Implats has reported a significant profit slump, prompting the company to forgo its interim dividend. The PGM miner cited ongoing pressure from low platinum group metals (PGM) prices and a weak global economic outlook as key factors impacting its financial performance. Revenue fell by 3% to R42.3 billion, reflecting the challenges faced by the sector.
The company is considering further production cuts to adapt to the market downturn, despite some positive signs, such as slowing destocking by automotive and industrial users. However, a lack of confidence in demand and continued low dollar pricing are straining South African producer economics. Headline earnings dropped by 43% to R1.85 billion, even with a 5% increase in sales volumes.
Implats highlighted the uncertainties surrounding US economic policies, geopolitical tensions, and divergent growth outlooks across major economies. These factors present downside risks to the global macroeconomic outlook. Despite the profit decline, Implats maintained a strong balance sheet with adequate liquidity, but the company decided against paying an interim dividend due to the current market conditions.