"Significantly weaker US dollar sales revenue offset the benefit of strong operational delivery in FY2024 – average palladium and rhodium pricing dropped sharply, negating higher sales volumes and compressing operating margins and free cash flow generation," explained Implats CEO, Nico Muller, acknowledging the challenging market conditions.
The platinum market has been under pressure due to a confluence of factors, including industrial and automotive destocking, coupled with a broader sense of uncertainty in the global economic and geopolitical landscape.
These factors have contributed to a sharp decline in PGM prices, impacting Implats' revenue and profitability.
The company's key mining and processing assets operated efficiently, supported by strategic investments and a focus on optimising labour deployment.
Production figures were bolstered by the maiden annual inclusion of Impala Bafokeng, contributing to a 13% increase in 6E output.
Implats also reported a 14% increase in refined 6E production, reflecting the efficiency of its processing operations.
Key strategic projects at our mining and processing operations were successfully advanced and the construction of our flagship renewable energy project — the largest solar power plant in Zimbabwe —was completed. Together with the water security and community investment initiatives progressed, we continued to demonstrate our commitment to environmental stewardship and long-term sustainability
The company says there are no changes to strategic objectives, and it will continue prioritising capital expenditure on projects that advance its beneficiation and renewable energy goals.
They are also focused on enhancing asset integrity, preserving operational flexibility, and ensuring statutory compliance.
Looking ahead, Implats expects to maintain its operational momentum in FY2025, supported by sustained performance at its key assets.
The company anticipates a rise in unit costs due to inflationary pressures but remains confident in its ability to generate cash flow despite market challenges.
"FY2025 started with the labour restructuring completed, group operations set up to deliver free cash flow – despite the assumption of continued near-term PGM pricing weakness – and our suite of processing assets well capitalised and able to draw down previously accumulated inventory and release cash to the group," said Muller, optimistic about the company's future.
Unfortunately, the company did not declare a final dividend due to the challenging market conditions.
