Boosted by a record rand PGM basket price, improved operational momentum and higher sales, Impala Platinum Holdings (Implats) has posted a 125% increase in headline earnings to R36.4 billion or R46.35 per share.
A final dividend of R12.00 per share was declared, bringing the total dividend for the full year ended 30 June 2021 to R22.00 per share. The Group has allocated 70% of the free cash flow generated to shareholder returns, through convertible bond repurchases and cash dividends.
Implats CEO, Nico Muller, said:
“Implats harnessed the benefit of improved operational momentum and record rand pricing for our primary products to deliver stellar results for the year ended 30 June 2021. This was achieved despite the challenges presented by Covid-19 and the erratic provision of essential services required to operate the Group’s globally diverse suite of mining and processing assets.
“This performance is testament to the progress made in the strategic repositioning of Implats over the past several years, which has enabled us to leverage the windfall on pricing to strengthen the business, care for employees, reward investors and secure the future growth and sustainability of the business.
“Implats’ balance sheet is strong, with a substantial closing net cash balance and increased funding flexibility through upsized and refinanced facilities. In line with our capital allocation priorities, this will allow the Group to increase shareholder returns and fund the sustainable and efficient growth potential of our asset base.
“The operational focus in the near-term will be on the further strengthening of our operating assets, leveraging the enhanced mining flexibility established at Impala Rustenburg to deliver further growth, and advancing projects across mine-to-market operations where we have sought to capitalise on inherent mining efficiencies and flexibilities at our low-cost assets to capture quick-to-market production growth to harness the benefit of a robust PGM pricing cycle.
“The Group’s processing assets are a key competitive differentiator. The changing ore mix of our growing production profile and the aspiration to improve the energy efficiency and environmental impact of our value chain will result in a series of studies aimed at proposing the optimal route for expansion.
“Internal planning to secure operational resilience during the pandemic has been ongoing since its emergence in early 2020 and vigilance in protecting the safety and health of our employees will be maintained in FY2022 as we complete our planned vaccination programme for employees.”