Production: Total refined platinum production through IRS declined by 11.1% to 862 700oz in FY2008 compared to 970 900oz in FY2007. However, this followed a surge in the volumes refined in FY2007 when concentrate refined on behalf of Lonmin made a significant contribution. The corresponding production of refined PGMs in FY2008 was 1.8Moz, a decline of 9.2% on the 2.0Moz refined in FY2007.
Growth in output from Two Rivers and Marula, and an increased supply of autocatalysts for recycling were insufficient to compensate for reduced volumes from other sources. The lower volumes were due to the expiry of the offtake agreement with Aquarius Platinum South Africa’s Kroondal mine and the absence of Lonmin concentrate for processing. The increase in supplies of autocatalysts was a result of improved market efficiencies in the collection of spent autocatalysts for recycling, which were driven in turn by the higher prices of PGMs on world markets.
Growth: Volumes of concentrate through IRS are expected to increase, particularly from Blue Ridge and Smokey Hills which are scheduled to begin production in FY2009, and from Zimplats, Marula, Eastern Platinum’s Crocodile River and Aquarius Platinum’s Everest mine, as well as from autocatalyst recycling.
| FY2008 | FY2007 | % change | ||
|---|---|---|---|---|
| Sales | Rm | 15 704 | 13 649 | 15.1 |
| Platinum | 7 522 | 5 863 | 28.3 | |
| Palladium | 1 194 | 1 051 | 13.6 | |
| Rhodium | 4 862 | 3 531 | 37.7 | |
| Nickel | 1 160 | 2 057 | (43.6) | |
| Other | 966 | 1 147 | (15.8) | |
| Cost of sales | (13 821) | (11 862) | (16.5) | |
| Metals purchased | (14 911) | (12 683) | (17.6) | |
| Smelting and refining costs | (310) | (323) | 4.0 | |
| Increase in inventories | 1 400 | 1 144 | 22.4 | |
| Gross profit | 1 883 | 1 787 | 5.4 | |
| Gross margin | % | 12.0 | 13.1 | (8.4) |
| Other operating costs | Rm | (26) | (34) | 23.5 |
| Sales | Rm | 15 704 | 13 649 | 15.1 |
| Direct sales to customers | 631 | 1 050 | (39.9) | |
| Sales to Impala | 14 846 | 12 226 | 21.4 | |
| Toll income | 227 | 373 | (39.1) | |
| Total sales volume | ||||
| Platinum | 000oz | 648.3 | 686.9 | (5.6) |
| Palladium | 000oz | 419.2 | 439.2 | (4.6) |
| Rhodium | 000oz | 95.1 | 94.6 | 0.5 |
| Nickel | 000t | 5.1 | 8.3 | (38.6) |
| Prices achieved | ||||
| Platinum | $/oz | 1 577 | 1 189 | 32.6 |
| Palladium | $/oz | 389 | 333 | 16.8 |
| Rhodium | $/oz | 6 986 | 5 201 | 34.3 |
| Nickel | $/t | 31 489 | 34 642 | (9.1) |
| Exchange rate achieved | R/$ | 7.33 | 7.18 | 2.1 |
| Refined production | ||||
| Platinum | 000oz | 862.7 | 970.9 | (11.1) |
| Palladium | 000oz | 607.4 | 641.6 | (5.3) |
| Rhodium | 000oz | 135.7 | 144.4 | (6.0) |
| Nickel | 000t | 7.9 | 9.2 | (14.1) |
| Total PGM | 000oz | 1 802.9 | 1 985.9 | (9.2) |
| Metal returned | ||||
| Platinum | 000oz | 207.9 | 261.9 | (20.6) |
| Palladium | 000oz | 199.3 | 190.5 | 4.6 |
| Rhodium | 000oz | 42.3 | 46.5 | (9.0) |
| Nickel | 000t | 2.1 | 0.9 | 133.3 |
Implats - Annual Report 2008
| Forward-looking statements