JOHANNESBURG, South Africa, Feb. 16, 2006 (PRIMEZONE) -- Impala Platinum Holdings Limited (Implats) (JSE:IMP) (LSE:IPLA) (Pink Sheets:IMPUY) announced today that the group's headline earnings for the six months ended December 2005 had risen by 78% on the previous comparable period, to R28.06 per share. In line with this increase and in view of the significant amount of cash generated by the company, the Board has declared a total dividend for the period of R65.00 per share, comprising:
-- an interim dividend of R10.00 per share (R5.00 in the previous period), distributing R658 million to shareholders; and
-- a special dividend of R55.00 per share, distributing R3.6 billion.
Implats CEO Keith Rumble said, "The distribution of approximately R4.3 billion is in line with our stated philosophy of returning excess cash to shareholders and indicative of the company's cash generative ability going forward."
Implats also reported a 7% rise in group production for the period, to 938,000 ounces of platinum, with the group's primary operating subsidiary, Impala Platinum, reporting record platinum production for the six months of 591,000 ounces.
Sales revenue at R7.9 billion (28% up on the comparable period) reflects:
-- the increase in volumes sold;
-- a rise in metal prices, particularly of platinum and rhodium; and
-- a weakening of the average exchange rate from R6.21/$ to 6.49/$ for the period under review.
Group unit costs were well-contained, rising by 4.2%. This, despite the 6.5% wage increase at the major operating unit, Impala Platinum during the period where wages account for approximately 60% of costs. The group reported a healthy margin for the period, of 42%, with Impala Platinum's margin rising to 50%.
Looking forward, the group expects the platinum group metals market to remain robust. Implats also plans to continue to grow production at a rate of about 5% per annum, with a target of 2.3 million ounces by FY2010. The group remains debt-free and highly cash generative.
Keith Rumble noted that, "On the basis of current and expected exchange rates and metal prices, and excluding the impact of the BEE transaction but including the impact of STC on the special dividend, headline earnings for the full year are expected to be 20 to 30% higher than those for the last financial year."