Platinum and associated platinum group metals (PGMs) producer, Implats notes that the South African PGM industry continues to face unprecedented challenges and uncertainties.
Consensus forecasts remain for softer platinum demand for at least the next three years, with the introduction of stricter heavy‐duty diesel emission regulations and a recovering global economy presenting upside for platinum.
It is imperative that Implats becomes viable at current PGM prices and it has, therefore, been bold in its actions to create and share value sustainably with all stakeholders in a lower platinum pricing environment.
Recent rand weakness has resulted in material increases in the rand revenue basket
and, if sustained, will significantly improve the financial performance of the Group.
Implats’ focus in the short to medium term is to continue its strategic journey to transform into a PGM producer mining mechanised, low‐cost ore bodies with more appropriate metal mixes.
This includes the determined and necessary repositioning of Impala Rustenburg to ensure the operation can contribute to the long‐term success of the Group and its local communities.
Prudent management of Implats’ cash resources during the two‐year restructuring process remains a key priority.
The implementation of the strategic review will not only strengthen Impala Rustenburg’s position in the prevailing price environment but will also significantly improve the strategic position of the Implats Group to sustainably deliver improved returns to all stakeholders in the medium to long term.
Longer‐term, Implats’ minority interest in the Waterberg project, with an option to acquire majority ownership, provides additional geographic and commodity diversity for the Group, away from deep, labour‐intensive, conventional operations.
Both South Africa and Zimbabwe have seen positive changes in political leadership, which have resulted in meaningful dialogue with the regulators.
Signals of greater policy consistency have provided confidence in decision making, and opportunities for capital growth and expenditure plans.
Implats’ approach to maintaining its social license to operate is firmly underpinned by the Group’s belief that sustainable businesses operate in a harmonious, supportive and beneficial manner for all key stakeholders.
Implats will continue to deliver effectively on its social and labour plan commitments in South Africa and targeted corporate social investments in Zimbabwe.