Anglo American says 4,300 jobs at risk as metal prices fall

19th Feb 2024 07:24

(Sharecast News) - Anglo American Platinum said it was starting a restructuring that could affect more than 4,300 jobs due to lower prices, higher costs amid a global economic slowdown.

Revenues at the South African precious metals company last year fell to 124.6 billion South African rand (£5.24bn), compared with ZAR164.1 billion a year prior.

Adjusted core earnings fell to ZAR 24.4bn from ZAR 73.9bn. Prices per platinum group metals (PGM) ounce sold was $1,657, down from $2,551.

"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," said chief executive Craig Miller.

He added that the proposed restructuring would affect around 3,700 jobs across its South African operations and 620 service providers or contractors. Consultations under South African labour laws had begun, Miller said.

"We have worked hard to address aspects in our business that are impacted by both the global and local challenges currently facing the PGM industry and have already implemented several key cost-saving initiatives."

"However, given the market outlook and protracted low-price environment due to structural changes in our markets further measures are required to build the resilience that will sustain this business. It is important to understand that this has been a decision taken as a last resort for the company."

Reporting by Frank Prenesti for Sharecast.com