IMPALA PLATINUM HOLDINGS LIMITED - First Quarter Production Report for the period 1 July to 30 September 2024
30 October 2024 8:00
First Quarter Production Report for the period 1 July to 30 September 2024
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ISIN: ZAE000083648
ADR code: IMPUY
("Implats" or "the Group")
FIRST QUARTER PRODUCTION REPORT FOR THE PERIOD 1 JULY TO 30 SEPTEMBER 2024
Key highlights
- Regrettably, two fatalities at Impala Rustenburg and one at Impala Bafokeng
- A 3% and 20% year-on-year improvement in the lost-time and all-injury injury frequency rates,
respectively
- Group 6E production volumes decreased by 5% from the previous comparable quarter to 947 000
ounces, with a 6% decline in managed volumes to 751 000 ounces, a 3% gain from joint ventures
to 145 000 ounces, and a 19% reduction in third-party receipts to 50 000 ounces. Production
volumes reflected guided changes in operational parameters at several Group assets and the
impact of furnace commissioning at Zimplats
- Gross 6E refined and saleable production volumes decreased by 9% to 807 000 ounces and
6E sales volumes were 4% lower at 792 000 ounces
- FY2025 guidance for volumes, cost and capital expenditure is maintained.
Implats' Chief Executive Officer, Nico Muller, commented: "I commend the energy and focus our people
demonstrated in the period under review. Implats is on track to deliver our previously provided
operational, cost and capital expenditure guidance in FY2025. We remain firmly focussed on advancing
the Groups' competitive position and ensuring our portfolio delivers the operational results required to
navigate the PGM pricing cycle.
The commissioning of the solar project and the enlarged furnace complex at Zimplats during the period
were notable highlights, with the operation now poised to benefit from improved processing capacity and
environmental performance, and lower energy costs.
Healthy ongoing metal purchases and recent discussions with our core customer base confirm our view
of robust demand for our key products over the coming year, with shifts in metal requirements also
affirming our assessment of underlying market trends. The macroeconomic and geopolitical uncertainty
that has typified the global outlook for much of the past two years has persisted. As a result, we continue
to assume a prudent risk-adjusted view to our operational planning and capital allocation to ensure
Implats' long-term sustainability and ongoing value creation."
Group operational performance Q1 FY2025 Q1 FY2024 Var, %
Safety
LTIFR pmmhw 3.31 3.40 2.8
TIFR pmmhw 6.83 8.55 20.2
Fatalities Count 3 2
6E Group production 000oz 947 1 002 (5.5)
Managed operations 000oz 751 799 (6.0)
JV operations 000oz 145 141 3.3
Third-party 000oz 50 62 (19.2)
Gross 6E refined and saleable 000oz 807 885 (8.8)
Impala 6E refined 000oz 282 308 (8.3)
IRS 6E refined 000oz 361 392 (7.9)
Impala Bafokeng 6E saleable(1) 000oz 110 113 (2.7)
Impala Canada 6E saleable(1) 000oz 53 71 (25.5)
Gross platinum refined and saleable 000oz 382 421 (9.2)
Gross palladium refined and saleable 000oz 277 303 (8.7)
Gross rhodium refined and saleable 000oz 44 46 (6.3)
Gross nickel refined and saleable t 3 928 4 331 (9.3)
6E sales volumes 000oz 792 829 (4.5)
Managed operations production:
Tonnes milled 000t 7 094 7 551 (6.1)
6E grade g/t 3.83 3.77 1.8
Impala Rustenburg
Tonnes milled 000t 2 838 3 021 (6.1)
6E grade g/t 4.17 3.96 5.3
6E stock adjusted(2) 000oz 361 369 (2.1)
Impala Bafokeng
Tonnes milled 000t 1 082 1 188 (8.9)
6E grade g/t 4.33 4.26 1.8
6E in concentrate(4) 000oz 130 134 (3.5)
Marula
Tonnes milled 000t 426 487 (12.5)
6E grade g/t 4.18 4.30 (3.0)
6E in concentrate(4) 000oz 53 58 (8.2)
Zimplats
Tonnes milled 000t 1 982 1 955 1.4
6E grade g/t 3.38 3.33 1.7
6E in matte (incl. concentrate sold to IRS)(3) 000oz 150 165 (8.6)
Impala Canada
Tonnes milled 000t 767 900 (14.8)
6E grade g/t 2.86 3.12 (8.1)
6E in concentrate(4) 000oz 58 74 (22.2)
JV operations production:
Two Rivers
Tonnes milled 000t 944 939 0.5
6E grade g/t 3.06 3.12 2.0
6E in concentrate(4) 000oz 79 79 (0.1)
Mimosa
Tonnes milled 000t 750 702 6.8
6E grade g/t 3.61 3.61 -
6E in concentrate(4) 000oz 66 62 7.8
Impala Refining Services production:
Gross 6E receipts 000oz 408 431 (5.4)
Managed operations 000oz 207 223 (7.1)
JV operations 000oz 150 145 3.1
Third-party 000oz 50 62 (19.2)
