HomeNewsAngloplat expects 20% increase in earnings

Angloplat expects 20% increase in earnings

Underground at
Angloplat’s Rustenburg
platinum mines
Johannesburg, South Africa — MININGREVIEW.COM — 18 May 2010 – Anglo Platinum “’ the world’s No. 1 producer of the metal “’ says its first-half headline earnings are expected to rise 20% over last year, and second-ranked rival Impala Platinum Holdings says its third-quarter output will dip 4%.

Angloplat “’ a unit of global mining giant Anglo American Plc “’ said stronger prices would push its headline earnings per share for the six months to the end of June higher by at least 20% from the 169 cents reported last June. The company said this increase would be achieved despite the increase in number of shares in issue after a rights offer.

“The expected increase in earnings is primarily as a result of the higher rand prices achieved on metals sold,” the company said in a statement. It added that a once-off profit on the disposal of the group’s 37 percent interest in a joint venture would also contribute to the increase.

Impala Platinum (Implats) said its output had dropped in the third quarter to 31 March due to pipeline movements.

The company said production of platinum fell to 368 000 ounces from 385 000 ounces the corresponding period of the previous financial year. Output for the nine months was flat at 1.26 million ounces, despite the impact of an industrial action and an accident at one of its shafts at the start of the financial year, Implats said in a production report.

Palladium production rose 26% to 283 000 ounces due to the ramp up of the first phase of its expansion at Zimplats in Zimbabwe.

“South Africa is expected to produce more platinum this year, but power restraints, inflation, a strong rand and a skills shortage may restrain future output in the world’s top producer of the metal,” Johnson Matthey said.