Implala Platinum delivers strong production and cost control
Implats delivered strong production and commendable cost control, despite navigating several serious operational challenges and a low PGM price environment. Achieved volumes benefitted from the maiden interim consolidation of Impala Bafokeng. However, notable improvements were achieved on a like-for-like basis (excluding Impala Bafokeng’s contribution) at the Groups’ mining and processing operations. Input inflation eased, but rand depreciation persisted, which impacted the translated dollar cost and capital base of its Zimbabwean and Canadian assets.
Tonnes milled from the Group’s managed operations increased by 21% to 14.31 million tonnes (H1 FY2023: 11.82 million), augmented by the inclusion of Impala Bafokeng, with 2% gains on a like-for-like basis – higher volumes at Impala Rustenburg and Zimplats offset lower throughput at Marula and Impala Canada. Grade improved by 6% to 3.77g/t (H1 FY2023: 3.56g/t), due to the improved ore mix at Impala Rustenburg, the prioritisation of higher-grade ore blocks at Impala Canada, and the inclusion of Impala Bafokeng volumes. 6E production at managed operations increased by 28% to 1.51 million ounces
(H1 FY2023: 1.18 million) with a like-for-like improvement of 7% from the collective production base at Impala Rustenburg, Marula, Zimplats and Impala Canada.
6E production from joint ventures (JVs) increased by 2% to 276 000 ounces (H1 FY2023: 270 500 ounces). Improved grade at Two Rivers countered a constrained mining environment, while increased processing yields at Mimosa offset the deterioration in head grade due to bad ground conditions.
Concentrate receipts from third parties declined by 33% to 112 600 ounces (H1 FY2023: 169 100 ounces) as two contracts concluded in Q3 FY2023.
In total, Group production increased by 18% to 1.90 million 6E ounces (H1 FY2023: 1.62 million), with like-for-like gains of 2%.
Refined 6E production, which includes saleable ounces from Impala Bafokeng and Impala Canada, increased by 19% to 1.75 million ounces (H1 FY2023: 1.48 million ounces) and was 4% higher on a like-for-like basis. The frequency and intensity of load curtailment reduced in the period. As a result, Implats estimates production of circa 16 000 6E ounces was foregone
across southern African managed and JV operations, and a further 8 000 6E ounces deferred (H1 FY2023: 9 000 ounces foregone and 38 000 ounces deferred). Implats ended H1 FY2024 with excess inventory of approximately 330 000 6E ounces (H1 FY2023: 140 000 6E ounces).
The benefit of volume gains and cost containment was offset by inflationary pressure related to rand depreciation on the translated dollar cost base of Zimplats and Impala Canada, and the inclusion of the Impala Bafokeng cost base. Group unit costs per 6E ounce increased by 5% to R20 334 on a stock-adjusted basis (H1 FY2023: R19 346 per ounce) and were 3% higher on a like-for-like basis.
