Impala wins court order against recycler

File picture: Independent Media

File picture: Independent Media

Published May 5, 2016

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Johannesburg - Impala Platinum Holdings was awarded $201 million by a US court in a case against a recycling company for defaulting on payments due for processing metals, the world’s second-biggest producer of the commodity said.

If Impala recovers the amount due by A1 Specialised Services and Supplies in full, it will equal about two-thirds of the $300 million that the platinum company raised from shareholders in September, or about 8 percent of its $2.6 billion current market value. The windfall may come as the company is building new shafts to replace aging mines while battling a slump in commodity prices.

The US District Court for the Eastern District of Pennsylvania last month confirmed a ruling by the London Court of International Arbitration stating that A1 should pay the amount, Impala said in a statement on Wednesday. A1 accrued the accounts when Impala processed recycled platinum group metals on its behalf, a liability which the Johannesburg-based company flagged in February 2013.

A1 Chief Executive Officer Ashok Kumar didn’t immediately respond to an emailed request for comment.

“Every penny counts for Impala,” Edward Sterck, an analyst at BMO Capital Markets in London, said by phone. “Some of the pressure is off the balance sheet but certainly this reward would help.”

Impala pared some losses after announcing the court award, closing 4.2 percent lower at R53.04 per share in Johannesburg after falling as much as 6.7 percent.

BLOOMBERG

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