Anglo AmericanPlatinum Ltd.'s net profit attributable to shareholders in thefirst half plummeted 62% year over year to 938 million South African rand, or3.58 rand per share.
The net profit included a 104 million rand impairment ofinvestments in associates, 111 million rand impairment of noncurrent financialassets and deferred foreign exchange translation losses of 493 million rand.The net gains on available for sale investments totaled 412 million rand.
In a bid to conserve cash, Amplats said July 25 that it willdelay capital investment decisions on all major projects until after 2017 andintends to achieve direct overhead savings and indirect savings of 1.0 billionrand by the fourth quarter.
Moreover, the company identified cuts of 1,000 positions atthe Union mineto align head count with a smaller operation.
The capital expenditure guidance for the full year was cutto between 3.5 billion rand and 4.0 billion rand, from 3.7 billion rand to 4.2billion rand previously.
Total capital expenditure in the half was 1.4 billion rand,a 15% year-over-year drop.
The increased net sales revenue of 30.66 billion rand, from29.86 billion rand in the prior-year half, was offset by a 9% surge in the costof sales to 27.95 billion rand, mainly as a result of an increase in cashoperating cost. Except at its Mogalakwena mine, the company saw minor improvements innet sales revenue across all of its operations.
EBIT amounted to 2.1 billion rand, compared to 3.5 billionrand a year ago, on the back of a 1.6 billion rand lower pre-tax stock gainthis year. EBIT was positively impacted by the weakening of the South Africanrand against the U.S. dollar that contributed 5.0 billion rand, and the lowercosts of 1.4 billion rand, which was partly offset by lower prices of 4.6billion rand and lower sales volumes.
Amplats' board has decided not to declare a dividend for thefirst half due to its net debt position and is considering future capitalfunding requirements in the uncertain macroeconomic environment.
The refined platinum production in the six months decreased9% on a yearly basis to 1.0 million ounces because of a Section 54 safetystoppage at the Precious Metal Refinery in the first quarter. Refined platinumproduction in the second quarter jumped 33% year over year to 748,000 ounces.
Platinum production, on a metal-in-concentrate basis,increased 2% year over year to 1.15 million ounces. Retained own-mineoperations, excluding projects, saw an 8% improvement in platinum production to461,000 ounces.
The company expects full-year production to be at the upperend of its guidance of 2.3 million ounces to 2.4 million ounces at a unit cashcost of between 19,250 rand per platinum ounce and 19,750 rand per platinumounce.