A South African platinum miner targeted for acquisition said a year-long takeover battle is taking its toll, and urged the Public Investment Corporation (PIC) – a key investor to break the impasse between rival bidders.

Royal Bafokeng Platinum (RBPlat) said competing offers from Impala Platinum Holdings and Northam Platinum Holdings have created uncertainty, weighing on production in the third quarter. RBPlat CEO Steve Phiri and COO Neil Carr have delayed their retirement until April, but face a myriad of challenges, including cost inflation and power supply disruptions.

“We are starting to see the impact of the ongoing uncertainty caused by the current corporate action,” said Lindiwe Montshiwagae, a spokesperson at RBPlat, which lowered its output guidance on October 21. “We have seen the impact in operational performance.”

RBPlat’s underperforming assets are strategic for both Northam and Impala, given a reluctance to invest in new mines because of uncertainty over future platinum demand.

For Northam, which last month topped Impala’s earlier offer by 15%, purchasing RBPlat would help close the gap on the country’s top tier producers. Rival Impala has already acquired 40.7% of RBPlat as it seeks control of low-cost mechanized assets that are essential to maintaining the profitability of its adjacent Rustenburg operations.

With Northam holding just under 35% of RBPlat, South Africa’s PIC – with a 9.9% stake – is key to the outcome of the takeover battle. Selling those shares could resolve the conflict, according to RBPlat.

“The PIC can break the deadlock for control in the interests of RBPlat and its stakeholders and therefore restore operational normality,” Montshiwagae said.

Two weeks ago the PIC, a fund manager overseeing about $145-billion of mainly government workers pensions, said it would hold onto its RBPlat shares.

In the meantime, RBPlat’s assets show signs of deteriorating, according to Nicholas Hops, a portfolio manager at Coronation Fund Managers.

“Both Impala and Northam are fighting for control of an asset which is not living up to original expectations and seemingly, from the outside, has deteriorated further,” Hops said.