This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability.

China is probably leading the global hydrogen fuel cell advance, journalists heard at Thursday's media briefing that followed the "commendable" half-year performance of the Johannesburg Stock Exchange-listed Impala Platinum (Implats), which generated free cash flow of R639-million in the first six months its 2025 financial year (FY2025).

Having already identified Europe as a favourable driver of the gradually progressing platinum group metals- (PGM-) based green hydrogen fuel cell economic future, at question time Implats group executive corporate relations Johan Theron also singled out China's leading role in the green hydrogen fuel cell field, along with key roles being played by Japan and South Korea.

The interim results highlighted a tightening demand for PGMs, driven by electrification and diverse applications.

Palladium and rhodium, primarily used in auto catalysts, face challenging market supply dynamics, while platinum's robust demand from industrial and jewellery sectors offsets auto catalyst declines.

Canadian operations, exposed to palladium and rhodium, face challenges, with a 15% reduction in production volumes.

Marula's performance is constrained by geological complexity and higher panel loss rates.

Having adjusted the operating parameters at several of its assets in response to continued low rand pricing for PGMs, Implats maintained a strong and flexible balance sheet.

The company, headed by CEO Nico Muller, generated half-year earnings before interest, taxes, depreciation and amortisation (Ebitda) of R6.5-billion and headline earnings of R1.85-billion, closing with a net cash balance of R6.7-billion and liquidity headroom of R17.8-billion.

Moreover, Implats is on track to deliver within previously provided FY2025 guidance, despite water and power interruptions and Impala Bafokeng suffering safety stoppages following loss-of-life accidents amid steadfast safety improvement commitment.

Zimplats in Zimbabwe scaled up to full solar power of 35 MW as part of a planned 185 MW solar complex, and attained technical completion of its smelter expansion as well as the first phase of its sulphur dioxide abatement project. In South Africa, Impala Refineries' base metals refinery debottlenecking project was delivered.

Operational planning and capital investment are structured to enhance the competitive positioning of each asset to maximise returns amid the weak rand PGM pricing resulting in sustained pressure on operating margins.

OUTLOOK AND GUIDANCE

Production in FY2025 is poised to be supported by strong delivery at Impala Rustenburg, Impala Bafokeng, Mimosa and Two Rivers, together with the expected partial unwind of accumulated inventory at Zimplats, countering the tapering production profile at Impala Canada and weak performance at Marula.

Third-quarter smelting rates have been constrained by required maintenance and repairs at two Impala Rustenburg furnaces, which will moderate the pace of excess inventory destocking.

Six element (6E) refined and saleable production and unit costs guidance are maintained at between 3.45-million and 3.65-million ounces and between R21 000/6E oz and R22 000/6E oz.

The capital expenditure forecast for FY2025 has been lowered to between R7-billion and R8-billion, including growth capital of between R1.0-billion and R1.2-billion.

Platinum, palladium and rhodium are expected to remain in deficit in 2025. However, the deficits are expected to moderate. While primary supply is expected to be stable, secondary scrap is expected to drive gross supply gains in 2025.