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Valterra Platinum Flags' first-half profits fall for South Africa

Valterra Platinum Flags' first-half profits fall for South Africa

Valterra Platinum, a South African company, expects to see its first-half profit fall by up to 88% as a result of lower sales and output as well as special costs relating to the demerger with Anglo American Plc Group.

Valterra, previously Anglo American Platinum said it expected headline earnings of between 800 million rand to 1.6 billion rand (44.97-$89.94) for the six months ending June 30. This is down from 6.5 billion in the same period the previous year.

The company reported that the sales of platinum group metals (PGMs) fell by 25% following heavy rain and flooding at Valterra’s Tumela Mine within its Amandelbult Complex.

Demerger costs totaled 1.4 billion rand in the first half. Valterra separated from Anglo Mining in June. It is now listed separately in Johannesburg and London as the global mining company restructures to focus primarily on energy metal copper.

Valterra stated that cost savings of approximately 2.1 billion rands helped offset the declines in earnings during the period.

The company's refined production guidance for the year of 3,0 million to 3.4 million PGM-ounces remains unchanged.

Valterra will announce its half-year results on the 28th of July, its first as an independent company. Reporting by Nelson Banya, Editing by Elaine Hardcastle.

(source: Reuters)