Impala Platinum expects refined PGM production of 3.5 million oz in 2025
All three major PGM markets are likely to remain in fundamental deficits in 2024, although market shortfalls are expected to ease from those witnessed in 2023 – automotive production growth is expected to moderate, industrial demand is expected to be marginally lower as capacity expansions ease, and supply is expected to stage a modest recovery on improved auto catalyst scrap collections.
The outlook for growth and inflation continues to face risks, with implications for the timing and pace of rate cuts, which are seen as integral to the expected recovery in precious metal investor sentiment and pricing. Political and geopolitical risks and the potential impact for trade, industrial policy, fiscal dynamics and productivity are likely to prevail for much of FY2025, resulting in continued uncertainty and investor caution.
Implats remains focused on delivering safe and profitable production. Operational planning and capital investment is structured to enhance the competitive positioning of each asset to maximise returns and limit the use of the balance sheet to cross-subsidise loss-making operations.
Following the significant setback in fatalities in FY2024, the focus on improving the Group’s safety performance and eliminating fatal injuries remains steadfast, reinvigorated by targeted initiatives to enhance the safety culture, individual compliance and visible felt leadership.
Key mining and processing assets operated well in FY2024, however some failed to deliver to expectations and a series of interventions are underway at each of Marula, Two Rivers and Styldrift to ensure these operations revert to plan and realise their inherent potential during FY2025.
PGM miners continue to face challenging – and sometimes competing – stakeholder expectations from host communities, governments, organised labour and investors. Given persistent socioeconomic challenges and financial constraints across its operating geographies, Implats will continue to prioritise labour stability and constructive engagement with its mine communities, regulators and other key stakeholders.
Group production in FY2025 will be supported by sustained operating momentum at each of Impala Rustenburg, Zimplats and Mimosa. Performance at Two Rivers is expected to stabilise as the Merensky project is placed on care and maintenance and UG2 production is prioritised.
At Impala Bafokeng, production at Styldrift will be consolidated at a lower labour complement, while third-party receipts will reflect expected volumes from pre-existing contracts. Refined volumes will benefit from the partial release of previously accumulated excess inventory, with Group sales in line with refined and saleable production.
Group 6E refined and saleable production is expected to be between 3.45 million and 3.65 million ounces. Group unit costs are forecast to rise by up to 5% to be between R21 000 and R22 000 per 6E ounce on a stock-adjusted basis.
Group capital expenditure is forecast to be between R8 billion and R9 billion, inclusive of growth capital of between R0.9 billion and R1.1 billion. This guidance assumes exchange rates of R18.25/US$ and C$1.33/US$, respectively.
