Impala Platinum reported lower production for the third quarter due to several problems at its mining operations, but has kept its full-year guidance intact.
The group said on Friday that production declined 6% to 780,000oz in the quarter ended March.
Tonnes milled at managed operations declined 9% to 5.88-million tonnes due to constrained mining fleet availability at Zimplats “and the reset operational footprint at Impala Canada”, it said.
Improvements at Impala Rustenburg saw a milled grade 3.74g/t for platinum, palladium, rhodium, ruthenium, osmium and iridium — collectively known as 6E. However, 6E production at managed operations fell 6% to 617,000oz.
Production from the joint ventures at Mimosa and Two Rivers declined 9% to 121,000oz. At Impala Refining Services, third-party 6E receipts were 13% higher than the previous comparable quarter at 41,000oz.
Refined 6E production, which includes saleable ounces from Impala Canada and Impala Bafokeng, was stable at 716,000oz.
Implats said the rebuild of Furnace 3, which began in December 2024, continued and the first matt is expected in early May. Repairs undertaken on Furnace 5 in February were completed as planned and Implats finished the period with about 375,000 6E ounces of excess inventory.
March quarter 6E sales volumes decreased 6% to 775,000oz, including saleable production from Impala Canada and Impala Bafokeng, with limited destocking of refined inventory to offset the effects of furnace maintenance.
“Our third quarter production results reflect the impact of several challenges at our mining operations, while processing capacity was impeded by required maintenance at our SA smelters,” said CEO Nico Muller.
“Given the constrained operating conditions encountered in the quarter, I am heartened to reiterate previously provided group volume and unit cost guidance for financial year 2025,” he said.
For the year to date, production volumes fell 5% to 2.6-million ounces. This reflects adjusted operating parameters at several of Implats’ operations, headwinds to operating momentum from water and power interruptions in Southern Africa and lower fleet availability at Zimplats, it said.
Gross 6E refined and saleable production and 6E sales volumes for the nine months ended March increased 1% to 2.5-million ounces and 2.55-million ounces, respectively during the nine-month period.
Miller said demand for PGMs from Implats’ customer base remained robust, with contractual deliveries augmented by additional spot requests, despite elevated global macroeconomic and geopolitical uncertainty.
“Physical tightness and sustained pricing support for the minor PGMs was a notable feature in the quarter. While PGM pricing appreciated from recent cyclical lows, margins remain compressed.
On track
“The group remains focused on delivering consistent and safe production, with our production plans and associated capital allocation aligned to our guiding principle of ensuring free cash flow generation through the cycle supported by a defensive and competitive portfolio,” he said.
Despite the challenging operating environment, Implats remains on track to deliver within the guided group parameters for full-year 2025, Miller said.
Full-year refined and saleable production is expected to be between 3.45-million ounces and 3.65-million ounces and unit costs are forecast at R21,000-R22,000 per 6E ounce.
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