Implats’ Q1 FY2021 production increases 18% as Zim operations remain stable

Author Name
Respect Gwenzi
Analysis 10 months ago

Harare – South African mining group Impala Platinum Holdings Ltd (JSE:IMP) reported a 18% increase in tonnes milled during the first quarter ended 30 September 2020 (Q1 FY2021) to 6.13 million tonnes compared to 5.21 million tonnes achieved in the prior comparable period.

Implats has operations in Zimbabwe through an 87% stake in Zimplats and 50% stake in Mimosa which it co-owns with Sibanye-Stillwater.

In a trading statement for the period under review, the Group said the increase was primarily due to the maiden inclusion of Impala Canada, but production gains at Marula also aided this performance and helped offset slightly lower milled volumes from Impala Rustenburg and Zimplats.

The Group said the resolution of milling challenges experienced at joint ventures (JVs) resulted in higher volumes from both Two Rivers and Mimosa during the period.

As a result, 6E in concentrate production of 623 000 ounces at managed operations was 11% higher than in the prior comparable quarter.

“JV production from Mimosa and Two Rivers increased by 23% and helped offset the impact of lower third-party receipts in the period”, the Group said.

At Zimplats, mill throughput of 1.67 million tonnes declined marginally due to planned maintenance at the Ngezi concentrator during the quarter, while grade and recoveries were stable, resulting in a 2% decline in 6E concentrate produced of 148 000 ounces (Q1 FY2020: 151 000 ounces).

Milled production at Impala Rustenburg decreased by 2% to 2.96 million tonnes negatively impacted by the residual effect of Covid-19 on labour availability, declining reserves at the shortlife shafts (6 and 9 shafts) and increased Eskom power failures.

Tonnes milled at Marula increased by 8% to 525 000 tonnes (Q1 FY2020: 488 000 tonnes), benefitting from a quick ramp up following Covid-related interruptions and improved mining performance.

The Group’s gross refined 6E production increased by 58% to 870 000 ounces (Q1 FY2020: 551 000 ounces) partly benefiting from the inclusion of saleable production from Impala Canada.

Commenting on the performance, Implats’ Chief Executive Officer, Nico Muller said, “Implats has delivered a strong start to FY2021 with pleasing improvements in safety and a number of notable operational gains. This was achieved despite the continuing challenges presented by the Covid-19 pandemic and is testament to the operational resilience our team has worked so hard to develop and entrench. Production losses attributable to the pandemic in the quarter were minimal and our health, safety and operating protocols have proved effective in mitigating the impact of the virus on our operations, employees, host communities and customers. PGM pricing remains robust and we continue to experience strong demand for our primary products. We are well positioned to continue delivering exceptional value to all our stakeholders in the year ahead.”

Equity Axis News

Markets ● 3 days ago
Fair Value Adjustments Wipe-Out First Mutual HY-21 Profits

Half-year results for the property and insurance Group largely reflected improvements from prior year performance. GWP ↑ 71%Rental Income ↑ 53%Profit ↓ 121% The Group’s Gross Premium Written grew to ZWL 5.4 billion in the period, a 71% inflation-adjusted increase. Despite marginal investment property gains recorded in US$ terms, a ZWL 1.6 billion fair value loss was incurred after conversion of...

Markets ● 1 week ago
Mixed Fortunes In NMB's HY-21 & What Lies Ahead

ZSE-listed financial services firm NMB Bank performed well in the six-months ended 30 June 2021, as net-income grew 105% to settle at ZWL 716.2m from ZWL 348.8 million recorded in the previous comparative period. The remaining six-month period of the year however remains cloudy, with internal uncertainties stemming from the Bank's tech investments. Fee & Commission Income ↑ 128% FX Gains ↑ 74%...

Markets ● 1 week ago
Low Forex Supplies Threat To Proplastics Inventory Management

The ZSE’s piping specialist managed to double revenue from the previous half year period, overturn a loss and maintain a solid financial position. Revenue (infl.adj) ↑ 120% Profit ↑ 197% Despite the generally positive set of financials recorded in the period, the Group continues to face logistical constraints stemming from foreign currency shortages. In its most recent set of fina...

Stock Market ● 2 weeks ago
ZSE halts bloodbath as market heavies recover

The ZSE somersaulted almost erasing its prior session loss as demand recovered in Tuesday’s trades. The All Share Index notched by 0.67% to close at 6645.03 points. Gains were stimulated by market heavies after a huge jump of 1.4% which outweighed the 0.87% decline in penny stocks. The positive sentiment was spread across bourses as Padenga firmed by 20% on the VFEX after trading a total of 5...

Markets ● 2 weeks ago
All-Round Growth Recorded in Latest Cassava Trading Update

Cassava Smartech's performance in the quarter ended 31 August 2021 was well-rounded and reflected significant growth from the previous year’s comparative period. Group Revenue ↑ 70% Wallet Funding ↑ 54% Steward Bank Revenue ↑ 300% Group revenue rose by 70% in the period and was driven by higher transaction activity than 2020’s comparable period. Similarly, the Group reported a 63% revenue...