Impala Platinum said on Thursday it expects to report headline earnings of between R2.9 billion and R3.1 billion for the year ended 30 June. Supplied

JOHANNESBURG  - Impala Platinum (Implats) said on Thursday it expects to report headline earnings of between R2.9 billion and R3.1 billion for the year ended 30 June 2019, up from a R1.2 billion headline loss the previous year.

Headline earnings per share (HEPS) are expected to be between 406 cents and 440 cents per share, a significant increase from HEPS loss of 171 cents per share in the comparative period.

Implats said the earnings increase was due to a higher realised rand platinum group metals (PGM) basket price, due to a weaker rand and stronger dollar pricing for rhodium and palladium, partially offset by a weaker dollar platinum price.

The world's second biggest platinum producer also said improved operational performance, particularly at the Impala Rustenburg operations; and higher sales volumes, had also contributed to higher earnings for the year.

As a result, gross profit for the period is expected to increase from R1.1 billion in the comparative period to R6.8 billion in the current period. 

The gross profit for the comparative period was restated from R1.6 billion to R1.1 billion, a reduction of R440 million, due to a reclassification of certain expenses to cost of sales.

Implats said the increase in earnings was partially offset by a non-cash expense of R1.5 billion, or 217 cents per share, relating to the mark to market of the conversion option on the US dollar convertible bonds at year end. 

- African News Agency (ANA)