Impala Platinum Warns of Further Steep Drop in Earnings

By Christian Moess Laursen

Impala Platinum said it expects to report that earnings for its fiscal first half fell significantly further than previously flagged, dragged by foreign-exchange pressures, property and equipment impairments, and a cash hit from the consolidation of Impala Bafokeng's cost base.

The world's second-biggest platinum miner said Thursday that it now anticipates headline earnings for the half-year ended Dec. 31 to decrease by between 75% and 82% to between 2.5 billion and 3.5 billion South African rand ($132.3 million-$185.2 million).

Headline earnings-per-share are expected to drop by between 76% and 83% to between 279 cents and 391 cents per share, the Johannesburg-based precious-metals miner said.

In January, Impala said it expected headline earnings and earnings per share for the period to be at least 20% lower than the ZAR14.0 billion and 1,654 cents, respectively, reported a year earlier.

The drop in earnings is primarily due to lower revenue from a 37% lower achieved dollar revenue per ounce sold, partially offset by an 8% weaker rand, it said.

Sales volumes were 12% higher, benefiting from the consolidation of Impala Bafokeng and improved operational momentum, the company said.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

February 08, 2024 03:00 ET (08:00 GMT)

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