Anglo American Platinum (Amplats) has given its shareholders a massive R16.5 billion payout, including an ordinary dividend and a special cash dividend. This comes as the company prepares to split from the Anglo American group in June.
Amplats’ profits fell by 40% to R8.4 billion due to lower metal prices and a stronger rand. However, the company still managed to declare a base dividend of R800 million and an additional cash dividend of R15.7 billion.
According to Amplats CEO Craig Miller, returning the money to shareholders is a normal step before the company becomes independent. Amplats will retain R1.1 billion in cash to invest in its assets and execute its strategy.
Anglo American, which owns 67% of Amplats, will receive around R11 billion of the payout. The demerger of Amplats is set to be approved at Anglo American’s annual general meeting on April 30.
Amplats reported a 3% increase in refined platinum production and a 4% rise in sales volumes. The company also achieved R12 billion in cost savings and reduced its unit costs by 2%.