Impala Platinum profit down on low PGM prices and operational headwinds
A leading producer of platinum group metals (PGM), Impala Platinum has announced that for the year ended 30 June 2022 (FY22), its concentrate production declined by 4% to 3.17 million 6E PGM ounces compared to the previous year.
The company said that gross refined volumes (including saleable production from Impala Canada) were impacted by lower concentrate production and the extended maintenance required on the Number 3 Furnace at Impala Rustenburg.
Consequently, gross refined volumes declined by 6% to 3.09 million 6E ounces. Refined volumes in the comparative period benefitted from increased availability of processing capacity due to the timing of annual processing maintenance, the company added.
The company’s revenue decreased by 9% to R118.3 billion (~$6.8 billion), the cost of sales was 1% higher at R77 billion (~$4.5 billion), and gross profit declined by 23% to R41.3 billion (~$2.4 billion). Group EBITDA of R53.4 billion (~$3.1 billion) was achieved at an EBITDA margin of 45%.
Implats added that FY22 basic earnings declined to R32.0 billion (~$1.9 billion) or 3 856 cents per share, from R47.0 billion or 5 996 cents per share. Headline earnings of R32.0 billion or 3 853 cents per share were 12% and 17% lower, respectively.
The company explained that earnings in the period were adversely impacted by the combination of lower sales revenue, operational headwinds and inflationary pressures on operating costs.
In addition, the company’s board of directors declared a final dividend of 1 050 cents per share, bringing the total dividend for the year to 1 575 cents per share.
Importantly, Implats said its forecasts indicate tight rhodium and palladium markets and continued surpluses in the platinum market in 2022.
Implats is a leading producer of platinum group metals. The group is structured around six mining operations and Impala Refining Services, a toll refining business. The company’s operations are located on the Bushveld Complex in South Africa, the Great Dyke in Zimbabwe – the two most significant PGM-bearing ore bodies in the world – and the Canadian Shield, a prominent layered igneous domain.
