Implats expects its annual profits to dip 44% as metal prices lose their lustre

Impala Platinum (Implats) expects its annual earnings to drop by up to 44% due to lower metal prices.

In its trading statement for the year ended June 30, 2023, the group said headline earnings for the period were expected to decrease by between 38% and 44% to between R18 billion and R20bn, while headline earnings per share (heps) were forecast to decrease by between 39% and 45% to between 2 117 cents and 2 352c per share.

“Headline earnings and Heps for the comparative period were R32 billion and 3 853 cents, respectively,” it said.

Earnings for the period decreased primarily due to lower revenue, arising from an 18% lower achieved dollar metal price, partially offset by a 16% weaker rand.

“The impact of the increased frequency and severity of load curtailment and cable theft resulted in a cumulative loss of 147 000 6E ounces of refined production for the period, which negatively impacted sales volumes.

“Cash costs continued to be negatively impacted by higher inflation and the impact of the weaker rand on the translated costs of Zimplats and Impala Canada. In addition, the lower US dollar rhodium price at the end of the period resulted in a R2.1 billion (post-tax) write-down of closing inventory, which negatively impacted earnings,” the group said.

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