At the rock face at an Impala Platinum Mine in Rustenburg. Production fell in the nine months to March 31, 2025 but the group remained within the parameters of earlier guidance to investors.
Image: Supplied
Impala Platinum Holdings was one of the worst performers on the JSE on Thursday, following a production report that revealed a 5% decrease in its 6E Group production volumes to 2.60 million due to operational challenges and maintenance.
The share price dropped 6.20% to R110.14 on Thursday, although it remains higher than R59.70 a year ago.
The report indicated that managed volumes of the six platinum group metals—platinum, palladium, rhodium, ruthenium, iridium, and gold—declined by 5% to 2.10 million. Joint venture (JV) production decreased by 2% to 430 000 ounces, while third-party receipts fell by 3% to to 144.000 ounces, compared to the previous year's production for the 9 months to March 31..
Despite these challenges, gross 6E refined and saleable production, as well as 6E sales volumes, increased by 1% to 2.50 million ounces and 2.55 million ounces, respectively.
“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 South African smelters,” said Implats' CEO, Nico Muller. He added that Implats remains on track to deliver within guidance for the full year.
Muller said demand from their customer base remains robust, with contractual deliveries supplemented by additional spot requests, despite elevated global macroeconomic and geopolitical uncertainty.
Physical tightness and sustained pricing support for the minor PGMs were features of the market. PGM pricing had appreciated from recent cyclical lows, but remain compressed.
“The group is focused on delivering consistent and safe production, with our production plans and associated capital allocation aligned to ensure free cash flow generation through the cycle, supported by a defensive and competitive portfolio,” Muller said.
Tons milled at managed operations declined by 9% to 5.88 million, reflecting constrained mining fleet availability at Zimplats and the reset operational footprint at Impala Canada. 6E production at managed operations retraced by 6% to 617 000 ounces.
6E production from joint ventures at Mimosa and Two Rivers fell 9% to 121 000 ounces. At Impala Refining Services, third-party 6E receipts were 13% higher reaching 41 000 unces.
Refined 6E production, which includes ounces from Impala Canada and Impala Bafokeng, remained stable at 716 000 ounces.
Repairs on Furnace 5 were completed in February 2025, and Implats finished with 3751 000 ounces of excess inventory, compared to 410 000 ounces at the same time last year.
In the quarter ending March 31, Impala Rustenburg experienced a 2% decline in tons milled, totalling 2.23 million tons. However, refined 6E production decreased by 14%, in line with constrained processing capacity due to furnace maintenance.
At Impala Bafokeng, poor labour availability following the Christmas break and safety stoppages at Styldrift said quarterly. Tons milled declined by 4% to 869 000 tons. Reported 6E concentrate volumes decreased by 14% to 92 000 ounces due to logistical delays.
Group management oversight and support were provided at Marula. Mined volumes were impacted by engineering interventions to improve mining flexibility. Tons milled fell by 9% to 401 000 tons. 6E concentrate production fell 13% to 46 000.
At Zimplats, a campaign to supplement underground volumes with open-cast material was initiated. Tons milled declined 17% to 1.67 million tons.. 6E concentrate volumes were 20% at 135 000 uonces, adversely affected by final assay adjustments from the previous quarter.
At Impala Canada, quarterly throughput fell by 18% to 709 000 tons. 6E production in concentrate was 5% at 60 000 ounces.
At Two River, heavy rainfall damaged electrical substations and the access bridge to the mine in January, while operations were further impacted by safety stoppages in February. Low mined volumes were supplemented by milling stockpiled ore. Tons milled declined by 8% to 821 000 ounces, and 6E production in concentrate decreased by 13% to 61 000.
At Mimosa, regional power disruptions impeded operating momentum. Milled volumes decreased by 3% to 595 000 tons. Plant instability due to power interruptions and a planned maintenance shutdown negatively impacted 6E concentrate production, which fell 6% to 60 000 ounces.
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