Anglo Platinum has posted shining results for the half-year ended in June 30 with headline earnings per share attributable to ordinary shareholders increased to R9,24 per share.
This was 33,7% higher than in the first half of 2004.
The increase in headline earnings resulted from a combination of higher US dollar metal prices, increased refined production and once-off benefits arising from the change in the South African corporate tax rate and a gain in the quantity of pipeline stocks.
The effect of the stronger average rand on sales was largely offset by gains on foreign exchange as the rand weakened during the first half of 2005. An interim ordinary dividend of R4,80 per share has been declared.
Commenting on these results, CEO Ralph Havenstein said he was pleased with the progress made in implementing the new business model.
This had set the group on course to achieve cost and efficiency improvements while continuing to expand.
”Focused interventions to address difficult geological conditions and to increase long term stability and flexibility are gathering momentum. Our smelting and refining operations performed well with improved recoveries and increased use of available smelting capacity”, Havenstein said.
Anglo Platinum remained confident of the robustness of current and future demand for platinum and would continue to pursue its strategy to grow the markets for platinum group metals and to expand production to meet increased demand.
The rate of expansion is reviewed on an ongoing basis and the recent weakening of the rand against the US dollar, combined with strong prevailing metal prices, resulted in higher projected project returns. If this improvement appeared sustainable, the development of certain projects may be accelerated.
”Our emphasis on capital optimisation and the deferral of some projects has resulted in our forecast capital expenditure for 2005 reducing to R4,5-billion. The refined platinum production target for 2005 remains at 2,6-million ounces and for 2006 remains between 2,7-million and 2,8-million ounces,” said Havenstein. – Sapa