Latest news with #Amplats
The Citizen
19-05-2025
- Business
- The Citizen
Here's why Amplats will still pay Anglo R1.6bn a year after unbundling
The separation will also cost R5.7bn in once-off charges. Demerging is an expensive exercise. Anglo American Platinum (Amplats) – to be renamed Valterra Platinum on 1 June – will spend a total of R432 million in transaction costs alone related to its separation from parent Anglo American plc. These will (mostly) be in the form of professional services fees, including investment bankers and lawyers. Aside from this, it will also incur once-off costs of R5.2 billion related to the demerger. Costs of Amplats unbundling from Anglo American In the prospectus, it says it will cost the platinum group metal (PGM) producer R1 billion to set up its 'standalone information management structure' as well as rebranding. A further 'R45 million is expected to be incurred in relation to site and office costs, security costs, and marketing costs'. The bulk of the once-off figure – R4.2 billion – 'relates to the settlement of intercompany services between the Anglo American Group and [the soon-to-be-renamed Valterra], of which R2.85 billion was accrued as at 31 December 2024, and the remaining R1.35 billion was agreed in 2025'. Services agreement Valterra, as it will be known, on 8 April agreed an umbrella services agreement with Anglo American that will kick in once the demerger, which has been approved by shareholders, is completed on 31 May. It says under the terms of this agreement, Anglo American 'has been contracted to provide certain administrative services to the Group [Amplats/Valterra] during a transitional period' while they are established and/or migrated to Valterra. ALSO READ: SA opened 159 new mines in five years, creating over 15 000 jobs Amplats has always been part of Anglo. That's just how it was – hence the reason for this convoluted arrangement. The agreement specifically covers 'the provision of staffing and resources principally in relation to finance, human resources, infrastructure operations, and information technology functions'. Valterra will pay its soon-to-be former parent R1.646 billion a year for these services. Amplats says 'shortly following completion of the Demerger, the Group [Amplats/Valterra] and the Anglo American Group will jointly prepare exit plans to transition the continuing services'. These timeframes typically run for 24 to 36 months. The separation of Absa from Barclays plc (following the latter's decision to divest) had a similar agreement. However, due to Barclays originally migrating Absa onto its systems, it footed most of the bill for the very complicated split to get Absa back onto its own systems. In total, Barclays made a R12.6 billion contribution (payment) towards the separation programme. ALSO READ: 'Restructuring a last resort', says Amplats as over 4 000 jobs in jeopardy As part of the demerger, Valterra will list on both the JSE and the London Stock Exchange (LSE), with the latter to ensure that 'the high number of Anglo American's existing, UK-based shareholders will not be prevented from holding, or continuing to hold, shares in the company following the demerger'. Anglo has said it will retain a shareholding in Valterra of 19.9% for at least 90 days following the demerger. Historically, it owned 67% of that business. Tax windfall The fiscus is set for a tax windfall due to the demerger, comprising $300 million in dividend-withholding tax, capital gains tax of $63 million, and securities transfer tax totalling $25 million. At current exchange rates, this equates to R7.1 billion. Under pressure from investors, Anglo announced a strategy in May 2024 to simplify its portfolio and focus on 'copper, premium iron ore and crop nutrients (potash)'. As part of this simplification, it announced that it would demerge a portion (read: the bulk) of its 67% stake in Amplats. This article was republished from Moneyweb. Read the original here. NOW READ: Mining bosses rake in hundreds of million rands per year each
Reuters
30-04-2025
- Business
- Reuters
Anglo American shareholders approve demerger of South African unit Amplats
April 30 (Reuters) - Global miner Anglo American (AAL.L), opens new tab said on Wednesday that shareholders have approved the demerger of its South African unit, Anglo American Platinum (Amplats) (AMSJ.J), opens new tab, along with the company's share consolidation. The resolution was passed at the company's general meeting, with 99.94% of votes cast in favor. here. The demerger is expected to become effective on May 31, subject to the satisfaction or waiver of certain conditions. Amplats, the world's leading producer of platinum group metals (PGM) by volume, will be separated from Anglo American as the parent company refocuses on energy transition metals like copper and iron ore. Amplats, which proposed changing its name to Valterra Platinum in March, will retain its primary listing in Johannesburg, with a secondary listing on the London Stock Exchange. The share consolidation is set to take effect on June 1, with the ratio to be announced on May 20.
IOL News
24-04-2025
- Business
- IOL News
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. BUSINESS REPORT
Zawya
25-02-2025
- Business
- Zawya
South Africa: Rains affect Amplats Tumela production
Anglo American Platinum said it had halted operations at its Tumela mine after excessive rains caused flooding, though the company maintained its production forecast for the year. The world's top producer of platinum group metals (PGM) used to curb vehicle emissions said in a statement that heavy rains in the northern part of South Africa over the past week had caused widespread flooding. Tumela mine, the smaller underground operation in Amplats' Amandelbult complex, was the most impacted, it said. Operations in the rest of the complex, including the main Dishaba mine, the concentrator and other infrastructure, were largely unaffected and operations there had resumed on Monday after a temporary pause. A detailed impact assessment and recovery plan to ensure safe production at Tumela mine, which produces about 10% of Amplats' monthly metal-in-concentrate, was under way. "Preliminary indications are that the 2025 metal-in-concentrate production guidance of 3 million to 3.4 million PGM ounces is not expected to be impacted," Amplats said. Amplats on February 17 reported a 40% decline in profit for 2024 to R8.4bn as lower PGM prices continue to hurt its income.
Reuters
24-02-2025
- Business
- Reuters
Amplats halts operations at South African mine after heavy rains
Feb 24 (Reuters) - Anglo American Platinum (AMSJ.J), opens new tab said it had halted operations at its Tumela mine in South Africa on Thursday after excessive rains caused flooding, though the company maintained its production forecast for the year. The world's top producer of platinum group metals (PGM) used to curb vehicle emissions said in a statement that heavy rains in the northern part of South Africa over the past week had caused widespread flooding. Tumela mine, the smaller underground operation in Amplats' Amandelbult complex, was the most impacted, it said. Operations in the rest of the complex, including the main Dishaba mine, the concentrator and other infrastructure, were largely unaffected and operations there had resumed on Monday after a temporary pause. A detailed impact assessment and recovery plan to ensure safe production at Tumela mine, which produces about 10% of Amplats' monthly metal-in-concentrate, was under way. "Preliminary indications are that the 2025 metal-in- concentrate production guidance of 3 million to 3.4 million PGM ounces is not expected to be impacted," Amplats said. Amplats on February 17 reported a 40% decline in profit for 2024 to 8.4 billion rand ($458.56 million) as lower PGM prices continue to hurt its income. ($1 = 18.3184 rand) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
