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Bloomberg reported that Anglo American Platinum (JSE:AMS) will see its profit drop 20 percent this year amidst weak platinum group metals prices. Overall, Amplats is planning $976 million of asset writedowns.
Bloomberg reported that Anglo American Platinum (JSE:AMS) will see its profit drop 20 percent this year amidst weak platinum group metals prices. Overall, Amplats is planning $976 million of asset writedowns.
As quoted in the publication:
Amplats, as the producer is known, will impair assets by 14.2 billion rand ($976 million) and incur 900 million rand of restructuring costs, the Johannesburg-based company said in a statement Tuesday. As a result, headline earnings will be at least 157 million rand lower this year than the 786 million rand posted in 2014, when its operations were crippled by a five-month strike.
Amplats is cutting jobs, capital expenditure and future projects as it seeks to adjust to a platinum price that’s down 29 percent this year. The cuts are part of an extensive plan announced Tuesday by majority owner Anglo American Plc to reduce cash outflows and combat tumbling commodity prices.