IMPALA PLATINUM HOLDINGS LIMITED - Third quarter production report for the period 1 January to 31 March 2021
30 April 2021 7:05
Third quarter production report for the period 1 January to 31 March 2021
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ISIN: ZAE000083648
JSE Convertible Bond Stock Code: IMCB22
JSE Convertible Bond ISIN: ZAE000247458
ADR code: IMPUY
(“Implats” or “the Group”)
Third quarter production report for the period 1 January to 31 March 2021
Key highlights for the nine months
• One fatality, resulting from the high-wall subsidence at Zimplats in February, with a
18.7% improvement in the reported all injury frequency rate.
• An 8% increase in total 6E concentrate volumes to 2.47 million ounces, with a 9% gain
in managed volumes to 1.77 million ounces, a 7% increase in JV production to 417 000
ounces and stable third-party receipts of 275 000 ounces.
• A 14% improvement in gross 6E refined and saleable production volumes to 2.49 million
ounces on improved availability at Group processing assets and the inclusion of saleable
production from Impala Canada.
Implats’ Chief Executive Officer, Nico Muller, commented: “Implats continues to demonstrate
resilience amid the ongoing challenges presented by the Covid-19 pandemic. I am particularly
proud of the record safety achievement at Impala Rustenburg and the operational delivery
across the Group during what is traditionally a difficult operating period for the mining industry.
Our people were faced with additional hurdles created by intermittent power provision and
elevated community unrest in South Africa – a harsh reminder of the challenging socio-
economic environment, which has been compounded by the scourge of Covid-19. Rand PGM
pricing remains elevated, and we are pleased to be able to reiterate our key guidance metrics
for FY2021, while reaffirming our commitment and ability to deliver significant value to all our
stakeholders.”
Unaudited Unaudited Unaudited Unaudited
quarter quarter nine nine
Operational information
ended ended months months
31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20
Safety
LTIFR pmmhw 4.95 5.02 5.08 4.87
TIFR pmmhw 10.25 11.81 9.64 11.86
Fatalities count 1 - 1 3
Gross production
Tonnes milled (managed operations) 000t 5 591 5 362 17 380 15 667
Grade (6E) g/t 3.64 3.64 3.66 3.75
6E in concentrate 000oz 783 752 2 466 2 290
Managed operations 000oz 569 535 1 774 1 625
JV operations 000oz 135 132 417 390
Third-party and toll 000oz 79 85 275 275
Gross 6E refined 000oz 800 862 2 494 2 179
Impala 6E refined 000oz 296 343 1 025 1 104
IRS 6E refined 000oz 443 462 1 289 1 010
Impala Canada saleable 6E 000oz 60 57 180 65
Gross platinum refined 000oz 367 402 1 154 1 060
Gross palladium refined 000oz 276 298 852 689
Gross rhodium refined 000oz 48 52 150 137
Gross nickel refined 000t 3 852 3 971 11 841 12 097
6E sales volumes 000oz 862 758 2 484 2 086
Managed operations production:
Impala Rustenburg
Tonnes milled 000t 2 514 2 366 8 091 8 104
Grade (6E) g/t 4.03 3.94 4.03 3.92
6E in concentrate 000oz 307 275 967 928
6E refined 000oz 296 343 1 025 1 104
Zimplats
Tonnes milled 000t 1 700 1 701 5 055 5 076
Grade (6E) g/t 3.39 3.46 3.46 3.48
6E in concentrate 000oz 138 150 435 449
6E in matte (incl. concentrates sold to IRS) 000oz 137 152 425 419
Marula
Tonnes milled 000t 456 431 1 390 1 401
Grade (6E) g/t 4.35 5.03 4.38 4.73
6E in concentrate 000oz 60 55 181 179
Impala Canada
Tonnes milled 000t 920 865 2 844 1 086
Grade (6E) g/t 2.71 2.49 2.62 2.48
6E in concentrate 000oz 65 55 192 69
JV operations production:
Mimosa
Tonnes milled 000t 695 683 2 128 1 989
Grade (6E) g/t 3.88 3.85 3.88 3.85
6E in concentrate 000oz 63 61 196 181
Two Rivers
Tonnes milled 000t 798 808 2 429 2 454
Grade (6E) g/t 3.50 3.46 3.41 3.45
PGE in concentrate 000oz 71 71 222 209
Impala Refining Services production
Gross 6E receipts 000oz 405 421 1 347 1 245
Mine-to-market 000oz 325 336 1072 970
Third-party and toll 000oz 79 85 275 275
6E refined 000oz 443 462 1 289 1 010
HEALTH AND SAFETY
Implats’ goal is to eliminate harm to the health and safety of our employees and contractors.
