Anglo American’s Platinum mining arm AmPlats has reported a huge profit crash that will likely result in thousands of job cuts.
In its 2023 results today, the platinum metal firm said falling demand for palladium and rhodium, two key metals for diesel and petrol vehicles and produced alongside platinum, contributed to a profit slump of around 71 per cent year-on-year.
The company said it plans to cut 3,700 jobs across its mining operations, with a particularly large hit expected to come in South Africa, to try and keep a lid on overheads while battling the lower key metal demands.
Additionally, it said contracts with 620 service providers are being reviewed.
The company also said it will be re-prioritising its squeezed capital expenditure strategy and focus “only on critical work” to ensure reliability and integrity of its assets.
“It is apparent that further measures to create critical resilience and greater competitiveness are needed to sustain the business,” chief executive officer Craig Miller said in a statement Monday.
“These actions are necessary to enable the continued employment of thousands of workers and contractors.”
Shares in AmPlats are up nearly one per cent in early hours trading but are down 34 per cent in the last year.
The news is likely to further depress investor appetite for the miner’s parent company, Anglo American, which is fighting for survival amidst a major downturn in company fortunes.
The miner’s share price has plummeted 45 per cent in the last year and will report its full-year results on the 22nd February.