Implats PGM production falls as prices squeeze margins and reshape portfolio

Implats

Implats PGM production falls by 3pc to 3.55mn oz in FY2025 amid weak prices. The Implats PGM production falls theme also weighs on revenue and earnings. As a result, strategy pivots toward processing uptime while winding down Canada. The Implats PGM production falls narrative frames 2026 risks and recovery prospects.

Lower prices hit output, revenue and capex discipline

Implats reported FY2025 6E output down to 3.55mn oz. Prices stayed weak across platinum, palladium and rhodium. Therefore revenue slipped 1pc to R85.5bn. Headline earnings fell 70pc on the year. However, easing input inflation and a firmer rand reduced some cost pressure. Management cut full-year capex by about 50pc. The company cited constrained profitability and a soft rand PGM basket. Cash preservation remains a priority while markets rebalance.

Operations pivot: Rustenburg and Zimplats up, Canada winds down

Implats targets higher refined volumes at Rustenburg and Zimplats in FY2026. Improved processing availability should lift throughput and recoveries. Meanwhile, Canada faces a planned shutdown by May 2026. Low palladium prices drive the decision to close Impala Canada. Consequently, group mix shifts toward South African and Zimbabwean ounces. Portfolio risk tilts away from palladium exposure. The near-term focus stays on plant stability, metal accounting and unit cost control.

The Metalnomist Commentary

The reshaped asset mix should soften palladium risk while leveraging Rustenburg and Zimplats reliability. Watch price elasticities: modest demand recovery or tighter mine supply could quickly swing basket margins. Execution on processing availability will decide whether FY2026 beats cautious guidance.