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Platinum group metals (PGM) mining and marketing company Implats is implementing a comprehensive operational and expenditure response to mitigate the current weakness in PGMs pricing and the resultant pressure on margins.

"It's imperative that all our operations are set up to contribute sustainably and profitably through the vagaries of PGM cycles," Implats CEO Nico Muller stated in the JSE-listed company's first quarter production report for the period of July 1 to September 30.

"Capital expenditure on projects considered key to strategic delivery will continue, but planned elevated levels of spend across the portfolio will be adjusted to reflect the prevailing current reality of compressed industry margins," Muller stated in the release to Mining Weekly.

Total six element (6E) group production volumes increased by 21% from the previous comparable quarter to one-million ounces, with a 34% increase in managed volumes to 799 000 oz, stable production of 141 000 oz from joint ventures, and a 31% decrease in third-party receipts to 62 000 oz.

While production metrics benefitted from the maiden inclusion of Impala Bafokeng in the period, notable improvements were achieved on a like-for-like basis at the group's mining and processing operations.

Gross 6E refined and saleable production volumes increased by 25% to 885 000 oz and 6E sales volumes increased by 17% to 829 000 oz.

"The strong operational delivery in the period is a testament to the flexibility and resilience our people enabled at our operations - with targeted investments in asset integrity and projects focused on harnessing the inherent competitiveness of our mining and processing portfolio yielding notable improvements.

"Volume gains offset persistent industry-wide inflationary pressures and the operational impact of load curtailment was also minimised in the period. The integration of Impala Bafokeng gained momentum and focused efforts to improve and embed our safety performance remain a key focus," said Muller.

Regrettably, Marula and Impala Bafokeng operations each reported a fatality in the period amid 16% year-on-year improvement in the lost-time injury frequency rate and an 11% improvement in the all-injury injury frequency rate.

"Recent discussions with our core customer base confirm our underlying view of rising demand for our key products over the coming year. Residual customer caution reflects the persistent global macro-economic uncertainty and notable trade-flow shifts in primary mined supplies, resulting in adjustments to market liquidity and pricing," Muller added.

PRODUCTION

Gross tonnes milled at managed operations increased by 29% to 7.55-million tonnes during the quarter, augmented by the maiden inclusion of Impala Bafokeng, with 9% gains on a like-for-like basis. Milled grade increased by 4% to 3.77 g/t and 6E concentrate production at managed operations increased by 34% to 799 000 oz, with a like-for-like improvement of 12% from the collective production base at Impala Rustenburg, Marula, Zimplats and Impala Canada. Concentrate production from the joint ventures (JVs) at Mimosa and Two Rivers was stable at 141 000 oz.

Third-party 6E concentrate deliveries to Impala Refining Service declined by 31% to 62 000 oz reflecting the conclusion of two contracts in the third quarter of the previous financial year.

Consequently, group 6E gross production volumes increased by 21% to one-million ounces, 5% higher on a like-for-like basis.

Refined 6E production, which includes saleable ounces from Impala Canada and Impala Bafokeng, increased by 25% to 885 000 oz.

Production at Impala Rustenburg benefitted from previous investment in asset integrity and operational flexibility, specific internal interventions, and fewer external interruptions.

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