JOHANNESBURG (miningweekly.com) – Platinum group metals (PGM) mining and marketing company Implats on Tuesday reported higher production in a period characterised by robust demand but lacklustre PGM prices.

“Despite continued macroeconomic and geopolitical uncertainty, demand from our contractual customers remains robust, with elevated additional volumes requested via spot sales during the third quarter.

“PGM pricing remains lacklustre however, with notable volatility in both platinum and palladium reflecting the continued influence of investor activity,” Implats CEO Nico Muller stated in a production report for the period ended March 31.

In the nine months ended March 31, the Johannesburg Stock Exchange-listed company recorded a 16% increase in total six-element (6E) group production volumes to 2.73-million ounces, with a 25% gain in managed volumes to 2.17-million ounces, a 4% increase in joint venture (JV) production to 410 000 oz, and a 31% decrease in third-party receipts to 149 000 oz.

Gross 6E refined and saleable production increased by 15% to 2.47-million ounces in the nine months and 6E sales volumes increased by 11% to 2.52-million ounces.

“Margins remain compressed and we are pursuing a set of actions to ensure that each of our operations is set up to more robustly deliver sustainable free cash flow through the PGM cycle.

“It’s imperative that each of our assets operates within the appropriate volume, cost and capital parameters relative to the current pricing environment and the broader operating context,” Muller stated in a release to Mining Weekly.

In late April, Implats embarked on a Section 189 (3) consultation process at its South African operations, which could affect 3 900 positions, equating to a 9% reduction in labour across the group’s Impala Rustenburg, Impala Bafokeng and Marula operations, as well as at the corporate office, which is targeting a 30% reduction in head office costs.

“We delivered a commendable operational performance while navigating several challenges in the period under review. Investigations into the 27 November tragedy at 11 Shaft progressed and the production ramp-up at the operation remains on track.

“The rebuild of Impala Rustenburg’s Number 5 furnace was completed and first matte has now been tapped. Notable operational performances were delivered by Zimplats and Mimosa, and at Impala Canada, where mining and milling was rebased,” Muller added.

Implats remains on track to deliver within the guided group parameters for the full 2024 financial year.

MARCH QUARTER

In the three months to March 31, gross group 6E production increased by 13% to 827 000 oz.

Tonnes milled at managed operations increased by 16% to 6.48-million tonnes during the quarter.

The maiden inclusion of Impala Bafokeng and higher milled volumes at Zimplats offset lower throughput at Impala Rustenburg, Marula and Impala Canada.

The 6E milled grade of 3.64 g/t was stable and 6E production at managed operations increased by 17% to 657 000 oz.

The 6E production from the JVs at Mimosa and Two Rivers increased by 7% to 134 000 oz.

At Impala Refining Services, third-party 6E receipts of 37 000 oz were 23% lower than the prior comparable quarter as two contracts concluded in financial year 2023.

There were negligible production losses owing to load curtailment in South Africa in the quarter, although regional electricity generation and distribution challenges did pose headwinds to operating momentum in Zimbabwe.

Refined 6E production, which includes saleable ounces from Impala Canada and Impala Bafokeng, increased by 8% to 717 000 oz.

Implats finished the period with 410 000 6E ounces of excess inventory and 6E sales volumes of 824 000 oz, including saleable production from Impala Canada and Impala Bafokeng, increased by 10%, and were 3% lower on a like-for-like basis from those in the prior comparable quarter, with some destocking of refined inventory to offset the impact of the planned furnace maintenance.