daniel chigunwe
Impala Platinum (Implats) on Wednesday said it expects at least a 20 percent decline in profit for the six months to December 31, mainly due to weaker metal prices.
Prices of platinum group metals (PGMs), mostly used to curb emissions in internal combustion engines, have fallen sharply over the past year due to weak automotive demand and rising sales of battery-powered electric vehicles. The prices of major PGMs, palladium and platinum, fell by about 40 percent and 15 percent, respectively, last year.
“Due primarily to the impact of weaker dollar PGM pricing, Implats is expecting headline earnings and headline earnings per share (HEPS) for the period to be at least 20 percent lower than those reported in the comparative period,” it said in a trading update.
The miner’s headline earnings and HEPS were R14 billion (US$748,80 million) and R16,54, respectively, in the six months to December 2022.
South African PGM miners, including Implats and Sibanye Stillwater, plan to chop thousands of jobs as they implement spending cuts to sustain operations amid low metal prices.
Implats said its refined PGM production increased by 19 percent to 1,75 million ounces after incorporating output from the recently acquired Royal Bafokeng Platinum assets as well as “a noticeable reduction in the frequency and intensity” of electricity supply disruptions in South Africa.
Implats said repairs to its 11 Shaft in Rustenburg, where a deadly hoisting equipment accident killed 13 workers and injured 73 others last November, are set to be completed in February.
“A build-up to full production capacity currently targeted for April 2024,” Implats said, adding that the mine had lost 30 000 PGM ounces in production due to the accident during the first half of its financial year.
Production of a further 30 000 PGM ounces is estimated to be foregone in the second half of Implats’ financial year as repairs continue. — Reuters
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