Impala Platinum Holdings Limited (IMPUY)

[Lowjack]

200% inflation though!

Short it and bury them in $100 Trillion notes!

Also right shoulder!

[JD400]

$IMPUY Impala CEO says palladium and rhodium prices will rise for years due to shortages

By
Patrick Huston
2022-04-11


Costs of palladium and rhodium are ready to rally for a really long time as a supply squeeze tightens for the metals that are vital to controling vehicle emissions, said the head of the world’s third-biggest maker of platinum group metals. Costs of palladium and rhodium – – that are utilized in catalytic converters- – have risen over 30% this year. The absence of “major investment in new supply” may assist with supporting the convention, said Nico Muller, the CEO at Impala Platinum (OTC:IMPUY) Holdings Ltd.

Palladium prices got another boost on Friday when the London market suspended the only two accredited Russian refiners from minting platinum and palladium for the market. Russia produces about 40% of the world’s palladium and prices have risen on concerns about supply disruptions since the invasion of Ukraine, even though the metal has not been targeted by government sanctions.

“We are in a different structural environment at the moment,” Muller said in an interview in his office in Johannesburg on Thursday. “I believe that the fundamental market dynamics are going to provide strong price support for our metals for at least the next four or five years, potentially even longer.”

Platinum miners have learnt from mistakes of the past when they kept the market oversupplied even as demand dwindled. The dearth of investment in new mining projects over the past few years means supply deficit in palladium and rhodium may persist, Muller said. Meanwhile, tighter regulations to curb pollution from gasoline and diesel cars are boosting the use of PGMs in catalytic converters.

Still, PGM miners may face near-term risk from a softening of global auto production against a backdrop of rising inflation and ongoing supply chain constraints even though “strong for longer remains the base case,” Morgan Stanley analysts’ said in a note on April 7.

“We are going to break from a tradition where we had short upside,” Muller said, referring to price gains that lasted for only a short time. “We are in a period where the industry and participants are going to have healthy cash flows.”

Risks also include China’s renewed Covid-19 restrictions and accelerated substitution in response to high and volatile prices, which could see a palladium deficit of 146,000 ounces switch to a surplus of 200,000 ounces, with the bulk of the oversupply concentrated in the second half of the year, according to Suki Cooper, an analyst at Standard Chartered Plc.

Muller expects re-balancing in movement of the metals with European customers increasingly looking to South Africa for supplies.

“I am convinced that there are some customers right now in the world that say we have no option, but to get palladium from Russia, but do so reluctantly,” Muller said. “In time you are going to see, as soon as a company has defined an alternative supply source, that you may start seeing shifts in supply contracts.” Platinum prices, for which South Africa is the world’s top supplier, are likely to remain subdued in the medium term until automakers switch from using more palladium in catalytic converters, he said.

https://www.bollyinside.com/news/impala-ceo-says-palladium-and-rhodium-prices-

[JD400]

PGM market shows strong underlying fundamentals says Implats CEO

$IMPUY

By
Brendan Ryan -
Oct 29, 2021

PRODUCTION of platinum group metals (PGM) fell at Impala Platinum’s (Implats’) operations during the quarter to end-September, but sales were maintained and Implats’ CEO Nico Muller believes the PGM market remains in good shape.

“PGM markets are experiencing heightened volatility due to global macroeconomic factors and supply-chain constraints impacting automotive production,” said Muller. “However, at Implats, we continue to benefit from robust absolute pricing for our products.

“The sustained demand from our customer base is indicative of the strong underlying fundamentals for PGMs.”

Total PGM production for the quarter dropped 6% to 809,000 ounces (2020 September quarter: 859,000 oz) which when broken down shows a 5% decline in managed volumes to 592,000 oz; a 3% drop in joint venture production to 138,000 oz and a 16% fall in third party receipts to 80,000 oz.

Gross PGM refined and saleable production volumes dropped 15% to 741,000 oz because of scheduled plant maintenance but PGM sales levels remained stable at 707,000 oz.

Muller commented that “after a slow start, operating momentum improved during the quarter as we completed our annual scheduled processing maintenance, the third wave of the Covid-19 pandemic receded in South Africa and global logistical constraints started to ease”.

He said Implats had managed “several headwinds” at the start of the 2022 financial year which included unprotected industrial action and intermittent power provision at Impala Rustenburg and a shortage of critical skills at Impala Canada.

Muller said the skills shortage and logistical constraints in Canada were “regional in nature, impacting the broader North American mining industry and are not unique to the Ontario region in which Impala Canada’s operations are located.

“At Lac Des Isles it has directly impacted the operation’s maintenance programme resulting in poor underground equipment availability and absolute volumes produced.”

