Anglo American Platinum Buys Glencore's Mototolo JV Stake for Up to ZAR22 Billion

   By Oliver Griffin 
 

Anglo American Platinum Ltd. (AMS.JO) on Monday said it has increased its stake in the Mototolo joint-venture project after buying out Glencore PLC's (GLEN.LN) 39% share for up to 22 billion South African rand ($1.6 billion).

The company said its wholly owned subsidiary, Rustenburg Platinum Mines Limited, has signed a sale-and-purchase agreement to buy Glencore Operations South Africa Proprietary Limited's 39% stake in Mototolo.

Anglo American Platinum is to pay ZAR800 million up front, followed by additional monthly payments over a six-year period, determined by the spot prices of platinum group metals and capped at ZAR22 billion.

The project has been operated as a 50-50 joint venture between Anglo American Platinum and a partnership of Glencore and Kagiso Tiso Holdings Proprietary Limited, which holds an 11% stake.

The mining company, which is majority-owned by Anglo American PLC (AAL.LN), said it swung to a profit of ZAR2.18 billion in the six months ended June 30, away from a loss of ZAR1.19 billion in the year-earlier period.

Revenue for the first six months of the year rose 23% to ZAR33.5 billion, Anglo American Platinum said. The company declared an interim dividend of ZAR3.74 a share for the first half.

Write to Oliver Griffin at [e-mail]

(END) Dow Jones Newswires

July 23, 2018 02:48 ET (06:48 GMT)

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