Implats Reports Decline in PGM Production in Q1 2024, but Maintains 2025 Guidance

Impala Platinum

Impala Platinum (Implats), a leading South African producer of platinum group metals (PGMs), reported a decline in its output during the first quarter of its financial year, primarily due to furnace commissioning issues. However, the company has maintained its 2025 production guidance and remains optimistic about the future outlook for PGMs.

PGM Output Declines in Q1

In the July-September quarter of 2024, Implats' output of refined and saleable 6E PGMs—which includes platinum, palladium, rhodium, iridium, ruthenium, and osmium—fell by nearly 9% year-on-year, totaling 807,000 ounces. Similarly, sales volumes decreased by 4.4% to 792,000 ounces compared to the same period last year. The drop in production was attributed to several factors, including the commissioning of furnaces, operational revisions, and safety stoppages.

Implats' tonnes milled at managed operations were also down 6%, totaling 7 million tonnes during the quarter. This decline was primarily due to adjustments in the operating parameters at its Implala Canada and Styldrift mine in South Africa. Moreover, supply chain disruptions such as water supply interruptions further hampered production.

Outlook for 2025

Despite the production dip, Implats has reaffirmed its 2025 financial year guidance, which includes expectations for stable volumes, capital expenditure, and costs. CEO Nico Muller emphasized the healthy demand for PGMs, noting that continued metal purchases and discussions with key customers suggest that the PGM market could be shifting out of the current low-price cycle.

However, Muller cautioned that macroeconomic and geopolitical uncertainties continue to persist, affecting global market conditions. To mitigate these risks, Implats is taking a prudent approach in its capital allocation and operational planning to ensure the company's long-term sustainability and value creation.

Conclusion

While Implats has faced some production challenges in Q1 2024, the company is poised to weather current market uncertainties. By maintaining its 2025 guidance and focusing on robust global demand for PGMs, the company is positioning itself for sustainable growth in the coming years.