By Joe Hoppe


Impala Platinum Holdings said that both basic and headline earnings are expected to decrease, hit by lower metal prices, increased operational issues and higher inflation.

The precious-metals mining company said Tuesday that for the year ended June 30 it now expects basic earnings to decrease between 81% and 88%, to between 4 billion South African rand and 6 billion South African rand ($209.7 million to $314.5 million).

Earnings per share are expected to decrease by between 82% and 88%, to between ZAR4.70 and ZAR7.06.

Headline earnings are expected to decrease by between 38% and 44% to between ZAR18 billion and ZAR20 billion, and headline earnings per share are expected to fall 39% to 45%, to between ZAR21.17 and ZAR23.52.

The company said the earnings hit was primarily due to lower revenue--arising from an 18% lower achieved dollar metal price, partially offset by a weaker rand.

The company has also been hit by increased frequency and severity of load curtailment and cable theft, hitting sales volumes, while cash costs are being hurt by higher inflation. A lower U.S. dollar rhodium price also led to a ZAR2.1 billion post-tax write down of closing inventory.

Shares in Johannesburg at 0843 GMT were down ZAR0.85, or 0.8% at ZAR102.06.


Write to Joe Hoppe at joseph.hoppe@wsj.com


(END) Dow Jones Newswires

08-15-23 0509ET