Anglo American shareholders to vote on PGM demerger of South African PGM unit
Anglo American's Mogalakwena North concentrator. PGM production under Amplats also dipped by 17% to 696 300 ounces for the first quarter ended 31 March 2025.
Shareholders in Anglo American will vote for the demerger of its South African platinum group metals (PGM) producing unit next week, with the company also expecting to report 2025 half year financials for its steelmaking coal and nickel segments as discontinued operations.
Anglo American has been restructuring its operations through the demerger of some operating units such as those producing diamonds, PGM, nickel and steelmaking coal. It intends to focus more on copper and crop nutrients.
The London and JSE-listed resource group said Thursday that shareholders will now vote on the demerger of Anglo American Platinum (Amplats) on April 30. Details of the transaction have not yet been disclosed.
However, Anglo American expects the demerger of Amplats to result in taxes and transaction costs of $400 000 to $500 million this year, excluding charges incurred by Amplats.
'The demerger of the PGM business segment, which is subject to shareholder approval, is also expected to be reported as a discontinued operation, if approved by shareholders on 30 April 2025,' Anglo American said.
Furthermore, Anglo American expects financials for its steelmaking coal and nickel business segments to be reported as discontinued operations for the 2025 half year results.
The half year financials will also reflect 'the relevant assets and liabilities' for these assets as being held for sale.
Anglo American in January this year received $879m in proceeds from the disposal of its interests in Jellinbah. For the remaining steelmaking coal assets, the company expects to receive proceeds of $1.975 billion by the third quarter of this year.
An additional $350m was also being expected in proceeds from the disposal of the company's nickel interests on completion of the transactions by the end of the third quarter of 2025.
Duncan Wanblad, CEO of Anglo American, said the company was making good progress with its 'portfolio simplification' as it nears completion of the demerger of its PGM, nickel, and steelmaking coal subsidiaries.
'The demerger of Anglo American Platinum is expected to be effective from 31 May, subject to shareholder approval on 30 April,' Wanbald said.
"2025 is undoubtedly a year of portfolio and organisational transition for Anglo American and we will emerge as a highly differentiated, sustainably higher margin and higher return on capital employed investment proposition, well positioned for our next phase of growth and value delivery.'
During the first quarter ended 31 March 2025, Anglo American's copper production amounted to 168 900 tons, reflecting higher production from Peru as a result of higher grades although offset by planned lower production in Chile. This meant that the company's copper production for the quarter slumped by 15% year-on-year.
There was a marked 60% decrease in Anglo American's manganese ore production for the quarter to 317 000 tons. This has been attributed to 'the ongoing temporary suspension of the Australian operations following the damage caused by a tropical cyclone' in March 2024.
However, the company is expecting to resume manganese export sales by June this year.
PGM production under Amplats also dipped by 17% to 696 300 ounces during the quarter. This was reflective of planned 'lower purchase of concentrate volumes, as well as heavy rains and widespread flooding which impacted own mined production' primarily at Amandelbult.
Rough diamond production for De Beers was also lower by 11% for the quarter under review at 6.1 million carats as producers respond to lower demand through reduced production.
De Beers has finalised a new long-term diamond sales agreement with the Government of Botswana.
Wanbald said Anglo American was continuing to 'pursue a dual track process to divest our interest in De Beers' and added that this would be completed 'at the right time and when market conditions' allow.
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