At the group’s flagship Rustenburg division milled production dropped 12% to 2.59 million tons (3Mt) but PGM production only fell 9% to 315,000 oz (346,000 oz) because of higher grades and better yields.

Muller said production at Rustenburg was hit by unprotected industrial action amongst the contractor workforce which was compounded by unstable power supply; increased safety stoppages; cable theft and community disruptions.

Implats this week announced a proposal to take over Royal Bafokeng Platinum whose operations adjoin those of Implats Rustenburg division in what would be a major consolidation of the platinum sector.

https://www.miningmx.com/top-story/47991-pgm-market-shows-strong-underlying-fundamentals-says-implats-ceo/

[Invest83838]

JD400 I'm a believer in the future of platinum

Primarily because hydrogen fuel cells need it as a catalyst

plus it is a precious metal worth accumulating

during inflationary times such as these

[JD400]

Implats in Talks to Become a Platinum Metals Giant



The Impala Platinum Holdings Ltd., also known as Implats, shaft 1 mine tower in Rustenburg, South Africa, on Wednesday, March 10, 2021. South Africa's mining industry employs more than 450,000 workers and contributes about 8% to national gross domestic product. , Bloomberg

(Bloomberg) -- Impala Platinum Holdings Ltd. is in talks to buy its smaller rival Royal Bafokeng Platinum Ltd., in a deal that Implats said may create South Africa’s largest platinum-group metals producer.

Flush with cash after higher rhodium and palladium prices, Implats is seeking to expand by buying lower cost and mechanized assets as some of its deep-level operations near their end. The company said Wednesday a deal for all of Royal Bafokeng’s shares may involve cash and equity and the outstanding details could be concluded in the coming weeks.

Implats has long sought to combine with Royal Bafokeng, and a deal would help the producer exploit synergies from deposits adjacent to its sprawling Rustenburg mining complex. It should also extend the life of Rustenburg mines and end royalties that Implats was paying to Royal Bafokeng to mine part of the adjacent reserves, Kagiso Asset Management Ltd. said.

Implats shares fell 1.9% in Johannesburg, while Royal Bafokeng climbed 16%, valuing the company at about $2.1 billion.

“It’s a transaction that’s been a long time coming, with clear benefits for Implats specifically,” said Mandi Dungwa, an analyst at Kagiso in Cape Town.

Stricter car-emissions rules have kept palladium and rhodium -- key metals in autocatalysts -- in tight supply and at historically high prices, increasing earnings for mining companies. Implats in September reported a record profit, prompting it to boost its dividend. It marked a turnaround for the company, which just three years ago was on the verge of cutting more than 10,000 jobs and closing some operations.

Implats’s interest in taking over a rival also indicates that there’s still appetite for PGM assets, even as a chip shortage weighs on the auto sector.

“Our interest in RBPlat has been known for a very long time and the strategic rationale is well understood by everyone,” Implats spokesman Johan Theron said by phone. “Its always been a matter of the planets aligning to make such a deal possible, hopefully we now find ourselves at that time.”

Sibanye Stillwater Ltd.’s deal this week to pay $1 billion for nickel and copper mines in Brazil shows how miners are looking to use cash to expand. After buying up PGM assets from Zimbabwe to North America, Sibanye is now looking toward battery metals needed for a green revolution.

A deal between Implats and Royal Bafokeng would see the combined company mine about 3.45 million ounces a year, overtaking Sibanye and Anglo American Platinum Ltd. in terms of attributable PGM output, Theron said. That would see it rival Russian giant MMC Norilsk Nickel PJSC.

“We think it’s likely to be a good deal, but this comes with a disclaimer because we haven’t seen the metrics yet on what the price is, or the mechanisms, and whether it will be shares and cash or a combination,” said Rory Kutisker-Jacobson, a portfolio manager at Allan Gray Ltd. in Cape Town. The company owns a 7.5% stake in Royal Bafokeng and 2% in Implats, he said.

Royal Bafokeng was listed in Johannesburg in 2010 and is the mining investment arm of the Royal Bafokeng nation, a community of people based near South Africa’s Sun City.

(Updates with details on benefits of deal from third paragraph)

©2021 Bloomberg L.P.

[Invest83838]

Bought Some IMPUY Today

for the great semiannual dividend

and

Potential share price increase

Since Precious Metal Prices should increase

as the US keeps printing trillions of fiat dollars

[JD400]

2 Mining Stocks to Buy as Rhodium Prices Surge

Now is the perfect time to buy rhodium mining stocks Impala Platinum Holdings Limited IMPUY - Get Rating) and Sibanye Stillwater Limited SBSW - