IMPALA PLATINUM: Marula delivered a record performance
Implats navigated several operational challenges during the year ended 30 June 2022 period. Extended safety stoppages, intermittent industrial action and power-supply interruptions at Impala Rustenburg had a notable impact on production, while ongoing supply-chain constraints hampered operational continuity at Impala Canada. Marula delivered a record performance in the period, while Zimplats sustained production levels despite a complex operating environment and increased project activity.
The Group recorded a 3.6% decline in gross concentrate volumes to 3.17 million 6E ounces from 3.29 million 6E ounces for the year ended 30 June 2021 (“the comparative period”). This includes a 4.3% decrease in concentrate production to 2.27 million 6E ounces from managed operations and a 2.1% decrease in concentrate production to 550 000 6E ounces from joint ventures. Concentrate receipts from third parties declined by 1.8% to 351 000 6E ounces.
Gross refined volumes (including saleable production from Impala Canada) were impacted by lower concentrate production and the extended maintenance required on the Number 3 Furnace at Impala Rustenburg. Consequently, gross refined volumes declined by 5.6% to 3.09 million 6E ounces. Refined volumes in the comparative period benefitted from increased availability of processing capacity due to the timing of annual processing maintenance.
Sales volumes of 3.15 million 6E ounces benefitted from some destocking of refined inventory to take advantage of firmer PGM pricing in H2 FY2022 and to offset the impact of the extended furnace maintenance. Revenue per 6E ounce sold is expected to decline by 4.5% to R37 703 per ounce, reflecting the impact of weaker dollar pricing for our primary products.
Group capital expenditure is expected to increase to circa R9.1 billion from R6.4 billion in the comparative period. This is due to accelerated project spend at Zimplats and Group processing assets, together with an overall increase in capital spend across the operations. Spend in the comparative period was constrained by Covid-19-related factors.
Group unit costs per 6E ounce are expected to increase to circa R17 364 on a stock-adjusted basis. Inflationary pressures were compounded by lower production volumes and the payment of the previously signalled discretionary employee bonus in recognition of the Group’s strong financial performance in FY2021.
