Impala Platinum has reported higher annual refined platinum production and sales as the group benefitted from significantly improved rand PGM (platinum group metals) pricing and its mining and processing assets delivered a strong operating performance.
Sales revenue in the year ended June surged as dollar prices climbed and operational performance strengthened across its mines.
The group benefitted from significant, broad-based appreciation of US dollar pricing for both precious and base metals in the period. The stronger rand provided only a marginal offset to achieved pricing and, as a result, sales revenue rose by more than 50% to about R38,100 per 6E ounce sold.
Group 6E production improved marginally to 3.5-million ounces (Moz) from 3.48Moz a year ago, the group said in an operating update on Friday. Production from managed operations increased by 1% to 2.75Moz.
Refined 6E production, which includes saleable ounces from Impala Rustenburg North Shafts and Impala Canada, improved by 5% to 3.56Moz.
Production at Impala Rustenburg was up 4%, while that of South and Central shafts increased by 3%.
South African processing assets delivered a particularly strong performance in the period. Record milling rates were achieved at the base metal refinery
— Impala Platinum
Saleable production from the North Shafts improved by 6% to 435,000oz, boosted by the sustained ramp-up in production at Styldrift.
Production in matte at Zimplats was stable at 606,300oz, with about 24,000oz of concentrate inventory accumulated during furnace maintenance.
Concentrate volumes benefitted from improvements in both mined and milled volumes, and increased by 5% to 660,400oz.
The performance at Marula reflected the impact of an increased development rate on grade and recoveries as strategies to improve mining flexibility were advanced, it said.
At Impala Canada, 6E concentrate volumes were 10% lower at 212,800oz due to the planned tapering of production rates at the operation.
Production from joint ventures declined by 3% to 525,7000z.
“South African processing assets delivered a particularly strong performance in the period. Record milling rates were achieved at the base metal refinery, while the precious metal refinery delivered a 6% increase in volumes to 2.92Moz,” the miner said.
Sales volumes increased by 4%, including saleable production from Impala Canada and Impala Rustenburg North Shafts.
Group unit costs per 6E ounce are expected to increase by 8% to about R24,250 on a stock-adjusted basis, it said.
Unit costs benefitted from improved refined and saleable volumes and rand appreciation. This partially offset:
- inflationary pressures from energy pricing at Impala’s mechanised operations;
- the prioritisation of development activities at Marula, which increased costs and reduced reported production volumes; and
- additional discretionary spend on maintenance and infrastructure at Impala Rustenburg and Zimplats.
Group capital expenditure is expected to have increased to about R7.2bn. This was below the guided range of R8bn-R9bn, due primarily to the timing delays on fleet expenditure at Zimplats and the commencement of projects relating to the Marula deepening and the chrome project at Impala Rustenburg North Shafts.
During the period the group recorded four fatalities. In July Implats put mining on hold at its Rustenberg operations for eight days as a series of fatal accidents raised safety concerns.
The company said that the move came amid persistent concerns about the severity of injuries resulting from underground accidents at the Rustenburg operations, prompting a “safety reset” across the complex.
Implats previously warned investors that the eight-day pause will affect production in the 2027 financial year, with the exact numbers to be assessed after the suspension lifts.
Implats will release its full-year financial results on September 3.
With Jacob Webster
Business Day