Trading Statement for the year ended 30 June 2018
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ADR code: IMPUY
(“Implats” or “the Group”)
TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2018
Implats will release results for the year ended 30 June 2018 (“the period”) on 13 September 2018.
With reference to the Listings Requirements of the JSE Limited, issuers must publish a trading statement on
SENS as soon as they become reasonably certain that financial results for the next reporting period will differ
by at least 20% from those of the previous corresponding reporting period.
The Group’s refined platinum production for the period is expected to decrease by 4% to 1.468 Moz from
1.530 Moz for the year ended 30 June 2017 (“the comparative period”). The reduction in refined platinum
production is primarily due to a stock build-up of circa 77 000 oz platinum, which remains available for sale
in the next financial period. Inventory was built up following furnace maintenance undertaken in the first
half of the financial year and an electrical failure at the Number 5 furnace in February 2018.
Concentrate platinum production for the period is expected to increase by 1% to 1.574 Moz from 1.557 Moz
in the comparative period. The increase in concentrate production was principally as a result of improved
operational performances from Impala, Marula, Mimosa and Impala Refining Services (“IRS”) (third party),
partially offset by lower production from Zimplats and Two Rivers.
The Group’s stock adjusted unit costs were well-managed, increasing by approximately 3% from the
Expected headline and basic loss
Shareholders are advised that Implats is expecting a headline loss of between R1 164 million and R1 336
million, with headline loss per share of between 162 and 186 cents per share. Headline loss and headline
loss per share for the comparative period were R983 million and 137 cents per share, respectively. The
expected headline loss per share will therefore reflect an increased loss of between 18% and 36% when
compared with the headline loss per share for the comparative period.
Basic loss for the period is expected to be a loss of between R10 167 million and R11 676 million, with the
basic loss per share of between 1 415 and 1 625 cents per share. Basic loss and basic loss per share for the
comparative period were R8 220 million and 1 145 cents per share, respectively. The expected basic loss per
share will therefore reflect an increased loss of between 24% and 42% when compared with the basic loss
per share for the comparative period.
The difference between basic and headline losses is primarily due to the impairment of property, plant and
equipment as a consequence of the outcome of the Impala Rustenburg strategic review. During the period,
the Group recognised impairments of R9 699 million or 1 350 cents per share (post tax) primarily in respect
of its Impala Rustenburg assets. In the comparative period, an impairment of R7 365 million or 1 026 cents
per share (post-tax) was recognised in relation to the prepayment of royalties to the Royal Bafokeng Nation.
Despite the increase in gross profits year on year, headline and basic earnings for the period decreased due
to a once-off, non-cash, deferred taxation charge of R1 227 million or 171 cents per share, and retrenchment
costs of R378 million or 53 cents per share (post-tax). The additional tax charge arose on the change in the
mining tax rate of Zimplats following the conclusion of the new mining leases. In addition, losses in the
comparative period included proceeds on a once-off insurance claim of R584 million or 81 cents per share
The financial information on which this trading statement is based has not been reviewed and reported on
by the external auditors of Implats.
T: +27 (0) 11 731 9013/43
M: +27 (0) 82 809 0166
T: +27 (0) 11 731 9033/43
M: +27 (0) 82 498 3608
20 August 2018
Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited
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