IMPUF - Implats backs full-year production outlook but sees costs rising

Impala Platinum ( OTCQX:IMPUY ) reported Thursday its fiscal H1 profit increased from the prior-year period, thanks to strong pricing and destocking inventory.

Implats ( OTCQX:IMPUY ) said its net profit for the six months ended December 31 edged up to 13.97B rand (~$770M) from 13.84B rand in the year-earlier quarter, attributed to strong platinum group metal pricing and destocking, which offset lower refined volumes as well as the effects of inflation and rand depreciation.

H1 EBITDA improved to 24.51B rand from 23.99B rand a year ago, and headline EPS slipped 2% Y/Y to 16.54 rand.

H1 gross refined production fell 9% to 1.476M oz from 1.617M oz in the same period last year.

"Smelting capacity was constrained by increased (electricity) load curtailment and the scheduled rebuild of the Number 4 Furnace in Rustenburg, which started in late November 2022," Impala said.

The company backed prior FY 2023 guidance for platinum group metals production of 3M-3.15M oz, but raised its outlook for operating costs to 18.5K-19.5/oz citing broad-based inflationary pressures and rand depreciation.

Implats ( OTCQX:IMPUY ) said recently that power cuts by South African state power company Eskom knocked out ~38K refined PGM oz, or nearly 3% of total refined output, from half-year production .

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