Amplats forecasts an annual loss

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IOL BR mining PIC001 REUTERS File image: Reuters

Anglo American Platinum Limited (Amplats‚ AMS) said on Monday that headline earnings per share for the year ended 31 December 2012 were expected to decrease to a loss of between 491 cents and 628 cents from a profit of 1‚365 cents the previous year.

It said the expected decrease in HEPS was primarily due to lower sales volumes and lower realised prices during 2012. Platinum sales volumes for the period were lower primarily due to the two-month illegal industrial action experienced during the second half of 2012.

As a result of the illegal industrial action‚ the initial safety suspension and the ramp up period‚ which commenced 16 November 2012‚ total lost equivalent refined platinum production‚ including from joint ventures and associates‚ amounted to 306 koz.

The losses in production resulted in an increase in unit cash operating cost in 2012‚ due to the retained fixed cost base which further negatively impacted on HEPS for the period.

Basic earnings per share for the period are expected to decrease to a loss of between 2‚487 cents and 2‚624 cents from a profit of 1‚374 cents for the comparative period. Basic earnings for the period includes losses of R463 million resulting from the revaluation of certain investments and R6.606 billion (after-tax R4.756 billion) for the write down in the carrying value of various projects and other assets‚ not in use‚ that are considered not economically viable in the current market environment.

The group will release its annual results on or about 4 February 2013. - I-Net Bridge

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