Impala Platinum takes a long, hard look at loss-making shafts after R8bn loss
Implats has slashed its production forecast and is seeking cheaper, shallower assets
Impala Platinum (Implats) posted a hefty full-year loss, with a R10bn impairment and gross loss feeding into decisions to review assets and take a much tougher stance on loss-making shafts and seek shallower, cheaper options. Implats, the world’s second-largest platinum miner, lowered its production forecast to 750,000oz of platinum by 2022, well below the 830,000oz of platinum it had pegged for 2020 during last year’s annual results presentation. Key drivers of the lower and later forecast were the move away from unprofitable mines and a reconfiguring of the company’s new 16 and 20 shafts, which will need an additional R700m to be spent after plans for the mines were revisited under new CEO Nico Muller. The bill to bring 16 and 20 shafts into production was raised to R2.2bn and the company had R1.5bn in cash allocated to complete the mines under the old plan. “A slower build-up at 16 and 20 shafts, lower production levels at the mature shafts and the earlier closure of the end-of-l...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.