Amplats drops into the red in 2012

The world's biggest platinum miner, Anglo American Platinum, has announced that it swung to a big loss in 2012 as it was hit by strikes and lower prices in the second half.

The world's biggest platinum miner, Anglo American Platinum, has announced that it swung to a big loss in 2012 as it was hit by strikes and lower prices in the second half.

The group, widely known as 'Amplats', said that headline earnings per share are expected to fall to a loss of between 491 cents and 628 cents for last year, well below the profit of 1,365 cents reported in 2011.

Amplats, a subsidiary of UK-listed resources giant Anglo American, said that sales volumes during 2012 were affected by two-month-long illegal industrial action which resulted in an initial safety suspension and ramp-up period.

Total lost equivalent refined platinum production, including from joint ventures and associates, amounted to 306,000 ounces. What's more, the losses in production meant that unit cost operating costs increased during the period.

Amplats also recorded losses of 463m rand (£33m) resulting from the revaluation of certain investments and 6,606m rand (£472m) for the write-down of the value of various assets that are no longer considered "economically viable". As such, the company said that basic earnings per share are forecast to drop to between 2,487 cents and 2,624 cents in 2012, from a profit of 1,374 cents in 2011.

Meanwhile, according to Reuters on Monday afternoon, Amplats is likely to sell or shut down its 85%-owned Union mine in South Africa, which produced 254,000 ounces of platinum in 2011.

According to an unnamed spokeswoman from the company, Amplats is expected to announce a review of its assets on Tuesday.

Shares in Anglo American were down 0.15% at 2,039p in London by 15:10.

Recommended

HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022
How to be better at selling stocks
Investment strategy

How to be better at selling stocks

There is plenty of advice around about buying stocks, but not so much about when you should sell. John Stepek explains the two key things to know abou…
14 Jan 2022
Share tips of the week – 14 January
Share tips

Share tips of the week – 14 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
14 Jan 2022
Fintech: how to profit as technology transforms banking around the world
Share tips

Fintech: how to profit as technology transforms banking around the world

Financial technology – from apps to APIs to the cloud – is rapidly transforming financial services. This will spell doom for some incumbent firms, whi…
14 Jan 2022

Most Popular

Five unexpected events that could shock the markets in 2022
Stockmarkets

Five unexpected events that could shock the markets in 2022

Forget Covid-19 – it’s the unexpected twists that will rattle markets in 2022, says Matthew Lynn. Here are five possibilities
31 Dec 2021
US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022
Tech stocks teeter as US Treasury bond yields rise
Tech stocks

Tech stocks teeter as US Treasury bond yields rise

The realisation that central banks are about to tighten their monetary policies caused a sell-off in the tech-heavy Nasdaq stock index and the biggest…
14 Jan 2022