South African mining giant takes a big hit

Anglo American Platinum said profit last year fell by as much as 52% after the price of palladium and rhodium slumped.

Profit in 2024 will likely decline to between R6.3 billion and R7.6 billion from R13 billion the previous year, the Johannesburg-based company said Thursday in a statement.

Earnings were also hit by R1.9 billion of asset writedowns, mainly relating to the coarse particle recovery technology at its Mogalakwena mine.

Anglo American announced plans to exit its controlling stake in Johannesburg-listed Amplats last May.

It’s part of a wider restructuring program that was unveiled in response to an unsolicited $49 billion takeover proposal by BHP Group. Anglo has since sold part of its stake in Amplats to increase the South African unit’s free float ahead of a full exit.

Amplats and its peers in South Africa – by far the world’s largest producer of platinum – have been battling a prolonged period of weak prices that’s slashed profits and forced cost-cutting.

In the longer term, the firms are focused on finding alternative sources of consumption to replace dwindling demand from the auto sector, which uses PGMs to curb emissions in gasoline and diesel vehicles.