Impala Platinum scraps dividend, makes spending cuts as profit slumps

Credit: REUTERS/SUMAYA HISHAM

Adds details on dividend, spending cuts in paragraphs 2-5

Feb 29 (Reuters) - Impala Platinum IMPJ.J said on Thursday it was restructuring its Canadian palladium operations, and will postpone planned spending at various projects in South Africa and Zimbabwe after the miner posted a 78% slump in its first-half profit.

The Johannesburg-based metals producer did not declare an interim payout, while group capital expenditure for the full year through June has been cut to between 11 billion rand ($571.82 million) and 12 billion rand, from the previous estimate of 12.5 billion-13.5 billion rand.

Impala said it is shelving planned projects at its Zimplats and Mimosa units in Zimbabwe, and also postponing spending at Marula and Styldrift operations in South Africa.

The life of Impala's Canadian palladium mine has been shortened following a restructuring.

Impala said it would take further actions should metal prices not recover in short to medium term.

($1 = 19.2367 rand)

(Reporting by Nelson Banya and Felix Njini; Editing by Jamie Freed and Sherry Jacob-Phillips)

((Nelson.Banya@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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