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South Africa's Amplats sees FY profit plunging on impairments

Published 2016-01-25, 02:11 a/m
© Reuters. South Africa's Amplats sees FY profit plunging on impairments

JOHANNESBURG, Jan 25 (Reuters) - South Africa's Anglo
American Platinum Ltd (Amplats) AMSJ.J on Monday flagged a
sharp fall in full-year earnings due to impairments, write-downs
and restructuring costs in bid to survive plunging in commodity
prices.
Headline earnings per share, the main gauge of profit that
strips off certain one-off items, is expected to be down to
between 25 cents and 55 cents compared with earnings of 301
cents a year earlier.
Amplats, a division of Anglo American Plc AAL.L , is
undergoing tough cost cutting to deal with plunging prices and
low demand for its precious metals and the effects of a
crippling five-month strike in 2014 at its biggest operation.
The top platinum producer said the fall in profits was due
to efforts to make the business more efficient, cash generative
and lean by reorganising operations and structure.
Anglo American, the world's fifth-biggest miner by market
value, is on a drive to sell more assets and whittle its
business down to three divisions to cope with sharp fall in
commodity prices.
Amplats said headline earnings per share would have risen to
412 cents if it had excluded the impact of the restructuring
costs, a loan to its joint-venture partner Atlatsa ATL.TO and
the increase in inventory.

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