Unlike peers, cash-flush Amplats is ready for growth again
Anglo American Platinum has cash to reward shareholders and make acquisitions — starting with buying out Mototolo partner Glencore
In stark contrast to two of its major peers, Anglo American Platinum has a solid balance sheet, allowing it to pay an interim dividend of R1bn — the first since 2011 — and buy Glencore’s stake in a strategically important mine for an upfront payment of R800m cash. Impala Platinum and Lonmin, the second and third largest platinum producers respectively, are in far worse shape, facing mine closures, the dismissal of thousands of workers, and in the case of Lonmin, hoping for a successful takeover bid by Sibanye-Stillwater to stave off a breach of debt covenants that could destroy the company. The world’s largest platinum producer has swung to an interim net cash position after selling or closing deep-level mines and unprofitable assets, reducing its portfolio to seven mines from 18 and cutting its workforce by 60% in five years, mainly through disposals. Amplats, which is 80% owned by Anglo American, returned R1bn to shareholders, declaring a R3.74 per share interim dividend after swi...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.