JSE-listed Impala Platinum (Implats) says it delivered a commendable operating performance in the first half of financial year 2025, following group-wide labour restructuring and changes to operating parameters at several of its assets.

The company says unit costs benefitted from strategic actions and easing input inflation, while capital expenditure (capex) reduced by about R4-billion as various projects were commissioned in the six months ended December 31.

Implats says it generated earnings before interest, taxes, depreciation and amortisation of about R6.5-billion for the six months under review.

Headline earnings and headline earnings per share (HEPS) are, however, expected to decrease by between 40% and 49% year-on-year on the back of lower rand revenue, lower dollar pricing and a strengthening rand, which offset the improved refined and saleable production, higher sales volumes and strong cost controls achieved in the six months under review.

Headline earnings are expected to be between R1.65-billion and R1.95-billion, compared with the R3.26-billion reported for the six months ended December 31, 2023.

HEPS are expected to be between 184c and 217c, compared with the HEPS of 365c reported for the prior comparable period.

Basic earnings and earnings per share (EPS) are, however, expected to between 2% and 21% higher year-on-year at between R1.65-billion and R1.95-billion, and 184c and 217c, respectively.

Implats notes that the earnings and EPS in the prior comparable period had been negatively impacted on by the impairment of property, plant and equipment and Impala Canada and the Two Rivers joint venture (JV). As such, the reported earnings and EPS for the six months ended December 31, 2023, were R1.61-billion and 180c, respectively.

PRODUCTION

Implats’ gross group platinum, palladium, rhodium, ruthenium, iridium and gold (6E) production decreased by 4% to 1.82-million ounces from the 1.90-million ounces produced in the prior comparable period.

Production from managed operations decreased by 5% to 1.47-million ounces of 6E.

Impala Rustenburg increased production by 2% to 687 000 stock-adjusted 6E ounces, with sustained operating momentum, while Impala Bafokeng delivered stable production of 254 000 oz of 6E in concentrate, benefitting from improved efficiencies at Styldrift.

The company says performance at Marula remained challenged by constrained mining flexibility and organisational restructuring implemented in the period. As a result, 6E concentrate production decreased by 10% to 101 000 oz.

Additionally, 6E production in matte at Zimplats decreased by 15% to 280 000 oz, owing primarily to the accumulation of concentrates during the commissioning of the expanded smelter complex.

At Impala Canada, 6E concentrate volumes were 20% weaker at 116 000 oz, reflecting revised operating parameters and lower underground grade.

Meanwhile, production from JVs increased by 2% to 282 000 oz of 6E.

Two Rivers recorded a 1% increase in 6E in concentrate production to 153 000 oz, with improved operational delivery at the Upper Group Two operations, while at Mimosa, 6E in concentrate volumes rose by 3% to 129 000 oz, despite challenges presented by intermittent regional power disruptions.

Implats says concentrate receipts from third parties were 9% lower at 103 000 oz of 6E, reflecting underlying contractual agreements.

Refined 6E production, which includes saleable ounces from Impala Bafokeng and Impala Canada, increased by 2% to 1.79-million ounces of 6E, benefitting from increased available processing capacity and fewer power disruptions in the period.

Implats ended the six-month period with excess inventory of about 375 000 oz of 6E.

Sales volumes increased by 5% to 1.77-million ounces of 6E, including saleable production from Impala Canada and Impala Bafokeng.

The softer dollar basket pricing was compounded by appreciation in the rand exchange rate and group sales revenue decreased to about R23 800/oz of 6E sold.

Group unit costs per 6E ounce are expected to increase by 3% to about R20 900 on a stock-adjusted basis.

Moderating input inflation and labour savings were bolstered by rand appreciation on the translated dollar cost base of Zimplats and Impala Canada.

Implats will release its results for the six months ended December 31 on or about February 27.