Anglo American Platinum: Shares rise on expectation of profit

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Headline earnings a share at Anglo American Platinum (Amplats) were expected to increase to a profit of between R4.80 and R5.90 for the 12 months to December last year, the biggest platinum producer said yesterday. This was an improvement from a headline loss a share of R5.62 for the previous year. “The increase is due to higher sales volumes and favourable rand/dollar exchange rate,” the company said. This was partially offset by the weaker US dollar metals prices and one-off restructuring costs amounting to about R1.457 billion, which was equivalent to R1.04bn after tax, equivalent to R4.02 a share. A higher effective tax rate, resulting from an additional provision in respect of previous years, was also a factor. Basic earnings a share for the full year were expected to improve to a loss of between R4.95 and R6.05, from a loss of R25.58 the year before. Basic earnings for last year included one-off items, such as a write-down of R2.81bn (R2.02bn after tax) in the carrying value of projects and other assets as a result of the restructuring plans, equal to R7.76 a share, as well as a loss on the acquisition of properties equalling R833 million, related to the Atlatsa Resources refinancing transaction. The company added: “There was no tax impact arising on the loss on acquisition of properties.” The annual results are expected to be released on February 3. Amplats shares closed 3.44 percent higher at R432 on the JSE yesterday, while the platinum mining index gained 2.66 percent. – Sapa

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