Impala Platinum (Implats) recorded a decline of 18% in its earnings for the fiscal year ended on June 30, 2023, mainly due to a decrease in realised dollar metal prices.
However, this impact was partly mitigated by a 16% drop in the value of the rand.
The escalating occurrences of load curtailment and cable theft in South Africa have had a detrimental effect on sales volumes, resulting in a combined loss of around 147,000 6E ounces of refined production, it said.
Implats said cash costs were negatively affected by higher inflation.
In addition, due to the lower US dollar rhodium price towards the end of the period, a substantial R2.1 billion (post-tax) write-down of closing inventories was incurred, greatly affecting its overall profitability.
Implats' expected headline earnings for the period are projected to decline by a significant margin, ranging from 38% to 44%.
This would amount to a substantial decrease, reaching between R18 billion and R20 billion ($941.4mn - $1.05bn).. Furthermore, the company's HEPS for the period is anticipated to drop by approximately 39% to 45% and fall within the range of 2,117 cents to 2,352 cents per share.
The headline earnings and HEPS for the prior period were R32 billion and 3.85 cents, respectively.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
