Impala Platinum has released a production report for the three months ended 31 March 2022, which represents the third quarter of the financial year. Mining companies have been disappointing the market in the past couple of weeks, with production numbers taking knocks from supply chain issues and Covid-related disruptions.
Gross group concentrate production fell 2% in this quarter and tonnes milled fell by 4%, so Implats wasn’t immune to issues. Refined 6E production fell by 8%, impacted by lower concentrate volumes, while 6E sales volumes declined by 3%.
There was a general reduction in stock levels in the comparable period (especially in iridium and ruthenium). This period also saw some destocking of inventory (evidenced by a lower impact on sales than on production volumes).
With a nine-month lens, Implats has seen a 6% decrease in gross refined 6E concentrate production. This is attributable to more maintenance needing to be done in this period than in the prior period. Sales volumes of 6E fell by 4% with the same destocking explanations applying.
Impala Rustenburg had a particularly rough quarter, with production down 10%. Numerous issues including safety stoppages, cable theft, electricity curtailment (I assume this means load shedding) and community disruptions were at play. Over nine months, refined 6E production fell 16% with the additional impact of maintenance.
Zimplats achieved marginal improvements in this quarter. 6E matte production in the nine-month period was 2% higher than the comparable period.
In smaller operations, Marula achieved a 5% increase in 6E concentrate production this quarter and is up 9% for the nine-month period. Mimosa saw a 6% decrease in production in this quarter and for the nine-month period. Despite numerous issues, Two Rivers increased concentrate production by 7% in the quarter and flat volumes for the nine-month period.
Looking abroad, Impala Canada experienced a 4% drop in concentrate production in this quarter. The nine-month result is a 3% drop in production.
The IRS operation achieved 5% growth in refined 6E production in this quarter, with higher deliveries from third parties helping to offset delays from Mimosa and Zimplats. Over nine months, mine-to-market receipts dropped by 3% and third-party and toll receipts were slightly higher. The announcement doesn’t indicate a percentage change in production over the longer period.
And in case you’ve been living under one of the rocks at the mines, Impala Platinum is in the process of acquiring Royal Bafokeng Platinum via an offer to shareholders. Impala holds around 37.79% in Royal Bafokeng thanks to shareholders who already accepted the offer. The offer is still open.
Importantly, guidance for the full year that was provided at the time of the interim results has been reiterated.
