Preliminary summarised consolidated annual results for the financial year ended 30 June 2022 and cash dividend
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ISIN: ZAE000083648
ADR code: IMPUY
("Implats" or "the Group")
Preliminary summarised consolidated annual results for the financial year ended 30 June 2022 and cash dividend
declaration
Key features for FY2022:
- Regrettably, seven fatal injuries recorded at managed operations
- 14% improvement in LTIFR* to 4.21 and 1% improvement in TIFR* to 9.76
- R4.3bn allocated over next five years to energy security and decarbonisation
- MSCI ESG rating upgraded to 'A' from 'BBB'
- Five-year wage agreement secured for South African operations
- 4% decrease in gross 6E concentrate volumes to 3.17Moz
- 4% decline in 6E sales volumes to 3.15Moz
- Group unit costs per 6E rose 17% to R17 364/oz (stock-adjusted)
- Consolidated Group capital expenditure of R9.1bn
- 4% increase in attributable 6E Mineral Reserves to 55.7Moz
- Dollar revenue per 6E ounce sold down 4% to US$2 481/oz on softer rhodium and palladium prices
- Rand revenue per 6E ounce sold decreased by 4% to R37 703/oz
- EBITDA of R53.4bn with headline earnings of R32.0 billion or 3 853c per share
- Robust free cash flow of R28.8bn with closing net cash of R26.5bn
- 48% of free cash flow allocated to shareholder returns through cash dividends
- 38% holding in RBPlat secured by year end
- Final dividend of 1 050c per share, bringing total FY2022 dividend to 1 575c per share
- Tightening markets for palladium and rhodium to provide pricing support in the medium term
- Platinum prospects remain muted in the near term, but growing momentum for hydrogen economy
- Auto production recovery and investment in industrial capacity counter uncertain macro-economic outlook.
* Per million man-hours worked
Commentary
In a period typified by increasing global macro-economic headwinds, escalating geopolitical conflict, and several
localised challenges, Implats continued to reap the benefit of elevated metal pricing, albeit off the record levels
achieved in the prior comparable period. During the year, the Group advanced a suite of ambitious organic growth
projects, pursued value-accretive acquisitive growth, concluded an historic wage agreement, strengthened its
organisational flexibility, contributed to the socio-economic improvement of mine-host communities and shared
significant value with its stakeholders.
Despite lower received rand PGM pricing and sales volumes, Implats delivered strong earnings and free cash flow in the
year ended 30 June 2022. This was achieved while navigating numerous operational challenges, including rising input
costs, constrained supply chains and labour market tightness, the impacts of which were compounded by extended safety
stoppages, intermittent power supply and periods of community unrest.
Safety
Safe production is non-negotiable. Ensuring the safety of employees and contract workers is essential to delivering on
Implats' commitment to zero harm. It is with deep regret that Implats reports a retracement in safety performance, with
five fatal incidents resulting in seven fatalities at managed operations. This retracement comes despite the 14%
improvement in the reported lost time injury frequency rate and 12 out of the Group's 17 operations finishing the year
with millionaire or multi-millionaire status in terms of fatality free shifts.
Operational summary
6E concentrate production at managed operations decreased by 4% to 2.27 million ounces, while 6E concentrate production
from JV operations declined by 2% to 548 000 ounces as Implats navigated several operating challenges. Third-party 6E
concentrate receipts decreased by 2% to 351 000 ounces. In aggregate, total 6E concentrate production decreased by 4%
to 3.17 million ounces.
Group refined 6E production of 3.09 million ounces decreased by 6%, negatively impacted by lower concentrate production
and the extended maintenance required on the Number 3 furnace at Impala Rustenburg. Refined volumes in the prior
comparable period benefitted from increased availability of processing capacity due to the timing of annual processing
maintenance.
Inflationary pressures from energy and consumables were compounded by the additional headcount across the Group and the
payment of the previously signalled discretionary employee bonus in recognition of the strong financial performance in
FY2021. Total cash operating costs increased by 12%, with the impact of lower mined and refined volumes resulting in a
17% increase in unit costs to R17 364 per 6E ounce on a stock-adjusted basis.
