Problem at Waterval smelter to hit Amplats earnings but not output
Anglo American Platinum increased production from its mines and refinery during the September quarter and told shareholders a problem at its Waterval smelter would cost the company about R750m in earnings before tax and interest this year. "The full impact on refined production from the run-out of the Waterval smelter is unlikely to flow through to sales volumes in 2016, which will be supplemented by inventory and market activities," said Amplats. Refined platinum output would fall by 75,000oz, it said. "This will result in a build-up of concentrate ahead of the smelters; however, the concentrate will be processed in full by the end of 2017. Mining and concentrating activities are unaffected, therefore there is no change to the full-year production guidance." Amplats expects production to be between 2.3-million and 2.4-million ounces this year, at a cost of up to R19,750/oz. Amplats, which is a subsidiary of Anglo American, has concluded the sale of its Rustenburg mines to Sibanye G...
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