JOHANNESBURG (miningweekly.com) – As a result of the five-month strike by workers at platinum miner Anglo American Platinum’s (Amplats’) operations at the start of 2014, the company expects its headline earnings for the year ended December 31, to decrease by between 40% and 55% year-on-year to between R650-million and R875-million.
Headline earnings per share (HEPS) were likely to be between 250c and 335c respectively.
Amplats had reported headline earnings and HEPS of R1.4-billion and 556c respectively for the 2013 financial year.
Basic earnings and basic earnings per share (BEPS) for the period were, however, likely to increase to between R495-million and R705-million and 190c and 270c respectively, compared with basic earnings and BEPS of R1.3-billion and 525c in the prior financial year. This reflected an increase of between 136% and 151% year-on-year.
Basic earnings for the period under review include a gain of R243-million, equivalent to 93c a share, arising on the final phase of the refinancing transaction with Atlatsa Resources Corporation; an impairment of an investment in an unlisted associate of R168-million and the scrapping of assets of R294-million, after tax and minority interest, equivalent to 113c a share, following the closure of the lossmaking Union mine south decline section.
Amplats signed a R3.5-billion revised restructuring, recapitalisation and refinancing plan with Atlatsa and the Bokoni group of companies in 2013.
Last year, the company announced that it would sell its interests in the consolidated Union-Rustenburg mine, as well as the Pandora joint venture (JV) operations and is assessing the possible exit of the Bokoni JV, to enable it to focus on assets that could deliver higher margins, lower costs and improved returns on capital.