Implats issues positive FY19 earnings guidance

Harare – Impala Platinum (Implats), the parent of Zimplats and Mimosa issued a positive update on its full year ended 30 June 2019 earnings guidance on Monday morning. The group expects refined platinum production for the period to increase by 4% to 1 526 koz compared to 1 468 koz for the year ended 30 June 2018.

“The increase in refined platinum production is primarily due to improved performance from Impala Rustenburg and a stock release of platinum compared to a build-up in the comparative period,” the Group said in its trading statement.

Platinum sales volumes are expected to increase by 12% to 1 515 koz from 1 355 koz in the previous year due to the increase in refined production.

Headline and basic earnings per share are also expected to better prior year’s performance reported at 171 cents and 1 486 cents, respectively.

“Basic earnings in the comparative period were impacted by impairments of R9.7 billion (or 1 350 cents per share) (after-tax),” Implats said.

During the half year period ended 31 December 2018, Implats reported a headline profit of R2.23 Billion having recorded a 2.9% increase in tonnes milled from its managed operations at Impala Rustenburg, Zimplats and Marula to 10.24 million tonnes, compared to 9.94 million tonnes in the six months ended December 31, 2017.

Tonnes milled at Zimplats during the HY19 recorded at 3.3 million, was consistent with the tonnes milled in the comparative HY18 period.

Likewise, tonnes milled at Mimosa were maintained at 1.4 million tonnes while gross refined platinum group metals production was up 11% to 1.59 million ounces.

Zimplats is 87 percent owned by Implats and it is situated on the Zimbabwean Great Dyke and operates four underground mines and a concentrator at Ngezi while Mimosa is jointly held by Implats and Sibanye and is located on the Wedza Geological Complex on the Zimbabwean Great Dyke, 150 kilometres east of Bulawayo.

Impats said it will release its results for the year ended 30 June 2019 on or about 5 September 2019.

Equity Axis News

Raynold Mhotseka

Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, rayjnr.mhotseka@gmail.com and raynoldm@equityaxis.net.

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