REUTERS, Johannesburg | Tuesday
ANGLO American Platinum Corp (Amplats) has sold a stake of roughly 17.5% in miner Northam to empowerment firm Mvelaphanda Platinum.
“Together with the acquisition from Rembrandt Group of a 5% shareholding in Northam, Mvela will hold approximately 22.5% which is roughly equal to Amplats remaining holding,” the platinum miner said.
Amplats gave no cash indication on the value of the deal with Mvela which already mines diamonds and trades oil. Northam is South Africa’s fourth largest platinum producer.
“The total consideration is worth R565.6m for the 22.5% stake,” an Amplats official said.
Amplats earlier said it had sold a stake of roughly 17.5% in miner Northam to empowerment firm Mvelaphanda.
With results out shortly Amplats is expected to reap the benefit from strong metal prices and a weaker rand when it posts its interim results.
A survey of analysts polled by Reuters forecast the world’s biggest platinum producer posting headline earnings per share (eps) for the six months to June 30 of R12.50, compared to R5.75 in the same period last year. An interim dividend of R6.00 versus R2.75 was forecast.
Amplats’ results are expected to be buoyed by strong export prices for platinum group metals (PGMs) and a weaker rand which offset a slight fall in PGM output caused by heavy rains in the first quarter of the year.
“They should be very strong results,” said Steve Shepherd, analyst at Fleming Martin.