* Anglo American Platinum hit by lower sales, prices
* Sees earnings fall at more than 20 per cent
JOHANNESBURG, July 2 (Reuters) – Anglo American Platinum
, the world’s top platinum producer, warned on Monday
its first-half earnings would fall more than 20 percent, hit by
lower sales and falling prices.
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.
“In view of volatility in exchange rates and metal prices,
Anglo American Platinum cannot, with reasonable certainty,
quantify the extent of the decrease in expected earnings other
than that the decrease is expected to be more than 20 percent,”
the miner said.
Amplats, a unit of global miner Anglo American, said
a further trading statement would be issued to provide earnings
forecast ranges for earnings per share.
Shares in Amplats fell more than 2.5 percent on the news of
weaker profits, while other platinum producers including Impala
Platinum were also dragged lower.
Anglo American is undertaking an operational review of
Amplats, which it is expected to conclude later this year.
Analysts expect the review to outline the planned closure of
some higher cost deep shafts, signal some potential sales or
exits from some joint ventures with rivals, and focus its
spending.
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