Focused attention across all operations and targeted cautionary measures mitigated the
ongoing challenges presented by Covid-19 and Implats delivered an improved safety
performance in the quarter under review.
Regrettably, Zimplats recorded a fatal injury on 14 February 2021, when Mr Kudzanayi
Manyonganise was fatally injured by the subsidence of a portion of the high wall at the Ngwarati
Mine box cut. The Board of Directors and management team have extended their sincere
condolences and support to his family, friends and colleagues.
The lost-time injury frequency rate (LTIFR) and all injury frequency rate (TIFR) of 4.95 and
10.25 per million man hours worked, improved by 1.4% and 13.2% respectively. 14 of the
Group’s 17 operations achieved millionaire or multi-millionaire status in terms of fatality free
shifts during the reporting period and, on 28 March 2021, Impala Rustenburg achieved eight
million fatality free shifts, an all-time fatal free shift record for the operation.
Managing the Covid-19 pandemic remains a critical imperative at Implats. The virus and its
impact continued to be a prominent feature of the operating environment in each of South Africa,
Zimbabwe and Canada during the quarter. Pleasingly, Implats continued to see a reduction in
active and new Covid-19 cases as the second wave receded, despite the risk associated with
our employees travelling over the Easter break.
PRODUCTION
Quarter ended 31 March 2021
Group tonnes milled at managed operations increased by 4% to 5.59 million tonnes during the
quarter, with higher volumes reported at Impala Rustenburg, Impala Canada, and Marula. Milled
grade was stable at 3.64g/t and improved recoveries and yield resulted in 6E concentrate
production at managed operations rising 6% to 569 000 ounces. 6E concentrate production
from the joint ventures at Mimosa and Two Rivers increased by 2% to 135 000 ounces.
In the prior comparable period, the implementation of the Covid-19 lockdown in South Africa on
the 25 March 2020 was estimated to have resulted in a 6% reduction in reported milled tonnage
from Impala Rustenburg, Marula and Two Rivers, equivalent to approximately 26 000 ounces
of 6E mine-to-market concentrate production foregone.
In the quarter under review, mine-to-market 6E concentrate production improved by 6% or
37 000 ounces to 704 000 ounces, with only Zimplats reporting lower volumes as mining and
processing efficiencies were impacted by the high wall subsidence at the Ngwarati Mine box
cut. IRS 6E in concentrate receipts from third-party and toll customers declined by 7% to 79 000
ounces, resulting in gross Group concentrate production rising by 4% to 783 000 ounces.
Refined 6E production, which includes saleable ounces from Impala Canada, declined by 7%
to 800 000 ounces, with the prior comparable period characterised by a material reduction in
excess accumulated inventory. Production in the quarter under review was impacted by Eskom
load curtailment, the furnace re-line at Zimplats, the start of scheduled maintenance at the No
5 Furnace at Impala Rustenburg and interruptions to third-party hydrogen supply at the Base
Metals Refinery at the start of the period.
6E sales volumes of 862 000 ounces increased by 14% and were broadly in-line with contractual
requirements in the period, with some additional destocking of iridium and ruthenium as demand
and pricing improved for these metals.
Nine months ended 31 March 2021
Group production in the nine-month period ended 31 March 2021 benefitted from the inclusion
of Impala Canada for the full reporting period. Tonnes milled from managed operations
increased by 11% to 17.38 million tonnes, while the average 6E mill grade declined by 2% to
3.66g/t.
The 9% increase in mine-to-market 6E concentrate production to 2.19 million ounces reflects
the benefit of increased contributions from Impala Canada and higher volumes at Impala
Rustenburg, Marula, Two Rivers and Mimosa. 6E third-party and toll material received in
concentrate of 275 000 ounces were stable relative to the prior comparable period. In total,
gross 6E concentrate production increased by 8% to 2.47 million ounces.
Refined 6E production in the prior comparable period was significantly impacted by planned
maintenance at the Zimplats furnace and Impala Rustenburg’s smelting complex in H1 FY2020,
which constrained processing capacity. During the period under review, gross refined volumes
benefitted from improved availability at Group processing assets and the inclusion of saleable
production from Impala Canada from the start of the financial year.
In total, gross refined 6E production increased by 14% to 2.49 million ounces. Palladium
volumes increased by 24%, reflecting the palladium dominance of Impala Canada’s metal
production, with rhodium and platinum volumes improving by 10% and 9% respectively.
