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Implats tips increase in full-year earnings

South Africa-based miner Impala Platinum has pointed to a likely 20% lift in earnings for the year to June 30 despite the ongoing impacts of COVID-19.
Implats tips increase in full-year earnings Implats tips increase in full-year earnings Implats tips increase in full-year earnings Implats tips increase in full-year earnings Implats tips increase in full-year earnings

South Africa-based PGM producer Impala Platinum tips earnings growth

Ngaire McDiarmid

Reporter

A significant increase in platinum group metals prices plus higher sales volumes prompted the company to forecast an increase of at least 20% in headline earnings and headline earnings per share, from the R16 billion and 2,075c of a year ago.

It had reported stellar half-year results in February.

Fellow PGM producer Anglo American Platinum this week reported a 573% increase in earnings for its first half, based on an improved price for products sold and a continued recovery from COVID-19 stoppages that blighted the first half of 2020.

Implats said it had delivered strong operating results and recorded a 15.6% increase in gross concentrate volumes to 3.29 million 6E ounces, which was within guidance of 3.2-3.4Moz.

It marks the first full reporting period since the inclusion of Impala Canada, which contributed 260,000oz.

The company said the expected destocking of in-process inventory was adversely impacted by increased load-shedding by power utility Eskom in South Africa and the timing of scheduled maintenance at group processing facilities in the second half, due to COVID-19-related delays.

Implats is due to release financial results on September 2.

Its shares (JSE: IMP) rose 2.7% yesterday and have gained more than 26% year-to-date.

At the close of ZAR254.98, the company is capitalised at ZAR208.4 billion (US$14.1 billion).