Johannesburg – Impala Platinum (Implats), one of the world’s biggest platinum group metals (PGM) producers, has invited holders of its R3.25 billion convertible bonds due in 2022 to sell up to R1.62 billion, half of their bonds, to the company.
Implats said yesterday that it was focused on pursuing value creation by maintaining a strong and flexible balance sheet within a prudent capital allocation framework.
“The proactive management of the balance sheet is considered key to repositioning the company as a profitable and sustainable business with the ability to deliver meaningful returns for all stakeholders through the commodity cycle,” said the group.
The company, whose operations are in South Africa, Zimbabwe and Canada, offered bond holders at least R10 000 to take part in the sale process.
The group told the market that the strengthening in rand, PGM pricing and sustained operational delivery had provided a meaningful tailwind to profitability and free cash flow generation.
“Implats has confidence in the outlook for PGM markets and the invitation is considered a proactive approach to extinguish a material existing debt liability and simultaneously reduce the potential future dilution associated with the conversion of the bonds on existing Implats shareholders,” the group explained.
Implats reported a 240% surge in annual profits during the year ended June as it rode the wave of strong metal price.