Platinum strike hits Anglo American as Amplats' 2014 profits sink

9th Feb 2015 07:05

Anglo American has revealed that the contribution to underlying profits from its platinum division in South Africa plummeted 92% in 2014 as a result of an extended strike and lower metal prices.Anglo American Platinum, otherwise known as Amplats, is the biggest primary producer of platinum in the world and accounts for around 40% of global supply.An unprecedented five-month strike in the first half of the year led to a 21% fall in equivalent refined platinum output during 2014 at Amplats to 1.84m ounces.Although the company assured that it recovered from the industrial action with a faster-than-expected ramp-up of operations post-strike, headline earnings totally 786m rand (£45m) or 301 cents per share, compared with R1.45bn (£83m) or 556 cents per share in 2013.Analysts were looking for a per-share figure closer to 483 cents.Parent company Anglo American revealed that the contribution to its underlying earnings from Amplats fell to just $25m in 2014, compared with $287m the year before, though 2013 did benefit from a large tax benefit.