1. PGM production adjusted for off-take terms from third-parties.
2. PGM production post the precious metals refinery, adjusted for any increase (added), or decrease (deducted) in smelting and refining lock up.
3. PGM production post the smelter ahead of the base metal refinery, unadjusted for further processing recoveries.
4. PGM production post the concentrator ahead of the smelter, unadjusted for further processing recoveries.
HEALTH AND SAFETY
Health and safety are a top priority for Implats' management, teams and individuals. An increased focus
on visible felt leadership and a safe work culture remain key to shifting mindsets, improving leadership
and promoting stakeholder collaboration to achieve our zero harm objectives. Regrettably, during the
quarter ended 30 September 2024, the Group reported three fatalities at its managed operations resulting
from a fall-of-ground incident at Impala Rustenburg and a drowning incident at Impala Bafokeng. The
board and management team have extended their sincere sympathies and continue to offer support to
the families of Mr Joao Jose Goma, Mr Orlando Auze Gola and Mr Fenias Boaventura Gomes.
The Group's lost-time injury frequency rate improved by 3% to 3.31 per million man-hours worked from
3.40 reported in the previous comparable quarter, while the all-injury frequency rate improved by 20% to
6.83 (Q1 FY2024: 8.55).
PRODUCTION
Tonnes milled at managed operations declined by 6% to 7.09 million tonnes during the quarter, reflecting
the revised operating parameters at both Impala Canada and Styldrift and the impact of safety stoppages
at Impala Rustenburg and BRPM. 6E production from managed operations declined by 6% to 751 000
ounces, with the benefit of the 2% improvement in 6E milled grade to 3.83 g/t offset by the temporary
increase in concentrate inventory at Zimplats due to furnace commissioning.
6E concentrate production from the Group's joint ventures at Mimosa and Two Rivers improved by 3% to
145 000 ounces.
In line with market guidance, third-party 6E concentrate deliveries to Impala Refining Service (IRS)
declined by 19% to 50 000 ounces, reflecting changes in the contractual mix.
Consequently, Group 6E production volumes declined by 5% to 947 000 ounces.
Refined 6E production, which includes saleable ounces from Impala Canada and Impala Bafokeng,
declined by 9% to 807 000 ounces. Scheduled annual processing maintenance was completed in the
period, with refined volumes further impacted by water supply interruptions due to extended Rand Water
maintenance activities. Excess inventory increased by 105 000 6E ounces from the end of FY2024 to
circa 495 000 6E ounces at period end.
6E sales volumes declined by 4% to 792 000 ounces, including saleable production from Impala Canada
and Impala Bafokeng.
Impala Rustenburg
Production at Impala Rustenburg continued to demonstrate a sustained improvement due to increased
operational flexibility, despite the lengthy safety stoppage following the fatal fall-of-ground accident in the
period. Tonnes milled decreased by 6% to 2.84 million tonnes, while grade benefitted from improving ore
mix and mining discipline, increasing by 5% to 4.17g/t. 6E stock-adjusted production was 2% lower at
361 000 ounces.