The implementation of a revised stock allocation policy between IRS and Impala Rustenburg in
the prior comparable period resulted in a beneficial allocation of refined volumes to Impala
Rustenburg. Consequently, while Impala Rustenburg’s refined 6E production declined by 7% to
1.03 million in the nine-month period under review, refined volumes at IRS increased by 28% to
1.29 million ounces.
The excess 6E in concentrate inventory of 100 000 ounces identified at FY2020 year end was
reduced by approximately 60 000 ounces over the nine-month period.
6E sales volumes of 2.48 million ounces increased by 19% from the prior comparable period
and benefitted from saleable production from Impala Canada and some destocking of iridium
and ruthenium as demand and pricing strengthened during the nine-month period.
Impala Rustenburg
Quarter ended 31 March 2021
Tonnes milled during the quarter increased by 6% to 2.51 million tonnes, compared to
2.37 million tonnes in the prior comparable period. Impala Rustenburg benefitted from an
efficient start-up in January, despite the logistical complexities of managing employees’ return
to work during the ongoing pandemic. The period also saw the operation faced with interrupted
power supply, increased illegal mining activity and intermittent industrial action across the
contractor workforce.
Grade improvements reflect successful targeted management strategies and benefitted from
reduced dilution following the completion of the 16 Shaft orepass system rehabilitation. Milled
grade increased by 2% to 4.03g/t, while improved recoveries and yield from higher tailings
volumes resulted in 6E concentrate production increasing by 12%, or 32 000 ounces, to 307 000
ounces.
In the prior comparable period, an estimated 6% of production volume, equating to 17 500
ounces 6E, was foregone due to the implementation of care and maintenance ahead of the
national lockdown.
Refined 6E production of 296 000 ounces declined by 14% during the quarter from 343 000
ounces in the prior corresponding period. This was due to the normalisation of stock allocation
between IRS and Impala Rustenburg, compounded by the impact of Eskom load curtailment
and scheduled maintenance at the Rustenburg processing facilities in March.
Nine months ended 31 March 2021
Tonnes milled were unchanged at 8.1 million tonnes and the milled grade of 4.03g/t (6E)
improved by 3%. Improved recoveries and higher tailings volumes resulted in a 4% increase in
6E concentrate production volumes to 967 000 ounces.
Refined 6E production declined by 7% to 1.03 million ounces from 1.10 million ounces in the
previous comparable period, due to a normalising of the stock allocation between Impala
Rustenburg and IRS.
Zimplats
Quarter ended 31 March 2021
On 14 February 2021, a portion of the high wall at the Ngwarati Mine box cut subsided, fatally
injuring an employee of a contractor operating at Zimplats. This resulted in the temporary
closure of the Ngwarati Mine, with production teams transferred to Rukodzi, Bimha and Mupani
mines and milled volumes supplemented by stockpiled development ore from Mupani Mine.
The redeployed teams ramped-up to full production rates by period end and Ngwarati Mine is
expected to return to full production by the end of FY2021. As a result, tonnes mined, milled
grade and process recoveries were all negatively affected during the quarter.
Tonnes milled were stable at 1.70 million tonnes, while the delivered mill grade declined by 2%.
The ore mix impacted process recoveries and 6E concentrate production fell by 8% to 138 000
ounces. A furnace reline was completed in the period and matte production including
concentrate sold to IRS of 137 000 ounces was 10% weaker than in the previous comparable
period.
Nine months ended 31 March 2021
The impact of challenges experienced at Zimplats in March was mitigated by strong operational
delivery prior to the Ngwarati Mine incident. Mill throughput of 5.06 million tonnes declined
marginally from 5.08 million tonnes, with grade and 6E concentrate production 1% and 3%
weaker at 3.46g/t and 435 000 ounces, respectively. 6E matte production in the nine-month
period increased by 1% to 425 000 ounces.
Marula
Quarter ended 31 March 2021
Operational continuity at Marula was negatively impacted by community related interruptions
during the quarter. Development efficiencies continued to outstrip those of stoping crews,
resulting in lower than planned mined volumes and a materially lower reported milled grade.
Milled volumes increased by 6% to 456 000 tonnes, while grade declined by 14% to 4.35g/t. 6E
concentrate production benefitted from improved recoveries and additional metal recovered
from concentrate sludge and increased by 9%, or 5 000 ounces, to 60 000 ounces.
In the prior comparable period, an estimated 6% of production volume, equating to 3 500 ounces
6E, was foregone due to the implementation of care and maintenance ahead of the start of the
national lockdown.
Nine months ended 31 March 2021
Mill throughput declined by 1% to 1.39 million tonnes. The 7% decline in milled head grade was
offset by improved recoveries because of additional ounces released from previously locked-up
in-process metal and 6E concentrate production increased by 1% to 181 000 ounces.
