Anglo Platinum, the world’s biggest platinum producer, said on Monday its earnings per share tumbled 95% on lower prices for the metal, but said it would meet its annual output target.
Angloplat, majority owned by mining group Anglo American, reported headline EPS of 169 cents, which it said were eroded partly by a 51% fall in the US dollar price for its metals and an 18 p% weakening of the South African rand against the greenback over the period.
The platinum price fell sharply from more than $2 000 an ounce in March 2008 to the mid-$700 range by the end of last year and crept up slightly to about $1 000 early this year. It was trading at $1 202 on Monday.
The South African firm said refined platinum production rose 6% to 1 056 400 ounces compared with the same period in 2008, and that it expected to meet its target of 2,4-million ounces of refined platinum production for the full year.
Refined platinum sales were 1,22-million ounces compared with 1,11-million ounces in the first half of 2008, the firm said.
The company’s chief executive, Neville Nicolau, said he expects the price of the metal to be above $1,200 an ounce.
”Given a continuation of robust platinum jewellery sales in China, firm platinum investment demand and a probable increase in demand for platinum from the autocatalyst sector, Anglo Platinum believes the platinum price should find support above $1 200 per ounce during the remainder of the year,” he said.
He said based on Angloplat’s process pipeline stocks and high smelter availability, it was likely the company could supply up to 2,6-million ounces should market demand increase during the second half of 2009. — Reuters