By Elena Vardon and Pierre Bertrand
Anglo American Platinum said it could cut around 3,700 jobs in a restructuring as the precious metals company grapples with lower prices, rising costs and an uncertain outlook.
The South African company–which is majority owned by Anglo American–said Monday the restructuring would affect jobs across its South African operations as well as around 620 service providers or contractors. The final number will be decided once the consultation process concludes.
The restructuring is the latest to hit the precious metals sector, following a similar move by peer Sibanye-Stillwater in late November, and comes as prices for palladium and rhodium have fallen 36% and 58%, respectively, over the last 12 months.
The company said that the platinum group metals, or PGM, dollar basket price per ounce sold was at its lowest since 2019 due to the fall in palladium and rhodium metal prices.
Anglo American Platinum employed 31,668 people, including contractors, at the end of 2023, according to its year-end report.
“Suppressed PGM prices, coupled with significant cost pressures and an uncertain outlook, require further intervention to ensure the long-term sustainability and competitive position of our operations,” Chief Executive Craig Miller said.
Sibanye-Stillwater in late November said it would restructure its operations in the U.S. to reduce operating and capital costs amid what it said was a lower palladium price environment.
In early December, Anglo American outlined a plan to lower production in 2024 as part of a move to save $1 billion in response to continuing market volatility.
The company said at the time it aimed to save $1.8 billion in capital expenditure in the 2023 to 2026 period.
“We are optimistic about the long-term demand for the PGMs we produce and the important role they play in creating a greener world,” Miller added Monday.
Adjusted earnings before interest, taxes, depreciation and amortization fell in 2023 to 24.4 billion South African rand ($1.29 billion) from ZAR73.9 billion a year prior, the company said.
Revenue for the year was ZAR124.6 billion, compared with ZAR164.1 billion in 2022.
The company declared a dividend of ZAR21.30 a share for 2023, down from the previous year’s ZAR115 payout.
Write to Elena Vardon at [email protected] and Pierre Bertrand at [email protected]
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