Impala Canada
Quarter ended 31 March 2021
Impala Canada benefitted from improved plant availability and increased contributions from
high-grade underground ore sources during the period. Tonnes milled increased by 6% to
920 000 tonnes while milled head grade rose by 9% to 2.71g/t. 6E metal in concentrate of
65 000 ounces was 18% higher than that achieved in the prior comparable period.
Nine months ended 31 March 2021
The acquisition of Impala Canada was concluded in December 2019, skewing comparison
relative to the prior comparable period. In the nine-month period, Impala Canada milled 2.84
million tonnes at a milled grade of 2.62g/t, yielding 6E concentrate volumes of 192 000 ounces.
Mimosa
Quarter ended 31 March 2021
The impact of rising Covid-19 infection rates in the broader Mimosa community remains well
controlled by the operation and Group protocols and, despite intermittent interruption to power
supply due to utility infrastructure, Mimosa operated well during the quarter. Tonnes milled
improved by 2% to 695 000 tonnes and milled head grade increased by 1% to 3.88g/t. 6E
production in concentrate increased by 4% to 63 000 ounces.
Nine months ended 31 March 2021
Production in the prior comparable period was impacted by extended repairs to the milling circuit
in Q1 FY2020. In the nine-month period, milled volumes of 2.13 million tonnes increased by 7%
and, while milled head grade of 3.88g/t was 1% higher, 6E volumes produced in concentrate
increased by 8% to 196 000 ounces.
Two Rivers
Quarter ended 31 March 2021
While all South African operations were impacted by Eskom load curtailment in March 2021,
Two Rivers was adversely affected by a series of failures and required repairs to the regional
transmission network, further impacting operating capacity during the quarter. In addition,
community unrest and protests were a notable feature in the quarter, impacting employee
attendance and operational continuity. Total tonnes milled declined by 1% to 798 000 tonnes,
while milled grade of 3.50g/t improved by 1%, resulting in unchanged 6E production in
concentrate of 71 000 ounces.
In the prior comparable period, an estimated 6% of production volume, equating to 4 500 ounces
6E, was foregone due to the implementation of care and maintenance ahead of the start of the
national lockdown.
Nine months ended 31 March 2021
Production in the prior comparable period was heavily impacted by extended maintenance and
metallurgical challenges at the concentrator plant in Q1 FY2020. In the nine-month period, the
delayed return of foreign workers and resultant impact on returning to a full labour complement,
together with power-supply interruptions, resulted in a 1% decrease in tonnes milled to 2.43
million tonnes. Marginally lower milled grade was offset by improved plant recoveries and 6E
production in concentrate of 222 000 ounces increased by 6%.
IRS
Quarter ended 31 March 2021
Concentrate receipts were negatively impacted by weaker volumes from third parties and
Zimplats. Mine-to-market receipts of 325 000 ounces were 3% lower, while third-party and toll
receipts declined by 7% to 79 000 ounces. Refined 6E production of 443 000 ounces from both
mine-to-market operations (Zimplats, Marula, Two Rivers and Mimosa) and IRS third-party and
toll customers, was 4% lower than in the previous comparable period (462 000 ounces).
Nine months ended 31 March 2021
Concentrate receipts benefitted from improved mine-to-market deliveries, which reflect the
delayed impact of the IRS force majeure declared in Q3 FY2020 and the improved operational
performances at both Two Rivers and Mimosa. While mine-to-market receipts of 1.07 million
ounces have increase by 11%, third-party and toll receipts of 275 000 ounces were unchanged.
Refined volumes in the prior comparable period were impacted by the change in stock allocation
policy at the Group and, consequently, refined volumes in the nine-month period increased by
28% to 1.29 million ounces.
OUTLOOK AND GUIDANCE
The Group remains well on track to meet the guidance parameters on production, unit costs
and capital expenditure it provided with the release of its half year results ended 31 December
2020.
The third quarter production report for the period 1 July 2020 to 31 March 2021 has not been
reviewed and reported on by the external auditors of Implats.
Queries:
Johan Theron
E-mail: johan.theron@implats.co.za
T: +27 (0) 11 731 9013/43
M: +27 (0) 82 809 0166
Emma Townshend
E-mail : emma.townshend@implats.co.za
T : +27 (0) 21 794 8345
M : +27 (0) 82 415 3770
Alice Lourens
E-mail: alice.lourens@implats.co.za
T: +27 (0) 11 731 9033/43
M: +27 (0) 82 498 3608
30 April 2021
Johannesburg
Sponsor to Implats
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 30-04-2021 07:05:00
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