Impala Platinum Holdings, a precious-metals mining company, announced a projected decrease in both basic and headline earnings due to various factors impacting their operations. The company anticipates a decline in basic earnings between 81% and 88% for the year ended June 30, amounting to 4 billion South African rand to 6 billion South African rand ($209.7 million to $314.5 million). Earnings per share are also expected to decrease by 82% to 88%, falling between ZAR4.70 and ZAR7.06.
Furthermore, Impala Platinum Holdings estimates a decrease in headline earnings by 38% to 44%, equivalent to ZAR18 billion to ZAR20 billion. Similarly, headline earnings per share are expected to see a decline of 39% to 45%, ranging from ZAR21.17 to ZAR23.52.
The company attributes the decline in earnings mainly to lower revenue resulting from an 18% decrease in achieved dollar metal price, although this was partially offset by a weaker rand.
Additionally, Impala Platinum Holdings has faced challenges such as increased frequency and severity of load curtailment and cable theft, causing a negative impact on sales volumes. Cash costs have also been affected by higher inflation. Moreover, a lower U.S. dollar rhodium price led to a post-tax write down of closing inventory amounting to ZAR2.1 billion.
At the time of writing, shares in Impala Platinum Holdings were down ZAR0.85 or 0.8% at ZAR102.06 in Johannesburg.
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