Johannesburg - Impala Platinum Holdings Ltd. said full-year profit dropped as much as 55 percent because costs rose and after the world’s second-largest producer wrote down assets by 2.3 billion rand ($230 million).
Headline earnings per share, which exclude one-time items, fell to as low as 3.08 rand compared with 6.85 rand a year earlier, the Johannesburg-based company said in a statement today.
That compares with a median estimate for profit of 3.28 rand, according to 18 analysts in a Bloomberg survey.
Impala operates the Rustenburg mine in South Africa, which is the world’s largest platinum operation.
Producers in the country, which has the world’s biggest reserves of the metal, are struggling with higher costs as strikes led to above-inflation wage gains while demand waned.
The company is reviewing its mines, some of which are either marginal or loss- making, it said on May 2.
The earnings decline has been affected by “impairments of 1.3 billion rand of long-term receivables,” Impala said in the statement.
A “writedown of approximately 1 billion rand of goodwill resulting from the African Platinum Plc acquisition concluded in the 2007 financial year” also curbed profit, it said. - Bloomberg News