Johannesburg - Anglo Platinum [JSE:AMS], the world’s top
platinum producer, warned on Monday its first-half earnings would fall more
than 20%, 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 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%,” the miner said.
Angloplat, 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 Angloplat fell more than 2.5% on the news of
weaker profits, while other platinum producers including Impala Platinum
Holdings [JSE:IMP] were also dragged lower.
Anglo American is undertaking an operational review of Angloplat,
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.