Amplats sees 40% drop in FY24 HEPS

Shares of Anglo American Platinum surprised investors with the announcement of a cash dividend of R59 per share, on top of a final dividend of R3 per share. This move came despite a 40% slump in full year profits due to weaker metal prices. The world's largest platinum miner, currently in the process of demerging from its parent company Anglo American, has set June as the deadline for completion. In a recent interview with CNBC Africa, Craig Miller, CEO of Anglo American Platinum, shed light on the decision-making process behind the dividends and the company's path to becoming a standalone entity. Miller emphasized the importance of cost-cutting measures and balancing the company's books in preparation for the demerger. As a way of resetting the business, Anglo American Platinum has successfully taken out R12 billion in cost and capital over the last year. Miller underscored the significance of this move for the company's future outlook. The board approved a base dividend of R3 per share, equating to 40% of earnings, along with an additional cash dividend of R59 per share, totaling R16.5 billion in distributions to shareholders in the second half of the year. The unanimous decision by the board reflects confidence in the company's strategic direction and asset quality. Looking ahead, Anglo American Platinum aims to list on the Johannesburg Stock Exchange with a secondary listing on the London Stock Exchange as part of the demerger process. While the target deadline set for June is ambitious, Miller expressed confidence that the company is on track to meet it. He acknowledged the fluidity of external factors but remained optimistic about overcoming any potential obstacles. Discussing the market outlook for platinum group metals (PGMs), Miller highlighted the role of PGMs in various automotive technologies, including hybrids and internal combustion engines. Despite evolving trends in the automotive industry towards electric vehicles, the demand for PGMs remains resilient. The CEO expressed confidence in the long-term outlook for PGMs, citing ongoing deficits in platinum, rhodium, and palladium. Addressing geopolitical uncertainties, particularly in light of potential trade disputes, Miller emphasized the importance of engaged dialogue and responsible decision-making. Rather than escalating tensions, he advocated for a collaborative approach to foster global economic growth and stability. Miller stressed the role of South Africa as a significant PGM producer in meeting global demand and contributing to economic prosperity. In conclusion, Miller's insights provided a comprehensive overview of Anglo American Platinum's strategic direction, financial decisions, and market outlook. As the company navigates the path to demerger and seeks to establish itself as a standalone PGM producer, key decisions such as the dividend payouts reflect a commitment to long-term value creation and shareholder returns.