Despite a “strong operational performance”, Anglo American Platinum on Monday recorded a loss of R12.2 billion for the year to the end of December 2015, down from a profit of R372 million a year before, with the sharp fall in platinum group metals prices weighing heavily.

In a statement, Chief Executive Chris Griffith said a strong operational performance and a focus on costs and efficiencies meant that all operations had remained cash flow positive in 2015.

“In this low PGM price environment we have managed the business for the current prices and ensured all operations remained cash flow positive by improving our operational performance and efficiencies, reducing costs and capital expenditure, and cutting out unprofitable ounces,” Griffith said.

The company said it had generated free cash flow of R4 billion enabling it to reduce its net debt position to R12.8 billion, from R14.6 billion,thereby enabling it to maintain a robust balance sheet.

Anglo American Platinum said it had seen a strong recovery in platinum production in 2015, with 2014 being heavily impacted by the five-month industrial action. Total platinum production was up 25 percent year-on-year.

The company recorded gross sales revenue of R59.8 billion for 2015, up from R55.6 billion the year before.

The statement said headline earnings were down to R107 million, from R786 million, due to the dollar price declines as well as one-off restructuring costs of R900 million and impairments. The company recorded impairments totaling R14 billion, with R1.8 billion impacting headline earnings.

Excluding these one-off items, headline earnings increased to R2.7 billion, or 452 cents per share, a 50 percent increase year-on-year.

Headline earnings per share came in at 41 cents, down from 301 cents the previous year. The board has decided not to declare a dividend. – African News Agency