Impala Platinum reported record breaking results this week for the year ended 30 June 2021.
Headline earnings increased by 125% year-on-year on the back of record PGM prices and an improvement in output.
Production volumes of refined 6E PGM was up 16% as sales volumes increased 17%.
The group recorded a net profit of R37.9bn, free cash flows of R38.3bn and paid out R18bn in dividends to shareholders for the financial year.
In addition, Impala repurchased its convertible bonds giving it a strong debt-free balance sheet. It is now sitting with an extra R23.5bn of net cash.
The average price received for a 6E basket was $2587 per ounce.
Rhodium was by far the biggest contributor to earnings growth, and with rhodium prices having fallen more than 30% from their highs earlier this year, the market may be stamping these results as peak earnings.
Interestingly Impala said they were first platinum miner to vaccinate all of their staff. And with the share trading on just 4x earnings with a 10% dividend yield, there is margin of safety buying Impala at these levels, with the possibility for significant growth should platinum prices continue to remain elevated.