Implats expects profits to quadruple
SA’s third-largest source of platinum group metals (PGMs), Impala Platinum expects to report a more than R10bn rise in profits in its half-year to end-December, a fourfold increase, amid a weaker rand and high precious metal prices.
Headline earnings are expected to rise by 318%-338% to between R14.10bn and R14.78bn to end-December, the group said in a trading update, from R3.38bn previously.
Headline earnings is a widely-used profit measure in SA, with Implats citing a weaker rand, robust PGM prices in dollars, as well as a strong operational performance.
Group refined production for the period is expected to increase by 29% to 1.694-million ounces, the group said, with this figure including all six metals that make up the suite of metals that Implats mines.
The increase in refined production is primarily due to constrained processing capacity in the comparative period when planned smelter maintenance resulted in a stock build-up, the group said.
In addition, reported volumes in the period benefited from the inclusion of saleable production from Impala Canada.
Impala Platinum concluded its R11bn takeover of Canada’s North American Palladium (NAP) towards the end of 2019.
In morning trade Implat’s share was down 0.83% to R215.80, giving the group a market capitalisation of about R169bn.
The group’s share has risen 374% over the past two years.