IMPALA Platinum (Implats) forecast a reduction in platinum group metal output for its 2025 financial year with output falling 3% to 3.55 million ounces owing to operational disruption, BusinessLive reported on Tuesday.
Commenting in a production report for the fourth quarter and full year ended June, the miner said it faced multiple setbacks, including complications from commissioning a new smelter at its Zimplats facility, which locked up metal inventory during startup. Restructuring activities at Marula and equipment limitations at its flagship Impala Rustenburg added to production woes.
Managed operations bore the brunt of difficulties, declining 4% year-on-year. Marula experienced the steepest impact from restricted mining access, while Impala Canada saw production tumble 15% due to lower underground ore quality and revised operational procedures.
Zimplats also recorded reduced volumes stemming from fleet limitations and smelter expansion delays. Only Impala Bafokeng maintained steady output through improved operational efficiency, though safety-related work stoppages partially negated these gains.
Financial metrics remained relatively resilient despite production headwinds. Unit costs per ounce are projected to increase 7% to approximately R22,500, reflecting lower volumes and reclassified capital expenditure at the Canadian operation, said BusinessLive.
The company generated earnings before interest, tax, depreciation and amortisation of roughly R9.9bn while capital spending decreased to R7bn as major projects approached completion. Implats delivered positive free cash flow of R2.4bn and concluded the period with net cash of R8.1bn, up from R6.9bn previously.
Tonnage processed declined across most sites, including a 19% drop at Impala Canada and over 9% at Marula. However, metal grades remained stable or improved at certain operations.
The company maintains 420,000 oz in excess inventory, providing sales flexibility.
Implats is expected to report its full year numbers on August 29.
