Aug. 12 (Bloomberg) -- Impala Platinum Holdings Ltd., the world’s second-largest producer of the metal, said earnings probably rose as much as 42 percent on increased prices, beating analysts’ expectations.
Earnings per share excluding one-time items are expected to have risen to 10.75 rand ($1.50) to 11.15 rand in the year through June 30, from 7.86 rand a year earlier, the Johannesburg-based company said in a statement today. The median estimate of 13 analysts surveyed by Bloomberg is for 10.70 rand in per-share earnings excluding one-time items.
Platinum gained 17 percent to an average $1,706.92 an ounce in the 12 months ended June 30, from $1,454.38 a year earlier as demand rose for the metal used in jewelry and devices that reduce car emissions. Impala produces about a fifth of the world’s platinum, mainly from mines in South Africa, which has the world’s largest reserves of the metal.
The trading update is “clearly positive,” Michael Kavanagh, an analyst at Religare Capital Markets Ltd. in London, said in a note to clients today. “We expect the ZAR basket price to rise going forward,” he said, referring to the local-currency price for platinum and related metals, such as palladium and rhodium.
Impala, which is due to report full-year results on Aug. 25, gained as much as 1.7 percent to 170.01 rand in Johannesburg trading, and was at 170.91 rand as of 9:54 a.m. Anglo American Platinum Ltd., the largest producer, was 0.1 percent higher at 530.52 rand.
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