Mon, Jul. 25, 8:30 AM
Mon, Jan. 25, 3:21 PM
- Anglo American Platinum (OTCPK:AGPPF, OTCPK:AGPPY) says it will book 14B rand ($851M) in FY 2015 impairments on the value of the mines it owns and warns that earnings will miss expectations.
- Amplats says it expects a loss of 12.1B-12.2B rand for 2015, compared with earnings of 624M rand in 2014, with headline earnings - which strips out the impact of most of its impairments and writedowns - of 60M-135M rand, as much as 92% lower than in 2014.
- Amplats said last month that it would delay all investment in new or replacement capacity until at least 2017 as it tries to preserve cash, and further plans for cuts likely will be revealed when Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), which owns nearly 80% of the platinum producer, announces its awaited restructuring plans next month.
Sep. 9, 2015, 7:52 AM
- Sibanye Gold (NYSE:SBGL) agrees to acquire the Rustenberg platinum mining and concentrating operations in South Africa from Anglo American Platinum (OTCPK:AGPPY, OTCPK:AGPPF) for at least 4.5B rand ($331M).
- The deal involves an upfront payment of 1.5B rand, with a minimum deferred payment of 3B rand, equal to 35% of cash flow generated by the operations, making 20B rand the maximum potential value of the deal.
- The sale allows Amplats, which had considered separately listing the mines, to focus on shallower, lower cost and more mechanized operations as platinum prices fall to multi-year lows.
- For SBGL, the deal will boost future cash flow to pay dividends if the miner can lower costs and raise production as has happened at four aging gold mines.
- SBGL +3.9% premarket.
Jun. 23, 2015, 2:19 PM
- Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) platinum unit in South Africa plans to cut more than 400 management jobs in response to platinum prices that have tumbled to six-year lows, hurt by a surge in supplies that stems in part from the South African currency’s sharp depreciation against the U.S. dollar.
- Amplats already is trying to dispose four of its platinum mines, three mines at Rustenburg and one at Union, most likely through an IPO whose announcement is expected within days.
- Barclays analysts say the proposals are “a sign that Anglo Platinum is [finally] facing the reality of a sustained period of depressed prices," but the company is moving cautiously with restructuring plans because of the potential for further labor unrest in South Africa after stirring controversy when it cut thousands of jobs in 2013 in a previous restructuring.
Jun. 15, 2015, 10:41 AM
- Anglo American Platinum (OTCPK:AGPPF, OTCPK:AGPPY) says H1 2015 earnings will come in at least 20% higher Y/Y due to its improved operational performance following a strike that weighed on H1 earnings last year.
- The majority-owned unit of globally diversified miner Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) says H1 earnings will gain at least 31M rand ($2.5M), or $0.12/share, from 157M rand, or $0.60, in 2014.
- Amplats also says it is considering floating its labor-intensive South African mines around Rustenburg rather than selling them because the offers it has received are too low.
May 29, 2015, 11:58 AM
- Platinum miners betting on fuel cell vehicles to help boost demand and prices for the metal are in danger of having their hopes dashed, at least in the medium term, as electric and hybrid cars are taking a bigger share of the market, according to a Reuters analysis.
- The world's three largest platinum producers - Amplats (OTCPK:AGPPY, OTCPK:AGPPF), Impala Platinum (OTC:IMPUF, OTCQX:IMPUY) and Lonmin (OTC:LNMIF, OTCPK:LNMIY) - are all investing in projects related to fuel cell technologies, but analysts doubt growth in fuel cell vehicles will keep up with their electric counterparts, mostly because battery recharging stations are less costly and already more widespread than hydrogen refueling stations.
- Amplats CEO Chris Griffith, whose company has invested $35M in the last five years in companies developing new uses for platinum, mostly through fuel cell technology, says he does not want Amplats "to be a Kodak."
Jul. 21, 2014, 4:36 AM
- Anglo American's (OTCPK:AAUKY) subsidiary, Amplats, is planning to sell its Union mine, Rustenburg operations and a joint venture in South Africa.
- The move will reduce the miner's staff count by 20k, and follows a continuous five-month strike against the company by the AMCU union.
- The mine is expected to be sold to Sibanye Gold (NYSE:SBGL), whose CEO Neal Froneman announced a wish for a platinum deal before the end of the year.
- ETFs: PPLT, PTM, PLTM, PGM
Jul. 1, 2014, 11:31 AM
- Platinum prices breach $1,500/oz. and palladium futures also jump as better than expected U.S. car sales data and a new strike in South Africa lured buyers into both markets.
- Upbeat reports from GM, Ford, et. al. bucked expectations for a slowdown in car sales, boosting investor appetite for platinum and palladium, which are both widely used in car exhaust filters.
- Meanwhile, a new strike by metal workers and engineers in South Africa have renewed concerns about supply after the country is still recovering from a five-month strike by platinum workers.
- Platinum producers: AAUKF, AAUKY, IMPUY, LNMIF.
- ETFs: PALL, PPLT, SPPP, PTM, PGM
Jun. 23, 2014, 11:58 AM
- South Africa's AMCU says its members agreed to a wage settlement that will end the country's longest-ever strike which has cost the mining industry 1.1M oz. in lost platinum production and helped shrink the country's economy by 0.6% in Q1 from a year earlier.
