Impala Platinum – various projects completed and commissioned in 2025
Implats says it delivered a commendable performance across its mining and processing assets in FY2025. Unit costs benefitted from easing input inflation and rand appreciation but faced headwinds from lower production volumes. Group capital expenditure reduced as various projects were completed and commissioned in the period. The Group generated positive free cash flow and closed the period with an improved net cash position.
Gross Group 6E production decreased by 3% to 3.55 million 6E ounces from 3.65 million 6E ounces for the year ended 30 June 2024 (the “comparative period” or “FY2024”).
Production from managed operations declined by 4% to 2.80 million 6E ounces:
- Stock-adjusted production at Impala Rustenburg decreased by 1% to 1.28 million 6E ounces
- Impala Bafokeng delivered stable production of 481 300 6E ounces in concentrate, with the benefit of improved efficiencies at Styldrift offset by safety stoppages
- Performance at Marula was challenged by constrained mining flexibility and organisational restructuring implemented in the period. 6E concentrate production declined by 10% to 201 900 ounces
- 6E production in matte at Zimplats decreased by 6% to 606 300 ounces, due primarily to poor fleet performance and compounded by the lock up of concentrates during the commissioning of the expanded smelter complex
- At Impala Canada, 6E concentrate volumes were 15% lower at 237 400 ounces, reflecting the operation’s revised operating parameters and lower underground grade.
Production from joint ventures (“JVs”) declined by 1% to 542 400 6E ounces:
- Two Rivers recorded a 1% decrease in 6E in concentrate production to 288 500 ounces, with improved operational delivery at the UG2 operations offset by inclement weather and safety stoppages
- At Mimosa, 6E in concentrate volumes retraced by 1% to 253 900 ounces as operating momentum was impeded by intermittent regional power disruptions.
- Concentrate receipts from third parties were 9% higher at 208 600 6E ounces, reflecting better-than-expected deliveries from underlying contractual agreements.
- Refined 6E production, which includes saleable ounces from Impala Bafokeng and Impala Canada, was stable at 3.37 million 6E ounces. Processing capacity was impeded by required maintenance at Implats’ South African smelters, while its base and precious metals refineries faced interruptions to both water and hydrogen supply. Implats ended the period with excess inventory of 420 000 6E ounces.
Sales volumes declined by 2% to 3.37 million 6E ounces, including saleable production from Impala Canada and Impala Bafokeng. US dollar commodity pricing strengthened in the period, the impact of which was offset by rand appreciation. As a result, the Group’s sales revenue was stable at circa R25 170 per 6E ounce sold.
Group unit costs per 6E ounce are expected to increase by 7% to approximately R22 500 on a stock- adjusted basis. Moderating input inflation was offset by lower production volumes, the transfer of capital spend to working costs at Impala Canada (circa R185 per 6E ounce), and ex gratia employee payments incurred in the period (circa R230 per 6E ounce).
Implats generated EBITDA of circa R9.9 billion in FY2025. Group capital expenditure is expected to have decreased to circa R7.0 billion due to lower levels of growth and replacement capital during the year as projects neared completion and spend at Impala Canada was transferred to working costs.
Implats generated positive free cash flow of circa R2.4 billion in the period and its closing adjusted net cash improved to circa R8.1 billion at 30 June 2025, from R6.9 billion in the comparable period.
Implats will release its audited results for the year ended 30 June 2025 on or about 29 August 2025.
