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South Africa’s Amplats earnings soar on higher metals prices, output

A cow is seen near the AngloAmerican sign board outside the Mogalakwena platinum mine in Mokopane , north-western part of South Africa , Limpopo province May 18, 2016. REUTERS-Siphiwe Sibeko

South African miner Anglo American Platinum Ltd (Amplats) reported on Monday a 572% surge in interim earnings and paid a record dividend as higher metals prices and increased output boosted profits.

Amplats reported headline earnings per share, the main profit measure used in South Africa, for the six months ended June 30 of 176.47 rand ($11.88) per share versus 26.27 rand a year earlier.

The miner declared an interim dividend of 175 rand per share, consisting of both a base dividend and a special dividend, compared to 10.23 rand a year earlier.

High prices for metals extracted by Amplats, including platinum, palladium and rhodium, have boosted profits with the average rand prices for the platinum group metals (PGM) it mines up 29% during the period.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) during the period rose 385% to a record 63.3 billion rand with net cash at the end of the period at 57.6 billion rand.

The precious metals miner said refined production during the half-year increased by 128% to 2,326,700 ounces, boosted by the completion of the rebuild of unit A at its Anglo Converter Plant (ACP) processing facility in 2020.

Amplats declared force majeure and cut its production outlook after an explosion at the ACP plant last year halted processing activity.

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