Implats feels the pain

Low platinum group metal (PGM) prices had a marked negative effect on Impala Platinum’s results for the 2024 financial year.

Implats released its results for the year through 30 June 2024, which revealed weak results for the mining giant.

The company saw its revenue plummet by almost 19% to R86.40 billion, down from R106.59 billion the year prior.

Despite a decrease in the miner’s cost of sales, Implant’s profit for the year swung to a significant loss – going from a profit of R6.18 billion in 2023 to a loss of R17.15 billion.

Implats’ earnings also swung to losses, with the miner recording a loss per share of 1,929 cents per share, compared to earnings of 577 cents per share the year prior.

Despite these weak financial results, Implats said it achieved a strong operational performance.

Tonnes milled at the Group’s managed operations increased by 17% to 27.89 million tonnes and were up 1% on a like-for-like basis, excluding Impala Bafokeng.

Higher milled volumes at Zimplats and stable tonnage at Impala Rustenburg offset the impact of rebased production volumes at Impala Canada and safety-impacted throughput at Marula. 

6E milled grade rose 4% to 3.73g/t (FY2023: 3.60g/t) on the consolidation of higher-grade Impala Bafokeng volumes and improvements at Impala Rustenburg. 

6E production at managed operations increased by 21% to 2.92 million ounces (FY2023: 2.42 million ounces), with like-for-like gains of 2%. 

The miner said it delivered guided production volumes and commendable cost controls despite navigating several serious challenges amid a constrained operating environment.

Implats said this environment was characterised by macroeconomic headwinds and persistently low prices for PGMs. 

However, key strategic projects at the Group’s mining and processing operations were successfully advanced, and the construction of its flagship renewable energy project – the largest solar power plant in Zimbabwe – was completed. 

Implats also concluded the acquisition of the remaining shareholding in Royal Bafokeng Platinum Limited, now Impala Bafokeng, in the period. 

However, it said significantly weaker US dollar sales revenue offset the benefit of strong operational delivery in the 2024 financial year, as average palladium and rhodium pricing dropped sharply.

This negated higher sales volumes and compressed operating margins and free cash flow. 

Implats’ net cash flow from operating activities dropped from R23.57 billion in 2023 to R6.94 billion in 2024.

Implats said its financial metrics were further impacted by impairments resulting from lower PGM pricing, several once-off cash and non-cash charges arising from the conclusion of the RBPlat and B-BBEE transactions, and the labour restructuring initiated during the period. 

In its results, Implats recorded restructuring costs of R488 million. Its total impairments grew from R15.12 billion in 2023 to R21.85 billion in 2024.

Implats’ board did not declare a dividend for the 2024 financial year.