Rand weakness boosts Amplats interims

[miningmx.com] – THE weaker rand and an increase in volumes is set to help Anglo American Platinum (Amplats) to a healthy recovery in fortunes, the company said in a statement to the JSE.

Interim headline share earnings will increase by between 480c and 535c per share for the six months ended June 31, the company said. This compares to the 273c/share reported for the first six months of the previous financial year.

“The expected increase in headline earnings per share is largely attributable to a weaker average exchange rate of the rand against the dollar and higher sales volumes,” the company said. These benefits would be partially offset by the impact of higher costs and lower realised dollar metal prices, it added.

Shares in Amplats increased by just under 2% by midday trade in Johannesburg. The platinum price was a quarter of a basis point higher to $1,412 per ounce.

Basic share earnings were expected to increase by between 450c and 486c/share from an interim loss of 178c/share in the previous financial year, a period which incorporated a R1.2bn write-down of assets that Amplats said could not be developed.

On July 3, the Association of Mineworkers and Construction Union (AMCU) demanded a doubling in entry-level pay for workers employed by Anglo American Platinum (Amplats).

This would mean underground workers would receive a minimum R12,500 monthly based on estimates that entry-level salaries are about R5,000 to R6,000/month, said Reuters.