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Impala Platinum has warned that earnings for the year ended in June will drop more than a third due to lower metal prices and a toxic cocktail of other SA-specific factors.
In a trading statement released on Tuesday, Implats said headline earnings for the financial year will fall as much as much as 44% to R18 billion, amid an 18% fall in the dollar metal price, partially offset by a 16% weaker rand. Basic earnings are expected to fall as much as much as 88%.
The impact of the increased frequency and severity of load curtailment - where large users are directly asked to reduce power usage - and cable theft resulted in a cumulative loss of around 147 000 ounces of the basket of six metals it produces.
The miner, which produces ruthenium, rhodium, palladium, osmium, iridium, and platinum, said cash costs continued to be hit by higher inflation and the impact of the weaker rand on the translated costs of Zimplats in Zimbabwe and Impala Canada.
The lower US dollar rhodium price at the end of the period resulted in a R2.1 billion post-tax write-down of closing inventory, which also negatively impacted earnings.
Shares in the group, which will release its results at the end of August, were down almost 1% in late morning trade and have more than halved in the year to date.
