JSE-listed Impala Platinum (Implats) expects to report an up to 83% year-on-year decrease in headline earnings for the six months to December 31, 2023, as a result of lower revenue arising from a 37% lower achieved dollar price per platinum, palladium, rhodium, ridium, ruthenium and gold (6E) ounce sold, partially offset by an 8% weaker rand.

Sales volumes for the six-month period were 12% higher year-on-year, benefitting from the maiden interim consolidation of Impala Bafokeng and improved operational momentum.

Cash costs, however, were negatively impacted on by the consolidation of the cost base of Impala Bafokeng in the period, as well as the weaker rand on the translated costs of Zimplats, in Zimbabwe, and Impala Canada.

Headline earnings are expected to decrease by between 75% and 82% to between R2.5-billion and R3.5-billion and headline earnings per share (HEPS) by between 76% and 83% to between R2.79 and R3.91.

Headline earnings and HEPS for the comparative period were R14-billion and R16.54, respectively.

Basic earnings for the period were further impacted by several charges, including the impairment of property, plant and equipment at Impala Canada of R701-million, or 78c a share, owing to a further material decline in the palladium price and subsequent changes in planned operating parameters at this operation.

Further, Implats incurred a R987-million, or 110c a share, impairment of property, plant and equipment at the Two Rivers Platinum joint venture, owing to the combined valuation impact of lower rand platinum group metals (PGMs) pricing and elevated near-term capital expenditure from the Merensky project, which is currently under construction.

Consequently, Implats expects basic earnings and earnings per share (EPS) for the period to decrease by between 86% and 93% to be between R1-billion and R2-billion, and between R1.12 and R2.24, respectively.

Basic earnings and EPS for the comparative period were R14-billion and R16.48, respectively.

Implats will release its interim results on or about February 29.