By Implats
PRODUCTION UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
Implats will release results for the six months ended 31 December 2024 on or about 27 February 2025.
PRODUCTION UPDATE
Implats delivered a commendable operating performance in H1 FY2025 following Group-wide labour restructuring and changes to operating parameters at several of our assets. Unit costs benefitted from strategic actions and easing input inflation. Capital expenditure reduced as various projects were commissioned in the period. The Group is on track to deliver previously provided refined production, unit cost and capital expenditure guidance in FY2025.
Gross Group 6E production decreased by 4% to 1.82 million 6E ounces from 1.90 million 6E ounces for the half year ended 31 December 2023 (the “comparative period”).
Production from managed operations declined by 5% to 1.47 million 6E ounces:
- Impala Rustenburg increased production by 2% to 687 000 stock-adjusted 6E ounces, with sustained operating momentum
- Impala Bafokeng delivered stable production of 254 000 6E ounces in concentrate, benefitting from improved efficiencies at Styldrift
- Performance at Marula remained challenged by constrained mining flexibility and organisational restructuring implemented in the period. 6E concentrate production declined by 10% to 101 000 ounces
- 6E production in matte at Zimplats decreased by 15% to 280 000 ounces, due primarily to the accumulation of concentrates during the commissioning of the expanded smelter complex
- At Impala Canada, 6E concentrate volumes were 20% weaker at 116 000 ounces, reflecting revised operating parameters and lower underground grade.
Production from joint ventures (“JVs”) increased by 2% to 282 000 6E ounces:
- Two Rivers recorded a 1% increase in 6E in concentrate production to 153 000 ounces, with improved operational delivery at the UG2 operations
- At Mimosa, 6E in concentrate volumes rose by 3% to 129 000 ounces, despite challenges presented by intermittent regional power disruptions.
Concentrate receipts from third parties were 9% lower at 103 000 6E ounces, reflecting underlying contractual agreements.
Refined 6E production, which includes saleable ounces from Impala Bafokeng and Impala Canada, increased by 2% to 1.79 million 6E ounces, benefitting from increased available processing capacity and fewer power disruptions in the period. Implats ended H1 FY2025 with excess inventory of circa 375 000 6E ounces.
Sales volumes increased by 5% to 1.77 million 6E ounces, including saleable production from Impala Canada and Impala Bafokeng. The softer US dollar basket pricing was compounded by appreciation in the rand exchange rate and Group sales revenue decreased to circa R23 800 per 6E ounce sold
Group unit costs per 6E ounce are expected to increase by 3% to circa R20 900 on a stock-adjusted basis. Moderating input inflation and labour savings were bolstered by rand appreciation on the translated dollar cost base of Zimplats and Impala Canada.
Implats generated EBITDA of circa R6.5 billion and Group capital expenditure is expected to have decreased to circa R4.0 billion in the period due to lower levels of growth and replacement capital as projects neared completion.
TRADING STATEMENT
In terms of the Listings Requirements of the JSE Limited, issuers must publish a trading statement on SENS as soon as they become reasonably certain that the financial results for the period to be reported on will differ by at least 20% from those of the previous comparative period.
Headline earnings for the period decreased primarily due to lower rand revenue arising from an 8% retracement in achieved rand revenue per 6E ounce sold. Lower dollar pricing was compounded by the strengthening rand exchange rate, which more than offset the benefit of improved refined and saleable output, higher sales volumes and strong cost controls achieved in the period.
Implats’ headline earnings and headline earnings per share (“HEPS”) are expected to decrease by between 40% and 49% to be between R1.65 billion and R1.95 billion, and between 184 cents and 217 cents per share, respectively. Headline earnings and HEPS for the comparative period were R3.26 billion and 365 cents, respectively.
Basic earnings and basic earnings per share (“EPS”) are expected to increase by between 2% and 21% to be between R1.65 billion and R1.95 billion, and between 184 cents and 217 cents per share, respectively. Basic earnings and EPS in the comparative period were R1.61 billion and 180 cents, respectively, and were negatively impacted by impairments of property, plant and equipment at Impala Canada and the Two Rivers joint venture.
The production and financial information for the six months ended 31 December 2024, on which this production update and trading statement is based, has not been reviewed and reported on by the external auditors of Implats.
Source: Novus Group – Press Bulletin
