Anglo American Platinum Ltd is on target to refine and sell 2.6 million ounces of platinum for 2011, anticipating a better performance in the second half of the year compared to the first half (H1).

The world's largest platinum producer saw H1 earnings rise to rand 3,233 million, reflecting an increase of 26 per cent compared to H1 2010. Headline earnings per share also increased by 20 per cent to R12.36.

Increases in platinum sales volumes of 13 per cent were partly offset by a strengthening of the rand/dollar exchange rate.

The company also experienced 33 safety stoppages in the first six months of this year, almost double that over the same period in 2010. Eight employees also lost their lives to accidents.

Anglo Platinum has lost ground in Johannesburg trading, alongside its rivals, but is confident in the opportunities presented by its South African mines over the next two decades.

In a statement to Bloomberg, the company said: "We still have deep Merensky shafts to develop, Tumela 3 and 4 shaft, and Union Deeps.

"While these will be capital intensive shafts, we believe that they will be competitive at that time because of our PGM market development initiatives."

The company believes that the platinum market will remain in balance throughout the rest of the year, with recovery of autocatalyst and industrial segments.

Anglo American saw production of refined platinmum increase by 17 per cent to 1.17 million ounces in the H1 2011, compared to H1 2010.

Strength across the Chinese jewelry market is expected to boost production this year. Anglo American chief executive Neville Nicolau explained that the price for platinum has been robust despite the unexpected Japanese tsunami and earthquake. "We continue to believe that there is strong demand and investor interest to support the market," he added.

Sources:


Amplats holds 2011 output target, HI profit up
 (25/07/11)


Amplats Sees ‘Multiple’ Opportunities to Build Deep-Shafts in South Africa (25/07/11)


Anglo American Platinum First-Half Profit Climbs 20% After Prices Increase (25/07/11)


Anglo American Platinum Limited posts a 26% increase in earnings
 (25/07/11)

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