Amplats to post 20% interim earnings lift

[miningmx.com] – ANGLO American Platinum (Amplats) said it would post at least a one fifth increase in interim earnings for the period ending June 30 owing to an improved operational improvement.

“The increase in headline earnings and basic earnings is primarily due to the improvement in operational performance following the protected industrial action in the comparative period,” it said in a statement to the JSE.

Last year, the Association of Mineworkers & Construction Union (AMCU) led a five-and-a-haf year strike at the premises of Amplats, Lonmin, and Impala Platinum which reportedly cost the industry R30bn in lost revenue and wages.

Headline earnings and headline earnings per share for the six months period would be R31m or 12 cents per share higher than the comparative reporting. Headline earnings
and headline share earnings in 2014 were R157m and 60 cents respectively.

Basic earnings and basic earnings per share will also be at least 20% higher equal to R86m or 33 cents per share higher than in the six months period last year.

The company is due to report its figures on July 20 although focus will almost certainly fall on the Anglo American subisdiary’s plans for its non-core Rustenburg mines which it would seem to appear may be listed rather than divested through a trade sale.

“The key focus concerning Amplats near term for investors will be the progress on divesting of Rustenburg and Union mines, that look increasingly likely to take place via an IPO,” said Investec Securities in a morning note.

It also commented on a report in the Sunday Times that the firm’s parent company, Anglo American, was considering relocating its London offices.

“It is clear that Anglo is pursuing all options to cut costs,” said the company of a report that Mark Cutifani, Anglo American CEO, Cutifani had set up internal team to talk with the firm’s landlord about breaking lease at its offices at 20 Carlton House, near Buckingham Palace. The lease runs to 2020.

“Further, while we note the recent appointment of Mark Cutifani as chairman of Anglo South Africa and the positive effect this may have on negotiations with regard to mining regulations in South Africa, we do not expect Anglo to relocate its head office back to South Africa,” said Investec Securities.