JSE-listed platinum group metals (PGMs) miner Impala Platinum (Implats) reports that its tonnes milled for the first quarter of this year had increased by 4% to 5.59-million tonnes, with higher volumes reported at Impala Rustenburg, Impala Canada and its Marula operations.

Its milled grade was stable at 3.64 g/t, while improved recoveries and yield resulted in platinum, palladium, rhodium, ruthenium, osmium and gold (6E) concentrate production at managed operations rising by 6% to 569 000 oz.

In addition, 6E concentrate production from the joint ventures at Mimosa and Two Rivers increased by 2% to 135 000 oz.

For reference, Implats points out that during the first quarter of 2020, the implementation of the Covid-19 lockdown in South Africa on March 25, 2020 was forecast to reduce, by 6%, milled tonnage from Impala Rustenburg, Marula and Two Rivers – equivalent to about 26 000 ounces of 6E mine-to-market concentrate production.

However, for the quarter under review, mine-to-market 6E concentrate production improved by 6% to 704 000 oz, with only Zimplats reporting lower volumes as mining and processing efficiencies were impacted by high-wall subsidence at the Ngwarati Mine boxcut. This incident impacted on Implats’ performance as it resulted in the death of mineworker Kudzanayi Manyonganise.

In terms of third-party production, Implats reports that its 6E-in-concentrate receipts from third-party and toll customers declined by 7%, to 79 000 oz, resulting in gross group concentrate production rising by 4% to 783 000 oz.

Refined 6E production, which includes saleable ounces from Impala Canada, declined by 7%, to 800 000 oz, with the 2020 comparable period characterised by a material reduction in excess accumulated inventory.

Production in the first quarter of the year was impacted by Eskom load curtailment, the furnace re-line at Zimplats, the start of scheduled maintenance at the number five furnace at Impala Rustenburg and interruptions to third-party hydrogen supply at the Base Metals Refinery at the start of the year.

Meanwhile, Implats sold 862 000 oz of 6E in the quarter under review. Sales were broadly in-line with contractual requirements in the period, with some additional destocking of iridium and ruthenium as demand and pricing improved for these metals.

Regarding health and safety, Implats achieved a lost-time injury frequency rate and all injury frequency rate of 4.95 and 10.25 per million man hours worked – improving by 1.4% and 13.2%, respectively.

Fourteen of the group’s 17 operations achieved millionaire or multi-millionaire status in terms of fatality-free shifts during the reporting period and, on March 28, Impala Rustenburg achieved eight-million fatality-free shifts, an all-time fatal-free shift record for the operation.

Implats CEO Nico Muller says the group continues to demonstrate resilience amid the ongoing challenges presented by the Covid-19 pandemic.

“I am particularly proud of the record safety achievement at Impala Rustenburg and the operational delivery across the group during what is traditionally a difficult operating period for the mining industry.”

He adds that Implats’ workforce was faced with additional hurdles created by intermittent power provision and elevated community unrest in South Africa – “a harsh reminder of the challenging socioeconomic environment, which has been compounded by the scourge of Covid-19.”

Further, Muller adds that rand PGMs pricing remains elevated, and that the group is maintaining its key guidance metrics for the full 2021 financial year.