Implats loss narrows as it cuts 1 400 jobs at biggest mine | Fin24
  • Credit Rating

    'I think Moody's will be happy' - President Ramaphosa says plan to deal with Eskom's debt is imminent.

  • 'No Basis in Fact'

    The PIC commission has slammed Iqbal Survé’s claims about Minister Pravin Gordhan.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.


Implats loss narrows as it cuts 1 400 jobs at biggest mine

Mar 01 2018 11:39
Felix Njini, Blooomberg

Nairobi - Impala Platinum [JSE:IMP] cut 1 400 jobs at its Rustenburg operations, narrowed its loss and closed shafts as the producer of platinum-group metals seeks further cost reductions to boost cash flow by as much as R1bn in the next two years.

Implats is looking to "refocus or close unprofitable areas" and revise costs structures to return to profit in an environment of low prices for platinum-group metals, the Johannesburg-based company said in a statement on Thursday.

The headline loss, which excludes one-time items, narrowed to R150m in the six months ended December 31 from R508m a year earlier.

Prices of platinum, used to make catalytic converters in diesel vehicles that curb harmful emissions, have halved from a record reached in 2011. South African producers are grappling with a stronger local currency, which has gained 10% against the dollar since June, pushing up costs.

Impala halted operations at four shafts at its Rustenburg mine in January and is optimising operations at three others. It wants to operate lower-cost, shallower and mechanised assets and the Rustenburg operation may be profitable in a low-price environment, it said.

“The challenges and uncertainties confronting the South African PGM industry remain significant,” Impala said.

“The market fundamentals for platinum are only expected to strengthen materially from 2020 onwards, with the introduction of stricter heavy-duty diesel emission regulations, and with supply from South Africa starting to taper off.”

While the market outlook for platinum remains muted, demand for palladium and rhodium remains “robust,” supported by growing automotive gasoline demand. Impala estimates full-year refined production at 1.5 million platinum ounces.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

implats  |  mining  |  companies  |  platinum


Company Snapshot


Struggling power utility Eskom will take centre stage at this year's mini budget

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote