JOHANNESBURG, South Africa – Impala Platinum said on Wednesday it will report a basic loss of up to R17.8 billion ($972.39 million) after suffering $1 billion of impairments due to the decline in the value of its assets on the back of plunging metal prices.
Impala said in a trading update that earnings for the year to June 30 had fallen due to lower revenue arising from a 34 percent decline in platinum group metal prices realised over the period.
Basic earnings for the period were affected by impairments of R16.5 billion at Impala’s flagship Rustenburg operations, R1.6 billion at Impala Canada and R686 million at the Mimosa joint venture with Sibanye Stillwater in Zimbabwe.
A further R987 million decline in the carrying value of assets was recognised at Impala’s Two Rivers joint venture with African Rainbow Minerals in South Africa.
Impala said it expects headline earnings of between 1.9 billion rand and 2.8 billion rand, up to 90 percent lower than last year’s 18.8 billion rand.
Headline earnings were hurt by a once-off, non-cash charge of 1.9 billion rand arising from the implementation of a share-based empowerment transaction benefiting previously disadvantaged entities including Impala Bafokeng employees, communities and a Black-owned consortium of investors.
Impala will publish its financial results on August 29.
