IMPLATS EARNINGS COULD ROCKET BY UP TO 433%

IMPALA Platinum (Implats), the world’s third-biggest platinum producer, expects annual earnings for the year to the end of June to rocket by up to 433 percent on strong prices for platinum group metals (PGMs). Updating its guidance published in July, Implats – which operates mines in South Africa, Zimbabwe and Canada – said yesterday that headline earnings for the year would range between R15.6 billion and R16.2bn, while headline earnings per share (Heps) would be between R20.07 and R20.84 a share. This represented an increase of between 413 percent and 433 percent for headline earnings and an increase of between 374 percent and 393 percent for Heps. The group recorded headline earnings and Heps of R3.038bn and R4.23 a share, respectively, a year earlier. “The benefit of a significant increase in the dollar basket price for PGMs, together with rand depreciation, has resulted in a meaningful increase in gross profit, which is expected to increase to R23bn in the period from R7bn in the comparative period, despite an expected 5 percent decline in refined and saleable PGMs to 2.8 million grade 6E ounces relative to the comparative period,” said Implats. The group said basic earnings and basic earnings per share (Eps) for the period were expected to be between R15.81bn and R16.10bn and between R20.34 a share and R20.72 per share, respectively, representing an increase of between 975 and 994 percent for basic earnings and an increase of between 892 and 911 percent in basic Eps. Basic earnings and basic Eps in the comparative period were R1.471bn and R2.05 a share, respectively. PGM prices have been robust, driven by strong prices for rhodium and palladium, used for exhaust emission control. |