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Key features for the 12 months

Implats is a leading producer of platinum group metals (PGMs) structured around seven mining operations and a refining business, Impala Refining Services.

Our mining operations span the Bushveld Complex in South Africa, the Great Dyke in Zimbabwe and the Canadian Shield. Contributing approximately 20% to global primary production annually, Implats holds attributable PGM resources of 316.5 million ounces.

Safety and sustainability

  • Safety performance dominated by the 11 Shaft tragedy, with 19 fatalities at managed operations
  • LTIFR* improved by 1% to 3.89 from 3.92 in FY2023
  • TIFR* improved by 10% to 8.29 from 9.25 in FY2023
  • No major, significant or limited environmental incidents
  • Third consecutive inclusion in the S&P Global Sustainability Yearbook (2024).

Financial

  • RBPlat acquisition completed and landmark
    B-BBEE transaction concluded
  • Reported financial metrics impacted by weak pricing and several once-off expenses
  • Gross profit of R5.5bn and gross profit margin of 6%
  • EBITDA of R12.4bn and EBITDA margin of 14%
  • Basic loss of R17.3 billion or 1 929cps
  • Headline earnings of R2.4bn or 269cps
  • Free cash outflow of R4.0bn
  • R6.9bn in closing adjusted net cash.

Operational

  • Achieved volumes benefited from maiden annual inclusion of Impala Bafokeng
  • 21% increase in managed 6E production to 2.92Moz
  • 1% higher JV 6E production of 547koz
  • 34% decrease in third-party 6E receipts to 191koz
  • Refined and saleable 6E production increased 14% to 3.38Moz
  • 6E sales volumes rose 16% to 3.44Moz
  • Group 6E unit costs increased 5% to R20 922/oz (stock-adjusted)
  • Consolidated Group capital expenditure of R14.0bn
  • Excess 6E inventory of circa 390koz at year-end.

Market

  • Dollar revenue per 6E ounce sold down 34% to US$1 350
  • Rand revenue per 6E ounce sold declined 30% to R25 257
  • Precious metal pricing heavily impacted by industrial and automotive destocking and poor investor sentiment amid an uncertain macro-economic and geopolitical landscape
  • Platinum, palladium and rhodium markets to remain in deficit in 2024.

* Per million man-hours worked.

Operating statistics

      FY2024     FY2023   Variance %  
Gross refined production**                  
6E (000oz)   3 377.8     2 958.7   14.2  
Platinum (000oz)   1 589.8     1 359.5   16.9  
Palladium (000oz)   1 157.5     1 050.5   10.2  
Rhodium (000oz)   189.6     169.3   12.0  
Nickel (tonnes)   16 155     14 970   7.9  
IRS metal returned (toll refined)**                  
6E (000oz)   0.7     1.6   (56.3)  
Platinum (000oz)       0.1   (100.0)  
Palladium (000oz)   0.7     1.5   (53.3)  
Rhodium (000oz)          
Nickel (tonnes)   3 634     3 588   1.3  
Sales volumes                  
6E (000oz)   3 438.6     2 973.0   15.7  
Platinum (000oz)   1 579.4     1 408.1   12.2  
Palladium (000oz)   1 192.9     1 047.4   13.9  
Rhodium (000oz)   193.3     167.8   15.2  
Nickel (tonnes)   12 617     10 902   15.7  
Prices achieved                  
Platinum (US$/oz)   934     962   (2.9)  
Palladium (US$/oz)   1 083     1 763   (38.6)  
Rhodium (US$/oz)   4 360     11 696   (62.7)  
Nickel (US$/t)   18 241     23 864   (23.6)  
Consolidated statistics                  
Average rate achieved (R/US$)   18.71     17.75   5.4  
Closing rate for the period (R/US$)   18.19     18.85   (3.5)  
Revenue per 6E ounce sold (US$/oz)   1 350     2 035   (33.7)  
Revenue per 6E ounce sold (R/oz)   25 257     36 118   (30.1)  
Tonnes milled ex-mine* (000t)   27 887     23 883   16.8  
Group 6E production (000oz)   3 653.7     3 245.6   12.6  
Group unit cost per 6E ounce stock adjusted (R/oz)   20 922     19 834   (5.5)  
Group unit cost per 6E ounce stock adjusted (US$/oz)   1 118     1 116   (0.2)  
Capital expenditure* (Rm)   14 003     11 510   (21.7)  
Stay-in-business capital (Rm)   8 076     7 333   (10.1)  
Replacement capital (Rm)   1 843     2 272   18.9  
Expansion capital (Rm)   4 084     1 905   (114.4)  

*     Managed operations.

**   Includes saleable production from Impala Bafokeng and Impala Canada.

      FY2024     FY2023   Variance %  
Financial performance                  
Revenue (Rm)   86 398     106 594   (18.9)  
Gross profit (Rm)   5 467     22 338   (75.5)  
EBITDA** (Rm)   12 367     36 002   (65.6)  
(Loss)/profit for the year (Rm)   (17 151)     6 178   (377.6)  
Basic (loss)/earnings (Rm)   (17 313)     4 905   (453.0)  
Headline earnings (Rm)   2 411     18 801   (87.2)  
Free cash flow** (Rm)   (3 954)     14 171   (127.9)  
Adjusted net cash (excluding leases)** (Rm)   6 923     24 974   (72.3)  
Basic (loss)/earnings per share (cps)   (1 929)     577   (434.3)  
Headline earnings per share (cps)   269     2 211   (87.8)  
Dividends per share (cps)       585   (100.0)  

**   Non-IFRS Accounting Standards metric.

Additional statistical information is available on the company’s website.

      FY2024     FY2023   Variance %  
ESG indicators                  
Fatalities (count)   19     5    
TIFR (pmmhw)**   8.31     9.25   10.2  
LTIFR (pmmhw)**   3.89     3.92   0.8  
Labour including capital* (number)   66 249     69 936   5.3  
Level 4 or 5 environmental incidents (count)   0     0    
Level 3 environmental incidents (count)   0     7   100.0  
Water consumption (kl/t milled)   1.12     2.25   50.2  
Water recycled/reused %   56     52   7.7  
Energy consumption (GJ/t milled)   0.783     0.835   6.2  
Scope 1 and 2 carbon emissions (t CO2/t milled)   0.154     0.171   9.9  
Land rehabilitated Hectares   38.00     32.00   18.8  
Spend with mine and indigenous community suppliers Rbn   5.8     3.4   70.6  
Social economic spend Rm   375.0     343.0   9.3  

**  Managed operations.

Spend with mine and indigenous community suppliers = Tier 1 SA + Spend with LEDs in Zimbabwe + spend with indigenous communities in Canada

Certain statements contained in this disclosure, other than the statements of historical fact, contain forward looking statements regarding Implats’ operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum industry, expectations regarding metal prices, production, cash costs and other operating results, growth prospects and the outlook of Implats’ operations, including the completion and commencement of commercial operations of certain of Implats’ exploration and production projects, its liquidity and capital resources and expenditure and the outcome and consequences of any pending litigation, regulatory approvals and/or legislative frameworks currently in the process of amendment, or any enforcement proceedings. Although Implats believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results may differ materially from those set out in the forward looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metal prices, levels of global demand and exchange rates and business and operational risk management. For a discussion on such factors, refer to the risk management section of the Company’s integrated annual report. Implats is not obliged to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the dates of the integrated annual report or to reflect the occurrence of unanticipated events.

Disclaimer: This entire disclosure and all subsequent written or oral forward looking statements attributable to Implats or any person acting on its behalf are qualified by caution. Recipients hereof are advised this disclosure is prepared for general information purposes and not intended to constitute a recommendation to buy or offer to sell shares or securities in Implats or any other entity. Sections of this disclosure are not defined and assured under the IFRS accounting standards but included to assist in demonstrating Implats’ underlying financial performance. Implats recommends that you address any doubts in this regard with an authorised independent financial adviser, stockbroker, tax adviser, accountant or suitably qualified professional.

29 August 2024
Johannesburg

Sponsor to Implats
Nedbank Corporate and Investment Banking, a division of Nedbank Limited