South Africa's Impala FY profits plunge, plans to raise capital

by Reuters 0

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[DATA IMP:Impala Platinum Holdings Limited]on Thursday posted a 58 percent drop in full-year earnings as it recovers from a lengthy strike and said it will raise 4 billion rand ($298.57 million) through the sale of new shares.

Headline earnings per share – a widely watched measure in South Africa – stripping off some one-off items, reached 36 cents from 86 cents a year ago.

“The equity raising has, subject to customary conditions, been fully underwritten by UBS and will allow Implats to implement the response plan and so enhance its ability to operate effectively and profitably,” Impala said in a statement.

Impala Platinum, along with rivals [DATA LON:Lonmin Plc] and [DATA AMS:Anglo American Platinum Ltd], is still recovering from last year’s strike that cost the industry billions of dollars in lost output and damaged the viability of some mines and led to job cuts.

Platinum’s spot price is pinned near 6-1/2 year lows just above $1,000 an ounce.

Production reached 1.276 million ounces in the year to end-June from 1.178 million ounces last year.