Our opinion on the current state of IMP

Impala Platinum Holdings (IMP), or Implats, is the world's third largest platinum group metals (PGM) producer. It has been suffering over the past 7 years from aggressive union action and legislative uncertainty. The CEO says that they are focused "...on developing a portfolio of long-life, low-cost, shallow, modern, mechanised mining assets". This is similar to what Anglo American Platinum has been doing for the past 10 years. The market for platinum itself has been damaged by a reduction in auto catalyst demand recently, especially for diesel trucks. Palladium and Rhodium still have strong markets, but platinum has been oversupplied on world markets. The company plans to grow its production from Zimbabwe by 14% due to the Mupani shaft coming on stream in 2022. Its newly acquired Canadian operation should also increase production. On 20th July 2023 the company announced that it had acquired 56,52% of RB Plats as a result of its mandatory offer. Northam also announced its decision to sell its 34,5% of its holding to Implats. On the 28th of June 2022, the company announced that it had reached a 5-year wage deal with its major union, the Association of Mine Workers and Construction Union (AMCU) for an average wage increase of 6,6% per annum. In its results for the year to 30th June 2023 the company reported group 6E production up 2%, but refined production down 4% and sales down 6%. Rand revenue per 6E ounce declined by 4%. The company said, "In addition to load curtailment at South African managed and JV operations during the period, severe load shedding was experienced across the Zimbabwean national grid in March 2023. In total, Implats estimates 36 000 6E ounces of production were foregone across southern African managed and JV operations during the period". In a production report on the 3 months to 30th September 2023 the company reported 6E production up 21%. The company said, "Volume gains offset persistent industry-wide inflationary pressures and the operational impact of load curtailment was also minimised in the period". On 28th November 2023 the company reported that 11 people had died and 75 were hospitalised following and incident at its No. 11 shaft in Rustenburg. Technically, the share has been in a downward trend since March 2022 mainly as a result of lower PGM prices, increased costs and loadshedding. It remains a volatile commodity share.