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Johannesburg- Anglo Platinum [JSE:AMS], the world's largest platinum producer, held its 2011
output target of 2.6 million ounces on Monday despite a tough start to the year and forecast a stronger second half.
The company produced 1.2 million ounces in the first half and needs to ramp up production to meet its target but a looming strike in the sector could cut into its full-year figures.
Spot platinum on Monday was down 0.3% to $1 787.99 an ounce after rising 2.6% last week. Angloplat produces about 40% of the global supply of the precious metal.
The company said it expected the platinum market to "remain in balance" in 2011.
It said it had a difficult start to the year with more safety stoppages in the first quarter than the whole of last year. Eight employees were killed on the job during the first six months of 2011.
As expected, the company's first-half headline earnings rose to 1 236 cents versus 1 028 cents in the same period last year on higher sales and prices. This was in the range the company had flagged to the markets ahead of its results.
The group declared an interim dividend of 500c per share.
Operating free cash flow increased by 159% to R4.745bn compared to the first half of 2010. The company generated R2.914bn more operating free cash flow than in the first half of 2010.
Factors contributing to the higher earnings were 15% increase in the US dollar realised price on the basket of metals sold and a 13% increase in platinum sales volumes. This was in part offset by a 9% strengthening in the average rand/dollar exchange rate.
The company produced 1.2 million ounces in the first half and needs to ramp up production to meet its target but a looming strike in the sector could cut into its full-year figures.
Spot platinum on Monday was down 0.3% to $1 787.99 an ounce after rising 2.6% last week. Angloplat produces about 40% of the global supply of the precious metal.
The company said it expected the platinum market to "remain in balance" in 2011.
It said it had a difficult start to the year with more safety stoppages in the first quarter than the whole of last year. Eight employees were killed on the job during the first six months of 2011.
As expected, the company's first-half headline earnings rose to 1 236 cents versus 1 028 cents in the same period last year on higher sales and prices. This was in the range the company had flagged to the markets ahead of its results.
The group declared an interim dividend of 500c per share.
Operating free cash flow increased by 159% to R4.745bn compared to the first half of 2010. The company generated R2.914bn more operating free cash flow than in the first half of 2010.
Factors contributing to the higher earnings were 15% increase in the US dollar realised price on the basket of metals sold and a 13% increase in platinum sales volumes. This was in part offset by a 9% strengthening in the average rand/dollar exchange rate.
