* Amplats says earnings hit by lower sales, prices
* Sees HEPS at 270-280 cents from 1,236 cents
(Adds details)
JOHANNESBURG, July 18 (Reuters) – Anglo American Platinum
, the world’s top platinum producer, warned on Wednesday
that first-half earnings will drop by as much as 78 percent, hit
by lower sales and prices.
Amplats, a unit of global miner Anglo American, said
it expects headline earnings per share for the six months to
end-June to total between 270 and 280 cents, from 1,236 cents a
year earlier.
Headline earnings are the main profit gauge in South Africa
and exclude certain one-off, financial and non-trading items.
It said sales volumes were hit by the delayed restart of a
converter plant after annual maintenance, and prices remained
weak.
Higher-than-expected costs relating to labour, diesel and
electricity also weighed on earnings, it said.
South Africa’s platinum sector is battling the impact of
weak demand, soaring costs and a government safety drive that
has cut production as operations are suspended for safety
violations.
Amplats also said it incurred a loss of 256 million rand
($31.39 million) resulting from revaluation of its investment in
Wesizwe Platinum.
Continued…
