Implats to Record $1 Billion Write-Down Due to Declining Metal Prices

Impala Platinum (Implats), a South African mining firm specializing in platinum group metals (PGMs), announced a substantial write-down of $1.08 billion in its metal assets. This write-down, equivalent to 19.8 billion rand, is attributed to declining metal prices, particularly rhodium and palladium, during its financial year ending June 30.

Rhodium prices fell 61% year-over-year to $4,441 per troy ounce, while palladium dropped 39% to $1,090 per troy ounce. Despite a 21% increase in 6E PGM production, largely due to the addition of Impala Bakofeng, Implats' revenues were hit hard by the price slump. Although sales volumes rose by 16%, the lower prices led to a 34% drop in sales revenue per 6E ounce.

The company also faced challenges with power generation disruptions in Zimbabwe, further impacting its operations. In response to the persistent low prices, Implats announced potential job cuts of up to 3,900 positions, representing 9% of its workforce.