Anglo American Platinum (Amplats) has declared an additional cash payout of R15.7 billion as it moves closer to separating from its parent company, Anglo American, later this year.
The latest dividend brings Amplats’ total shareholder payout for 2024 to R71.75 per share, the Johannesburg-listed company confirmed in a statement on Monday.
“This is the most efficient method of realigning the capital structure ahead of the demerger and is supported by our net cash position at year-end,” the company stated.
Anglo American first announced plans to divest its controlling stake in Amplats in May 2023 as part of a broader restructuring effort. This move followed an unsolicited $49 billion takeover bid from BHP, prompting Anglo to reevaluate its holdings.
Since then, Anglo has been reducing its stake in Amplats to enhance the company’s free float in preparation for a full divestment. According to a separate statement, Anglo American has made “significant progress” in the demerger process and plans to seek shareholder approval at its annual general meeting on April 30.
Anglo American CEO Duncan Wanblad confirmed that the demerger remains on track for completion in June. As part of the transition, the company intends to reduce its stake in Amplats from approximately 67% to 19.9% and will exit the remaining shareholding “responsibly over time, and subject to customary lock-up arrangements.”
Meanwhile, Amplats reported a sharp decline in earnings, with profit dropping 45% to R7.1 billion in 2023. This marks the third consecutive year of declining profits and dividends, driven largely by a slump in palladium and rhodium prices, which fell by 24% and 30%, respectively, in 2024.
The downturn has also impacted other major South African platinum producers, with both Impala Platinum and Northam Platinum cautioning investors about significantly lower earnings projections.
As Anglo American advances its strategic overhaul, the platinum sector faces mounting pressure amid falling commodity prices and shifting market dynamics.
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