Impala Platinum Holdings (Implats), the world’s number-two platinum producer, on Thursday posted a 57% rise in headline earnings per share to R20,65, driven primarily by higher metal prices.
Implats forecasts stronger output in the current year, but warned that costs would rise much more than the previous year.
Platinum production, excluding Lonmin material treated by Implats, rose 2% to 1,9-million ounces, while costs rose 17% to R6 930 per ounce.
The company, whose shares closed at R225 on Wednesday, also declared a total dividend of R14,75.
The group expects the platinum market to come close to a balance in the short term, and forecast ”sound” medium- to long-term demand for the metal, which is used mainly for making autocatalysts.
”Implats grappled with an extremely difficult operating environment dominated by safety, the power crisis and a sharply decreased availability of skills,” Implats CEO David Brown said.
”The year ahead remains challenging as global economic woes will continue to overhang the market. However, the medium- to long-term fundamentals for PGMs [platinum group metals] remain sound and underpin the group’s growth objectives.”
Platinum hit a record high of $2 290 an ounce in March on power shortages in main producer South Africa, which disrupted mining and triggered supply worries.
Brown said the main focus in the year ahead would be on safety, the retention of skills and increasing production. — Reuters