Johannesburg - ImpalaPlatinum (Implats), the world’s second biggest platinum producer, on Tuesday posted a 17 percent boost to output in the March quarter, helped by strong numbers from its Zimbabwean arm.
Higher production at Zimplats’ Marula, Two Rivers and Mimosa Mines was one of the main contributors to the production of 353 000 platinum ounces as opposed to 301 000 ounces in the prior period.
The stepping up of Impala’s refining services coupled with the release of stockpiles ahead of the smelter had also helped to achieve improvements in production. The better production results were realised against a backdrop of pain for commodity producers amid the prevailing low platinum price environment.
Implats estimated full-year production guidance of 1.42 million refined platinum ounces and unit cost of R22 500 a refined platinum ounce compared with 1.27 million platinum ounces last year.
The results come as Impala turns a corner following the death of four miners at the Rustenburg Shaft 14 in a devastating fire in January.
Read also: Implats’ Q3 output boosted by Zimbabwe
Tons milled at Impala Rustenburg declined to 2.01 million tons in the quarter from 2.51 million tons in the March quarter last year, mainly as a result of the fire and safety-related stoppages.
Operations at Shaft 14 were suspended after the fire until February 15 when crews re-entered the upper conventional section of the mine.
Implats said development activities in the upper sections had recommenced in February, while the lower trackless and conventional mining sections remained closed and mining crews had been re-deployed.
Asset damage
“The investigations into the cause of the fire are ongoing and the insured asset damage [estimated to be R375 million] and business interruption [still to be determined] will be covered by the group’s insurance programme,” the company said.
Despite the severe impact on production volumes, grade and ore mix, refined platinum production for the quarter was maintained at 142 000 platinum ounces compared with 143 000 platinum ounces in the March quarter last year.
Meanwhile, Zimplats reported higher throughput as measures to recover loses as the result of a safety closure at the Bihar mine in August 2014 paid off. Mill throughput at Zimplats for the nine months ended March rose by 27 percent to 4.77 million tons compared with 3.74 million tons in the previous corresponding period.
Implats said it continued to support the Zimbabwean government’s efforts to grow the economy. It said Zimplats’ refurbishment of the Selous Base Metals Refinery continued to increase local beneficiation, however, increases in taxation and levies were a concern.
Impala’s shares fell 2.26 percent on Tuesday to close at R54.59 on the JSE.
BUSINESS REPORT