AngloPlat expects to double earnings

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AngloPlat expects to double earnings

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Published Date: 2018-02-07 | Source: Stephen Gunnion | Author: Stephen Gunnion

AngloPlat expects to double earnings

A strong operational performance, strict cost control and higher sales volumes of platinum group metals are behind the rise

Anglo American Platinum says last year's headline earnings are likely to be double those reported in 2016 as it refines it restructures its business.

The platinum producer says headline earnings for the year to end December will be between R3.65 billion and R4 billion, which is a rise of 96% to 114% on the prior year figure of R1.87 billion. Headline earnings per share will be between 1 392c and 1 526 c, an increase of 95% to 114%. Basic earnings and earnings per share will be 193% to 212% higher.

AngloPlat attributes to the increase to a strong operational performance, strict cost control and higher sales volumes of platinum group metals (PGMs). It says the rand basket price for PGMs was 2% higher over the period. On top of that, ore stockpiles that are expected to be used in the foreseeable future were worth R900 million post-tax, most of which is related to its Mogalakwena mine.

The group said basic earnings for the period were also impacted by attributable impairments after tax of R3.9 billion, including R2.2 billion that was recognised in its first-half results. Basic earnings per share also benefited a R1.2 billion profit on the sale of assets, including the disposal of its Amandebult resource. During the comparable period, earnings were negatively affected by the R900 million post-tax loss on the sale of its Rustenburg mine.

AngloPlat is repositioning its portfolio as it moves production down the cost curve and creates a more value enhancing portfolio. Apart from the sale of Amandebult to Northam Platinum, it has sold its stake in Pandora to joint venture partner Lonmin and is progressing with the disposal of its 85% interest in its Union Mine and its 50.1% stake in MASA Chrome Company to a subsidiary of Siyanda Resources.

AngloPlat's shares gained 1% to R334.12 yesterday.



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