JOHANNESBURG (miningweekly.com) – The Implats group on Thursday delivered an improved performance at most operations for the half-year ended December 31, but regrettably mourns the loss of six employees through work-related incidents.

Gross platinum in concentrate production for the group, headed by CEO Nico Muller, increased by 13.3%, supported by a 7.4% increase in run-of-mine tonnes milled and higher deliveries from third-party toll refining customers.

After toll treated material was returned to third-party customers, concentrate production was unchanged.

Refined metal production was impacted by extensive maintenance to the number 5 furnace at the Impala Rustenburg smelting complex.

As a result, gross refined platinum production decreased by 6.7% to 726 700 oz, relative to 778 500 oz in the comparable period.

The reduction in refined platinum ounces produced, combined with metal returns to third-party toll refining customers, resulted in a decline of 11.2% in platinum ounces sold to 648 800 oz, compared with 730 700 oz in the previous comparable period.

This was offset by a 4.2% increase in the rand basket price, lower third-party concentrate purchases by Impala Refining Services (IRS), and a modest 4.2% inflationary increase in cash operating costs resulting in a total revenue of R17.28-billion, cost of sales of R16.55-billion, and a gross profit of R733-million for the period, compared to a gross loss of R139-million for the prior comparable period.

A significantly higher "additional profits tax" provision by Zimplats increased the tax charge period-on-period by R250-million, which was largely responsible for the group recording a R164-million loss after tax compared to a profit before tax for the six months ended December 31.

Cash generated from operations before changes in working capital improved from R2-billion in the comparable period to R2.9-billion for the period under review.

However, net cash decreased by some R3.5-billion during the period under review, largely due to R1.9-billion used in investing activities and a R3.5-billion inventory cash outflow.

Gross cash at the end of the period amounted to R4.2-billion. In addition, the Group has committed (unutilised) banking facilities of R4.0-billion available until June 2021.

Market fundamentals for platinum remain muted.