Impala Platinum (Implats) CEO Nico Muller says platinum group metal (PGM) market fundamentals are stronger than what current pricing suggests.

He also does not expect there to be further significant price declines.

Reflecting on the company's results for the financial year ended June 30, Muller says the company had anticipated a fall in PGM prices - "admittedly it happened much faster than originally expected".

He adds that the current prices are "not bad" compared with the last 15 years, particularly as 2021 and 2022 had record price spikes.

Implats declared a 63% lower dividend at R5.85 for the financial year, on the back of lower PGM prices.

This compares with the dividend of R15.75 it paid out in the prior financial year, when it reported a stellar R53-billion in earnings before interest, taxes, depreciation and amortisation (Ebitda).

The group posted a 32% year-on-year decline in Ebitda to R36-billion for the financial year under review.

Implats' profit for the year amounted to R6.1-billion, marking an 81% decrease on the prior year's profit of R33.1-billion.

Headline earnings per share (HEPS) came to R22.11 in the reporting period, which marks a 42% decline on the HEPS of R38.53 for the 2022 financial year.

Gross refined production of 2.9-million ounces compares with the 3.08-million ounces produced in the prior year.

Tonnes milled from the group's managed operations increased by 7% year-on-year to 23.8-million tonnes, with higher reported volumes at Impala Rustenburg, Zimplats and Impala Canada, together with a consolidated contribution of 403 000 t from its newly acquired Royal Bafokeng Platinum (RBPlat) subsidiary, which all offset lower throughput at Marula.

Platinum, palladium, rhodium, iridium, ruthenium and osmium (6E) production at managed operations increased by 6% to 2.42-million ounces, and a maiden contribution of 43 000 oz in concentrate from RBPlat was recorded for the month of June. 6E concentrate production of 541 000 oz from joint venture operations was 1% lower year-on-year.

Implats realised an average platinum price of $962/oz in the year under review, an average palladium price of $1 763/oz and an average rhodium price of $11 696/oz, compared with prices of $1 008/oz, $2 211/oz and $16 544/oz for the three metals, respectively, in the prior year.

The group's production was somewhat constrained owing to smelting capacity being unavailable during the scheduled rebuild of the Number 4 furnace in Rustenburg. The company also experienced load curtailment in the period, ending the year with about 245 000 oz of excess inventory.

Muller says the financial year was challenging amid widespread power shortages, softening prices, rand depreciation and persistent inflation.

Notable rand depreciation compounded the impact of high consumable and utilities inflation on the translated cost and capital expenditure (capex) at the group's Zimbabwean and Canadian operations.

Total cash operating costs increased by 19% year-on-year, while unit costs benefitted from higher throughput at managed operations and, despite lower refined output, increased by 14% to R19 834/6E oz, compared with a unit cost of R17 364/6E oz in the prior year.

Capex at managed operations rose by 27% to R11.5-billion, compared with capex of R9.1-billion in the prior year, as spending on replacement and growth projects accelerated and the rand weakened against the dollar.

Implats' stay-in-business spend of R7.3-billion, replacement capital of R2.3-billion and expansion capital of R1.9-billion increased by 16%, 61% and 41%, respectively, in the year under review, compared with the prior year.

The group's financial performance was ultimately negatively impacted on by the retracement in rand PGMs pricing, lower refined production and sales, continued high levels of inflation and the accounting impact of end-of-period inventory valuations and impairments related to Impala Canada and RBPlat, as required by its consolidation.

Implats accounted for three ...