Anglo American Platinum full-year loss to hit over $850 million
Anglo American Platinum (Amplats) warned Monday it will register at least 14 billion rand ($851 million) of losses due to impairments, write-downs and restructuring costs in a bid to survive plunging commodity prices.
The world’s largest platinum producer by output, a division of beleaguered Anglo American (LON:AAL), has suffered not only from collapsing metal prices (platinum fell 28% during 2015), but also from labour unrest. Its workers went on a record five-month strike over wages in 2014 and are due to renegotiate pay again later this year.
Last month, Amplats said it would postpone all investment in new or replacement capacity until at least 2017.
Some of Amplats’ impairments stem from the cancellation or delay of previous expansion plans. The South African miner said last month it would postpone all investment in new or replacement capacity until at least 2017, as it focuses on making the business more efficient, generating cash and reorganizing operations and structure.
Further cost-cutting measures are likely to be revealed when Anglo, which owns about 80% of Amplats, unveils details of its awaited restructuring plans in February. Anglo has already said it expects to operate with a much smaller base of assets and a workforce less than half its current size.