Implats third quarter production results reflect the impact of several challenges at its mining operations, while processing capacity was impeded by required maintenance at its South African smelters.
Implats’ Chief Executive Officer, Nico Muller says, “Given the constrained operating conditions encountered in the quarter, I am heartened to reiterate previously provided Group volume and unit cost guidance for FY2025.”
He says demand for PGMs from their customer base has 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.
“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 adds.
Tonnes milled declined by 2% to 2.23 million tonnes, while grade and stock-adjusted 6E production improved by 4% to 4.00g/t 6E and 280 000 ounces, respectively.
Milled throughput was hampered by maintenance at the UG2 concentrator, while heavy rainfall affected ore movement and re-mining volumes.
Refined 6E production decreased by 14% from the prior comparable period to 226,000 ounces, in line with constrained processing capacity due to the furnace maintenance.
Production momentum at Impala Bafokeng was impeded by poor labour availability following the Christmas break and safety stoppages at Styldrift.
Tonnes milled declined by 4% to 869,000 tonnes, while grade was 3% lower at 4.21g/t. Reported 6E concentrate volumes decreased 14% to 92,000 ounces due to logistical delays in the delivery of volumes to third-party processing facilities at period-end and hence recorded metal production.
Marula’s operating performance showed signs of stability as leadership and operational changes were embedded.
Its comparative performance, however, remained weak, and the operation continues to receive significant group management oversight and support.
Mined volumes were impacted by several engineering interventions and efforts to improve mining flexibility with higher development to stoping activities.
Tonnes milled declined by 9% to 401,000 tonnes. Milled grade of 3.88g/t 6E was also 9% lower than the prior comparable period due to the changing development to stoping ratio.
As a result, 6E concentrate production declined by 13% to 46,000 ounces.
Plant instability due to power interruptions and a planned maintenance shutdown negatively impacted 6E concentrate production, which declined by 6% to 60,000 ounces.
Mimosa delivered a commendable operating performance amid a complex operating context and intermittent power interruptions. Milled throughput increased by 1% to 2.16 million tonnes and 6E head grade was stable at 3.61g/t.
6E concentrate production of 189,000 was maintained from the prior comparable period.Concentrate receipts were impacted by lower deliveries from managed and JV operations, which offset the benefit of higher receipts from third parties. Receipts from managed operations decreased by 20% to 174,000 6E ounces.
JV receipts fell by 19% to 106,000 6E ounces as concentrate deliveries from Mimosa were impacted by administrative delays.
Refined 6E production from both mine-to-market operations (Zimplats, Marula, Two Rivers, and Mimosa) and IRS third-party customers increased by 17% to 361,000 ounces as previously accumulated inventory was reduced.
Mine-to-market receipts decreased by 11% to 944000 6E ounces, reflecting higher in-process inventory at Zimplats, delayed deliveries from Mimosa and weaker volumes from Two Rivers and Marula.
Third-party receipts were 3% lower at 144,000 6E ounces, and gross receipts were 10% weaker year-on-year at 1.09 million ounces. Refined volumes were constrained by smelter maintenance but improved by 2% to 1.11 6E million ounces.
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