Refined 6E production was 8% lower at 282 000 ounces, with inventory accumulated during scheduled
annual maintenance at the smelter and water outages at the refining complex.
Impala Bafokeng
Impala Bafokeng benefitted from improved mining flexibility and delivered in line with its operating plan,
despite a reduced labour complement and a lengthy Section 54 safety stoppage following the fatal
accident at BRPM. Milled volumes declined by 9% to 1.08 million tonnes, with the planned reduction in
mined throughput at Styldrift and the impact of safety stoppages at BRPM exacerbated by a mill
breakdown. Production benefitted from the 2% increase in milled grade to 4.33g/t and higher plant
recoveries, which moderated the impact of lower throughput. Concentrate production declined by 4% to
130 000 6E ounces. Saleable ounces of 110 000 6E reflect the payable metal content in terms of the
offtake agreement.
Zimplats
Zimplats delivered a strong performance, with notable progress achieved on a suite of capital projects
under execution at the operation. Tonnes milled increased by 1% to 1.98 million tonnes, while grade
increased by 2% to 3.38g/t as volumes from higher-grade stoping areas at Mupani Mine increased,
resulting in improved concentrate volumes. 6E production in matte declined by 9% to 150 000 ounces.
Commissioning of the expanded smelter commenced in the period, resulting in a temporary build-up of
concentrate inventories, with first matte tapped in October 2024. The 35MW solar plant project was
commissioned in August 2024 and is ramping up power generation to design capacity.
Marula
Several operational and leadership changes were implemented to reverse the deterioration in Marula's
performance. A labour restructuring was completed and a turnaround programme initiated to restore
mining flexibility and operational efficiency. Milled volumes declined by 13% to 426 000 tonnes, while
milled head grade regressed by 3% to 4.18g/t. Production was adversely impacted by commissioning an
underground collision avoidance system and still-constrained mining flexibility. Improved processing
recoveries mitigated the impact on 6E in concentrate production, which declined by 8% to 53 000 ounces.
Impala Canada
Production at Impala Canada reflected the revised operating strategy, which is aimed at maximising
volume and cost performance over the remaining life-of-mine. The operation continued to deliver to plan
and achieve key performance measures. Tonnes milled declined by 15% to 767 000 tonnes, with an 8%
decrease in grade to 2.86g/t, resulting in a 22% reduction in 6E volumes in concentrate to 58 000 ounces.
Mimosa
Mimosa delivered a strong operating performance. Tonnes milled increased by 7% to 750 000 tonnes
relative to the prior comparable period when throughput was impeded by power interruptions and a
scheduled plant shutdown. Stable grade of 3.61g/t, improved plant stability and higher resultant process
recoveries resulted in an 8% increase in 6E concentrate production to 66 000 ounces.
Two Rivers
The operating performance at Two Rivers stabilised in the period. Milled volumes improved by 1% to
944 000 tonnes, while higher processing recoveries helped offset marginally lower milled grade of 3.14g/t,
yielding 6E concentrate production volumes of 79 000 ounces. A labour restructuring was completed
during the period and, post commissioning of the concentrator, the Merensky project was successfully
placed on care and maintenance, as planned.
IRS
Mine-to-market 6E receipts from Zimplats and Marula declined by 7% to 207 000 ounces, reflecting
operational challenges at Marula and the accumulation of concentrate at Zimplats. Receipts from
Two Rivers and Mimosa rose 3% to 150 000 ounces. Third-party 6E receipts declined by 19% to 50 000
ounces, reflecting the underlying operating performance at customer operations and changes in the mix
of contracts in the period.
Refined 6E production reflected the impact of annual processing maintenance and interruptions to water
supply due to maintenance at Rand Water, the bulk water supplier. Consequently, refined production
declined by 8% to 361 000 ounces.
The first quarter production report for the period 1 July to 30 September 2024 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
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
M : +27 (0) 82 498 3608
30 October 2024
Johannesburg
Sponsor to Implats
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 30-10-2024 08:00:00
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