World number one platinum producer Anglo American Platinum on Tuesday reported a drop in first half-year earnings, hit by a stronger rand and a higher cost of sales.
Angloplat posted headline earnings per share — which strip out exceptional items and their tax effects — of R12,22 in the half year to June 30, against R18,80 in the same period a year earlier.
Analysts polled by Reuters had forecast the firm, which is majority owned by mining giant Anglo American, to post headline EPS of R12,60.
Angloplat declared a dividend of nine rand, down from R11 in the first half of 2001.
”Earnings were adversely affected by lower average rand prices for metals sold, the impact that the stronger rand had on the translation of US dollar-based assets when compared to December 2001, and higher cost of sales,” the company said in a statement.
Sales costs rose 19% to R4,46-billion.
The company said refined platinum output rose to 1,043-million ounces in the first half, compared to one million ounces in the same period last year.
It said it did not expect to repeat the record earnings of 2001 this year, but added that current rand platinum group metal prices are at levels that continued to yield substantial operating margins.
It also said refined platinum production in the second half of the year would be substantially higher than in the first half.
”With this increase, and on the assumption that rand metal prices will remain at current levels, the profit on metal sales for 2002 will be similar to that achieved in 2001,” it said. – Reuters