Anglo American Platinum reports first profit in many years

Quellaveco

After many years of negative results, Anglo American Platinum has finally reported a profit for the full year of 2016.

While its shareholders might cheer about the result, Amplat will not be declaring profit to its shareholders. This is a big deal because the company has not paid dividend since 2011.

The profit achieved in 2016 was a result of its sell of loss making mines to other companies who are ready to take up the risk.

Such sell offs includes the sales and purchase agreement (SPA) signed for sale of mineral resources to Northam. SPA signed for sale of Pandora stake to Lonmin. SPA signed for sale of Union and Masa Chrome operations to Siyanda (post year-end).

Anglo American Platinum disclosed that it received ZAR1.5 billion upfront proceeds

Other topline of its result includes the reduction of about ZAR700 million overhead costs. Total cash flow at the end of the year was ZAR3.5 billion.

However, the company said its total debt was reduced from ZAR5.5 billion to ZAR7.3 billion.

Anglo American Platinum is the largest producer of Platinum in the world.