Implats ups capex guidance to R6bn-plus for new financial year
JOHANNESBURG (miningweekly.com) – Platinum group metals mining and marketing company Implats, which generated free cash flow of R14.4-billion in the 12 months to June 30, is forecasting capital expenditure (capex) of between R6-billion and R6.8-billion in the new 2021 financial year.
This is well up on the capex of R4.5-billion in the 2020 financial year just past.
Prioritised is the ramp up of the 16 Shaft and 20 Shaft at Impala Rustenburg, where operational flexibility has been achieved through the increase in mining face length, positioning the two shafts to drive up volumes.
In addition, production will continue to be accelerated at the Mupani mine and Zimplats, in Zimababwe, to increase production by 40 000 t/m, or 14%, from the 2022 financial year onwards.
Mining Weekly can report that processing capacity expansion has also been initiated at Marula in Mpumalanga, and it is a key priority of the JSE-listed Implats, headed by CEO Nico Muller, to develop value from its new acquisition, Impala Canada.
This is being done in the strong belief that the current buoyant market position will continue for the medium term, driven by sustained deficits for palladium and rhodium and an improved outlook for platinum.
Production volumes will be supported through the planned release of accumulated inventory and group refined production forecast at between 2.8-million ounces and 3.4-million ounces of six element (6E) metals – platinum, palladium, rhodium, gold, iridium and ruthenium – for financial year 2021.
As at June 30, 65% of the company’s reserve was favourable to mechanised mining and an additional 5% towards hybrid mining at the Marula platinum mine, in Mpumalanga.
This is up on the financial year just past, largely as a consequence of 2020 being hit by Covid-19, the inclusion of the first full year of Impala Canada and the ability to support group refined production with the processing of 100 000 oz of excess inventory.
Group operating costs are expected to be between R14 500/6Eoz and R15 500/6Eoz refined on a stock-adjusted basis.
Full year 6E in concentrate production estimates for the operational entities are:
• Impala Rustenburg 1.10-milion to 1.25-million ounces;
• Zimplats 570 000 oz to 600 000 oz;
• Two Rivers 260 000 oz to 300 000 oz;
• Impala Canada 250 000 oz to 280 000 oz;
• Mimosa 230 000 oz to 260 000 oz.
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