ANGLO American Platinum (Amplats) said it had extended an agreement to buy and process concentrate produced by Royal Bafokeng Platinum (RBPlat).
RBPlat is subject to a takeover battle between Impala Platinum and Northam Platinum. As yet, neither company has won total control of RBPlat which may end up being operated by a joint venture between the two rivals.
Amplats said today the notice period to close the purchase of concentrate agreement would be extended to February 10, 2024 which, if effected, would result in the agreement ending on August 11, 2024 – no longer than 18 months from the date notice.
Amplats processes concentrate produced by other platinum group metal (PGM) producers through available capacity at its refineries. Construction of refineries is capital intensive and are technically complex. A shortage of electricity also makes construction of new capacity in South Africa difficult to forsee in the future.
Amplats said on Monday that full year share earnings ended December 31 would fall as much as 52% owing to inflation, project delays, and accounting recalculations related to a previous disposal and an acquisition.
2021 was also a bumper year after Amplats benefited from strong pricing, especially of minor metals, combined with the reopening of a processing unit which enabled it to clear a million ounces in PGMs.
The forecast is for share earnings of between R14.431 to R20,128/share – a year-on-year decline of between 33% and 52% compared to R30,042 in full year earnings in the previous financial year.
