Implats 9-month production negatively impacted by loadshedding
Impala Platinum Group production in the nine month period was negatively impacted by the challenging operational environment, with a notable impact from power supply interruptions and safety stoppages at our southern African operations.
Tonnes milled from managed operations increased by 5% to 17.42 million tonnes, while the average 6E mill grade declined by 1% to 3.58g/t. 6E production from managed operations at Impala Rustenburg, Zimplats, Marula and Impala Canada increased by 1% to 1.74 million ounces.
6E production from the JV operations declined by 3% to 396 000 ounces, due to safety stoppages at Two Rivers and the impact of commissioning and optimising the Mimosa concentrator, which was further impeded by power supply interruptions.
Received 6E third-party concentrate volumes of 216 000 ounces were 22% lower than the prior comparable period, due to operational challenges at peer group producers and the cessation of deliveries from two contracts. In total, the Group’s gross 6E production decreased 2% to 2.35 million ounces.
Refined 6E production, which includes saleable production from Impala Canada, declined by 9% to 2.14 million ounces. The impact of lower production volumes and third-party receipts was exacerbated by constrained processing capacity, due to the scheduled rebuild of the furnace at Rustenburg, and the increased severity and frequency of load curtailment during the period. The estimated impact of Eskom load curtailment resulted in the deferral of circa 27 000 6E ounces in the nine months to end March 2023.
6E sales volumes of 2.27 million ounces decreased by 5% from the prior comparable period, with some destocking of refined inventory to offset the impact of the planned furnace maintenance.
OUTLOOK AND GUIDANCE
Despite the challenging operating environment during the period under review, the elevated load curtailment requirements and the prevailing exchange rates, Implats remains on track to deliver within the guided Group parameters for FY2023, with volumes trending towards the lower and costs increasing towards the upper boundaries of the range, respectively.
The third quarter production report for the period 1 January to 31 March 2023 has not been reviewed and reported on by Implats’ external auditors.
