AngloPlat’s earnings jump on cost reductions


AngloPlat’s earnings jump on cost reductions

Published Date: 2017-12-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

AngloPlat’s earnings jump on cost reductions

The platinum producer says it's made significant progress in repositioning its production down the cost curve

Anglo American Platinum expects a strong rise in full-year earnings on the back of cost-cutting and a better operational delivery across the company.

In a trading statement on Friday, AngloPlat said headline earnings and headline earnings per share for the year to end December would be at least 20% higher than the R1.9 billion and 143c respectively it reported last year. Basic earnings and basic earnings per share would also be at least 20% up on the R632 million and 241c reported for 2016.

AngloPlat has been repositioning its portfolio and moving its production down the cost curve, divesting of assets that don't fit its long-term strategy. It sold its Rustenburg mine last year and recently placed its Bokoni mine on care and maintenance in October. Last week it completed the disposal of its Amandelbult mining right to Northam Platinum and sold its stake in the Pandora Joint Venture to Lonmin for a deferred cash payment of up to R1 billion.

Related article: Diamonds sparkle as Anglo heads for higher 2017 production

It said the sale of its 85% interest in Union Mine and its 50.1% interest in MASA Chrome Company to a subsidiary of Siyanda Resources was signed last February and significant progress has since been made on completing the conditions precedent, including approval from the competition authorities and consent in terms of section 11 of the Mineral and Petroleum Resources Development Act.

Its shares gained 2.1% on Friday to close at R345.46.

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