Implats flags earnings slump after hits from power woes, cable theft and weaker prices

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The platinum miner expects to report a major slide in earnings due to a cocktail of challenges.

Impala Platinum has warned that earnings for the year ended in June will drop more than a third due to lower metal prices and a toxic cocktail of other SA-specific factors.

In a trading statement released on Tuesday, Implats said headline earnings for the financial year will fall as much as much as 44% to R18 billion, amid an 18% fall in the dollar metal price, partially offset by a 16% weaker rand. Basic earnings are expected to fall as much as much as 88%. The impact of the increased frequency and severity of load curtailment - where large users are directly asked to reduce power usage - and cable theft resulted in a cumulative loss of around 147 000 ounces of the basket of six metals it produces.A deep dive into the big business story of the week, as well as expert analysis of markets and trends.

The lower US dollar rhodium price at the end of the period resulted in a R2.1 billion post-tax write-down of closing inventory, which also negatively impacted earnings. Shares in the group, which will release its results at the end of August, were down almost 1% in late morning trade and have more than halved in the year to date.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month.

 

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