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Reuters
Published
Jul 27, 2009
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Angloplatinum's first half earnings fall on weak metal prices

By
Reuters
Published
Jul 27, 2009

JOHANNESBURG (Reuters) - Anglo Platinum, the world's biggest platinum producer, said on Monday 27 July its earnings per share tumbled 95 percent on lower prices for the metal, but said it would meet its annual output target.


Photo: REUTERS/Issei Kato/Files

Angloplat, majority owned by mining group Anglo American Plc, reported headline EPS of 169 cents, which it said were eroded partly by a 51 percent fall in the US dollar price for its metals and an 18 percent weakening of the South African rand against the greenback over the period.

The platinum price fell sharply from above $2,000 an ounce in March 2008 to the mid-$700 range by the end of last year and crept up slightly to around $1,000 early this year. It was trading at $1,202 on Monday 27 July.

The South African firm said refined platinum production rose 6 percent to 1,056,400 ounces compared with the same period in 2008, and that it expected to meet its target of 2.4 million ounces of refined platinum production for the full year.

Refined platinum sales were 1.22 million ounces compared to 1.11 million ounces in the first half of 2008, the firm said.

The company's Chief Executive Neville Nicolau said he expects the price of the metal to be above $1,200 an ounce.

"Given a continuation of robust platinum jewellery sales in China, firm platinum investment demand and a probable increase in demand for platinum from the autocatalyst sector, Anglo Platinum believes the platinum price should find support above $1,200 per ounce during the remainder of the year," he said.

He said based on Angloplat's process pipeline stocks and high smelter availability, it was likely the company could supply up to 2.6 million ounces should market demand increase during the second half of 2009.

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