Anglo American Platinum Warns of Tumbling Earnings on Persistently Lower Prices

By Christian Moess Laursen

Anglo American Platinum expects lower earnings in the first half-year due to significantly lower realized prices for platinum metals.

The world's largest platinum-metals producer said Thursday that it expects headline earnings to fall between 15% and 25% in the first half compared with the same period last year, when it booked 7.86 billion South African rand ($432.3 million).

The fall is due to 24% lower realized prices for platinum metals, dragged mainly by declines in palladium and rhodium prices, which fell 34% and 49%, respectively.

A 9% increase in sales volumes due to higher refined production will partially offset the hit to half-year revenue, said the company, which is majority owned by mining giant Anglo American.

Production fell 2% to 921,000 ounces in the six-month period.

The South African miner also said it delivered cost savings in line with its plan to cut expenses by $500 million this year.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

July 18, 2024 03:14 ET (07:14 GMT)

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