Heraeus Admits Misconduct That Harmed Clients, Sets Aside €457.7 Million for Risks
Key Facts
Heraeus acknowledged misconduct in a recycling process that harmed clients, saying an investigation by an external law firm identified the misconduct and extended into adjacent areas, while the investigation remains ongoing. The group set aside €457.7 million for risks arising from the two parts of the investigation, according to its statement. The admissions put the German company’s precious metals recycling and refining practices under broader scrutiny. The company launched an independent investigation after detecting misconduct through its internal reporting system. The available information did not specify the number of affected clients or details of the operational misconduct.
Heraeus’s financial report said an external law firm was commissioned in December 2024 to conduct a comprehensive independent investigation. The first part of the investigation had been largely completed when the financial statements were prepared, while work continued in adjacent areas. The risk provision stood at €457.7 million on December 31, 2024, compared with €335.3 million on December 31, 2023. The increase reflects the higher amount the group set aside for risks related to the two parts of the investigation. The report also included precious metals inventories valued at €150 million, of which €64.6 million related to fiscal 2023.
Heraeus said it compensated clients harmed by the misconduct in the recycling process, informed the authorities and cooperated with them. This statement concerns the recycling process and does not, on its own, substantiate claims of manipulation of platinum purity tests or the scope of clients described in the news account. Northam Platinum said an amicable review sought to reassess historical refining results spanning several years in a manner acceptable to both parties and reflecting the results more accurately and fairly. Northam said Heraeus had taken proactive steps to ensure refining results were identified more accurately and fairly in the future. These steps indicate that the review of refining results extended to historical dealings between the two companies, without the statement specifying details of those results.
The London Bullion Market Association launched a review of the incident covering suspected fraud in recycling operations in Hanau and compliance matters at the group. The association kept Heraeus Precious Metals on its good delivery list of refiners when it announced the review. This means the regulatory review was underway while the company remained listed. The association said its work includes consultations with stakeholders and that it would announce updates later. It did not specify when those updates would be issued, saying it was focused on following a transparent and thorough approach.