IMPALA Platinum (Implats) is expecting lower interim results, with basic earnings to plunge up to 50 percent, as extended safety stoppages, intermittent industrial action and Eskom power supply interruptions at Impala Rustenburg, knocked production.
The results are due to be posted on March 1.
The mining firm flagged that for the six months ended December 31, 2021, gross concentrate volumes for the period decreased by 4 percent to 1.62 million 6E ounces from 1.68 million 6E ounces for the the comparative period, while production from managed operations declined to 1.16 million 6E ounces and joint venture volumes to 271 000 6E ounces.
Sales volumes fell by 5 percent to 1.55 million 6E ounces from the comparative period, in line with lower refined production, with group sales revenue at R36 230 per 6E ounce sold.
"Inflationary pressure was compounded by lower production volumes and the partial payment of the previously signalled discretionary employee bonus in recognition of the group’s strong financial performance in FY2021 (full year), which contributed circa R565 per ounce,“ it said.
One of the Rustenburg furnaces was scheduled for a partial rebuild during the third quarter of 2022.
Implats said in the comparative period basic earnings of R25.1 billion had benefited from the reversal of impairment losses on property, plant and equipment and the prepayment of royalties of R10.6bn.
As a result of this once-off credit to basic earnings, Implats’ basic earnings for the period were expected to decrease by between 39 percent and 50 percent to be between R12.5bn and R15.3bn.
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