amplats has not declared a dividend since 2011 and will not do so until it is sure it can pay a sustainable return to shareholders, said Botha. Amplats swung to a profit of R...
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