adminImpala Platinum has cut its 2023 dividend by almost 63 percent after lower revenues and higher costs of sales prompted a just over 81 percent crash in profits to about R6,2 billion.
The group on Wednesday cut its final dividend for the year to end-June to 165c, or R1,49 billion down from R8.9 billion. In 2023 it was hit by some one-off items, notably a R10,9 billion writedown of Impala Canada, due to the combined impact of a material decrease in the US dollar palladium price profile and higher prevailing inflation.
In its results for the year ended in June, the platinum miner reported a 10 percent drop in revenue to R106,6 billion amid a 5 percent decline in sales volumes.
A 17 percent fall in dollar metal prices was partially offset by a 13 percent weaker rand exchange rate.
“Enhanced operational flexibility, resilience and disciplined execution enabled Implats to successfully navigate a series of domestic and regional challenges, which compounded the effects of softening dollar PGM pricing, rand depreciation and persistent inflation in the period under review,” said Implats CEO, Nico Muller.
Still, Implats closed the period with net cash of just over R25 billion, down only 4,4 percent year on year.
“We have invested heavily in asset integrity, harvesting some of the benefit of our recent strong financial performance to materially strengthen our portfolio competitiveness,” said Muller.
“We remain focused on delivering consistent and safe production, constructively collaborating with key stakeholders and entrenching operational agility and flexibility.”
Implats noted the acquisition of Royal Bafokeng Platinum as a highlight for the year and the group is now implementing its plans to integrate and optimise the asset to ensure maximum value. -News24
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