JSE-listed Impala Platinum (Implats) expects to report an improvement in both basic and headline earnings for the financial year ended June 30, with this increase primarily owing to gains in both precious and base metal pricing in the period, which resulted in a 51% improvement in achieved revenue per platinum, palladium, rhodium, ruthenium, iridium and gold (6E) ounce sold to R38 116.

Group 6E refined and saleable production improved by 5% year-on-year to 3.56-million ounces as excess in-process inventory was reduced during the period.

The benefit of improved revenue was partially offset by the 8% increase in stock adjusted group unit costs to R24 249/oz of 6E, the higher cost of metals bought by Impala Refining Services and increased tax and royalty payments.

Group earnings before interest, taxes, depreciation and amortisation increased to about R43.6-billion, while free cash generated improved to R22-billion.

The free cash flow for the period was adversely impacted by the reclassification of a portion of Zimplats’ local currency cash balances to statutory receivables.

Headline earnings and headline earnings per share (HEPS) for the period are expected to increase to be between R21.8-billion and R23.8-billion and R24.29 and R26.52, respectively, compared with headline earnings of R700-million and HEPS of 82c a share in the prior financial year.

Basic earnings and basic earnings per share (EPS) are expected to increase to between R30-billion and R32-billion and R33.43 and R35.66, respectively, compared with R800-million and EPS of 85c a share in the comparative period.

Basic earnings for the period benefitted from the reversal of impairments of R8.1-billion, equivalent to R9.04 (post-tax), relating to property plant and equipment and the prepaid royalty at Impala Rustenburg owing to higher prevailing rand platinum group metals pricing.

The weighted average number of shares in issue for the period decreased to 897.41-million from 897.45-million in the comparative period.

Implats will release its results for the period on or about September 3.