Amplats expecting to post year-end loss

Illegal action creates expected loss

Illegal action cause of expected loss
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JSE-listed Anglo American Platinum has warned shareholders to expect a loss, due mostly to two months of illegal industrial action last year.

Anglo American Platinum Limited is currently finalising its results for the year ended 31 December 2012 (“the period”), which will be released on SENS at around 4 February 2013.

“Headline earnings per share (HEPS) for the period is expected to decrease to a loss of between 491 cents and 628 cents from a profit of 1 365 cents reported for the year ended 31 December 2011,” it announced in a statement on its website.

Amplats says the expected decrease in HEPS is primarily due to lower sales volumes and lower realised prices during 2012.

“Platinum sales volumes for the period were lower primarily due to the two-month illegal industrial action experienced during the second half of 2012. As a result of the illegal industrial action, the initial safety suspension and the ramp-up period that commenced 16 November 2012, total lost equivalent refined platinum production, including from joint ventures and associates, amounted to 306 koz.

“The losses in production resulted in an increase in unit cash operating cost in 2012, due to the retained fixed cost base, which further negatively impacted on HEPS for the period.

“Basic earnings per share for the period is expected to decrease to a loss of between 2 487 cents and 2 624 cents from a profit of 1 374 cents for the comparative period. Basic earnings for the period includes losses of R463m, resulting from the revaluation of certain investments and R6.606m (after-tax R4.756m) for the write-down in the carrying value of various projects and other assets, not in use, that are considered not economically viable in the current market environment.”

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