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Amplats expects near doubling of earnings

15th July 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – World number-one platinum producer Anglo American Platinum (Amplats) said on Monday that it would report a big increase in its headline earnings when it publishes its half-year results next week.

The Chris Griffith-led company said headline earnings per share (Heps) for the six months ended June 30, 2013, were expected to increase to between R4.80 a share and R5.35 a share, from the R2.73 a share reported for the comparative 2012 period.

The near doubling in Heps was largely attributable to a weaker average rand against the dollar exchange rate and higher sales volumes, partially offset by the impact of higher costs and lower realised dollar metal prices. 

Basic earnings a share for the period were expected to increase to between R4.50 a share and R4.86 a share from a loss of R1.78 a share for the prior year’s period.

Basic earnings for the comparative period included an after-tax once-off loss of R1.2-billion, or R4.55 a share, resulting from the write-down of certain investments, projects and assets that were considered uneconomical.

After suffering a loss in 2012, Amplats announced this year that it would cut up to 6 000 jobs in a bid to restore profits.

Amplats traded 1.40% higher on the JSE on Monday, fetching R295.33 a share by 11:00 in Johannesburg.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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