Impala Platinum (Implats) is set to report lower full-year production for the period to end-June, as operational disruptions weighed on output across several of its key operations.
In a statement on Monday, the company said site-specific disruptions added to the pressure, with the commissioning of a new smelter at Zimplats causing a lock-up of ounces during ramp-up, while restructuring efforts at Marula and equipment constraints at Impala Rustenburg further hampered performance.
Implats’ total gross 6E production eased by 3% to 3.55-million ounces, driven primarily by weaker performance at its managed operations, which recorded a 4% year-on-year drop. Marula was among the hardest hit, with volumes affected by restricted mining access.
Impala Canada reported a 15% production fall, as lower underground grades and revised operating parameters took effect. Zimplats also reported reduced volumes, largely due to fleet constraints and delays at its smelter expansion project.
Six E (6E) production refers to the production of six specific metals: platinum, palladium, rhodium, ruthenium, iridium, and osmium.
Impala Rustenburg’s production edged slightly lower, while Impala Bafokeng maintained output levels due to improved operational efficiencies, though these gains were partially offset by safety-related stoppages, the company said.
Despite these challenges, the group’s financial performance remained relatively stable. Unit costs per 6E ounce are expected to rise by 7% to about R22,500, driven by reduced production volumes and the reclassification of capital spend as operating costs at Impala Canada.
The company said some relief came from easing inflationary pressures and a stronger rand during the period.
Implats generated earnings before interest, tax, depreciation and amortisation (ebitda) of about R9.9bn, while capital expenditure dropped to R7bn as several key growth and replacement projects neared completion. The group delivered positive free cash flow of R2.4bn and ended the period with a net cash balance of R8.1bn, up from R6.9bn a year ago.
Tonnage milled decreased across most operations, including close to a 19% drop at Impala Canada and over 9% at Marula.
However, average 6E grades were broadly stable and even improved at select operations, the company said. Impala Rustenburg recorded a 2.3% increase in grade. Refined 6E production held steady at about 3.37-million ounces, supported by available pipeline material, despite temporary constraints at SA smelters and interruptions to water and hydrogen supply at the group’s refining facilities.
The company said it closed the period with an excess inventory of 420,000 6E ounces, “offering potential flexibility in sales or a buffer against future disruptions”.
Implats is set to release its audited results on August 29.
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