Platinum strike hits Anglo American as Amplats' 2014 profits sink

Anglo American has revealed that the contribution to underlying profits from its platinum division in South Africa plummeted 92% in 2014 as a result of an extended strike and lower metal prices.

Anglo American Platinum, otherwise known as Amplats, is the biggest primary producer of platinum in the world and accounts for around 40% of global supply.

An unprecedented five-month strike in the first half of the year led to a 21% fall in equivalent refined platinum output during 2014 at Amplats to 1.84m ounces.

Although the company assured that it recovered from the industrial action with a faster-than-expected ramp-up of operations post-strike, headline earnings totally 786m rand (£45m) or 301 cents per share, compared with R1.45bn (£83m) or 556 cents per share in 2013.

Analysts were looking for a per-share figure closer to 483 cents.

Parent company Anglo American revealed that the contribution to its underlying earnings from Amplats fell to just $25m in 2014, compared with $287m the year before, though 2013 did benefit from a large tax benefit.