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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

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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.

Reuters

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