IMPALA Platinum (Implats) today announced it had impaired assets for R19,8bn, equal to basic earnings of R22,04 per share, owing to a one-third decline in the average metal price during the 12 months ended June.
However, it reported positive free cash flow for the second half of the period in which assets were restructured and there was a minor revival in metal prices.
Refined metal production increased 14% year-on-year to 3.38 million ounces including output from Impala Bafokeng, purchased in its Royal Bafokeng Platinum deal in its 2023 financial year. Excluding this production, refined metal output was 2% higher year-on-year.
Implats said the scheduled rebuild of Number 5 furnace at Impala Rustenburg constrained processing capacity during the period. The furnace was recommissioned in April leaving Implats with 390,000 oz worth in capital build (2023: 245,000 oz).
Revenue fell 30% to R25,257 per 6E ounce sold. Implats said palladium and rhodium average prices were particularly hard hit during the period. Set against this, Implats forecast a 5.5% increase in unit costs to about R20,925 per 6E ounce on a stock-adjusted basis.
The group incurred R488m in restructuring costs which would contribute towards a cash outflow of R109m for the year under review and an outflow of R375m for the 2025 financial year-to-date.
The write-downs included R16.5bn (18,36/share) on Implats’ flagship Lease Area (Rustenburg) and R686m or (76 South African cents/share) at Mimosa in Zimbabwe. The balance was made up of previously announced impairments at Impala Canada and Two Rivers, held in joint venture with African Rainbow Minerals.
The outcome for basic earnings is a loss for the period of between R16.9bn and R17.8bn, equal to R18,83 and R19,84 per share. This compares to R4.9bn in basic earnings (or 577 South African cents/share) in the firm’s 2023 financial year ended June.
Equally disappointing for the company was a further six fatalities at its mines. Including the 11 shaft tragedy at Rustenburg in November, in which 13 lives were lost in a single incident, Implats reported a total of 19 fatalities. A host of improved safety measures have been introduced at the operations, the group said.
