Chief executive Nico Muller said the group was looking to redeem its convertible bond due in 2022 and ultimately introduce a dividend that was last paid in 2014.
“The optimisation of Implats’ balance sheet through a reduction and restructuring of existing debt is a key pillar of Implats’ strategy to reposition it as a profitable, sustainable and competitive business with clear capital allocation priorities and ultimately, a return to a dividend paying position,” Muller said. The group said the move was expected to provide reduced market volatility, resulting in a saving of R114m a year if all bondholders take up the offer.
Implats has been the best-performing share on the JSE, jumping 104percent in the year to date on the back of record rhodium and palladium prices.
“The increase in the rand platinum group metals basket price has been a welcome tailwind to Implats’ profitability and free cash flow generation,” Muller said.