Financial summary
Implats continued to deliver robust EBITDA, earnings and free cash flow in FY2022 despite lower rand PGM pricing and
operational headwinds. Implats' strong and flexible balance sheet allowed the Group to pursue value-accretive organic
and acquisitive growth, while maintaining its stated commitment to sustainable shareholder returns.
Revenue decreased by 9% to R118.3 billion, the cost of sales was 1% higher at R77 billion, and gross profit declined
by 23% to R41.3 billion. Group EBITDA of R53.4 billion was achieved at an EBITDA margin of 45%.
In the prior period, Implats accounted for two significant once-off, non-cash items: an impairment reversal of R14.7 billion;
and a R1.5 billion IFRS BEE charge relating to the restructuring of Marula's BEE debt, which was included in other expenses
and impacted reported basic earnings.
Basic earnings declined to R32.0 billion or 3 856 cents per share, from R47.0 billion or 5 996 cents per share. Headline
earnings of R32.0 billion or 3 853 cents per share were 12% and 17% lower, respectively. The weighted average number of
shares in issue increased to 831.25 million from 784.43 million, with total issued capital at 30 June 2022 increasing to
850.22 million shares, including treasury shares. Implats issued 32.95 million shares, with a fair value of R6.5 billion,
in part consideration for the 37.83% stake acquired in RBPlat.
The Group generated R28.8 billion in free cash flow, after capital investment of R9.1 billion at its managed operations, and
ended the period with net cash (after debt) of R26.5 billion. The board of directors declared a final dividend of 1 050 cents
per share, bringing the total dividend for the year to 1 575 cents per share.
Market summary
2022 has seen several revisions to forecast PGM demand and supply: supplies will be impacted by operational challenges at
South African and North American operations, refined volumes will be affected by required maintenance at several major
processing complexes, and the pattern of Russian sales is complicated by the potential impact of restrictions on routes
to market.
From a demand perspective, auto volumes have been downgraded by the lingering impact of supply chain challenges, the lockdown
in China in the first six months of the year and the deteriorating outlook for global growth, in Europe in particular.
Industrial demand is expected to soften off the high base of 2021 and a weaker Chinese jewellery market will offset growth
elsewhere.
Group forecasts indicate tight rhodium and palladium markets and continued surpluses in the platinum market in 2022.
Prospects and outlook
Macro-economic uncertainty, inflationary pressures and geopolitical challenges are likely to persist in FY2023 and the Group
remains vigilant in timeously assessing and responding to the risks this uncertain environment presents to its people, operations
and the implementation of its strategy.
The operational focus in the near term will be the re-establishment of positive operational momentum at Impala Canada and Impala
Rustenburg, the ramp-up of installed milling capacity at Zimplats and Two Rivers, and the timeous and cost-effective advancement
of the Group's significant suite of life-of-mine extension and growth projects across its mining and processing assets.
Implats continues to proactively pursue the conclusion of the offer process associated with the proposed acquisition of RBPlat,
with a key focus on securing outstanding regulatory approval from the Competition Tribunal.
PGM pricing remains robust, and the Group has retained a strong and flexible balance sheet which provides a meaningful underpin
to its ability to withstand short-term headwinds and fluctuations in consumer and industrial demand, while pursuing its capital
investment programme and sustaining attractive shareholder returns.
