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

Author Name
Respect Gwenzi
Author
Analysis 2 weeks 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


Stock Market ● 6 days ago
RioZim withdraws cautionary announcement, agrees payment structure with RBZ

Delays in payments for gold deliveries strained the Company’s working capital Agreement reached with RBZ and Fidelity will help revitalize operations RioZim has an extensive portfolio of resources in gold, base metals, diamonds, coal and chrome HARARE – ZSE listed, gold producer RioZim Limited has withdrawn the cautionary announcements dated 15 June 2020 and 8 July 2020 regarding the impass...


Stock Market ● 1 week ago
ZPI delists from local bourse on ZHL Acquisition

Harare – Real estate holding company, Zimbabwe Property Investments Limited (ZPI) has voluntarily delisted from the Zimbabwe Stock Exchange (ZSE) with effect from the 10th of November 2020. This comes after an offer by ZPI’s parent company Zimre Holdings Limited (ZHL) to minority shareholders to acquire their shares in exchange for newly issued shares in ZHL which led to the parent holding 97,6%...

Stock Market ● 1 week ago
Improved foreign currency supply positively impacts on AfDis operations

Quarterly volumes up 28% Revenue up 15% Operations smoothened by improved accessibly to forex facilitated by the Forex Auction Harare – Liquor manufacturer and distributor African Distillers Limited has posted improved volumes in spirits and ready-to-drink (RTD) operations, as well as a jump in revenue for the third quarter, ended 30 September 2020 on the back of improved foreign currency s...

Stock Market ● 1 week ago
Masimba Holdings’ construction volume increases in third quarter

A number of construction works were completed during the period PAT up 15.7% ahead of prior year Full-year results expected to be ‘significantly’ ahead of the comparative period Harare – Masimba Holdings Limited, a Contracting and Industrial group in Zimbabwe, providing engineering and infrastructure solutions to the agricultural, commercial and corporate sector as well as housing, mini...

Analysis ● 1 week ago
PPC overcomes COVID-19 woes with strong sales recovery

Sales volumes rose by a fifth in October YoY Experienced a muted sales in April and May 2020 due to the COVID-19 Cement volumes for PPC Zimbabwe grew by m approximately 5% Harare – JSE-listed Pretoria Portland Cement (PPC) said sales volumes have bounced back in the three months July to September 2020, showing a recovery of 20% to 25% year-on-year. The Group has operations in Zimbabwe thou...