Impala Platinum’s R13bn restructuring impairment puts it deeper into the red
That masked operational improvements as it removes unprofitable ounces, and Implats says long-patient investors will get their rewards — just not right now
Impala Platinum, the world’s second-biggest source of the metal, reported a deepening full-year loss on the back of a R13bn impairment that masked an operational improvement at its mines. Implats has started a major restructuring to close five of its 11 mines near Rustenburg and cut up to 13,000 jobs over the next few years as it removes unprofitable ounces from its production. It is one of a number of platinum companies to undertake such an exercise because of prolonged price weakness for the metal. Implats posted a loss for the year to end-June of R10.8bn, compared with R8.1bn the year before. It recorded an impairment of R13.6bn for the year due to the restructuring of its 11 Impala shafts near Rustenburg, after notching up R10bn in impairments in the year before. Implats did not declare a dividend. "The Implats board and management team are aware that shareholders, who own and have invested in the company, have received scant reward over the past five years," it said. "Decisive ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.