Major change coming to South Africa’s most historic company

Anglo American Platinum declared an additional cash payout of R15.7 billion as it prepares for an exit by parent Anglo American later this year.

The extra payout brings the total dividend for 2024 to R71.75 a share, Johannesburg-listed Amplats said in a statement on Monday.

“This is the most efficient method of realigning the capital structure ahead of the demerger and is supported by our net cash position at year-end,” the company said.

Anglo American announced plans to exit its controlling stake in 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.

Anglo has since sold part of its stake in Amplats to increase the South African unit’s free float ahead of a full exit.

Anglo American said it’s made “significant progress” toward its demerger of Amplats, with plans to seek shareholder approval at the annual general meeting on April 30, according to a separate statement.

CEO Duncan Wanblad said the demerger is on track for June, with Anglo American planning to cut its Amplats stake to 19.9% from about 67%.

Anglo will exit that “residual shareholding responsibly over time, and subject to customary lock-up arrangements,” Wanblad said in the statement.

Amplats said profit fell 45% to R7.1 billion last year. That’s the third consecutive year of sharply declining earnings and dividends, as the price of palladium and rhodium – which are produced alongside platinum – slumped 24% and 30%, respectively, in 2024.

Other large South African producers — Impala Platinum and Northam Platinum — have also signalled they expect significantly lower profits.