Impala Platinum Holdings has announced that its basic and headline earnings are expected to decrease due to various factors including lower metal prices, operational issues, and higher inflation.
According to the company, basic earnings for the year ended June 30 are projected to decline between 81% and 88%, amounting to ZAR4 billion to ZAR6 billion ($209.7 million to $314.5 million). Similarly, earnings per share are anticipated to decrease by 82% to 88%, ranging from ZAR4.70 to ZAR7.06.
Headline earnings are also predicted to take a hit, with a decline of 38% to 44%, reaching ZAR18 billion to ZAR20 billion. Correspondingly, headline earnings per share are expected to fall by 39% to 45%, specifically between ZAR21.17 and ZAR23.52.
The decrease in earnings largely stems from lower revenue, resulting from an 18% decrease in achieved dollar metal prices, partially offset by a weaker rand.
Furthermore, Impala Platinum Holdings has been faced with challenges such as increased frequency and severity of load curtailment and cable theft, negatively impacting sales volumes. Additionally, higher inflation has impacted cash costs. The company’s closing inventory has also been affected by a ZAR2.1 billion post-tax write down due to a lower U.S. dollar rhodium price.
As a result of these developments, shares in Johannesburg experienced a decline of ZAR0.85, or 0.8%, trading at ZAR102.06 at 0843 GMT.
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