Implats reports earnings slump amid lower prices, power cuts

Impala Platinum expects to report a more-than 20 percent drop in annual earnings as a result of weak metal pricing and lower refined production as a result of load curtailment.

Gross refined and saleable volumes declined by 4 percent to 2.96 million ounces of the basket of six metals it produces in the year to end-June, the company said in an update. Softer US dollar basket pricing was partially offset by the rand exchange rate weakening by 16 percent, resulting in a 4 percent decline in group sales revenue per ounce.

Implats, valued at about R104 billion on the JSE, has operations in SA, Zimbabwe and Canada, and generated headline earnings of about R32 billion in its 2022 year.

In 2023, about 36 000 ounces of production were foregone due to power outages in SA and Zimbabwe, while a further 101 000 ounces were deferred as a result of power constraints.

The deferred ounces also came amid a delayed restart of a refurbished furnace, while 10 000 were due to cable theft at Impala Rustenburg.
Implats said the operating environment in the year was typified by continuing headwinds, “and regional power constraints provided a notable impediment to operational continuity and delivery.”

During the period, Implats incurred a cash outflow of circa R4.9 billion and issued circa 16.2 million shares to increase its aggregate holding in Royal Bafokeng Platinum to 56.41 percent at the end of June. The financial results for the period will therefore include the consolidation of RBPlat results from the beginning of June, the final month of its 2023 year. Implats began the year with about 850.7 million shares.

Implats has, after period end, spent R11.1 billion and issued about 37 million shares in a 98.91 percent shareholding in RBPlat, which is expected to delist from the JSE in mid-September.
Shares in Implats were up almost 0.7 percent in late morning trade on Monday and have lost almost 40% over the past one year.-ebusinessweekly