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Amplats flags loss as strikes hit production

Publishing Date
14 Jan 2013 11:48am GMT
Mining Journal
Anglo American Platinum Ltd (Amplats) said it expected to report a loss for 2012 as the amount of platinum production lost at its strike hit mines in South Africa increased to more than 300,000oz.

In a trading update the company said it expected basic earnings per share for 2012 to decrease for a loss of between R24.87 (US$2.86) and R26.24/share, compared with a profit of R13.74/share in 2011.

Amplats, which is finalising its 2012 financial results to be released on February 4, said the company had been hit by lower sales volumes and prices for the year.

It said the results included a write-down of R6.6 billion on the value of assets “not in use” and a further loss of R463 million following the “revaluation of certain investments”.

The company attributed its poor results to a spate of illegal protests at its Rustenburg, Union and Amandelbult platinum mines in South Africa late last year, which lead to more than two months of production disruptions.

It revised the amount of platinum production lost from the labour unrest to 306,000oz, up from 235,000oz announced in December.

Following falling platinum prices and increased costs, Amplats said in April it would undertake a review of its operations, the results of which are expected to be released this month.

The company said last year the operations “were under considerable economic pressure” and the review would result in a platinum business that was “the right size and shape to compete successfully in the global market.”

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