Anglo American Platinum will release results for the six months ended 30 June 2017 ("the period") on the Johannesburg Stock Exchange News Service ("SENS") on 24 July 2017.
With reference to the listings requirements of the JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding reporting period.
Anglo American Platinum advises shareholders, with reasonable certainty, that headline earnings and headline earnings per share ("HEPS") for the six months ended 30 June 2017 will be at least 20% (R329 million or 126 cents per share) lower than the comparative reporting period for the six months ended 30 June 2016 ("the comparative period"). Restated headline earnings and HEPS for the comparative period were R1.65 billion and 629 cents respectively. Basic earnings and basic earnings per share ("EPS") will also be at least 20% (R312 million or 118 cents per share) lower than the comparative period. Restated basic earnings and EPS for the comparative period were R1.54 billion and 589 cents respectively. Shareholders are reminded that the comparative period financial results were restated in the 2016 Annual Results. For reference, reported headline earnings and HEPS for the comparative period before restatement were R1.04 billion and 399 cents respectively, and reported basic earnings and EPS for the comparative period before restatement were R938 million and 358 cents respectively.
The expected decrease in headline earnings and basic earnings is primarily a result of the stronger rand. The build-up of work-in-progress material of 65,000 platinum ounces as a result of the rebuild of Waterval Furnace Number 1 in Q4 2016, followed by the planned rebuild of Waterval Furnace Number 2 in Q1 2017 will result in this material being refined in H2 2017 as expected. Waterval Furnace Number 2 is operating at steady state. In addition, a high pressure water leak at the Converter Plant ("ACP") impacted one converter plant (Phase A) of the operation on 4 June 2017, towards the end of the period. A second converter plant (Phase B) was heated up and returned to steady state production on 14 June 2017. The time required to reheat Phase B created a build-up of work-in-progress material which will delay c.90,000 ounces of refined platinum production from the period into H2 2017. There is no impact to full year production, with guidance maintained at metal in concentrate production of between 2.35 – 2.40 million ounces.
There is currently insufficient certainty to enable the Company to provide specific guidance on its expected results and it is anticipated that Anglo American Platinum will publish a further trading statement closer to the release of its interim financial results which will be released on 24 July 2017 on the Stock Exchange News Service.
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors.
Johannesburg
27 June 2017