Johannesburg - Anglo American Platinum says its first half earnings will be lower than initially anticipated.
The miner, which is selling its Rustenburg mines to Sibanye Gold for R4.5 billion, explains the decreases are due to a higher inventory gain in the previous corresponding period, and a decrease in dollar metal prices.
Miners have been hard hit in recent times by a commodity rout, although gold has recovered somewhat after Brexit as it is seen as a safe haven.
In a statement issued on Tuesday, Amplats says the annual inventory count last year lead to a gain of R1.6 billion or 599 cents per share post-tax, which was substantially higher than the inventory gain in the current period - a gain of R424 million or 162 cents per share post-tax).
The company - which will release results on July 25, said headline earnings would be between 50 percent and 70 percent lower, while basic earnings would drop to between 54 percent and 74 percent lower.
The company says headline earnings and headline earnings per share for the first half are likely to decrease to between R745 million and R1.235 billion and 285 cents and 470 cents per share.
This compares to headline earnings of R2.471 billion and headline earnings per share of 945 cents reported for the first half of the previous year.
Read also: Amplats expects lower profit
Previously, Amplats had expected headline earnings and headline earnings per share to drop by 20 percent.
Basic earnings and earnings per share are likely to decrease to between R645 million and R1.130 billion and 245 cents and 430 cents per share.
This compares to basic earnings and EPS of R2.444 million and 936 cents a year ago, it says.
IOL