- The world's three-biggest platinum producers - Amplats (AAUKF, AAUKY), Impala Platinum (IMPUY) and Lonmin (LNMIF) - say they each lost roughly a third of their annual production, and analysts say it will take at least three months to get production back to pre-strike levels after mines have been mostly idle for the past several months.
- Platinum prices fell 1.1% to $1,437.70/oz. on the news.
- ETFs: PALL, PPLT, SPPP, PTM, PGM
Jun. 18, 2014, 9:59 AM
- South Africa's platinum miners say the industry's main labor union has made new demands that go beyond a preliminary accord struck last week, which may delay an apparent agreement to end the five-month strike by 70K-plus mine workers.
- AMCU, which has led the strike, now wants the new wage agreement to run for three years instead of five, seeks a once-time payment of ~$270 to each worker, and wants miner Lonmin (LNMIF) to rehire 235 workers it recently dismissed for participating in the strike.
- Top platinum miner Amplats (AAUKF, AAUKY) and the union are scheduled to meet today to discuss the new demands; Impala Platinum (IMPUY) says some of the new issues raised by the union are "problematic" and that it "could still take some time" to sign a deal.
- ETFs: PALL, PPLT, SPPP, PTM. PGM
Jun. 12, 2014, 8:54 AM
- South Africa’s top platinum companies and the biggest mineworkers union agree on proposals that the labor organization will take to its members in a bid to end a five-month pay strike.
- The AMCU union is meeting members at mines today to get their views on the proposal, and the companies - Amplats (AAUKF, AAUKY), Impala Platinum (IMPUY) and Lonmin (LNMIF) - expect a response tomorrow.
- More than 70K members of the union have been on strike over pay since Jan. 23, which producers say has cost 22B rand in revenue.
- ETFs: PALL, PPLT, SPPP, PTM, PGM
Jun. 9, 2014, 2:44 PM
- Wage talks between South Africa's AMCU union and major platinum producers end in failure, with the mining minister quitting his mediation role and dashing hopes for an end to the five-month strike.
- AMCU has led the strike of more than 70K mineworkers since Jan. 23, asking for monthly wages of the lowest paid underground employees to be more than doubled to 12.5K rand ($1,174) by 2017; the companies offered increases of as much as 10%.
- The world's three top platinum producers - Anglo American Platinum (AAUKF, AAUKY), Impala Platinum (IMPUY) and Lonmin (LNMIF) - say they have forfeited earnings of 22B rand and employees have lost 9.6B rand in wages since the strike began.
- The news lifted platinum prices higher by ~$15, or 1%, from a session low of $1,436/oz.
- ETFs: PPLT, PTM, PGM.
Apr. 24, 2014, 6:44 PM
- The world's top three platinum producers - Amplats (AGPPY, AGPPF), Impala Platinum (IMPUY, IMPUF) and Lonmin (LNMIF, LNMIY) - say they will bypass the union representing tens of thousands of South African miners and offer a new wage deal directly to their employees, after talks aimed at ending three months of strikes hit an impasse.
- Although the move doesn't bring an end to negotiations with the AMCA union, it could further damage already strained relations between management and strike leaders.
Apr. 24, 2014, 9:43 AM
- Anglo American (AAUKF, AAUKY) reports higher Q1 production compared with the year-ago quarter, with the exception of platinum which has suffered from protracted strikes.
- Anglo says iron ore output rose 10% to 11.3M metric tons due to solid performances from its two South African iron ore mines.
- Copper production rose 18% to 202K tons, helped by higher copper grades at the Los Bronces and Collahuasi mines in Chile.
- Coal output gained 7.5% to 23.9M tons, helped by improved production from its Colombian Cerrejon mine which suffered from strikes in the year-ago period.
- Diamond production at its De Beers unit rose 18% to 7.5M carats.
- Platinum production at its majority-owned Anglo American Platinum (AGPPY, AGPPF) fell 39% to 357K equiv. oz.
Apr. 21, 2014, 4:45 PM
- Anglo American (AAUKF, AAUKY) is preparing to exit its Rustenburg platinum mines in South Africa, FT reports, in what would be one of the miner’s most decisive moves since Mark Cutifani became CEO last year.
- South Africa’s platinum sector has been crippled for nearly three months by a strike at mines owned by Anglo and others, and the volatile labor environment is one reason for Anglo’s reluctance to invest more in its heavily staffed mines at Rustenburg.
- The Rustenburg mines last year produced ~20% of Anglo’s output of platinum and associated metals before two of the five mines were closed; Anglo American subsidiary Amplats (AGPPY, AGPPF) is the world’s largest platinum miner.
Apr. 14, 2014, 10:59 AM
- Platinum prices are surging, stoked by worries over supplies due to the crippling mine worker strike in South Africa and the potential for increased sanctions against Russia.
- Platinum mining in South Africa has plunged by more than a third since workers went on strike in January to demand higher pay; mining companies had built up their inventories before the strike, but stockpiles have dwindled as the strike reaches its 11th week.
- South Africa is the source of roughly 80% of the world's platinum, while Russia is the second largest producer; platinum is used primarily in catalytic converters of diesel-burning vehicles, which are common in Europe.
- Platinum producers: AGPPY, AGPPF, AAUKY, AAUKF, IMPUY, IMPUF, LNMIF, LNMIY.
- ETFs: PPLT, PTM, PGM