Harare – Following the release of a trading statement earlier this month, Impala Platinum (Implats), the parent of Zimplats and Mimosa on Monday said that it “now has reasonable certainty” that its headline earnings and headline earnings per share (HEPS) for the six-month period ended December 31, 2018, are likely to be between R2.21-billion and R2.24-billion and between 308c and 312c a share.

On February 4, Implats forecast that both headline earnings and basic earnings were expected to be at least R2.1-billion for the period, while HEPS and basic earnings per share (EPS) for the period would be at least 292c a share.

In Zimbabwe, 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. The Selous Metallurgical Complex (SMC), located 77 kilometres north of the underground operations, comprises a concentrator and a smelter. It contributes 18.1 percent to the Group’s platinum production.

In the quarter ended to December 30 2018, Zimplats reported a 10 percent increase in revenue to $152,9 million in the quarter ended December 30 buoyed by firm metal prices on the international market.

Mimosa is jointly held by Implats and Sibanye. It is located on the Wedza Geological Complex on the Zimbabwean Great Dyke, 150 kilometres east of Bulawayo. Mimosa comprises a shallow underground mine, accessed by a decline shaft, and a concentrator.

Mimosa has a well-defined grade profile where peak base metal and PGM values are offset vertically, with palladium dominant at the base, platinum in the centre, and nickel towards the top. Mimosa holds contiguous mining rights over 6 591 hectares on the North Hill, the South Hill, Mtshingwe Block and Far South Hill orebody areas. It contributes 7.9 percent to the Group’s platinum production.

In the period under review, basic earnings and EPS are expected to be between R2.29-billion and R2.32-billion and between 319c and 323c a share, respectively, compared to a basic loss and a basic loss a share of R163-million and 23c, respectively, for the comparative period, respectively.

As indicated in the trading statement issued earlier this month, the improvement in safety and operational performances, particularly at the Impala Rustenburg operations, higher sales volumes and higher rand platinum group metals basket prices were the major reasons for the increase in earnings.

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