mplats full year numbers expected to be around 50% lower than last year
The world's second -largest platinum producer said the decline in earnings was the result of weaker metal prices.
Posted: Friday , 21 Aug 2009
JOHANNESBURG, (Reuters) -
mineweb.com
South Africa's Impala Platinum (Implats) (IMPJ.J: Quote), the world's second biggest producer of the metal, said on Friday its full year headline earnings per share would fall on the back of weaker prices for the metal.
Implats said its headline EPS to the end of June are expected to be between 980 and 1,020 cents, compared with 2,065 cents due to the significant decrease in metal prices.
South Africa produces four out of five ounces of the world's platinum, which is used in catalytic converters to remove pollutants from car exhausts, and in jewellery.
The company is facing a strike by workers next week over wages. A strike could hurt investor sentiment in a sector already hard hit by the financial crisis.
Platinum producers have faced a difficult year after the metal experienced a rollercoaster ride. The metal hit $2,276 in March 2008, partly because of a power shortage in South Africa that disrupted mining, but was hit by the global economic downturn, which has brought plummeting car sales.
In July, bigger rival Anglo Platinum (AMSJ.J: Quote), posted weaker first-half earnings due to the weaker metal price. The company's headline EPS, the key gauge of profit in South Africa, fell 95 percent to 169 cents, in line with the firm's own forecast.
Shares in Implats traded 2.43% up at 207.11 rand, beating a 0.45 decline by Anglo Platinum's stock. The blue chip share index .JTOPI rose 0.9%.
Implats said it would release its results on Aug 27. (Reporting by James Macharia) |
