Johannesburg, South Africa — MININGREVIEW.COM — 22 October 2010 – Anglo Platinum (Angloplat) “’ the world’s biggest platinum producer “’ has reported an 11% rise in third-quarter production, but warns that the stronger rand could have a negative impact on future earnings.
In a statement issued here, Angloplat said refined platinum production had totalled 697 000oz during the July-September quarter, compared with 629 000oz in the same period a year earlier.
The company, which is a unit of global miner Anglo American, added that it had been helped by increased labour productivity at its mines. Platinum miners were hit hard by the global economic crisis, which eroded demand for both jewellery and automobiles. However, demand for the metal has gradually returned, helped by an up-tick in vehicle sales and jewellery.
But Reuters reports that Angloplat saw other troubles ahead.
“If the rand continues to strengthen for a sustained period of time, Anglo Platinum’s revenue generation and cash generation ability will be negatively impacted,” the company statement said.
The rand is up about 6% this year and is hovering at its highest level in nearly three years.