Africa-Press – South-Africa. IMPALA Platinum (Implats) yesterday flagged that it would record more than 100 percent in headline earnings for the year ended June 2021 compared to a year earlier, as platinum producers continued to post windfalls thanks to the metal price rally.
Implats, which operates platinum group metals (PGM) mines in South Africa, Zimbabwe and Canada, said headline earnings for the year would likely surge by up to 129 percent to between R35.8 billion and R36.8bn, representing headline earnings a share of between 4 564 cents and 4 691c.
Implats will likely record a staggering growth in basic earnings to be between R46.5bn and R47.5bn and basic earnings per share of between 5 928c and 6 056c, it said.
This represents a whopping increase of between 189 percent and 195 percent for basic earnings and an increase of between 187 and 193 percent for earnings per share, Implats said.
“This includes the impact of the reversal of impairment losses on property, plant and equipment and the prepayment of royalties of R10.6bn, or 1 351c per share, post-tax recognised in prior periods. These impairment reversals are non-cash and have been excluded from headline earnings,” Implats said.
Last month, Implats flagged basic earnings and earnings a share to be at least R19.2bn and 2 480c respectively up from R16.1bn and 2 066c a share respectively. The company also said last month that it was likely to record headline earnings and headline earnings per share of R19.2bn and 2 490c respectively, compared with R16bn and 2 075c reported in 2020. The significant increase in the dollar basket PGM prices coupled with higher 6E sales volumes, resulted in higher revenue and improved profitability for the period, Implats said last month.
Implats rival, Anglo American Platinum, posted net sales of R107.5bn, during the six months ended June 2021, compared with R42.2bn a year earlier, mainly driven by strong prices, higher production and sales, while Royal Bafokeng Platinum’s revenue climbed by 108 percent to R9.5bn during the same period.
Platinum producers are riding the wave of higher average dollar terms, with the PGM basket price jumping by 47 percent to $2 884 (R42 390) an Ounce in the six months ended June.
The group recorded a 15.6 percent increase in gross concentrate volumes to 3.29 million 6E ounces, including a 17.9 percent increase in concentrate production, to 2.37 million 6E ounces from managed operations and a 10.3 percent increase in concentrate production to 561 000 6E ounces from joint ventures, it said previously.
The increased load shedding and the timing of scheduled maintenance at the group’s processing plants in the second half due to Covid-19 delays had severely impacted the expected destocking of in-process inventory.
Implats shares closed 0.77 percent lower at R240.29 on the JSE yesterday.
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