Impala Platinum (Implats)’s revenue of R57.8 billion increased by 4% in the half year ended 31 December 2022, compared to R55.6 billion, a year earlier.
Its cost of sales of R40.6 billion rose by 8% and it delivered a gross profit of R17.2 billion.
The group achieved earnings before interest, taxes, depreciation, and amortisation (EBITDA) of R24.5 billion at an EBITDA margin of 42%.
“Implats delivered significant EBITDA and free cash flow generation, maintained a strong and flexible balance sheet and sustained its commitment to consistent shareholder returns - while simultaneously funding increased rates of capital expenditure across a suite of mining and processing projects,” said group chief executive Nico Muller.
Implats said the South African rand depreciation resulted in additional inflationary pressures, compounding the impact of high energy and consumables pricing on the translated cost and capital expenditure at the Zimbabwean and Canadian operations.
The group delivered headline earnings of R14.0 billion or 1 654 cents per share, generated free cash flow of R11.0 billion after funding capital expenditure of R4.9 billion, and ended the period debt free with net cash of R27 billion (excluding leases).
The board of directors declared an interim dividend of 420 cents per share, with 36% of free cash flow allocated to shareholder returns.
Group refined production of 1.48 million 6E ounces, including saleable production from Impala Canada, declined by 9% in the half year ended 31 December 2022 compared to 1.62 million ounces, a year earlier.
It said smelting capacity was constrained by increased power cuts and the scheduled rebuild of the Number 4 Furnace in Rustenburg, South Africa, which started in late November 2022.
Implats ended the period with about 140 000 6E ounces of excess inventory from non in the comparative period.
Group 6E refined production in the financial year 2023 is estimated to be between 3 million and 3.15 million ounces.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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