Anglo American Platinum's earnings leap on strong metal prices

Anglo American Platinum on Monday reported a leap in interim headline earnings as the South Africa-based miner's revenues jumped due to higher metals prices.

Headline earnings for the six months to June 30 were up 120% year on year to ZAR 7.4bn (£430m) on a 28% rise in sales revenues to ZAR 42.9bn as global prices for platinum group metals (PGM), particularly palladium and rhodium, rose and the rand weakend against the dollar.

Demand for palladium and rhodium was expected to remain strong through the rest of this year and 2020 as the metals are increasingly sought by vehicle manufacturers seeking to comply with new emissions legislation in Europe, North America and China.

Consequently, the precious metals producer hiked its interim dividend from ZAR3.74 to ZAR11 and chief executive Chris Griffith assured investors that there are still further opportunities to "unlock the full potential" of Anglo American's operations.

Total production of PGM edged 2% lower to 2.1m ounces after power outages and strike action hampered growth but the FTSE 100-listed miner still maintained full year guidelines of 4.2m to 4.5m ounces as Griffith predicted a "stronger" second half of the year.

Anglo American's shares were up 0.16% at 2,237.50p at 0801 BST.