JOHANNESBURG - IMPALA Platinum (Implats) reinstated the annual dividend payment during the year ended June 2020 as it reported record annual headline earnings on the back of solid operational performances and record sales revenues.
Implats, which operates platinum group metal (PGM) assets in South Africa, Zimbabwe and Canada declared a final dividend of R4 per ordinary share, having declared an R1.25 interim dividend per share, bringing the total dividend for the year to R5.25 per ordinary share.
Chief executive Nico Muller, said that Implats used to be a regular dividend payer up until 2008, and went into a short period of reinstating dividends in 2013.
“We have been absent from dividends for the last six years. I am very delighted that we reinstated the interim dividend and final dividend during the 2020 financial year,” said Muller.
The group reported a 431 percent surge in headline earnings to R16.1 billion or R20.75 per share compared with R3bn or R4.23 a share in 2019.
Group revenue was 44 percent at R69bn resulting in the group generating a gross profit of R23.3 bn for the year, a 240 percent increase from R6.8 bn a year earlier.
The bumper earnings were buoyed by the 57 percent higher rand revenue per 6 element (E) ounce sold to R24.8bn from R15.7bn a year earlier. This was despite the Covid-19 pandemic disruption which resulted in a loss of 9 percent or 290 000 ounces of 6E of production.
Muller said progress made in the group’s strategic repositioning over the past several years had enabled the group to successfully navigate the challenges created by the unprecedented external shock of the Covid-19 pandemic.
“Operational resilience enabled sustained delivery of refined metal to customers and the group benefited from robust pricing for primary products, achieving stellar financial results. The Group made meaningful advances in strengthening its balance sheet and dividend payments were reinstated,” said Muller.
Among the highlights were the completion of the acquisition of North American Palladium, a Canadian based palladium asset in December.
BUSINESS REPORT ONLINE