Anglo American Platinum Warns of Big Earnings Drop Due to Strike

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Anglo American Platinum (Amplats) on Monday gave the first insight into the devastation wrought on platinum companies’ profits by a five-month strike, warning that interim headline earnings could fall up to 96%, BDLive reported.

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Amplats is better off than Impala Platinum and Lonmin PLC because the strike, settled in June, at its Rustenburg operations by the Association of Mineworkers and Construction Union affected only 40% of production.

Amplats had built stockpiles of finished metal ahead of the strike, anticipating a lengthy stoppage.

On Tuesday, July 15, Indian silver fell by 3.2 percent to INR 45,098 ($750.76) per kilogram, making it the day’s biggest mover. Following two days of rising prices, the price of Chinese silver dropped 1.6 percent to CNY 4,335 ($698.53) per kilogram. The price of Japanese silver changed direction with a 0.3 percent drop. After two days of improving prices, the metal finished at JPY 694.00 ($6.84) per 10 grams. The price of US silver remained essentially flat at $20.90 per ounce.

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Chinese gold bullion prices saw a 2.1 percent decline to CNY 260.85 ($42.03) per gram. Weakening prices followed two days of improvement as the price of Japanese gold bullion dropped 1.3 percent to JPY 4,295 ($42.30) per gram. At INR 27,865 ($463.88) per 10 grams, Indian gold bullion fell 1.2 percent on Tuesday. US gold bullion held its value on Tuesday at $1,307 per ounce.

Tuesday saw the price of Chinese platinum bar drift down 0.9 percent to CNY 316.00 ($50.92) per gram after a couple of stagnant days. Japanese platinum bar finished the day down 0.7 percent to JPY 4,884 ($48.10) per gram. At $1,493 per ounce, the price of US platinum bar was essentially unchanged.

The price of Japanese palladium bar increased 0.2 percent to JPY 2,875 ($28.32) per gram. Following a two-day drop, the price of US palladium bar increased by 0.1 percent to $868.00 per ounce. The price of Chinese palladium bar remained steady at CNY 195.00 ($31.42) per gram.

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