Anglo American Platinum (Amplats) said on Monday it expected its profits for the year ended 2016 to surge by 20 percent, despite impairments on its earnings.
The company said its headline earnings for the 2016 financial year were expected to increase to between R1.64 billion and R2 billion from the R107 million reported in the comparative period, with headline earnings per share (HEPS) expected to increase to between 625 cents and 760 cents a share in the period, from 41 cents in the corresponding period.
In a trading update that was released in November, the miner said it expected that its headline earnings would be R21 million and HEPS would be 8 cents higher. The company said the impairments it had in the second half of the period would impact on its basic earnings but not on its headline earnings.
“The company has additional impairments in the second half of 2016 of R283m (post tax), of which R130m is in respect of an impairment of the investment in Bokoni.
“R153m in respect of an impairment of the investment in Pandora following the signature of a conditional sales and purchase agreement to sell the company’s 38percent interest in Pandora to Lonmin,” Amplats said. The company also said it had successfully concluded a broad based black economic empowerment deal during the year which granted 26 percent equity of its Amandel bult chrome plant to empowerment partners. Amplats is expected to publish its financial results next week. -IOL