Anglo American Platinum Ltd (Amplats) is evaluating a secondary listing in London to broaden its investor appeal after it’s spun off from Anglo American plc.

Such a listing would “support a diverse group of shareholders,” chief executive officer Craig Miller told reporters on Monday.

The CEO is also focusing on cutting costs as slumping earnings complicate the platinum miner’s preparations to become a standalone company. Earlier this year, Anglo unveiled a plan to distribute its controlling interest in Johannesburg-listed Amplats to shareholders before the end of 2025, as part of a dramatic restructuring to fend off a US$49 billion approach from BHP Group. 

Anglo’s plan centres around offloading its platinum business, while exiting diamond mining and selling its coal mines.

Anglo believes the demerger of Amplats will avoid scrutiny by South Africa’s antitrust authorities, which was one of its biggest concerns under BHP’s takeover plan. However, major Anglo shareholders could be unable or unwilling to hold stock in the South African firm, potentially causing an outflow of capital and a decline in the share price at the beginning of Amplats’ independent life.

Against that backdrop, Miller is keen to show that the platinum miner’s “investment case is really, really sound”. The CEO said the demand outlook has improved for platinum-group metals from gasoline, diesel and hybrid vehicles, as electric vehicle growth stalls. Platinum, palladium and rhodium are used in devices to curb emissions from combustion engines.

Miller said the example of Thungela Resources Ltd - a spinoff of Anglo’s thermal coal mines that listed in Johannesburg and London in 2021 - “gives us a great deal of confidence.”

Amplats is targeting savings of 10 billion rand in 2024, and said it achieved 47% of that goal in the first half.

About 2,800 workers left the company since it commenced a restructuring process at its South African operations in February. Another 900 are expected to leave in the second half.

First-half earnings fell 18% on lower PGM prices, following an 83% slump in profit in 2023.

  - Bloomberg