Impala Platinum (Implats), one of the world’s leading platinum producers, reported a 4% production decline for the first half of the 2025 financial year, primarily due to operational disruptions at its Zimbabwean subsidiary, Zimplats. These disruptions were caused by the commissioning of a new smelter, which led to a lockup of ounces during the ramp-up phase, company CEO Nico Muller said.
By Rudairo Mapuranga
Despite the production setback, Implats’ 6E sales volumes increased by 5% during the period, offsetting some of the impact of the production lockup.
“We’ve had a 4% decline in ounces produced due to the lockup at Zimplats, but our saleable ounces have increased by 5%,” Muller said. However, the overall basket price for platinum group metals (PGMs) dropped by 8% to 23,831 Rand per ounce, contributing to a notable dip in revenue.
Zimplats Solar Expansion and Phase Two Approval
Muller highlighted significant progress at Zimplats, including the completion of the first phase of a solar project, which will help the company manage its energy requirements more sustainably.
“We concluded the phase one solar installation at Zimplats, and the board has approved the second phase for an additional 45 megawatts,” said Muller. He also pointed out that an off-take agreement for renewable energy has been secured, covering 90% of electricity demand at Implats’ refineries, demonstrating the company’s commitment to reducing its carbon footprint.
Environmental and Safety Achievements
Implats has made remarkable strides in environmental sustainability and safety performance. Chief Operating Officer Patrick Morutlwa shared that the company achieved a water recycling rate of 58%, surpassing its target of 56%, and has celebrated over 10 years without any level four or five environmental incidents. “This is a testament to our robust environmental programs,” Morutlwa said.
On the safety front, Implats reported significant improvements in both the lost-time injury frequency rate (LTIFR) and the total injury frequency rate (TIFR), which improved by 29% and 22%, respectively. However, the company also acknowledged that despite these improvements, there were still five fatalities during the period. “It is our aspiration to continue focusing on the journey towards zero harm,” Muller said.
Strong Performance from Joint Ventures
While Zimplats faced challenges due to the smelter commissioning, Implats’ other operations performed strongly. Morutlwa pointed out that the Rustenburg operations achieved a six-year high in output, and joint ventures like Mimosa in Zimbabwe and Two Rivers in South Africa contributed significantly to overall production.
“We’ve seen good performance from our joint ventures, including Mimosa and Two Rivers, and a 5% improvement in ounces from Styldrift,” he added.
Financial Performance and Outlook
Implats Chief Financial Officer Meroonisha Kerber noted that despite the lower Rand basket price impacting revenue, the company’s balance sheet remains robust. Implats ended the period with net cash of R6.7 billion and gross cash (net of overdrafts) of R9.6 billion. Additionally, the company has revolving credit facilities of just over R8 billion, which remain undrawn, providing liquidity of nearly R18 billion.
Looking ahead, Muller expressed confidence in the company’s ability to meet its market guidance for the year.
“We are in a strong position and can be assured that we will meet the guidance given at the beginning of the financial year. We are focused on processing the locked-up ounces at Zimplats and continuing with disciplined capital investment,” he said.
