JOHANNESBURG (miningweekly.com) – Platinum mining major Implala Platinum (Implats) on Thursday reported 58% lower earnings a share for the 12 months to June 30 as well as an operational response plan premised on a lower-for-longer platinum price environment.
The company, headed by CEO Terence Goodlace, reported that its performance for the 2015 financial year was impacted by the ramp-up of its Rustenburg operations following last year’s five-month platinum strike.
Other constraining factors were the precautionary closure of the Bimha mine in Zimbabwe, power supply uncertainty in South Africa, safety stoppages and depressed platinum group metals (PGM) prices.
Owing to the expectation of PGM prices remaining depressed in the short term, the company was focusing on shorter-term cash preservation and profitability within a low-price environment to enable the operations to be cash-flow positive at current prices before replacement and development capital.
No dividend has been declared.
The restructuring of debt facilities and Thursday’s announcement of a R4-billion capital raising would help the company to operate effectively and profitability in the short and long term.