Anglo American Platinum Projects Up to 46% Drop in 2024 Earnings Amid Low Metal Prices and Restructuring Costs

Anglo American Platinum (Amplats) expects headline earnings for the 2024 financial year to decline by as much as 46%, driven by persistently low metals prices and costs related to restructuring and its demerger from parent company Anglo American.

The world's leading producer of platinum group metals (PGMs), which are used to reduce vehicle emissions, anticipates headline earnings between 7.6 billion rand and 9 billion rand ($408.8 million-$484.1 million) for the year ended December 31, down from 14 billion rand in 2023.

Amplats attributed the decline to falling metal prices, with palladium and rhodium prices dropping 24% and 30%, respectively, over the past year. Additionally, the company reported 3.5 billion rand in costs related to operational and corporate restructuring, including expenses associated with the demerger.

The platinum miner is expected to be spun off from the Anglo American group by mid-2024, according to CEO Craig Miller. The separation is part of Anglo American's broader restructuring plan, designed to fend off a $49 billion takeover bid from rival BHP and to sharpen its focus on more profitable copper and iron ore assets.