JOHANNESBURG - Anglo American Platinum (Amplats) traded 4.79percent higher on the JSE yesterday after the group said it expected its profits for the year to the end of December to be almost double last year’s numbers.
The group said its headline earnings for the year were expected to be between 96percent and 114percent higher, which is between R3.65billion and R4bn, compared with the headline earnings of R1.87bn reported a year ago.
The group said the expected increase in headline earnings and basic earnings was primarily a result of a strong operational performance, strict cost control and higher platinum group metals sales volumes, with a 2percent increase in the rand basket price.
Amplats said the expected increase in headline earnings was primarily the result of strong operational performance and higher platinum sales volumes. Photo: Simphiwe Mbokazi/African News Agency (ANA)
As a result, the share price climbed to R347.64 a share yesterday morning, before closing at R334.12.
“Shareholders are advised that headline earnings and headline earnings a share for the period are likely to increase to between R3.65bn and R4bn, or between 96 and 114percent higher than the prior year figure of R1.87bn and to between 1392cents and 1526c a share, or between 95 and 114percent higher than the prior year figure of 713c, respectively,” the group said.
Amplats is also expecting to show a healthy improvement in basic earnings and earnings a share for the year.
“Basic earnings and earnings a share for the period are likely to increase to between R1.85bn and R1.97bn, or between 193percent and 212percent, higher than the prior year figure of R632million and to between 706c and 751c a share, or between 193percent and 212percent higher than the prior year’s figure of 241c respectively,” the group added.
The group said basic earnings for the period were also impacted by attributable impairments after tax of R3.9bn, of which R2.2bn was recognised in the interim results for the six months to end June.
In December last year, Amplats completed the disposal of its loss-making 42.5percent stake in Pandora to Lonmin for a deferred cash payment of a minimum of R400m and a maximum of R1bn, based on 20percent of free cash flow over six years.
The group also completed the sale of Amandelbult to Northam for R1bn.
Amplats will release its year results on February 19.