Implats full-year platinum output slips 4%

Impala Platinum, one of the world's leading PGM miners, recently reported a decline in headline earnings for the year to June 30th. The company's CEO, Nico Muller, sat down for an exclusive interview with CNBC Africa to discuss the challenges faced by the company and the opportunities on the horizon. Muller highlighted the impact of load curtailment on the company's operations, leading to a reduction in full-year dividend and platinum output. The CEO also shed light on the acquisition of RB Plaats and the company's strategies for integration and growth. One of the key themes that emerged from the interview was the significant impact of load curtailment on Impala Platinum's operations. Muller explained that the company had to switch off furnaces due to load shedding, resulting in a decrease in refined metal production. This, in turn, led to a decline in sales volume and excess inventory buildup. The fatigue of the infrastructure also necessitated major rebuilds of furnaces, increasing costs and affecting production capacity. In response to the challenges posed by load curtailment and infrastructure fatigue, Muller outlined the company's long-term planning adjustments. Impala Platinum plans to reduce the period between major rebuilds and repairs, albeit at an increased cost. The CEO acknowledged the impact on production outlook for the next period, with the company expecting to lock up additional ounces due to infrastructure constraints until 2026. Discussing the integration of RB Plaats, Muller expressed optimism about the transaction and outlined the company's priorities moving forward. Impala Platinum aims to increase throughput and recovery at the concentrator complexes and ramp up underground production at the Stale Drift project. The CEO highlighted the company's global expertise in concentrating and mechanized mining as key strengths in driving turnaround performance at RB Plaats. On the employment front, Muller emphasized the company's commitment to long-term sustainability and job security. Impala Platinum undertook not to retrench any employees as a result of the acquisition, prioritizing skills development and stability in the mining industry. The CEO acknowledged the challenges in skills availability in South Africa, North America, and Zimbabwe, underscoring the company's focus on contributing to skills development across various functions. Looking ahead, Muller shared his outlook on PGM prices in the next period, anticipating improved price support for platinum, palladium, and rhodium. He cited the potential deficit in platinum and the market tightening for palladium as factors that could drive prices upwards. Muller expressed confidence in the market fundamentals and expected a positive trajectory for PGM prices in the coming months. In conclusion, Impala Platinum faces challenges in the current operating environment but is strategizing for growth and sustainability. The company's focus on operational efficiency, integration of acquisitions, and commitment to employee welfare positions it well in a volatile market landscape.