Amplats’ share price plunges on slashing annual refined output

JOHANNESBURG – Anglo American Platinum (Amplats), plunged by 14.32percent to close at R947.64 a share on the JSE on Friday after slashing its 2020 annual refined output by more than 20percent on the decision temporarily to close its critical concentrator plant in Rustenburg to declare force majeure to customers.

The news had a knock-on effect on Amplats’ majority owner, Anglo American plc, which fell 6.27percent on Friday to close at R345 a share.

Amplats said it would now refine 900000 less platinum group metal (PGM) ounces in 2020 following the temporary shut down the Anglo Converter Plant (ACP), which was rocked by an explosion and water leaks at two of the facility’s plants.

Amplats revised its refined PGM production guidance to between 3.3million and 3.8million ounces from the original estimate of between 4.2million and 4.7million ounces.

The concentrator plant is expected to recover from the lost output within two years.