Platinum group metals (PGMs) miner Impala Platinum’s (Implats’) ruthenium, rhodium, palladium, osmium, iridium, and platinum (6E) concentrate production decreased by 6% year-on-year to 809 000 oz for the quarter ended September 30 – the first quarter of its 2022 financial year.

Managed volumes decreased by 5% year-on-year to 592 000 oz and joint venture (JV) production by 3% year-on-year to 138 000 oz. Third-party receipts decreased by 16% year-on-year to 80 000 oz.

Gross 6E refined and saleable production volumes decreased by 15% to 741 000 oz, aligned with scheduled processing maintenance.

Stable 6E sales volumes of 707 000 oz were recorded for the quarter under review.

Implats CEO Nico Muller commented on October 29 that the miner’s operating momentum had improved during the quarter, after a slow start, as it completed its yearly scheduled processing maintenance, the third wave of Covid-19 having receded in South Africa and with global logistical constraints having started to ease.

He added that the improved organisational flexibility installed over recent years enabled the group to manage several headwinds at the start of the 2022 financial year, including unprotected industrial action and intermittent power provision at Impala Rustenburg and a shortage of critical skills at Impala Canada.

The PGM markets are, meanwhile, experiencing heightened volatility owing to global macroeconomic factors and supply chain constraints impacting on automotive production.

However, Implats continues to benefit from robust absolute pricing for its products, alongside a sustained demand from its customer base, which it said was indicative of the strong underlying fundamentals for PGMs.

PRODUCTION

Gross tonnes milled at managed operations decreased by 6% to 5.7-million tonnes during the quarter, with lower volumes reported at Impala Rustenburg and Impala Canada offsetting gains at Zimplats, in Zimbabwe.

Milled grade improved marginally to 3.64 g/t and, together with improved recoveries and yield, the decline in 6E concentrate production of 592 000 oz at managed operations was limited to 5%.

The 6E concentrate production from the JVs at Mimosa and Two Rivers declined by 3% to 138 000 oz, while Impala Refining Services’s (IRS’s) 6E in concentrate receipts from third-party and toll customers declined by 16% to 80 000 oz, resulting in gross group concentrate production declining by 6% to 809 000 oz.

Refined 6E production, which includes saleable ounces from Impala Canada, declined by 15% to 741 000 oz, with yearly scheduled processing maintenance, which was completed during July and August, contributing to the decline.

In the prior comparable period, gross refined volumes benefitted from unconstrained processing capacity, with the yearly maintenance brought forward into the Covid-impacted fourth quarter of 2020.

As a result, excess 6E in-process inventory increased by about 40 000 oz and the group ended the period with about 120 000 oz of excess stock, which is expected to be released before year-end.

The 6E sales volumes of 707 000 oz were unchanged from those in the prior comparable period.

OPERATIONS

Milled production at Impala Rustenburg decreased by 12% to 2.5-million tonnes, which the miner said was partially offset by higher milled grade, as well as yield gains, and resulted in a 9% decline in 6E-in-concentrate production to 315 000 oz.

Production was impacted on by unprotected industrial action among the contractor workforce, compounded by unstable power supply, increased safety stoppages, cable theft and community disruptions.

Targeted interventions to mitigate the impact of each of these factors were developed and implemented at the operation.                                       

Refined 6E production of 292 000 oz declined by 22% during the quarter from 372 000 oz in the prior comparable period. In the 2020 financial year, the group expedited yearly processing maintenance scheduled for the first quarter of the 2021 financial year to better match the expected ramp-up in mining production and third-party concentrate receipts following the Covid-19 lockdown in South Africa.

As a result, refined volumes in the prior comparable period benefitted from increased availability of processing capacity.

Tonnes milled at Zimplats, meanwhile, were stable at 1.6-million tonnes, with planned maintenance at the Selous concentrator completed in the period under review. Delivered mill grade declined by 1% owing to changes in the ore mix as the Ngwarati mine returned to full production following rehabilitation of the boxcut.

The 6E concentrate production was 2% lower at 144 000 oz, while matte volumes of 143 000 oz improved by 1% following a scheduled furnace reline in the prior comparable period.

Further, Marula benefitted from improved operational continuity following safety stoppages in the fourth quarter of the 2021 financial year, with higher stoping and development efficiencies achieved during the period under review.

Milled volumes of 523 000 t were largely unchanged, but a 9% improvement in milled head grade offset lower yields and 6E-in-concentrate production increased by 5% to 71 000 oz.

Impala Canada continues to face a critical skills shortage and logistical constraints, which Implats said were “regional in nature” and which impacted on the broader North American mining industry.

At Lac Des Iles, it has directly impacted the operation’s maintenance programme, resulting in poor underground equipment availability and absolute volumes produced.

In the period, underground volumes were supplemented by higher volumes of openpit and surface material, while planned concentrator maintenance limited absolute milled throughput to 971 000 t, a 1% decrease from the prior comparable period.

Changes in the ore mix resulted in a 2% decline in milled head grade, while 6E volumes in concentrate produced of 61 000 oz were 1% lower than the prior comparable period.

The Mimosa mine, in Zimbabwe, operated well during the quarter; however, milled volumes were impacted by planned maintenance and declined by 3% to 704 000 t. Lower milled throughput was compounded by a dip in recoveries, which was resolved by quarter-end, resulting in a 9% decrease in 6E concentrate production to 61 000 oz.

Further, production volumes at Two Rivers, in South Africa, were impacted on by the delayed upliftment of a Section 54 safety stoppage at the operation following the fatal accident in September.

Underground mined volumes were supplemented from surface stockpiles to mitigate the impact on ounce production and milled volumes improved by 6% to 852 000 t. Milled grade and recoveries were impacted by increased volumes of development and stockpile tonnage and 6E volumes in concentrate increased by 2% to 77 000 oz.