SA platinum miners’ profits slump on lower prices

Two South African platinum producers reported tumbling earnings following a collapse in prices for the metals they mine.

Impala Platinum Holdings said fiscal second-half profit likely fell by more than 85% as prices dropped and the company wrote down the value of assets in South Africa and Canada. Anglo American Platinum said 2023 profit sank by as much as 79%.

Since the start of last year, prices for the three key platinum-group metals, or PGMs, have declined sharply. Platinum, palladium and rhodium have lost 18%, 51% and 64%, respectively. Anglo American Plc, Amplats’ majority owner, said in December that PGM miners’ returns are at the lowest level in 30 years.

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Shares in the four companies that mine most PGM metals in South Africa, the world’s largest producing country, all fell in Johannesburg trading. Amplats dropped 6.8%, Implats slid 1.9%, Northam Platinum Holdings declined 5.2% and Sibanye Stillwater was down 4.6% as of 10:43 a.m. local time Thursday.

© 2024 Bloomberg

Roy Walsh

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