Key financial metrics
Year ended Year ended
30 June 2022 30 June 2021
Revenue Rm 118 332 129 575
Gross profit Rm 41 285 53 455
EBITDA* Rm 53 375 61 442
Profit for the year Rm 33 139 47 855
Basic earnings Rm 32 049 47 032
Headline earnings Rm 32 028 36 359
Free cash flow* Rm 28 840 38 304
Net cash (excluding leases) Rm 26 505 23 473
Basic earnings per share cents 3 856 5 996
Headline earning per share cents 3 853 4 635
Dividends declared
Interim cps 525 1 000
Final cps 1 050 1 200
Total cps 1 575 2 200
*Non-International Financial Reporting Standards metrics
Operating statistics
Year ended Year ended
30 June 2022 30 June 2021
Gross refined production
6E (000oz) 3 086.6 3 270.6
Platinum (000oz) 1 426.1 1 516.6
Palladium (000oz) 1 071.4 1 121.4
Rhodium (000oz) 180.7 193.4
Nickel (tonnes) 16 520 15 443
Sales volumes
6E (000oz) 3 146.8 3 274.4
Platinum (000oz) 1 492.6 1 396.5
Palladium (000oz) 1 087.6 1 092.8
Rhodium (000oz) 177.3 200.2
Nickel (tonnes) 13 094 13 111
Prices achieved
Platinum (US$/oz) 1 008 1 043
Palladium (US$/oz) 2 211 2 419
Rhodium (US$/oz) 16 544 17 610
Nickel (US$/t) 21 150 15 621
Consolidated statistics
Average rate achieved (R/US$) 15.22 15.26
Closing rate for the period (R/US$) 16.27 14.32
Revenue per 6E ounce sold (R/oz) 37 703 39 478
Revenue per 6E ounce sold (US$/oz) 2 481 2 587
Tonnes milled ex-mine* (000t) 22 363 23 210
Gross 6E concentrate receipts (000oz) 3 170.6 3 291.9
Capital expenditure* (Rm) 9 081 6 437
Group unit cost per 6E ounce stock-adjusted* (R/oz) 17 364 14 840
Group unit cost per 6E ounce stock-adjusted (US$/oz) 1 141 964
* Managed operations
Declaration of dividend
Shareholders are advised that the board has resolved to declare a final gross cash dividend of 1 050 cents per
ordinary share, amounting to R8.9 billion at the date of declaration, for the financial year ended 30 June 2022.
The dividend has been declared from retained earnings.
Implats has 850 702 822 ordinary shares in issue and the Company's tax reference number is 9700178719. The cash
dividend will be subject to a 20% dividend withholding tax for shareholders who are not exempt from, or do not
qualify for, a reduced rate of withholding tax. Therefore, the net dividend amount is 840 cents per ordinary share
for shareholders liable to pay the dividend withholding tax and 1 050 cents per ordinary share for shareholders
exempt from dividend withholding tax. Shareholders are advised to complete the requisite declaration form to make
the Company aware of their tax status.
The salient dates are as follows:
Declaration date Thursday, 1 September 2022
Last day for trading to be eligible for cash dividend Tuesday, 20 September 2022
Trading ex-dividend commences Wednesday, 21 September 2022
Record date Friday, 23 September 2022
Dividend payment date Monday, 26 September 2022
Share certificates may not be dematerialised or rematerialised between Wednesday, 21 September 2022 and Friday,
23 September 2022, both days inclusive.
Short form announcement
This announcement is a summarised version of the Group's full announcement and, as such, it does not contain full or
complete details pertaining to the Group's results. Investment decisions should be made after considering the full
announcement. Deloitte & Touche, the external auditors, have issued an unmodified audit opinion, which includes key
audit matters on the consolidated annual financial statements. The audit opinion, which contains key audit matters,
together with the annual consolidated financial statements, are available on Implats' website at www.implats.co.za.
This announcement is not audited but is extracted from the audited results.
The financial information on which the above-mentioned prospects and outlook is based has not been audited and
reported on by Implats' external auditors.
The full announcement is available on Implats' website at www.implats.co.za and on the JSE's website at
https://senspdf.jse.co.za/documents/2022/jse/isse/IMPE/ye2022.pdf.
The full announcement is also available for inspection, at no charge, at our registered office (2 Fricker Road, Illovo)
and the office of our sponsor (Nedbank Corporate and Investment Banking, 135 Rivonia Road, Sandton) from 09:00 to 16:00
weekdays. A copy of the full announcement may also be requested from the company secretary at investor@implats.co.za.
This short form announcement is the responsibility of the board of directors.
Queries:
Johan Theron
E-mail: johan.theron@implats.co.za
T: +27 (0) 11 731 9013
M: +27 (0) 82 809 0166
Emma Townshend
E-mail: emma.townshend@implats.co.za
T: +27 (0) 21 794 8345
M: +27 (0) 82 415 3770
Alice Lourens
E-mail: alice.lourens@implats.co.za
T: +27 (0) 11 731 9033
M: +27 (0) 82 498 3608
1 September 2022
Johannesburg
Sponsor to Implats
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 01-09-2022 07:05:00
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