JM enters New Relationship with Anglo Platinum
For release at 7.00 am Friday 15th February 2013
Johnson Matthey enters into New Relationship with Anglo Platinum
Johnson Matthey announces today that we have agreed an extension to our metal supply agreement with Anglo American Platinum Limited ("Anglo Platinum"). At the same time, we have entered into a separate contract to provide Anglo Platinum with platinum group metal ("pgm") market research services. There will, however, be no ongoing market development agreement between the two parties.
The new metal supply agreement, which will attract no discounts, and the market research agreement, for which a fixed fee will be paid, will commence on the expiry of our existing contracts on 31st December 2013. The current marketing agreement, which commenced in 1992 and was subsequently amended and extended with effect from 2004, will continue until it expires on that date. These new arrangements will affect earnings in the fourth quarter of the financial year commencing 1st April 2013.
Based upon the estimated revenue for the financial year ending 31st March 2013, the full year impact on the group will be a loss of commission income of approximately £35 million. Any consequential restructuring to the Precious Metals Product Division will not occur until the end of 2013 at the earliest. The likely cost savings associated with any restructuring are expected to be relatively modest.
As the world's largest fabricator of platinum group metals products, this extension to our metal supply agreement, alongside our ability to source metal from the market, from our pgm refineries and other sources, will ensure that Johnson Matthey will be able to continue to service our customers efficiently.
Commenting on these agreements, Neil Carson, Chief Executive said "Whilst we are disappointed to lose commission income, we are pleased that we are able to extend our long relationship with Anglo Platinum and secure an extension to our metal supply agreement. This will enable us to continue to service our customers with confidence."
Notes:
Conference Call for Analysts and Investors
Robert MacLeod, Group Finance Director and Bill Sandford, Executive Director, Precious Metal Products Division will host a conference call at 8.00 am today, 15th February 2013, to discuss this announcement.
The dial-in number for UK callers is 0800 783 0906; for overseas callers the number is +44 1296 480 100; and the passcode is 136568#. Please dial in approximately 15 minutes prior to the start of the conference call to allow time for registration.
Enquiries:
|
Ian Godwin |
Director, IR and Corporate Communications |
020 7269 8410 |
|
Robert MacLeod |
Group Finance Director |
020 7269 8484 |
|
Howard Lee |
HeadLand |
020 7367 5225 |
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www.matthey.com |
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This information is provided by RNS
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