Platinum producer Impala Platinum (Implats) expects its headline loss to widen by 18% to 36% year-on-year to between R1.1-billion and R1.3-billion for the financial year ended June 30.

Its headline loss a share is also expected to widen to between 162c and 186c.

Implats’ basic loss is expected to widen by 24% to 42% year-on-year to between R10.1-billion and R11.6-billion, while its basic loss a share is likely to be between 1 415c and 1 625c.

The difference between basic and headline losses, the company elaborated, is primarily owing to the impairment of property, plant and equipment as consequences of the outcome of the Impala Rustenburg strategic review.

During the financial year to June 30, Implats recognised impairments of R9.6-billion or 1 350c a share, post-tax, primarily in respect of its Impala Rustenburg assets.

In the comparatable period, an impairment of just over R7.3-billion or 1 026c per share, post-tax, was recognised in relation to the prepayment of royalties to the Royal Bafokeng Nation.

However, despite the increase in gross profits year-on-year, headline and basic earnings for the period decreased owing to a one-off, noncash, deferred taxation charge of R1.2-billion or 171c a share, and retrenchment costs of R378-million, or 53c a share.

The additional tax charge arose on the change in the mining tax rate of its Zimplats subsidiary following the conclusion of new mining leases.

In addition, losses in the comparatable period included proceeds on a one-off insurance claim of R584-million, or 81c a share, post-tax.

Meanwhile, Implats expects its refined platinum production for the year to decrease by about 4% to just over 1.4-million ounces, from just over 1.5-million ounces produced in the prior financial year.

The reduction in refined platinum production is primarily owing to a stock build-up of about 77 000 oz of platinum, which the miner on Monday said remains available for sale in the next financial period.

Inventory, meanwhile, was built up following furnace maintenance undertaken in the first half of the financial year and an electrical failure at the Number 5 furnace in February.

Concentrated platinum production for the period is expected to increase by 1% to almost 1.6-million ounces from 1.5-million ounces in the comparatable period.

The increase in concentrate production was principally as a result of improved operational performances from Impala, Marula, Mimosa and Impala Refining Services, which was partially offset by lower production from Zimplats and Two Rivers.

The miner’s stock adjusted unit costs were well-managed, it said, increasing by about 3% from the comparatable period.