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Impala reports record platinum output Posted: Thu, 14 Feb 2008 [miningmx.com] -- IMPALA Platinum (Implats) turned out a respectable set of results for the six months to December during which it achieved record production of 1.03 million oz of platinum, but its full-year outlook is for reduced output. That looks good compared with the production drops reported from competitors Anglo Platinum, Lonmin and Northam Platinum. News from these companies have helped push the spot platinum price to $2,000/oz compared to $1,985 in late New York trade on Wednesday. "South African supply constraints due to electric power and people issues coupled with stable to firm automotive demand will result in very tight market conditions in 2008 for both platinum and rhodium," said Impala CEO David Brown. "While the outlook for palladium continues to improve, significant above ground stock sales have the potential to be price disruptive," he said. He told newswire Reuters that full-year production would be below two million oz compared to 2.026 million oz in 2007. "We expect to produce just under two million ounces of platinum, we are disappointed not to be able to maintain the previous level of above two million." Implats also turned in a cost performance which, while still running well ahead of South Africa’s general inflation rate, again looks good compared with the rest of the mining sector. The group’s total cost of sales rose 10,6% to R8.69bn while unit costs – excluding share based payments – were 12,7% up on the previous comparable period at R6,340/oz of platinum produced. Net profit rose 7% to R4,69bn but earnings per share dropped 6% to 771c because of a 14% rise in the weighted average number of shares in issue to 604,2 million following completion of the BEE deal with the Royal Bafokeng Nation. It declared an interim dividend of 300c. Click Here to subscribe to our daily newsletter
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