Implats’ first-quarter production falls

Impala Platinum has reported lower production for the quarter to end-September, reflecting guided changes in operational parameters at several group assets and the effect of furnace commissioning at Zimplats.

Production volumes for the first quarter were down 5% to 947,000oz. It also reported a 6% decline in managed volumes to 751,000oz, a 3% gain from joint ventures to 145,000oz, and a 19% reduction in third-party receipts to 50,000oz.

Gross refined and saleable production volumes decreased by 9% to 807,000oz and sales volumes were 4% lower at 792,000oz, it said in a statement on Wednesday. However, 2025 financial year guidance for volumes, cost and capital expenditure have been maintained.

“Implats is on track to deliver our previously provided operational, cost and capital expenditure guidance in [the 2025 financial year]. We remain firmly focused on advancing the group’s competitive position and ensuring our portfolio delivers the operational results required to navigate the PGM pricing cycle,” said CEO Nico Muller.

The commissioning of the solar project and the enlarged furnace complex at Zimplats during the period were notable highlights, with the operation now poised to benefit from improved processing capacity and environmental performance, and lower energy costs.

“Healthy ongoing metal purchases and recent discussions with our core customer base confirm our view of robust demand for our key products over the coming year, with shifts in metal requirements also affirming our assessment of underlying market trends,” said Muller.

“The macroeconomic and geopolitical uncertainty that has typified the global outlook for much of the past two years has persisted. As a result, we continue to assume a prudent risk-adjusted view to our operational planning and capital allocation to ensure Implats’ long-term sustainability and ongoing value creation.”

Tonnes milled at managed operations declined by 6% to 7.09-million tonnes during the quarter, reflecting the revised operating parameters at both Impala Canada and Styldrift and the impact of safety stoppages at Impala Rustenburg and BRPM, the group said.

In August, Business Day reported that Implats’ earnings report for the year to end-June showed it suffered an annual loss after taking R20bn in writedown charges.

It swung into a basic loss of R17.3bn, or 1,929c per share, for the year, from basic earnings of R4.9bn and 577c per share in the prior year. No dividend was declared.

Group production increased 13% to 3.65-million ounces and refined and saleable production increased 14% to 3.38-million ounces. Dollar revenue per ounce decreased 34% to $1,350 on materially lower rhodium and palladium pricing, while rand revenue declined 30% to R25,257/oz.

Weaker dollar sales revenue offset the benefit of strong operational delivery. Average palladium and rhodium pricing dropped sharply, negating higher sales volumes and compressing operating margins and free cash flow, Implats said at the time of releasing its annual results.

mackenziej@arena.africa