Anglo American Platinum buys Mototolo stake

Market trading boards are seen at the Australian Securities Exchange in Sydney, Friday, February 9, 2018. ( AAP Image/Ben Rushton) NO ARCHIVING

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.

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