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Johannesburg - Anglo American Platinum or Amplats [JSE:AMS] said it’s still studying whether to separately list or sell four aging South African mines it’s seeking to dispose of.
“Currently both options for divestment - an initial public offering or a trade sale - are still being worked on, and whilst it remains practicable, both options will be kept open,” Amplats said in a statement Monday.
Amplats is planning to divest the Rustenburg and Union mines amid a 45% drop in the platinum price since the start of 2011 and as costs increase. The company will in future prioritise spending on its shallower, mechanised properties such as the Mogalakwena pit.
Headline earnings, which exclude one-time items, were R2.47bn, up from R157m in the same period last year, Amplats said.
Equivalent refined production climbed to 1.1 million ounces from 715 200 ounces, while the average price of platinum in the first six months declined 19% to $1 161.94 an ounce from the previous year. No dividend was declared. The average market price achieved for platinum fell 19% to $1 160 an ounce, while the cash operating cost per ounce declined 2%to R20 108.
Production in the second half will be higher than in the first six months of the year, and output will be 2.3 million ounces to 2.4 million ounces this year, the company said.
Capital spending will probably decline to R4bn to R4.5bn, excluding R1.2bn of capitalised waste stripping, which forms part of preparing an operation for mining.
