Anglo American Platinum Ltd. ADROTCPK - Current
Mon, Oct. 31, 12:58 PM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) is sounding out investors about a multi-billion pound spinoff of its South African operations in an attempt to ease pressure from its biggest shareholder to consider a break-up, The Telegraph reports.
- Anglo, which wants to focus on diamonds, platinum and copper, is looking at packaging up its non-core thermal coal and iron ore assets in South Africa, according to the report.
- The spinoff reportedly would include Anglo’s 70% stake in Kumba Iron Ore and a string of mines providing thermal coal for export and the domestic market, but is unlikely to include its 40% stake in South Africa Manganese or its Amplats (OTCPK:AGPPY) platinum arm, where the company sees an opportunity to become a global champion for the metal.
Tue, Jun. 21, 11:47 AM
- Anglo American Platinum (OTCPK:AGPPY) warns that its H1 net earnings likely will fall by at least 20% Y/Y due to lower metal prices and a stock adjustment in the prior year.
- The world's largest platinum producer, which is majority-owned by Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), says it expects to report on July 25 at least a 20% drop in H1 basic earnings to 489M rand ($32.7M).
- Citigroup says the trading update "should not be a surprise" given that last year's H1 earnings were skewed by an additional 130K oz. of platinum inventory stemming from a production ramp-up after protracted labor strikes in 2014.
Mon, Feb. 8, 10:58 AM
- "Things may still get worse before they get better" in the mining industry, Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) CEO Mark Cutifani says, in keeping with the generally gloomy assessment from mining execs at an industry conference in Cape Town, South Africa.
- Commodity prices may not have bottomed yet, so 2016 could be even more difficult for mining companies and commodity markets than 2015, Cutifani says; to put that thought in perspective, copper and iron ore prices fell a respective 25% and 40% in 2015, and Anglo’s share price plunged 75%.
- The CEO says the slump in prices has deprived the company of ~$350M/month in revenue; the depth of the problems facing Anglo were highlighted again today as its Amplats (OTCPK:AGPPY) unit reported a 12.12B rand ($760M) net loss for FY 2015 vs. a profit of 624M rand a year earlier.
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.
Sep. 3, 2015, 11:58 AM
- Sibanye Gold (SBGL +1.2%) says it is in talks on the potential acquisition of Anglo American Platinum's (OTCPK:AGPPY) Rustenburg mining and concentrating operations.
- While Amplats is negotiating with others, the talks with SBGL are at an advanced stage and the company has put off plans to list the business separately, Bloomberg reports.
- SBGLhas been interested in buying South African platinum mines as it seeks to diversify its asset base; Amplats wants to divest three Rustenburg mines and its Union asset as it prioritizes shallower and more mechanized operations.
Jul. 20, 2015, 9:19 AM
- Amplats (OTCPK:AGPPY) reports H1 earnings of R9.46/share, up from R0.60/share during the year-ago period and in line with the company's prior guidance, boosted in part by higher metal output.
- Amplats' H1 refined platinum production rose 35% to 820K oz., but low metals prices continue to present a challenge as platinum prices hit six-year lows; the company says some of the impact of low prices has been mitigated by the weaker South African rand, which fell to 14-year lows against the dollar in June.
- H1 revenue of 29.85 South African rand ($2.41B) rose 7.2% from the year-ago period, when Amplats was hit by a five month-long strike.
- Says it continues to pursue a sale or spinoff of its older Rustenburg and Union mines, but production at the open pit Mogalakwena mine rose to record levels.
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."
Nov. 18, 2014, 9:59 AM
- Six of the world’s major platinum producers - including Amplats (OTCPK:AGPPY), Impala Platinum (OTCQX:IMPUY) and Lonmin (OTC:LNMIF) - have banded together to drum up interest in the metal as a financial investment.
- "The investment potential of platinum has been largely overlooked,” says the group head, pointing to platinum’s performance as an investment asset over the past 20 years.
- Demand for platinum, unlike gold and silver, is driven by industry rather than by investors and the jewelry sector; the metal has a wide use of applications, from emission-reducing catalytic convertors in motor vehicles to fuel cells and chemicals production.
- A test using platinum as a catalyst for fuel cells to light up an isolated village in South Africa is prompting further interest.
- ETFs: PPLT, PTM, PGM
Oct. 9, 2014, 11:48 AM
- Platinum Group Metals (PLG +0.6%) says its low-cost South African projects will benefit as competitors shut down old unprofitable mines in lowering global output by as much as 35%.
- South African platinum producers, the source of more than 70% of the metal, are under pressure to close or sell their least efficient operations amid the lowest platinum prices in five years, dwindling ore grades and higher labor costs, CEO Michael Jones says.
- Platinum prices have declined ~8% this year as signs of weaker economic growth in Europe has raised concerns about slowing demand; at current prices, ~45% of South Africa's platinum mines are believed to be operating at a loss.
- PLG shares have shed 33% so far this year; platinum peers including Amplats (OTCPK:AGPPY), Impala Platinum (OTCQX:IMPUY) and Lonmin (OTC:LNMIF) also are sharply lower YTD.
- ETFs: PPLT, PTM, PGM
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