[miningmx.com] — IMPALA Platinum (Implats) has rewarded shareholders with a 46% increase in its total dividend payout, in line with the group’s annual headline earnings growth of 41%.
Reporting annual results for the year to end-June on Thursday, Implats said shareholders would receive a final dividend of R4.20 per share, bringing the total dividend to R5.70.
Revenue increased 30% to R33.1bn.
The growth in headline earnings – from R7.86 to R11.05 per share – and revenue were achieved on the back of an increase in production of 5.5% to 1.836 million ounces; supported by improved performances at Rustenburg and Zimplats.
Higher dollar metal prices and sales volumes more than made up for the stronger rand, while unit cost rose by 8% to R10,867 per platinum ounce.
While safety performance showed an 11% improvement in the overall injury frequency rate to 13.5 per million man hours worked, the lost time injury frequency rate deteriorated by 7%. Eight employees died at work, of which seven incidents took place at Rustenburg.
Operationally, Implats described the year at Rustenburg as “one of recovery’ with tonnes milled increasing by 4%.
” Mining flexibility remains a key issue which will continue to place reliance on mining activities at older shafts, resulting in reduced efficiencies and necessitating an ongoing high level of remnant mining,’ Implats said.
“Despite 20 Shaft delivering first production during the year, it has become apparent that stoping would jeopardise the tight project completion schedule, and it has been decided to delay the production ramp-up by 12 months.’
Tonnes milled at Zimplats increased by 3% to 4.2 million, with the Bimha Mine achieving maximum throughput in May. The Phase 2 expansion commenced in August 2010 and was expected to cost in the region of $460m.
Implats said it was engaged in “ongoing discussions’ with the Zimbabwean government regarding the indigenisation programme, according to which Zimplats has been given a September deadline to come up with a proposal to transfer 51% of its share capital to local Zimbabweans.
As for Marula, Implats said, it affirmed an earlier announcement that it would “right-size its cost base’, mainly through retrenchments.
It plans to keep production at the existing rate of 70,000 ounces for the next two years to enable the completion of ancillary infrastructure on-reef.
Looking forward, the group said tough supply conditions would result in tight market conditions. “The group is positioned to benefit from this environment,’ Implats said. “The key to this is a stable and long-lasting production platform.’
