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Johannesburg - Shares of Anglo Platinum [JSE:AMP] tumbled 4% on Thursday after the world’s top platinum producer said 2011 earnings likely fell by about a third, hit by costs linked to a black empowerment deal.
Miners have government-mandated targets to be at least 26% black-owned by 2014 as part of a policy to rectify racial disparities.
Amplats said late last year it planned a R3.5bn development deal to give a 2.33% stake to communities where it operates.
That deal will result in a one-time accounting charge of around R1bn, which will help shave 24% to 34% from its 2011 headline earnings per share, the miner said on Thursday.
The company also said earnings were adversely affected by the high number of safety stoppages resulting in lower production as well as higher costs, particularly for labour and electricity.
The platinum price fell 21% in 2011 and producers in South Africa, which has around 80% of known global reserves, are also grappling with safety issues and soaring labour and power costs.
Amplats’ shares lost 23% in 2011, making them the third-worst performing share on South Africa’s benchmark Top 40 - (Tradeable) [JSE:J200] index. In morning trade its shares were 4% lower at R545.00, underperforming the Top 40 which was 0.12% down.
Miners have government-mandated targets to be at least 26% black-owned by 2014 as part of a policy to rectify racial disparities.
Amplats said late last year it planned a R3.5bn development deal to give a 2.33% stake to communities where it operates.
That deal will result in a one-time accounting charge of around R1bn, which will help shave 24% to 34% from its 2011 headline earnings per share, the miner said on Thursday.
The company also said earnings were adversely affected by the high number of safety stoppages resulting in lower production as well as higher costs, particularly for labour and electricity.
The platinum price fell 21% in 2011 and producers in South Africa, which has around 80% of known global reserves, are also grappling with safety issues and soaring labour and power costs.
Amplats’ shares lost 23% in 2011, making them the third-worst performing share on South Africa’s benchmark Top 40 - (Tradeable) [JSE:J200] index. In morning trade its shares were 4% lower at R545.00, underperforming the Top 40 which was 0.12% down.
