Impala Platinum confirmed today (19th February) that it recorded a year-on-year pgm production decline of 13.2 per cent in the six months to the end of December 2008.

The South African company revealed that its total pgm production fell to 1.717 million ounces, in comparison to the figure of 1.979 million ounces for the equivalent period in 2007.

Nickel production was down by 12.1 per cent from 8,300 tonnes to 7,300 tonnes, while rhodium output fell 3.8 per cent from 133,000 oz to 128,000 oz.

However, the two main contributors were platinum, which was down by 14.8 per cent from 1.031 million ounces to 878,000 oz, and palladium, which was down by 17.3 per cent from 573,000 oz to 474,000 oz.

Demand for platinum, which is used to manufacture catalytic converters for cars, has been compromised in the past year as the economic downturn has forced automakers to cut production.

Commenting on the results, Impala Chief Executive David Brown told Reuters: "With world economies and their financial systems still on life support, it is increasingly difficult to forecast the outcome for 2009.

"Suffice to say we do not expect any major recovery in automotive demand."

With that in mind, the company has confirmed that it will trim production of the metal to 1.7 million ounces in the 2008-09 financial year.

Furthermore, it now intends to cut its overall production by 200,000 oz per year, taking it to a total of 2.1 million ounces by 2012.

"Output in the first half fell by default rather than by design owing to problems in some of our mines," Mr Brown added in the interview with the news provider.

"Going forward we will adjust our sights, and tailor-make our output."

Impala Platinum is the world's second-largest producer of platinum.

Sources:

Consolidated Interim Results for the six months ended 31 December 2008 (19/02/09)
http://www.implats.co.za/im/files/r/interim/files/interim_results_19feb09.pdf

UPDATE 2-Implats H1 earnings up, to cut output (19/02/09)
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idINLJ18057420090219?pageNumber=2&virtualBrandChannel=0&sp=true