Impala Platinum Holdings (Implats) expects a significant improvement in earnings for the year ended 30 June 2026, supported by stronger precious and base metal prices and higher refined production.
In a trading statement released on Wednesday, the platinum group metals producer said achieved revenue per 6E ounce sold increased by 51% to R38 116 during the period.
Meanwhile, Group 6E refined and saleable production rose 5% to 3.56 million ounces as the company reduced excess in-process inventory.
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Higher costs partly offset gains
The improvement in revenue was partly offset by an 8% increase in stock-adjusted group unit costs to R24 249 per 6E ounce. Implats also cited higher costs of metals purchased by Impala Refining Services, as well as increased tax and royalty payments.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) increased to about R43.6 billion, while free cash generated rose to R22 billion. However, free cash flow was negatively affected by the reclassification of part of Zimplats’ local-currency cash balances to statutory receivables.
Headline earnings are expected to come in between R21.8 billion and R23.8 billion, translating into headline earnings per share (HEPS) of between 2 429 cents and 2 652 cents. This compares with headline earnings of R0.7 billion and HEPS of 82 cents in the previous financial year.
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Impairment reversal boosts basic earnings
Basic earnings benefited from an R8.1 billion reversal of impairments related to property, plant and equipment and the prepaid royalty at Impala Rustenburg, reflecting higher prevailing rand PGM prices.
Basic earnings are forecast at between R30 billion and R32 billion, with basic earnings per share expected to range from 3 343 cents to 3 566 cents, compared with R0.8 billion and 85 cents respectively in the prior year.
Implats is expected to release its full-year results on or about 3 September 2026.
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