JOHANNESBURG (miningweekly.com) – Anglo American Platinum (Amplats) expects headline earnings and headline earnings per share (HEPS) for the year ended December 31, 2017, to be at least R373-million, or 143c apiece, higher than for the 2016 financial year.
Basic earnings and basic earnings per share (EPS) were also expected to be at R126-million, or 48c apiece, higher than for the comparative period.
This would likely increase headline earnings and HEPS to between R3.65-billion and R4-billion and to between R13.92 apiece and R15.26 apiece, while basic earnings and EPS for the period were likely to increase to between R1.85-billion and R1.97-billion and to between 706c and 751c apiece.
The expected increase in earnings is primarily as a result of a strong operational performance, strict cost control and higher platinum group metal sales volumes, together with a 2% increase in the rand basket price.
In addition, during the second half of 2017, the company valued the impact of ore stockpiles ahead of concentrators across the business, equating to R900-million post-tax in the period, to the extent that these stockpiles were expected to be used in the foreseeable future.
However, the miner pointed out that basic earnings for the period would be impacted on by attributable impairments after tax of R3.9-billion, which included R1.9-billion in respect of the associate investment in the Bafokeng Rasimone platinum mine owing to the decline in the Royal Bafokeng share price.
The disposal of the Union mine and Masa Chrome also resulted in an impairment of R1-billion, while a R200-million impairment was incurred on the funding provided to Bokoni Mine.