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Thu 7 Aug 2025
Close: 17 377c 
Day's move: 412c (2.43%)
Volume: 5 660 962
Trades: 11 110
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Revenue for the period lowered to R42.3 billion (R43.4 billion) with gross profit coming in less at R2.1 billion (R3.4 billion). Profit for the period attributable to owners of the company decreased to R1.9 billion (R1.6 billion). Additionally, headline earnings per share tumbled to 206c per share (365c per share).
Dividend declaration
The Group’s dividend policy is premised on returning a minimum of 30% of adjusted free cash flow, pre-growth capital and cash outflows. However, given constrained free cash flow generation due to persistent low PGM prices, the uncertain macroeconomic environment due to new political dispensations, and still-elevated working capital as we navigate reduced processing capacity utilisation during smelting facility repair projects, no interim dividend has been declared. The board will reassess a dividend declaration at year end.
Change in Directorate
Implats announced the planned retirement of independent non-executive directors, Billy Mawasha and Mpho Nkeli, from the Implats board of directors, in line with the Group's board rotation policy. The two board members will not be availing themselves for re-election, therefore their tenure on the board will end on conclusion of the Company's scheduled annual general meeting on 30 October 2025.
Company outlook and guidance
The start of 2025 has seen global markets reflect renewed bets on a stronger-for-longer dollar and higher-for-longer interest rates as the domestic growth outlook in the US has continued to improve. As the world waits for US policies under a Trump administration to unfold and settle, policymakers and central banks are being challenged to operate amid ongoing geopolitical uncertainty while facing their own domestic fiscal dynamics.
The potential impact of tariffs, geopolitical tensions and the increasingly divergent outlook for growth, inflation and interest rates across major economies continue to present downside risks to the global macroeconomic outlook.
Anecdotal evidence indicates that destocking by automotive and industrial end-users of PGMs is slowing. Implats continues to receive robust requests for spot material from our customer base. In addition, a continued deferral of the expected recovery in recycling flows and secondary supply is tightening near-term market outlooks for each of platinum, palladium and rhodium. Despite these price-supportive developments, both business and investor confidence and dollar pricing remain anaemic, with a lack of conviction in the underlying demand outlook. PGM rand revenue remains rangebound and South African producer economics are strained.
Implats remains focused on delivering safe and profitable production - operational planning and capital investment is structured to enhance the competitive positioning of each asset to maximise returns and limit the use of the balance sheet to cross-subsidise loss-making operations. Weak rand PGM pricing for much of the past year has resulted in pressure on operating margins and free cash flow potential. We have taken decisive action and continue to develop and evolve our response to the reality presented by the sharp downturn in the sector. The majority of our operations delivered well in the period under review, but the challenges at some may require additional interventions and adjustments to future operating parameters.
Group production in FY2025 will be supported by strong delivery at Impala Rustenburg, Impala Bafokeng, Mimosa and Two Rivers, together with the expected partial unwind of accumulated inventory at Zimplats - countering the weak performance at Marula and tapering production profile at Impala Canada. Group smelting rates in Q3 FY2025 have been constrained by required maintenance and repairs at two Impala Rustenburg furnaces, which will serve to moderate the pace of excess inventory destocking in FY2025.
Group 6E refined and saleable production and unit costs guidance are maintained between 3.45 and 3.65 million ounces and between R21 000 and R22 000 per 6E ounce on a stock-adjusted basis. The forecasts for Group capital expenditure have been lowered, with spend at Impala Canada transferred to working costs, and is now expected to be between R7.0 billion and R8.0 billion, including growth capital of between R1.0 billion and R1.2 billion.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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