Anglo American Platinum will release results for the six months ended 30 June 2017 (“the period”) on the Stock Exchange News Service (“SENS”) on 24 July 2017.
Shareholders are referred to the Company’s trading statement released on SENS on 27 June 2017 in which the Company advised that headline earnings and headline earnings per share (“HEPS”) for the period were expected to be at least 20% (R329 million or 126 cents per share, respectively) lower than for the comparative reporting period for the six months ended 30 June 2016 (“comparative period”) and that basic earnings and basic earnings per share (“EPS”) for the period were also expected to be at least 20% (R308 million or 118 cents per share, respectively) lower than for the comparative period.
On the basis that the comparative period financial results were restated in the 2016 Annual Results, shareholders are reminded as follows:
| |
Reported
|
Restated
|
| Headline earnings |
R1.04 billion |
R1.65 billion |
| HEPS |
399 cents |
629 cents |
| Basic earnings
|
R938 million
|
R1.54 billion |
| EPS |
358 cents |
588 cents |
Shareholders are advised that headline earnings and HEPS for the period are likely to decrease to between R550 million and R875 million (or between 67% and 47% lower than the prior year restated figure of R1.65 billion) and to between 210 cents and 335 cents per share (or between 67% and 47% lower than the prior year restated figure of 629 cents) respectively.
Basic earnings and EPS for the period are likely to decrease to between a loss of R1,065 million and a loss of R1,370 million (or between 169% and 189% lower than the prior year restated figure of R1.54 billion) and to between a loss of 405 cents and a loss of 520 cents per share (or between 169% and 188% lower than the prior year restated figure of 588 cents) respectively.
The expected decrease in headline earnings and basic earnings is primarily a result of attributable post-tax impairments totalling c.R2.2 billion impacting basic earnings of which c.R0.3 billion impacts both basic and headline earnings. The impairments that impacted basic earnings only included Union mine of c.R0.9 billion (consequent on the signature of agreements to sell the Company’s interest in Union and shareholding in Masa Chrome), equity interests in BRPM of c.R950 million and Bokoni Platinum Holdings of c.R45 million. The impairments that impacted basic and headline earnings include the write down of a term loan to Atlatsa and a loan to the Bakgatla Ba-Kgafela Community related to their interest in Union.
In addition, expected headline and basic earnings are lower due a significant strengthening of the rand in H1 2017 compared to H1 2016, as well as lower sales volumes. Sales volumes were impacted by refined production.
Refined production was impacted by the Waterval Furnace Number 1 smelter run-out in Q3 2016, which was successfully rebuilt in Q4 2016 and is running at steady-state. Waterval Number 2 furnace underwent a planned rebuild in Q1 2017 and has successfully ramped up to steady-state. The result of the run-out in 2016 is a backlog in processing pipeline material of 65,000 platinum ounces, which is expected to be made up during H2 2017.
A high-pressure water leak at the Converter Plant (ACP) impacted one converter plant (Phase A) of the operation on 4 June 2017. The second converter plant (Phase B) was heated up and returned to steady state production 10 days later. The time required to reheat Phase B created a backlog of material, deferring 90,000 ounces of refined production from Q2 2017 into H2 2017.The result of the planned rebuild of Waterval Number 2 furnace and ACP Phase A event has impacted refined production for the period, and therefore lead to lower sales volumes.
The financial information on which this trading statement is based has not been reviewed or reported on by the Company’s external auditors.
Johannesburg
18 July 2017
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)