Tough year for Angloplat

Anglo Platinum, the world's largest producer of the metal, said yesterday it had experienced "very challenging" market conditions during 2009.

The company was releasing its results for the year ended December 31 2009.

It said its headline earnings decreased by 95% to R710-million. The main cause was the lower US dollar prices realised on metals sold.

Though the global financial crisis, which started during the last quarter of 2008, had curbed demand for platinum group metals and caused prices to decline significantly, the second half of 2009 had brought "early signs of economic recovery".

There had been a consequential increase in demand and recovery in prices. Platinum increased by 60% from $922/oz at the beginning of 2009 to $1475 at December 31 2009, the company said.

It also announced yesterday that it would raise R12.5-billion in a rights offer to repay its long-term debt.

Anglo Platinum, listed in Johannesburg and majority owned by Anglo American, said net debt had increased to R19.26-billion from R13.46-billion.

"Consequently Anglo Platinum has announced its intention to issue equity to the value of R12.5-billion in a rights offer.