Impala Platinum summarises its prospects and outlook
2022 has seen several revisions to forecast PGM demand and supply: supplies will be impacted by operational challenges at South African and North American operations, refined volumes will be affected by required maintenance at several major processing complexes, and the pattern of Russian sales is complicated by the potential impact of restrictions on routes to market.
From a demand perspective, auto volumes have been downgraded by the lingering impact of supply chain challenges, the lockdown in China in the first six months of the year and the deteriorating outlook for global growth, in Europe in particular. Industrial demand is expected to soften off the high base of 2021 and a weaker Chinese jewellery market will offset growth elsewhere.
Group forecasts indicate tight rhodium and palladium markets and continued surpluses in the platinum market in 2022.
PROSPECTS AND OUTLOOK
Macro-economic uncertainty, inflationary pressures and geopolitical challenges are likely to persist in FY2023 and the Group remains vigilant in timeously assessing and responding to the risks this uncertain environment presents to its people, operations and the implementation of its strategy.
The operational focus in the near term will be the re-establishment of positive operational momentum at Impala Canada and Impala Rustenburg, the ramp-up of installed milling capacity at Zimplats and Two Rivers, and the timeous and cost-effective advancement of the Group’s significant suite of life-of-mine extension and growth projects across its mining and processing assets.
Implats continues to proactively pursue the conclusion of the offer process associated with the proposed acquisition of RBPlat, with a key focus on securing outstanding regulatory approval from the Competition Tribunal.
PGM pricing remains robust, and the Group has retained a strong and flexible balance sheet which provides a meaningful underpin to its ability to withstand short-term headwinds and fluctuations in consumer and industrial demand, while pursuing its capital investment programme and sustaining attractive shareholder returns.
