Impala Platinum 1st Half Revenue Up On Higher Volumes, Strong Metal Prices

South African mining company Impala Platinum Holdings Ltd. (IMP.JO) Thursday reported a much improved net profit for the first half of fiscal 2011 on revenue 37% higher due mainly to increased volumes and stronger dollar metal prices.

MAIN FACTS:

-Revenue for six months ended Dec. 31, ZAR15.32 billion (2009: ZAR11.12 billion)

-Profit before tax ZAR3.21 billion (2009: ZAR2.42 billion)

-Net profit ZAR2.07 billion 92009: ZAR1.27 billion)

-Diluted EPS 344 cents (2009: 211 cents)

-Safety performance unsatisfactory; six fatal incidents occurred during this reporting period, five of which were at Impala Rustenburg operations and one occurred at Mimosa

-Gross platinum production up 6% to 952,000 ounces

-Operational Rustenburg recovery on track, Zimplats and Mimosa continue to meet operational targets

-Interim dividend of 150 cents per share, up 25%.

-Phase 2 expansion at Zimplats, which forms a key part of growth strategy, has started and is progressing satisfactorily.

-Unit costs were well contained, rising by 4% to ZAR10,271 as a result of the higher output.

-Discussions with Government regarding the company's empowerment proposals are ongoing.

-Capital expenditure for the half year totaled ZAR2.4 billion, compared to ZAR2.2 billion in the previous half year to December 2009.

-Cash, net of debt, amounted to ZAR115 million (Dec. 2009: ZAR941 million).

-Growing influence of the emerging market economies and the injection of further liquidity in the U.S. augurs well for a sustained recovery in world markets, creating tight market conditions for both platinum and palladium.

-Rhodium market is expected to move back to balance.

-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [e-mail]