Amplats sees sharp earnings rise on strike recovery

Johannesburg - The world's biggest platinum producer Anglo American Platinum [JSE:AMS] said on Monday it expected its interim earnings to rise by almost 1 500% as it recovers from a five-month strike last year and benefits from an after-tax gain.

Amplats, which will release its results next Monday, said in a statement that headline earnings per share are expected to come in between 940 cents and 950c, an increase of almost 1 500%.

The company said it has increased its estimate of the quantity of metals in its inventory, which resulted in an after-tax gain of 600 cents per share.

A weaker rand has also helped lift its earnings since the company exports almost all of its production.

Platinum prices are trading around their lowest levels since 2009, only marginally above $1 000 per ounce, which has pushed Amplats' shares to decade-lows and rival Lonmin [JSE:LON] to historic lows.