Implats declares record half- year dividend on strong commodity prices

Impala Platinum has reported a more than 320 per cent jump in headline earnings per share year-on-year for the half-year ended December, positioning the company for robust growth in the mining sector. The miner, which ended the period with net cash of R20.3 billion, has declared an interim dividend of R10 per share. CEO Nico Muller shared insights on the company's performance and future outlook in a recent CNBC Africa interview. Muller reflected on the favorable backdrop provided by higher commodity prices, noting that the market outlook for platinum group metals (PGMs) remains strong for the next seven to eight years. Impala Platinum aims to capitalize on this favorable price environment by strengthening its balance sheet and rewarding shareholders with returns on their investments. Muller highlighted the company's commitment to investing in future projects, including two potential ventures that are in the final stages of approval. These projects are expected to deliver an additional 360,000 ounces of PGMs over the next five years. Additionally, Impala Platinum plans to leverage its competitive strength by expanding its smelting and refining capacity, further solidifying its position in the industry. The company's strategic focus on Africa includes projects in Zimbabwe and joint venture operations in Canada. The expansion projects in Zimbabwe aim to increase production capacity and enhance processing capabilities, adding significant value for shareholders. Muller expressed confidence in the company's operations in Zimbabwe despite socio-political challenges, highlighting their successful track record and positive relations with the government and local communities. Impala Platinum's acquisition of Impala Canada has proven beneficial, enabling the company to reduce debt and capitalize on higher palladium prices. While Muller acknowledged potential growth opportunities outside the continent, he emphasized the need for careful consideration due to the current PGM cycle. The company remains open to value-accretive acquisitions while prioritizing financial prudence. On the topic of mechanization, Impala Platinum is committed to leveraging technology to improve safety and competitiveness. The company plans to gradually transition towards mechanized operations, balancing digitization and automation with job preservation. Muller highlighted the strategic trajectory to rebalance the portfolio and reduce reliance on conventional mining methods. Addressing cost concerns, Muller explained that the increase in costs was primarily driven by the inclusion of Impala Canada assets and Zimbabwe operations, leading to a 24 percent rise in absolute costs. However, on a unit cost basis, the increase was only 9 percent, with plans in place to mitigate costs post-COVID. Despite challenges posed by the pandemic and impending tariff hikes from SCOM, Impala Platinum remains optimistic about its growth prospects and strategic investments in the mining sector.