Implats, the world’s second-biggest platinum producer, posted a 75% rise in annual headline earnings per share on Thursday, at the top end of expectations, lifted by higher output and strong metals prices.
South Africa’s Impala Platinum Holdings said headline EPS jumped to R13,12 for the 12 months to end-June from R7,50 the previous year.
The company said in a trading update in May that headline EPS, which strips out non-trading, capital and certain extraordinary items, was expected to surge by 55% to 75%.
Implats said production rose 10% to 2,03-million ounces of refined platinum, while unit costs shot up by 27,2% to R6 370 per platinum ounce.
Investors have been closely eyeing the group’s costs after they surged by 20,4% at the half-year stage, largely on the back of lower production at its Impala operation.
In the annual results, output at Impala fell by 6% to 1,06-million ounces.
”We are delighted to have broken through the two million platinum ounce horizon for the first time. This achievement, despite the disappointing performance at Impala Rustenburg, puts us firmly on track to achieve 2,5-million ounces of platinum per year by 2012,” chief executive David Brown said.
The company declared a final dividend of R7 per share, up from R2,75 the previous year, bringing the total dividend for the year to R9,75.
The sharp rise in profit was mainly due to buoyant metals prices, as the price of platinum, mainly used in jewellery and to clean pollution from vehicle exhausts. Implats said the revenue per platinum ounce sold jumped by 55,6% to R17 057.
The firm’s shares, which have gained 6% this year, closed on Wednesday 2,23% higher at R195,25. – Reuters