Despite Anglo Platinum’s (Angloplat’s) period-on-period production tumbling by nearly one-fifth for the six months ended June 30, the world’s biggest miner of the white metal said on Monday that headline earnings had risen 22% to a record R8,44-billion.

The record performance was thanks to soaring prices over the period, a favourable rand/dollar exchange rate, as well as lower taxes, the company said in an emailed statement.

However, a flooded mine, the Turffontein shaft rehabilitation, lower throughput at the Mogalakwena South concentrator and electricity supply constraints had curtailed output.

Angloplat rose 4,31% on the JSE to trade at R975,00 a share by 09:23, which was 51% down on its R1 480,00 a share 12-month high.

Attributable headline earnings climbed 21% to R35,63 a share, on the back of a 17% increase in sales revenue for the half-year to R27,5-billion.

Angloplat lifted its capex figure for the period to R5,8-billion, showing a 25% rise on the figure for the previous comparable period.

The group’s gross profit margin shrank to 41% for the first half of the year, while it declared an interim dividend of R35 a share.

“Our record financial performance during the period was driven by strong demand and record metal prices in the face of significant operational challenges,” said CEO Neville Nicolau, who took up the position on June 1.

“We are pleased with the progress made on improving employee safety while implementing programmes to move towards zero harm.”

Nicolau added that the Amandelbult mine had returned to normal production levels, after a flood shut it at the end of last year, while the Mogalakwena North concentrator would be at full production in September.

“Both are instrumental in our planned increase in mining output in the second half to reach 2,4-million ounces for 2008,” he said in the statement.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.