A stronger mining performance at Impala Platinum’s (Implats’) Impala Rustenburg and Marula operations resulted in a 17% year-on-year improvement in tonnes milled to 4.59-million tonnes for the third quarter ended March 31.

Tonnes milled at Impala Rustenburg increased by 16% year-on-year to 2.4-million tonnes, while tonnes milled at Marula increased by 100% to 441 000 t.

Implats CEO Nico Muller commented that the steps implemented at the operations to improve production and cost performance are starting to deliver positive results.

“However, the elimination of high-cost production at Impala Rustenburg remains

our key imperative and good progress is being made with this operation’s

strategic review to align the business with our lower future metal prices outlook,” he added.

Meanwhile, both Impala Rustenburg and Marula improved their mill grades – by 4% and 12% respectively – during the quarter, which compensated for a planned lower mill grade at the Two Rivers operation, which decreased by 6% year-on-year as a result of ongoing split-reef mining.

The mill grade across all operations (managed and joint ventures) increased by 3% to 3.87 g/t platinum during the quarter.

Consequently, platinum in concentrate produced during the quarter across all Implats’ mining operations increased by 7% to 309 000 oz, compared with 290 000 oz in the prior corresponding period.

However, notwithstanding a much-improved operational performance, refined platinum production decreased by 5% to 316 000 oz, compared with 331 000 oz in the prior period, owing to a temporary pipeline stock build-up at the Impala smelting operation, as a result of an electric failure at the Number 5 furnace in February.

Implats noted that the Number 5 furnace has been successfully recomissioned this month and is expected to be back at full production from May.

The company anticipates that, despite having all its furnaces in operation by the fourth quarter of the financial year, some 100 000 oz of accumulated platinum pipeline stocks will not be refined within the current financial year.

To mitigate the resultant negative cash flow impact, management has sold forward some accumulated stock during January and will consider further mitigating measures on an ongoing basis.

Meanwhile, Implats reported an increase in tonnes milled at its Zimbabwean subsidiary, Zimplats, with a 6% increase to 1.65-million tonnes, compared with the 1.56-million tonnes milled in the prior corresponding period.

Zimplats’ mill grade was largely maintained at 3.48 g/t, which resulted in platinum produced in concentrate increasing by 5% to 69 000 oz, compared with 65 000 oz in the previous corresponding period.

At Implats’ Mimosa operation, tonnes milled during the period improved by 1% to 675 000 t, while the mill grade reduced by 1% to 3.82 g/t and the platinum produced in concentrate remained stable at 30 000 oz.

Moreover, operational performance at Two Rivers was impacted by continued lower-grade split-reef mining during the period. Tonnes milled increased by 1% to 878 000 t, compared with 868 000 t in the prior comparable period.

However, mill grade was significantly impacted and decreased by 6% to 3.56 g/t. In turn, this resulted in platinum produced in concentrate declining by 7% to 40 000 oz, compared with 43 000 oz in the prior corresponding period.

Implats further reported that platinum in concentrate received during the quarter from third-party and toll customers decreased by 26% to 37 000 oz, which was in line with planned lower deliveries over the holiday season.

The company added that refined platinum production for the quarter was 43% higher than the previous period at 245 000 oz, from third-party and toll customers.

Muller concluded that the refined platinum production guidance for the group has been revised to 1.46-million ounces, down from the 1.5-million ounces previously guided, with accumulated above normal pipeline stocks projected to be around 100 000 oz of platinum at the end of the current financial year.

Implats’ operating cost is expected to be between R23 600 and R24 200 per platinum ounce on a stock-adjusted basis for the full financial year, with capital expenditure forecast at R4.6-billion to R4.8-billion for the current financial year.

- MiningWeekly