Anglo American PLC’ s (LON:AAL) platinum arm Amplats produced record profits in 2020 as surging prices offset coronavirus disruption.
Amplats’ basket of platinum group metals (PGMs) saw prices jump by 70% on average over the year helping underlying profits rise 39% to R41.6bn (£2bn).
The miner, which is almost 80% owned by Anglo American, said its mine and refined production had been impacted by COVID-19 lockdowns but operations are now set up for a strong recovery in 2021.
Amplats declared a final dividend of R35.35 per share, or R9.4bn (£470mln), based on a payout ratio of 40% of headline earnings, while net cash at the year rose to R18.7bn.
Separately, Amplats announced plans to increase production by 20% to 3.6mln ounces in 2030 from 3mln ounces today, while also improving margins and returns from the business.
The dividend payout ratio will be maintained at 40% pay-out of headline earnings.
Natascha Viljoen, chief executive, said the plans will involve 100% of operations being fully modernised and mechanised by 2030, by which time it expects to have reduced CO2 emissions by 30% and become carbon neutral by 2040.
“Climate change is rapidly accelerating global decarbonisation efforts, which will increase the long-term demand for our metals.
“We are therefore strongly focused on leveraging our capabilities across our value chain to lead technology deployment and market development for our products,” Viljoen said in a statement.
Read More: Anglo American’s platinum business posts record profits and plans to mechanise
