FM

Impala Platinum profits surge 31-fold on higher PGM prices, Zimbabwe cash resolution progresses

Impala Platinum reported a dramatic increase in annual profitability for the fiscal year ended June 30, 2026, with headline earnings per share reaching 25.48 rand ($1.59), compared to 0.82 rand in the prior year period. The surge was primarily driven by elevated platinum group metal (PGM) prices in global markets. The company's rand revenue per ounce climbed 51% year-on-year, underpinned by higher metal prices, translating into a 58% increase in total revenue to 135.1 billion rand.

Refined production rose 5% to 3.56 million ounces, supported by the release of previously accumulated inventory in its processing pipeline. Metal sales increased 4% to 3.51 million ounces. In response to the improved financial performance, Impala significantly increased shareholder distributions.

The company announced a final dividend of 4.90 rand per share plus an additional payout of 9.55 rand per share, compared to 1.65 rand paid in the previous year. A key operational development concerns the resolution of cash restrictions in Zimbabwe, where Impala's subsidiary Zimplats operates. Zimbabwe's government requires all exporters to convert 30% of export proceeds into local currency through official channels, but frequently delays payment to exporters.

Impala CFO Meroonisha Kerber reported that negotiations had yielded significant progress since March 2026. Under a new agreement, Impala now receives 50% of its surrender proceeds in cash, with the remaining 50% utilized for set-offs against taxes, royalties, and customs duties. Kerber stated that since the agreement's implementation, the government has honored the terms, allowing Impala to offset approximately $99 million in obligations and secure access to $150 million in local currency.

The company also reversed an 11.1 billion rand impairment on its Rustenburg assets, reflecting improved confidence in the PGM price outlook. Management is evaluating development potential of greenfield assets including Zimplats Portal 10 and Styldrift 2 to sustain future production levels. Source: Reuters via Mining.com, September 3, 2026.

Source: mining.com

Would you like to discuss this with one of our FT Specialists?

FT Mercati services can be tried free of charge for 15 days, with no obligation. Fill in the form and we will get back to you as soon as possible.