Implats Considers Early Closure of Canadian Palladium Mine Amid Slumping Prices and Profit Decline

Impala Platinum

Weak Market Conditions May Accelerate Wind-Down of Lac des Iles Mine as Group EBITDA Falls 23%

Implats Signals Potential Early Shutdown of Lac des Iles Mine in Canada

South African platinum group metals (PGM) miner Impala Platinum (Implats) is considering an early closure of its Lac des Iles palladium mine in Ontario, Canada, citing sustained market weakness. CEO Nico Muller noted that an accelerated wind-down could be the most economically effective response to deteriorating palladium market conditions.

While Implats had already scaled back operations at the site last year, the outlook for palladium prices has further worsened, prompting the potential closure. No final date was provided, but the move would significantly affect the company’s North American operations.

PGM Earnings Slide as Palladium Prices Hit Multi-Year Lows

Implats posted earnings before interest, tax, depreciation, and amortisation (EBITDA) of R6.5 billion ($351.62 million) for the first half of its 2025 financial year, a 23% decline from the previous year. This was driven by lower PGM prices, particularly palladium, which fell 17% year-on-year to $916 per troy ounce, according to Johnson Matthey.

Despite a 5% increase in sales volumes, total group 6E production — including platinum, palladium, rhodium, iridium, ruthenium, and osmium — fell 4.2% to 1.82 million ounces, largely due to reduced throughput in Canada.

Processing Efficiency Boosts Refined Output Despite Mining Constraints

Milled tonnage at Implats’ managed operations dropped 4% year-on-year to 13.74 million tonnes, reflecting lower throughput at both Impala Canada and the Marula site in South Africa. However, refined and saleable 6E output rose 2% to 1.79 million ounces, driven by greater processing availability.

The company's ability to offset mine-level setbacks with improved refining efficiency shows resilience, but long-term market recovery will be critical to sustaining profitability—particularly in palladium.