UN­DER WA­TER

Finweek English Edition - - INVESTMENT -

Im­plats re­sults saw the CEO sound­ing sur­pris­ingly op­ti­mistic, but the key num­ber was the cost of pro­duc­tion per plat­inum ounce – R16 570. At cur­rent lev­els of around $1 500 for the me­tal and an ex­change rate around R10/$, it means that the miner is re­ceiv­ing R15 000 per ounce and is un­der wa­ter. Fur­ther, this pro­duc­tion cost is for the pre­vi­ous fi­nan­cial year and ex­cludes the cur­rent year’s in­creases in costs, of which labour is cer­tainly one of them. In short, Im­plats needs a 10% move in ei­ther the plat­inum price or the ex­change rate to be at break even ex­clud­ing capex spend.

Im­pala Plat­inum Hold­ings

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.