Anglo Platinum Profit Surges as Output Climbs After Strike

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Anglo American Platinum Ltd.’s first-half profit soared after the world’s biggest producer of the metal bounced back from a five-month strike last year that crippled operations. Its shares rose.

Headline earnings climbed to as much as 2.48 billion rand ($200 million), or 9.50 rand a share, from 157 million rand, or 60 cents a share, a year earlier, the Johannesburg-based company said in a statement Monday. It will book a tax gain of 1.6 billion rand after revising the amount of platinum it processed. The full results will be published July 20.

The stock rose 3.3 percent to 258.22 rand by 9:33 a.m. in Johannesburg, paring this year’s decline to 24 percent.

Platinum prices have dropped 15 percent this year.

The profit jump “is due to the improvement in operational performance following the protected industrial action in the comparative period,” said Amplats, as the company is known.

Its operations were halted for five months in 2014 by a strike in South Africa, which has the world’s largest platinum reserves. An increase in sales volumes and rand weakness against the dollar also helped boost profit, Amplats said. That was partially mitigated by a drop in the platinum price, it said.

For more, read this QuickTake: The Politics of Platinum

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