Amplats’ FY earnings fall on impairments, restructuring costs

JOHANNESBURG (miningweekly.com) – Platinum major Anglo American Platinum (Amplats) has warned that impairments and restructuring costs would result in it reporting lower earnings and headline earnings for the year ended December 31.

Headline earnings and headline earnings per share (HEPS) for the year under review would be up to 92% lower than the headline earnings and HEPS of R786-million and 301c respectively in the prior comparative period.
 
Headline earnings would likely be between R60-million and R135-million, while HEPS would be between 25c and 55c.

Basic earnings and earnings per share for the period were likely to decrease by between 2 039% and 2 055% and by between 2 037% and 2 052% respectively on the basic earnings and EPS of R624-million and 239c respectively in the comparative period.

This would result in a loss of between R12.1-billion and R12.2-billion and a loss a share of between R46.30 and R46.65.
 
“The expected decrease in earnings and headline earnings is largely owing to impairments and write-offs of the carrying value of assets of R14-billion, with only R1.8-billion impacting headline earnings; restructuring costs amounting to R850-million; and the implementation of operational plans, which focus on the need to deliver positive cash flows and further increase efficiencies which ultimately led to a reduction in contractors and employees,” said Amplats. 

It added that its HEPS would have improved by 412c a share if the one-off items were excluded.