Implats reports almost 1000% increase for basic earnings

Implats issued a trading statement on SENS on 23July 2020 indicating that it expected to report that both basic and headline earnings for the period had improved by significantly more than 20% than those reported for the year ended 30 June 2019 (the comparative period).

Implats now has reasonable certainty on its earnings and therefore advises shareholders of the following: Implats’ headline earnings for the period are expected to be between R15 600million and R16 200million. This represents an increase of between 413% and 433% for headline earnings.

Headline earnings for the comparative period were R3038 million. Basic earnings for the period are expected to be between R15 810million and R16100 million. This represents an increase of between 975% and 994% for basic earnings. Basic earnings in the comparative period were R1 471 million.

Group operations have delivered production volumes at the top-end of the guided range provided to the market on 24 June 2020, despite the impact of Covid-19.

The benefit of a significant increase in the dollar basket price for PGMs, together with rand depreciation, has resulted in a meaningful increase in gross profit, which is expected to increase to R23 billion in the period from R7 billion in the comparative period, despite an expected 5% decline in refined and saleable PGMs to 2.8million 6E ounces relative to the comparative period.

The financial information on which this trading statement is based has not been reviewed and reported on by the external auditors of Implats.