Anglo Platinum reveals additional $1.3b dividend, outlines demerger timeline
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The news: Anglo American Platinum (Amplats) will deliver an additional 15.7 billion rand ($1.34 billion) cash payout ahead of its exit from Anglo American later in 2025.
The numbers: The total dividend for 2024 will come to 71.75 rand per share, inclusive of the additional payout. The company said that the payout is the most efficient method of realigning the capital structure ahead of the demerger.
Profit fell 45% to 7.1 billion rand in 2024, Amplats’ third consecutive year of declining earnings.
The context: In May 2024, Anglo American unveiled plans to shed its controlling stake in the platinum business as part of a wider restructuring prompted by BHP’s failed pursuit to take over Anglo American. BHP walked away from the potential $74 billion takeover hours before a ‘put-up-or-shut-up’ (PUSU) deadline expired, after the Australian miner failed to gain the support of Anglo’s board.
In its results, Anglo American Platinum CEO Craig Miller said the demerger is on track for completion in June this year, and will reduce Anglo’s stake in the Amplats unit to 19.9% (from around 67%).
“Anglo American will no longer have any representation on the Anglo American Platinum board post demerger and intends to exit its residual shareholding responsibly over time, and subject to customary lock-up arrangements,” Miller continued.
The sources: Anglo American Platinum annual results, Bloomberg
