[miningmx.com] — ANGLO American Platinum (Amplats) said on
Monday its interim’s earnings would be lower by 20% or more, sending the group’s
shares on a downward slide.
The decrease was mainly the result of lower output and PGM sales prices, and could
be more pronounced once the effect of currency fluctuations have been taken into
account.
Amplats reported interim headline earnings of R3.2bn, or R12.36 per share, in 2011.
“The expected decrease in earnings is primarily as a result of lower sales volumes
and lower metal prices achieved compared to the comparative period,’ read a
company statement. “However, in view of volatility in exchange rates and metal
prices, Amplats cannot . quantify the extent of the decrease in expected earnings
other than that the decrease is expected to be more than 20%.’
The group said it would provide a further update at a later stage.
The slide in interim earnings reflects the continued pressure that Amplats and the
platinum industry are facing on the back of weaker prices and safety-related work
stoppages.
Monday’s trading statement didn’t come unexpectedly, as the group already reported
a 24% fall in refined platinum production for the first quarter of 2012 in April. As for
prices, platinum started the year out at a level of $1,420/oz and, despite some
initial movement, was trading at around $1,440/oz end-June. During the same
period in 2011, prices remained flat at a $1,735/oz-level.
Amplats’ shares were trading down 3.25% on thin volumes, at R469.02, around
noon on Monday. Imara SP Reid mining analyst Percy Takunda said the trading
statement didn’t come as a surprise, and thought the down sell wasn’t the work of
“smart money’.
Amplats said it would release its full interim figures on July 23, when investors and
analysts are expected to keenly watch the profitability of its different shafts. Parent
Anglo American has announced a “top-to-bottom’ review of Amplats, expected to be
completed by year-end.
