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Impala expects profit fall on weaker output, prices

Impala Platinum undergroung operations in Rusternburg. Photo Supplied.

Impala Platinum undergroung operations in Rusternburg. Photo Supplied.

Published Aug 5, 2022


South Africa's Impala Platinum on Friday said it expects its full-year profit to fall by as much as 21% due to lower production, weaker metal prices and inflationary pressures on costs.

In a trading update, Impala said it expects its headline earnings per share (HEPS) - the profit measure most commonly used in South Africa - to be between 36.69 and 40.30 rand ($2.21-$2.43) in the year ended June 30, down from 46.35 rand last year.

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Impala said extended safety stoppages, intermittent industrial action and power-supply interruptions at its Rustenburg operations in South Africa had impacted output.

Refined production fell 5.6% to 3.087 million platinum group metal (PGM) ounces from 3.271 million ounces last year.

Unit costs per PGM ounce produced are expected to rise by 17%, driven by inflationary pressures, lower production volumes and the payment of an employee bonus after the company's strong 2021 performance.

Impala, which has announced plans to acquire mid-tier PGM producer Royal Bafokeng Platinum, is scheduled to release its annual results on Sept. 1.