Implats Reports Decline in Quarterly Platinum Group Metals Output
South Africa-based mining multinational Impala Platinum Holdings (Implats) reported a 5.5% year-on-year decrease in output, producing 947,000 ounces of platinum group metals (PGMs) in the quarter ending September 2024. Managed production volumes dropped by 6% to 751,000 ounces, while joint venture production rose by 3% to 145,000 ounces, according to the company's first-quarter production report.
The decline in production volumes was attributed to changes in operational metrics at various group assets and the impact of commissioning a new furnace at Zimplats, the company's Zimbabwean unit. Total refined and saleable PGMs, which include platinum, palladium, rhodium, indium, ruthenium, and osmium, saw a decrease of 9% to 807,000 ounces, while 6E sales volumes dropped by 4% to 792,000 ounces.
Despite these challenges, Implats CEO Nico Muller expressed confidence in the company's ability to meet its annual production, cost, and capital expenditure targets. Muller highlighted the successful commissioning of a solar power project and an expanded furnace complex at Zimplats, which are expected to enhance processing capacity, improve environmental performance, and lower energy costs.
Implats also reported an improvement in production at its South African Impala Rustenburg operation, despite disruptions from a safety stoppage following two fatalities in November 2023. The asset milled 2.84 million tonnes during the quarter, a 6% decrease from the same period in the previous year, but benefitted from a 5% improvement in grade due to better ore mix and mining discipline.
Production at Impala Canada aligned with the revised operating strategy, which focuses on maximizing volume and cost performance. However, tonnes milled fell by 15% to 767,000, and the grade declined by 8% to 2.86 grams per tonne, resulting in a 22% reduction in 6E volumes in concentrate to 58,000 ounces.
Muller also pointed to healthy ongoing metal purchases and positive discussions with core customers, indicating robust demand for Implats' key products. He noted that, despite ongoing macroeconomic and geopolitical uncertainties, the group is taking a prudent, risk-adjusted approach to operational planning and capital allocation to ensure long-term sustainability and value creation.
