Impala Platinum Achieves Strong Production Gains Amid Challenging Conditions in FY2024

Impala Platinum has reported significant production and operational achievements for the fiscal year 2024, despite facing a challenging operating environment. The company successfully navigated various obstacles to deliver guided production volumes and maintain cost controls.

The group’s total 6E production increased by 13% to 3.65 million ounces compared to 3.25 million ounces in FY2023. Excluding the contribution from Impala Bafokeng, production saw a slight 1% decline on a like-for-like basis.

Production from managed operations rose by 21% to 2.92 million 6E ounces, with a 2% improvement in like-for-like performance across key operations at Impala Rustenburg, Marula, Zimplats, and Impala Canada. Impala Rustenburg increased production by 4% to 1.28 million stock-adjusted 6E ounces, despite the impact of the 11 Shaft tragedy. Impala Bafokeng contributed 483,000 6E ounces in concentrate in its first annual report. Marula saw a 7% decline in 6E concentrate production to 223,000 ounces, affected by safety stoppages and mining constraints. Zimplats achieved a 6% increase in 6E matte production to 646,000 ounces due to increased milling capacity. Impala Canada recorded a 4% decrease in 6E production to 281,000 ounces, aligning with revised operational parameters.

Production from joint ventures increased by 1% to 547,000 6E ounces. Two Rivers experienced a 1% decrease to 291,000 ounces, impacted by mining challenges. Mimosa increased production by 4% to 255,000 ounces, benefiting from plant optimization efforts. Concentrate receipts from third parties dropped by 34% to 191,000 6E ounces following the conclusion of two contracts in Q3 FY2023.

Refined 6E production, which includes outputs from Impala Bafokeng and Impala Canada, rose by 14% to 3.38 million ounces, a 2% increase on a like-for-like basis. The Group’s processing capacity was impacted by the scheduled rebuild of the Number 5 furnace at Impala Rustenburg, which was completed as planned.

Implats ended FY2024 with excess inventory of approximately 390,000 6E ounces, up from 245,000 in FY2023. Sales volumes increased by 16% to 3.44 million 6E ounces, with a 3% rise on a like-for-like basis. However, the US dollar sales revenue per 6E ounce fell by 34% due to lower palladium and rhodium prices, resulting in a 30% decrease in group sales revenue to approximately $1,389 per 6E ounce sold.

Group unit costs per 6E ounce are expected to rise by 5.5% to around $1,151, adjusted for stock. Cost containment efforts and volume gains were offset by the impact of rand depreciation and the inclusion of Impala Bafokeng unit costs.

Cash capital expenditure for FY2024 totaled approximately $677 million, with an additional $93.5 million in prior period capital payments reclassified, bringing the total capital expenditure to about $770 million, up from $632.5 million in the previous period. This increase reflects Impala Bafokeng's consolidation and growth capital at Zimplats.

Labour restructuring was completed at Impala Canada and Zimplats, while a Section 189(3) process was initiated in the fourth quarter at South African operations, including Impala Rustenburg, Impala Bafokeng, and Marula. Through natural attrition, redeployment, and voluntary separation packages, Implats avoided forced retrenchments. The restructuring process incurred costs of approximately $26.8 million, with cash outflows of about $6 million in FY2024 and $20.6 million expected in FY2025.