Amplats 1st Half Net Profit Soars on Higher PGM Prices

By Oliver Griffin

Anglo American Platinum Ltd. (AMS.JO) on Monday reported soaring net profit for the first half of 2019 after a small increase in production combined with higher platinum group metals prices to deliver stronger results.

The platinum miner, which is majority owned by Anglo American PLC (AAL.LN), said profit grew to 7.31 billion South African rand ($523 million) in the six months ended June 30, from ZAR2.18 billion in the year-earlier period.

Headline earnings, the company's preferred metric which strips out certain items, grew similarly to ZAR7.38 billion, from ZAR3.36 billion in the first half of 2018. As well as a higher rand basket price for PGMs produced in the period, the company also recognized a stock-count adjustment gain of ZAR1 billion versus a ZAR400 million loss a year ago.

Gross revenue for the period rose 28% to ZAR42.9 billion in the first half of the year, Anglo American Platinum--known as Amplats--said. The company said total production of PGMs, which includes platinum and palladium, as well as other metals, rose 6% to 2.3 million ounces.

With rising headline earnings, the company's dividend also increased. Amplats said it will pay ZAR11 a share for the first half of the year, compared with ZAR3.74 in the year-earlier period.

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

(END) Dow Jones Newswires

July 22, 2019 02:43 ET (06:43 GMT)

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