Impala Platinum 6E sales volumes were 16% at 3.44Moz

Based on summarised consolidated annual results for the financial year ended 30 June 2024, Implats delivered guided production volumes and commendable cost controls despite navigating several serious challenges amid a constrained operating environment characterised by macroeconomic headwinds and persistently low prices for platinum group metals (PGMs). The journey to zero harm suffered a significant set-back, with the Groups’ safety performance dominated by the devastating 11 Shaft tragedy at Impala Rustenburg in the first half of the year.

Key features for FY2024:

• Achieved volumes benefitted from maiden annual inclusion of Impala Bafokeng
• Group 6E production increased 13% to 3.65Moz
• Refined and saleable 6E production increased 14% to 3.38Moz
• 6E sales volumes were 16% at 3.44Moz
• Group 6E unit costs rose 5% to R20 922/oz (stock-adjusted)
• Consolidated Group capital expenditure of R14.0bn
• Dollar revenue per 6E ounce decreased 34% to US$1 350 on materially lower rhodium and palladium pricing
• Rand revenue per 6E ounce declined 30% to R25 257
• EBITDA of R12.4bn with headline earnings of R2.4bn or 269c per share
• Basic loss of R17.3bn or 1 929c per share
• Free cash outflow of R4.0bn and closing adjusted net cash (excluding leases) of R6.9bn
• RBPlat acquisition completed and landmark B-BBEE transaction concluded
• PGM pricing heavily impacted by industrial destocking and uncertain macroeconomic and geopolitical landscape

Significantly weaker US dollar sales revenue offset the benefit of strong operational delivery in FY2024 – average palladium and rhodium pricing dropped sharply, negating higher sales volumes and compressing operating margins and free cash flow.

Financial metrics were further impacted by impairments resulting from lower PGM pricing, several once-off cash and non-cash charges arising from the conclusion of the RBPlat and B-BBEE transactions, as well as the labour restructuring initiated during the period.

FY2025 started with labour restructuring completed, and the Group set up to deliver free cash flow – despite the assumption of continued near-term PGM pricing weakness – and Implats’ suite of processing assets well capitalised and able to draw down previously accumulated inventory and release cash to the Group.

Financial summary

The benefit of strong operational delivery in FY2024 was offset by significantly weaker US dollar sales revenue. Sharply lower average palladium and rhodium pricing negated higher sales volumes and the benefit of a weaker average rand.

Reported financial metrics were also negatively impacted by several once-off cash and non-cash items in the period. Revenue of R86.4 billion decreased by 19%, while cost of sales of R80.9 billion declined by 4% and Implats delivered gross profit of R5.5 billion. EBITDA of R12.4 billion was achieved at an EBITDA margin of 14%.