Shares in South Africa-based Aquarius Platinum ticked-up some 2 per cent on the back of these half-year figures - which were in-line with brokers' expectations, but also included the unexpected fillip of modest dividend resumption.
Year-on-year, improved platinum group metal (PGM) prices saw cash earnings at a mining level move from a $72.8m (£46.4m) loss to a $56.7m profit. That was despite production being down 20 per cent to 208,857 PGM ounces - reflecting the geologically-triggered suspension of production at the Everest mine, industrial action elsewhere, and rand appreciation having increased local costs. Yet exceptional items bit deeply into reported profits. Strip out a $20.8m charge for early convertible bond redemption, and another $7.8m charge for recognising increased Zimbabwean tax liabilities, and the company's preferred adjusted post-tax net profit figure reached $32.5m, compared with the reported $3.9m that reported EPS is based upon.
While the early bond redemption charge was recognised in the half-year figures, actual bond redemption was not - this $106.7m liability was repaid from cash reserves last month. Aquarius was able to do that because, in December, it raised a fresh $300m through another convertible issue.
Chief executive Stuart Murray thinks that the second half should see an improvement in Aquarius' financial results. Panmure Gordon anticipates full-year EPS of 2¢.
| AQUARIUS PLATINUM (AQP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 376p | MARKET VALUE: | £1,739.0m | |
| TOUCH: | 376-377p | 12-MONTH HIGH: | 458p | LOW: 135p |
| DIVIDEND YIELD: | 0.3% | PE RATIO: | 47 | |
| NET ASSET VALUE: | 182¢ * | NET FUNDS: | $31m | |
| Half-year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 139 | -133 | -25.1 | nil |
| 2009 | 206 | 21.3 | 0.86 | 2.00 |
| % change | +48 | - | - | - |
Ex-dividend: 3 Mar Payment: 26 Mar *£1=$1.57 | ||||
