Impala Platinum says it is on track to meet production forecasts for the financial year to end-June, thanks to a strong performance in the third quarter.
Implats CEO Nico Muller told investors in a production update on Friday that demand for PGMs remained robust in recent months, shrugging off geopolitical tensions which threaten to dent global growth and trade conditions.
“We are closely monitoring the impact of events in the Middle East on our supply chains, with steps taken to buffer availability of critical consumables and spares at our operations,” he said.
The miner, South Africa’s second largest producer of platinum group metals (PGM), recorded a 9.2% year on year increase in sales volumes for the three months ended March, taking its year-to-date sales to 2.6-million tonnes, up 3% from the previous comparable period.
Overall refined and saleable production for the first three quarters was up 5% year on year at 2.63-million ounces.
Rustenburg’s operational recovery restores faith in the asset, Implats’ flagship operations, which are home to a fifth of its total mineral reserves
The uptick in output was attributed to a 10% year on year increase in tonnes milled during the third quarter, thanks to improved mining fleet availability and higher open pit volumes at its Zimplats operations.
Further encouragement came from its Rustenburg operations, where production was up 16% thanks to its consolidation last year, which combines ounces from the operations South, Central and North Shafts, as well as an increase in milled volumes.
Rustenburg’s operational recovery restores faith in the asset, Implats’ flagship operations, which are home to a fifth of its total mineral reserves, with its performance having been plagued by an unstable power supply in recent years.
Electricity outages did, however, continue to disrupt Implats’ Zimbabwean operations in the third quarter. The group’s Mimosa mine “continued to experience sporadic regional power disruptions, which impeded operating momentum”, resulting in a 1% slip in milled volumes and a 2% decline in concentrate production.
Still, the strong performance bodes well for the company as PGM prices remain elevated, supported by suppressed supply from South Africa, the world’s primary producer, and continued demand for internal combustion engines.
Business Day
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.