JSE-listed Impala Platinum (Implats) expects its headline earnings for the year ended June 30 to decrease by between 38% and 44% year-on-year to between R18-billion and R20-billion and its headline earnings a share to decrease by between 39% and 45% to between R21.17 and R23.52.
Basic earnings for the period are expected to decrease by between 81% and 88% to between R4-billion and R6-billion and its earnings a share by between 82% and 88% to between R4.70 and R7.06.
Implats says earnings for the period decreased primarily owing to lower revenue arising from an 18% lower achieved dollar metal price, partially offset by a 16% weaker rand.
The impact of the increased frequency and severity of electricity load curtailment and cable theft resulted in a cumulative loss of about 147 000 oz of refined platinum, palladium, rhodium, ruthenium, osmium and gold for the period, which negatively impacted on sales volumes.
Cash costs continued to be negatively impacted by higher inflation and the impact of the weaker rand on the translated costs of Zimplats and Impala Canada.
In addition, the lower dollar rhodium price at the end of the period resulted in an about R2.1-billion (post-tax) write-down of closing inventory, which negatively impacted on earnings.
Basic earnings were further impacted by charges including impairment of property, plant and equipment at Impala Canada of R7.8-billion owing to the combined impact of a material decrease in the dollar palladium price profile and higher prevailing inflation; a loss on the remeasurement of the previously held equity investment in Royal Bafokeng Platinum (RBPlat) of R1.8-billion; and an impairment of goodwill of R4.2-billion arising on the acquisition of RBPlat.
Implats will release its audited results for the year on or about August 31.