Implats CEO Nico Muller revealed that investor activity continues to influence the pricing of platinum group metals (PGMs), leading to volatile pricing in the firm’s third quarter. Despite robust demand from contractual customers and elevated spot sales, PGM pricing remains lacklustre with notable volatility in both platinum and palladium.
The spot price of palladium has remained unchanged in the last three months, while platinum has seen a 3.5% increase since February. Muller stated that margins remain compressed, prompting South African PGM producers to undergo restructuring efforts. Reports indicate that mines owned by major producers such as Sibanye-Stillwater, Implats, and Northam Platinum could burn about $430 million in cash by the end of the year without cost cuts.
In response to the challenging market conditions, Implats announced the possibility of cutting up to 3,900 jobs – about 9% of the workforce across various operations. This move comes as other major players in the industry, such as Anglo Platinum and Sibanye-Stillwater, also consider restructuring to address cost pressures.
Despite facing production challenges at some of its operations, including a decline in throughput following a fatal accident at the 11 Shaft complex, Implats reported higher production for the financial year-to-date. The company has implemented revised production plans at certain mines to navigate the current price downturn and ensure sustainability amid market uncertainties.
