Implats’ output up 9.4%

Reuters | Mon, 18 May 2009 10:51

[miningmx.com] -- Impala Platinum, the world's second-largest platinum producer, on Monday reported a 9.4% increase in platinum production to 385,000 ounces for the three months to end March 2009.

A 24% climb in palladium production to 224,000 ounces was primarily due to a lock-up in the previous comparable period, while nickel throughput was driven by higher customer receipts.

At the Impala operation, platinum production declined by 12% to 153,000 ounces from that achieved in the same quarter last year due to the combination of a build-up in pipeline stocks and a decrease in Merensky tonnage milled.

The latter resulted in a higher ratio of lower-grade UG2 throughput.

The temporary lock-up, which occurred in the smelter, was caused by the commissioning of the gas cleaning portion of the smelter expansion and stock adjusted production fell by 3%.

Tonnage at Marula rose by 18% period on period in line with the ramp-up in production.

The deterioration in grade was a result of the scaling down of production at the higher-grade Driekop shaft coupled with higher on-reef development at the Clapham conventional project.

Platinum in matte production at Zimplats declined by 11% to 25,000 ounces compared to the equivalent period a year ago.

This was due to a concentrate pipeline build-up which will be processed into matte in the next quarter.

The completion of the plant de-bottlenecking at Mimosa resulted in platinum production in concentrate improving by 41% from the previous comparable period to 24,000 ounces.

Impala Refining Services' production rose by 30% to 232,000 ounces quarter on quarter due to increased receipts and pipeline movements.

But Implats warned that the closure of Aquarius' Everest Mine would impact on the subsequent quarter's output.

Metal prices in the quarter under review dropped steeply from the previous period a year ago when they were dominated by supply concerns, driven in part by the Eskom power crisis.

The platinum price received was 43.7% lower at US$955 an ounce while palladium prices were 55% down at US$189 an ounce.

"Prices in this quarter were the victim of the severe economic downturn which translated into weaker demand," Implats said.

Their deterioration was partly negated in rand terms by the 33% weakening in the rand/dollar exchange rate.

Cash net of debt at the end of the quarter was 1.5 billion rand, with the major cash outflow during this period being 724 million rand for the interim dividend payment.