Weaker metal prices and a simultaneous decline in the South African rand helped profits at Anglo Platinum plummet by 68 per cent in the first half of 2009.
Headline earnings per share tumbled 95 per cent to 169 cents from 3563 cents compared to the first six months of 2008.
The South Africa-based company says the lower earnings were due to a 51 per cent fall in the U.S. dollar price for its platinum group metals and the rand weakening by 18 per cent against the dollar. Anglo Platinum is the biggest producer of platinum. It released its interim results for the six months of 2009 ending June 30.
Platinum prices have taken a beating since March 2008 when the metal was trading at an all-time high of $2230 US per ounce. It is now sitting around $1200 US.
Angloplat chief executive Neville Nicolau said he expects the price of the metal to be above $1200 an ounce for the rest of the year due to strong platinum jewellery sales in China. A probable increase in demand for the metal in the autocatalyst sector and among investors is also likely to help prices recover.
