Impala Platinum has declared an interim dividend of R4.20, a 20% decline from R5.25 previously as free cash flow declined 27% to R11 billion, after funding capital expenditure of R4.9 billion.
The dividend equates to 36% of free cash flow allocated to shareholder returns and is in line with the group's dividend policy to declare a minimum dividend of 30% of free cash flow pre-growth capital.
The platinum miner on Thursday released its results for the six months ended in December 2022, and reported a 3.9% bump up in revenue to R57.8 billion while net profit was 3.1% higher to R14.8 billion. Headline earnings of R14 billion was 1.5% higher. Implats ended the period debt free with net cash of R27 billion.
"The group’s financial performance was supported by robust rand PGM [platinum group metal] pricing and destocking refined metal inventory to offset the impact of lower refined volumes, but was hampered by broad-based inflationary pressures and a marked rand depreciation," said Implats CEO Nico Muller.
The benefits of the group's geographically diverse production footprint and maiden contributions from a suite of growth projects countered the challenging global macro-economic and operating environment, which was typified by high inflation and intensified utility-level power constraints in South Africa, he said.
The operational focus for the remainder of the financial year is on ensuring stability at our South African mining and processing assets during an expected period of inflationary pressure and more persistent load curtailment, and recommissioning or a refurbished smelter at the Rustenburg operations.
Implats has allocated R4.3 billion over next five years to energy security and decarbonisation.
"Implats is committed to rigorous stakeholder engagement as we navigate the changeable socio- economic environment in South Africa and Zimbabwe and pursue the successful conclusion of our proposed acquisition of a majority stake in Royal Bafokeng Platinum," Muller said.