Impala Platinum HY profit dips on furnace rebuild, power cuts

Published: 2023-03-02 tag: commodities

JSE:AGL JSE:AMS JSE:IMP JSE:SSW JSE:NPH JSE:RBP JSE:MPT

March 2 (Reuters) - South Africa's Impala Platinum (IMPJ.J) reported a 2.1% drop in half-year profit on Thursday as power cuts and a furnace rebuild hit smelter operations, lowering platinum group metal (PGM) production.

South Africa, the world's top PGM producer, is facing extended electricity cuts due to the frequent breakdown of its coal-fired power generation plants.

Anglo American Platinum (AMSJ.J) and Sibanye Stillwater (SSWJ.J) have recently warned that South Africa's 2023 PGM output could be impacted significantly if the power cuts persist.

Impala's headline earnings per share (HEPS) - the main profit measure in South Africa - fell to 16.54 rand ($0.9089) in the six months to Dec. 31, from 16.90 rand the previous year.

Its refined output declined 9% to 1.476 million ounces from 1.617 million ounces in the same period last year.

"Smelting capacity was constrained by increased (electricity) load curtailment and the scheduled rebuild of the Number 4 Furnace in Rustenburg, which started in late November 2022," Impala said in a statement.

View 2 more stories

Impala, which has operations in South Africa, Zimbabwe and Canada, declared an interim dividend of 4.20 rand per share.

The company is still pursuing its bid to acquire mid-tier Royal Bafokeng Platinum (RBPlat) (RBPJ.J), despite a competing offer by smaller rival Northam Platinum (NPHJ.J).

Impala, which already owns 40.71% of RBPlat, recently extended the closing date of its offer to RBPlat shareholders to March 31, due to delayed regulatory approvals.

($1 = 18.1979 rand)

Countries in Latin America and the Caribbean have the largest solar power development pipeline outside Eastern Asia and North America, making the bloc a key renewable hot spot to track over the coming decade.

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.