Key features for the year
Financial
- Gross profit of R733 million, compared to a gross loss in the prior period of R139 million
- Profit before tax of R193 million, compared to a pre-tax loss in the prior period of R238 million
- R250 million higher “additional profits tax” provision by Zimplats contributed to the loss after tax of R164 million (December 2016: R328 million loss after tax)
- Headline loss per share of 21 cents: an improvement of 70.4%
- Gross cash at the end of the period amounted to R4.2 billion
- Committed (unutilised) banking facilities of R4.0 billion available
Operational
- Overall mining performances improved
- Gross platinum in concentrate production increased 13.3%
- Furnace maintenance resulted in a pipeline increase of 75 000 platinum ounces at Impala
- Gross refined platinum production decreased 6.7%
- Stock-adjusted Group unit cost increased by 5.5% to R24 055 per platinum ounce
Market
- Market fundamentals for platinum remain muted
- Market fundamentals for palladium and rhodium remain robust
- Rand revenue per platinum ounce sold was 4.2% higher and averaged R25 968 per ounce
Safety
- Safe production remains a challenge at Impala and Marula
- Six fatal incidents reported during the period
Strategic response
- Strategic review underway at Impala to assess optimal future positioning
- Section 189 restructuring process finalised at Impala (1 400 reduction in employees)
- Strong turnaround effected at Marula
- 15% interest acquired in Waterberg project with an option to increase to 50.01%