Impala Platinum Holdings' (Implats) increased platinum production in the six months to December 31st 2010 contributed to the group's higher unit costs, which rose by four per cent.

The group's platinum production grew by six per cent over the period to 952,000 oz, while overall revenue was boosted by 38 per cent due in part to stronger dollar metal prices.

Platinum metal production at Impala Rustenburg was particularly impressive: milled metal production increased by 15 per cent to 7.8 million tonnes, while refined platinum production grew by 16 per cent to 501,000 oz.

Meanwhile, platinum in concentrate production at Implats Marula increased by eight per cent to 41,000 oz, prompting an increase in the labour complement which in turn saw unit costs grow by 19 per cent.

Zimbabwean platinum operations at the Zimplats and Mimosa plants also improved. Mimosa maintained production at 51,000 oz of platinum in concentrate.

At Zimplats - which is on track for Phase 2 expansion to 270,000 oz production - higher mill grades and concentrator recoveries boosted platinum production in matte by nine per cent to 89,000 oz.

Implats chief executive David Brown said: "Development at the three new shafts remains on track with the first production from 20 Shaft delivered in January.

"These shafts will ensure steady state production of a million platinum ounces at Impala Rustenburg. The Phase 2 expansion at Zimplats which forms a key part of our growth strategy to 2.1 million ounces of platinum by 2014 has commenced and is progressing satisfactorily."

The group notes that unlike the slow recovery of many Western markets, platinum has continued a somewhat stronger recovery from the lows of 2008. High demand for platinum group metals across the developing world in the automotive and jewellery sectors has also buoyed the market.

Moving forward, the growing influence of emerging market economies and improved liquidity in the US will create tight market conditions, although Impala is confident that it will be able to benefit.

Source:



Implats consolidated interim results for the six months ended 31 December 2010 (17/02/2011)

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