Amplats Sees Profit More Than Doubling on Metals Rally
Bloomberg
Published Jan 28, 2020 03:44AM ET
Updated Jan 28, 2020 03:54AM ET
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on Twitter
Anglo American Platinum Ltd. (JO:AMSJ) expects to report that profit more than doubled last year after prices of the metals it mines surged.
Headline earnings were probably 131% to 151% higher than a year earlier, despite power outages which cut production and deferred processing of some metal, Amplats said Tuesday. It will report full-year results on Feb. 17.
The improved earnings show how higher metals prices are boosting mining companies’ bottom line, particularly in South Africa, where producers are also benefiting from a weaker rand that lowers costs. Palladium has surged to a record and platinum and rhodium prices also climbed as stricter emissions rules prompt automakers to use more of the metals in catalytic converters.
Anglo Platinum, which is controlled by Anglo American Plc (LON:AAL), rose as much as 2.8% in Johannesburg. While the stock has fallen this month, it’s still up more than 90% in the past year. The company said it also benefited from operational improvements last year.
(Updates with shares in fourth paragraph)
Get The News You Want
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.