• Implats expects headline earnings to rise 392–411% to R9.10–9.45 billion (HEPS 1,015–1,054 cents from 206 cents) and basic earnings to increase 387–407%
  • This is driven by a 39.5% jump in the rand PGM basket price to R33,250 per 6E ounce and stable sales volumes of 1.78 million 6E ounces.
  • Zimplats delivered standout growth with 13% higher 6E production in matte (317,000 oz vs 280,000 oz), supported by normalized operations post-smelter expansion, 5.5% more tonnes milled, and the benefit of a new 35 MW solar plant
  • The earnings multiplier reflects elevated platinum ($2,200–2,250/oz), palladium ($1,750–1,800/oz) and rhodium (> $10,500/oz) prices, excess inventory available for sale

Harare- Impala Platinum Holdings Limited (Implats), Zimplats' parent company is set to report a dramatic earnings transformation for the six months ended 31 December 2025, with headline earnings expected to rise between 392% and 411% to between R9.10 billion and R9.45 billion.

Headline earnings per share (HEPS) will similarly surge to 1,015–1,054 cents from 206 cents in the comparative period. Basic earnings and EPS are forecast to increase 387%–407% to the same range.

This represents an approximately five-fold jump in profitability, driven primarily by a sharp appreciation in achieved US dollar PGM basket pricing and solid operational execution across the group. 

The standout performance was underpinned by a 39.5% increase in the rand PGM basket price received to R33,250 per 6E ounce sold (from R23,831 in H1 FY2025). Sales volumes remained stable at 1.78 million 6E ounces, meaning the entire revenue uplift stemmed from higher metal prices.

Group 6E production rose modestly by 1% to 1.80 million ounces, while refined and saleable production held steady at 1.78 million ounces. 

Zimplats, Implats’ flagship operation in Zimbabwe, delivered 13% increase in 6E production in matte (including concentrate sold to Impala Refining Services) to 317,000 ounces, up from 280,000 ounces in the prior period. Tonnes milled grew 5.5% to 4.022 million tonnes, offsetting a modest 2.6% grade decline to 3.30 g/t.

This strong rebound followed the successful commissioning and normalisation of Zimplats’ expanded smelter complex in the comparative period, which had temporarily constrained output. 

Zimplats contributed significantly to group stability and growth. As one of Implats’ largest single-site contributors (typically accounting for 25–30% of group production), the Zimbabwe asset benefited from full operational recovery, improved milling rates, and the recent commissioning of major capital projects, including the smelter expansion and a 35MW solar power plant.

These investments have enhanced energy security in a country prone to power challenges and positioned Zimplats for more consistent, lower-cost production going forward. Capital expenditure at Zimplats decreased materially as these projects neared completion, helping drive group capex down to approximately R2.9 billion from R3.9 billion year-on-year.

The robust Zimplats performance helped offset softer output elsewhere, including a 2% decline at Impala Rustenburg, 4% at Marula, and 5% at Impala Canada. Hence, the group maintained disciplined cost control, with unit costs expected to rise only 11% to around R23,200 per 6E ounce on a stock-adjusted basis, despite input inflation pressures.

The earnings explosion reflects a powerful recovery in PGM prices that accelerated through late 2025 and into early 2026. Platinum traded around $2,200–$2,250/oz, palladium near $1,750–$1,800/oz, and rhodium above $10,500/oz in early February 2026.

Higher rhodium and platinum contributions lifted the dollar basket price substantially, with the rand-denominated realization boosted further by favourable exchange rate dynamics early in the period. 

This price surge nearly 40% higher year-on-year in rand terms has transformed Implats’ margins. With excess inventory at around 400,000 6E ounces available for sale into a stronger pricing environment, the group is well-positioned to capture further upside.

The near five-fold earnings increase signals a return to strong cash generation and potential for higher dividends, especially as the group maintains FY2026 refined production guidance of 3.4–3.6 million 6E ounces.

Lower capital intensity in H2 (post-Zimplats project completion) should improve free cash flow, supporting balance sheet strength and shareholder returns. 

For investors, Implats’ exposure to Zimplats provides meaningful geographic diversification and operational leverage within Zimbabwe’s stable PGM mining framework. The combination of elevated PGM prices, normalized Zimbabwe production, and reduced capex creates a compelling setup for sustained profitability through FY2026 and beyond, provided metal prices hold above current elevated levels and operational momentum continues.

Full interim results are scheduled for release on or about 5 March 2026. With PGM market deficits persisting and industrial/autocatalyst demand showing resilience, Implats appears set for an exceptionally strong financial year.

Equity Axis News