CORRECT:3rd UPDATE: Angloplat 1H Net Up 15%, But Still No Dividend

26th Jul 2010 13:45

("=3rd UPDATE: Angloplat 1H Net Up 15%, But Still No Dividend" published at 1024 GMT misstated the year-earlier revenue figure in the fourth paragraph. The correct version follows:) By Robb M. Stewart Of DOW JONES NEWSWIRES JOHANNESBURG (Dow Jones)--Anglo Platinum Ltd. (AMS.JO), the world's largest producer of the metal, said Monday its profit for the first half of the year was boosted by a stronger price for its metals that offset a fall in platinum sales. The Johannesburg company said it remains on track to refine and sell 2.5 million troy ounces this year and expects the price for platinum to remain strong. However, it said it will continue to forego paying a dividend to shareholders after tapping them in March for 12.5 billion rand ($1.69 billion). If the market continues to recover and Angloplat sees a sustained improvement in cash flow, the board will reconsider paying a dividend for the full year, Finance Director Bongani Nqwababa said during a conference call with reporters. Angloplat's half-year net profit rose to ZAR3.29 billion from ZAR2.86 billion a year earlier, while revenue increased 22% to ZAR20.78 billion from ZAR17.07 billion, the company said. The average price the company achieved for platinum was $1,593 an ounce in the first half, and Chief Executive Neville Nicolau said the price is likely to average at least $1,500/oz for the year as supply and demand remain balanced globally. Nicolau said the company's target for refined platinum output this year remains unchanged, despite a 5% fall in the first six months to 1 million ounces. Production in the second half of the year is traditionally higher because of fewer holidays and cooler average temperatures. Nicolau had earlier this year said the company had the flexibility to ramp up 2010 production to 2.7 million ounces, but Monday said that wouldn't be appropriate given the recent "downshift" in the global economic recovery. Sales of refined platinum in the first six months was down at almost 1.1 million ounces from 1.2 million ounces a year earlier. Angloplat in March launched a ZAR12.5 billion rights issue with shareholders, including majority-owner Anglo American PLC (AAL.LN), to help it cut debt and strengthen its balance sheet. Its net debt by the end of June had fallen to ZAR8.25 billion from ZAR19.26 billion in December, and Nqwababa said it fall further during the second half of 2010. Platinum prices fell sharply during the global economic recession as demand for the metal by the automotive and jewelry industries dried up. Angloplat said auto production is likely to return to 2008 levels this year, which will mean a continued recovery in demand for platinum group metals used in exhaust catalytic converters. The company suspended its dividend with the final payment due for 2008, cut jobs and closed poorer performing shafts in response to the fall in demand. It said that during the first half of the year it improved productivity at its mines, trimmed costs and benefited from a centralized procurement system with parent Anglo American. Angloplat's mines are in South Africa, which accounts for more than three-quarters of the world's supply of platinum. The company this month received a letter from the government granting it renewed mining rights under South African legislation that among other things is pushing to bring the majority black population into the mainstream economy and reverse the country's legacy of racist apartheid policy. At 0917 GMT, Angloplat's shares were trading 0.5% higher at ZAR738.51, modestly ahead of a rise in the wider market. Company web site: www.angloplatinum.com -By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; [email protected] (END) Dow Jones Newswires July 26, 2010 08:45 ET (12:45 GMT)