Amplats' Magalakwena North Concentrator

Anglo American Platinum (Amplats), in a revised trading statement released on Monday, said that it expects its significant spike in earnings for the six months to June.

The expected increase in earnings and headline earnings is due to the improvement in operational performance following the protected industrial action in the comparative period, an increase in sales volumes and weakening of the South African Rand versus the US dollar.

In addition, Amplats benefited from an after-tax gain of R1 566 million, or 600 cents per share, as a result of increased estimate of the quantity of inventory based on the outcome of the physical count of in-process metals, the company said.

While Amplats initially expected an increase of at least 20% in headline earnings and headline earnings per share (HEPS) for the period, it now expects headline earnings for the period to increase to be between R2 450 million and R2 480 million (an increase of between 1 461% and 1 480% on the prior year), while HEPS is expected to increase to 940 cents and 950 cents per share, or between 1 467% and 1 483% up on prior year.

This compares to reported headline earnings and HEPS of R157 million and 60 cents per share respectively for the comparative period.

Amplats’ revised basic earnings for the period are likely to increase to be between R2 400 million and R2,480 million – an increase of between 459% and 478% on prior year.

The company’s earnings per share (EPS) is expected to increase to 915 cents and 945 cents per share, or between 458% and 476% up on prior year.

This compares to reported basic earnings and EPS of R429 million and 164 cents per share respectively for the comparative period.

Amplats will release its half-year results on 20 July 2015.

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