Harare - Anglo American Platinum [JSE:AMS] says its results for the year to end-December 2017, set for release on February 19 2018, will show earnings growth of about 100%.
In a statement released on Tuesday, Amplats said headline earnings and headline earnings per share (Heps) for the period are likely to increase to between R3.65bn and R4.00bn higher than prior year figure of R1.87bn.
Headline earnings per share are also expected to increase to between 1 392 cents and 1 526c per share (or between 95% and 114% higher than the prior year figure of 713c).
“Basic earnings and EPS for the period are likely to increase to between R1.85bn and R1.97bn (or between 193% and 212% higher than the prior year figure of R632m) and to between 706c and 751c per share (or between 193% and 212% higher than the prior year figure of 241c) respectively,” said the miner.
Amplats attributed the expected increase in headline earnings and basic earnings to strong operational performance, strict cost control and higher platinum group metal sales volumes.
A 2% increase in the rand basket price also contributed to the positive out-turn.
“In addition, during the second half of 2017, the company valued the impact of ore stockpiles ahead of concentrators across the business equating to R0.9bn post-tax in the period, to the extent that these stockpiles are expected to be utilised in the foreseeable future.
“Basic earnings for the period is also impacted by attributable impairments after tax of R3.9bn, of which R2.2bn was recognised in the interim results to June 30 2017.
“In addition, basic earnings benefits from the inclusion of profit on the sale of assets of R1.2bn, largely attributable to the disposal of long-dated Amandelbult resources. This is excluded from headline earnings.”
In December 2017, Amplats advised shareholders that the company was likely to report headline earnings that will exceed those of the prior year by 20%.