Implats anticipates a 40% to 49% drop in headline earnings for the six months ending December 31, despite operational successes in addressing labour restructuring and production challenges.

Headline earnings are anticipated to be between R1.65 billion and R1.95bn, compared with R3.26bn previously, as stated by the group in a trading statement on Tuesday. The decline was primarily attributed to lower rand revenue resulting from an 8% retracement in rand revenue per 6E ounce sold.

“Lower dollar pricing was compounded by the strengthening rand exchange rate, which more than offset the benefit of improved refined and saleable output, higher sales volumes, and strong cost controls achieved in the period,” the directors said.

Unit costs benefited from strategic actions and easing input inflation. Capital expenditure fell after the commissioning of various projects during the period.

Implats was on track to meet its previously provided guidance for refined production, unit costs, and capital expenditure in the full 2025 financial year, the directors said. The interim results are expected to be released on February 27.

Gross 6E production decreased by 4% to 1.82 million 6E ounces. Production from managed operations fell by 5% to 1.47 million 6E ounces:

Impala Rustenburg increased production by 2% to 687 000 stock-adjusted 6E ounces, with sustained operational momentum.

Impala Bafokeng delivered stable production of 254 000 6E ounces in concentrate, benefiting from improved efficiencies at Styldrift.

Constrained mining flexibility and restructuring at Marula impacted its performance, with 6E concentrate production falling 10% to 101 000 ounces.

6E production in matte at Zimplats fell by 15% to 280 000 ounces, primarily due to the accumulation of concentrates during the commissioning of the expanded smelter complex.

At Impala Canada, 6E concentrate volumes were 20% weaker at 116 000 ounces, reflecting revised operating parameters and lower underground grade.

Production from joint ventures increased by 2% to 282 000 6E ounces. Two Rivers recorded a 1% increase in 6E concentrate production to 153 000 ounces, with improved operational delivery at the UG2 operations. At Mimosa, 6E concentrate volumes rose by 3% to 129 000 ounces, despite challenges presented by intermittent regional power disruptions.

Refined 6E production, which includes saleable ounces from both Impala Bafokeng and Impala Canada, increased by 2% to 1.79 million 6E ounces, benefiting from increased available processing capacity and fewer power disruptions. Implats ended the first half with excess inventory of 375 000 6E ounces.

BUSINESS REPORT