The first half of the financial year has hit the platinum mining sector hard with almost 4,000 job cuts just from Amplats. Picture: Amplats
There has been another major blow to the South African jobs market, as Anglo American Platinum (Amplats) said on Monday it has cut around 3,700 jobs.
The mining company said that the decision was made to reduce spending ahead of its planned restructuring.
Amplats said that it was readying plans to remove itself from its parent company, Anglo American.
The move is part of a wider restructuring in an effort to combat a takeover bid from of the BHP Group.
Amplats CEO Craig Miller said the company was excited at the prospect of being a stand-alone company, according to Amplat’s 2024 Interim Results statement.
"The opportunities before us as a stand-alone company are both numerous and exciting," he said.
"The planned demerger will create a more focused, independent global leader in the PGM (platinum group metals) industry."
"We are working to deliver a responsible and orderly separation from Anglo American, considering the best interests of all stakeholders and shareholders, by the end of 2025. Our management team and independent board is already working alongside a dedicated team from with Anglo American to achieve this," Miller added.
Amplats reported an 18% fall in half-year earnings as the company’s profits were hit by lower metal prices.
The mining company reported R6.5 billion in headline earnings for the six months ended in June. This was down from R7.9 billion in the first half of 2023.
“Despite the PGM basket price being down, 24% compared to the first half of 2023, and once-off restructuring costs and inflation, we have delivered EBITDA of R12.3 billion which translates into headline earnings for the first six months of R6.5 billion,” Miller explained.
“We have ended the first half with a strong R14.5 billion net cash position, with our restructuring and cost savings measures well on track. So, I am delighted that the board has declared an interim dividend of R9.75 per share, or R2.6 billion equivalent to a 40% payout of headline earnings in line with our capital allocation policy”.
He concluded that of these dividends, R70 million will go to Amplats employees via Thobo (the company’s employee ownership scheme) and to the community ownership scheme trusts.
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