(Bloomberg) -- Impala Platinum Holdings Ltd. will report its first net profit since 2014 as the South African miner benefits from higher metals prices and operational improvements.
- Implats expects to report basic earnings per share of between 1.81 rand ($0.12) and 2.30 rand for the year through June, from a 14.86-rand loss a year earlier. So-called headline earnings per share are seen at as much as 4.40 rand, from a loss of 1.71 rand last year.
- The return to profit is likely to bolster the case for a resumption of dividend payouts, especially after the company reduced its debt following a bond swap announced last month.
- Implats and other South African producers have received a profit boost from a combination of surging prices for palladium and rhodium and a weaker rand. The company also benefitted from increased sales volumes, as its problem-child Rustenburg operation improved and it sold some metal stocks.
- The outlook still has its risks though, as South African platinum miners hold talks with unions over a new three-year wage deal. The Association of Mineworkers and Construction Union rejected the company’s initial offer, the labor group said this week.
- Implats shares dropped after the announcement before paring losses to trade 0.1% lower at 10:20 a.m. in Johannesburg, compared with a 1.1% drop in the FTSE/JSE Africa Platinum Mining Index.
- Statement here
- Key figures here
- Impala Platinum Gets Bondholder Backing for Debt-Swap Plan
- No. 2 Platinum Miner Sees Bond Swap as Step to Resuming Dividend
- Platinum Giants Bolster Positions Before Wage Talks Begin
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