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JSE-listed Anglo American Platinum (Amplats) on Monday advised that its headline earnings and headline earnings per share (HEPS) for the six months ended June 30 are likely to be between R3.2-billion and R3.4-billion and between R1.20 and R1.30, respectively.
This is compared with the headline earnings of R747-million and the HEPS of 285c reported for the first half of the 2017 financial year.
In an updated trading statement, Amplats noted that its basic earnings for the first half of this year are likely to increase to between R2-billion and R2.2-billion, compared with a R1.1-billion earnings loss in the prior comparable period.
Earnings a share are likely to be between 778c and 866c, compared with the loss a share of 453c in the prior comparable period.
The company attributed the expected increase in headline earnings and basic earnings to an improved operational performance, as well as an improvement in the rand basket price for the period.
In addition, in the comparable period, Amplats had attributable post tax-impairments totalling R2.2-billion, which impacted on basic earnings and headline earnings.
Basic earnings in the current period are impacted on by an impairment of R600-million relating to the disposal of the 33% holding in the Bafokeng Rasimone Platinum Mine joint venture to Royal Bafokeng Platinum and a loss of R800-million on the finalisation of the disposal of Union Mine and Masa Chrome, while benefiting from an insurance receipt of R200-million in respect of property damage suffered at the convertor plant in 2017.
Both basic and headline earnings benefit from a revaluation gain on the deferred consideration in respect of the sale of the Rustenburg Mines of R300-million.