Impala Platinum Holdings’ earnings for the six months to December 31 decreased mainly due to lower revenue from 37% lower dollar revenue per 6E ounce sold, partially offset by an 8% weaker rand.
The miner said in a trading statement yesterday that sales volumes were 12% higher, benefiting from the maiden interim consolidation of Impala Bafokeng and improved operational momentum.
Cash costs were hurt by the consolidation of the cost base of Impala Bafokeng, and the weaker rand on the translated costs of Zimplats and Impala Canada.
Implats’s headline earnings were expected to decline between 75% and 82% to between R2.5 billion and R3.5bn, while headline earnings per share (Heps) were expected to fall between 76% and 83% to between 279 cents and 391c.
Headline earnings and Heps for the comparative period were R14bn and 1 654c, respectively.
Basic earnings were also impacted by an impairment of property, plant and equipment at Impala Canada of R701m or 78c per share, due to a “further material decline” in the palladium price and resultant changes in planned operating parameters at this operation.
There was also an impairment of property, plant and equipment at the Two Rivers Platinum joint venture of R987m, or 110c a share, due to the combined valuation impact of lower rand platinum group metal (PGM) pricing and elevated near-term capital expenditure from the Merensky Project, currently under construction.
Basic earnings and earnings per share were expected to decrease by between 86% and 93% to be between R1bn and R2bn, and between 112c and 224c per share, respectively, a trading statement said.