JSE-listed Impala Platinum (Implats) expects its headline earnings and headline earnings per share (HEPS) for the half-year ended December 31, to be between 42% and 62% and between 32% and 50% higher, respectively, year-on-year.
Headline earnings are expected to be between R3.16-billion and R3.6-billion and HEPS will increase to between 408c and 465c, compared with the headline earnings of R2.23-billion and HEPS of 310c reported for the six months ended December 31, 2018.
Basic earnings and basic earnings per share (EPS) are expected to increase by between 37% and 57% and between 27% and 46%, respectively, year-on-year.
Basic earnings are expected to be between R3.17-billion and R3.63-billion and EPS at between 409c and 469c, compared with the earnings of R2.31-billion and EPS of 321c reported for the prior comparable period.
Despite sales volumes for the period being lower than in the prior comparative period owing to the impact of ongoing planned smelter maintenance on refined production, gross profit is expected to increase by more than 90% to about R6-billion, primarily owing to the higher rand platinum group metals (PGMs) basket price.
This increase was partially offset by the one-off expense of R509-million, or 66c a share, relating to the incentivised early conversion of the dollar convertible bonds during the period; restructuring costs of R238-million, or 31c a share; and higher taxation charges owing to improved profitability.
Further, in the comparative period, earnings included the nontaxable income from Zimplats of export incentives of R417-million, or 58c a share, which did not recur in the current period.
Implats will release its interim results on February 27.