Paul Nyakazeya, Group Digital Editor 
ZIMBABWE Platinum Mines’ (Zimplats) majority shareholder, Impala Platinum (Implats), is expecting a 20 percent jump in annual earnings for the year to June 30, 2020, on the back of firm metals prices.
In a trading update, Implats, the world’s third largest source of platinum group metals (PGMs) which operates mines in Zimbabwe and South Africa, said it expects commodity prices to remain firm in the medium term.
“A significant increase in the dollar basket price for PGMs, together with rand depreciation, has resulted in a higher rand PGM basket price received by the group during the period. Consequently, Implats is expecting headline earnings and headline earnings per share for the period, to be significantly more than 20 percent higher than that reported for the year ended June 30, 2019,” said Implats.
Implats, which owns 87 percent of Australian Securities Exchange-listed Zimplats, said mines and processing plants there were uninterrupted by Covid-19, but the flow of concentrate and matte across the border into South Africa for refining was disrupted.
“Headline earnings and headline earnings per share for the comparative period were R3 038 million and 423 cents respectively. Basic earnings and basic earnings per share (“EPS”) are also expected to be significantly more than 20 percent higher than the comparative period primarily due to improvement in rand PGM pricing. Basic earnings and EPS in the comparative period were R1 471 million and 205 cents respectively,” the platinum miner said.
Implats says it will publish a further trading update detailing the expected earnings per share and headline earning per share ranges for the period under review, closer to the release of its annual results on or about September 3, 2020.
PGM prices are benefiting from record highs achieved during the six months to March, resulting in an average basket price of $1 612 (R26 482) an ounce, with palladium and rhodium again being the driving force. Implats announced in April that it had lost 26 000 ounces of 6E-mine-market concentrate during the March quarter due to Covid-19. The company also temporarily closed its Marula operation in Limpopo after identifying 19 positive coronavirus cases, all of them asymptomatic.
Implats implemented a temporary force majeure on metal supplies to customers. Companies declare force majeure, a legal clause in all contracts, when events beyond their control disrupt operations and their ability to fulfil contracts, excluding them from penalties.
newsdesk@fingaz.co.zw
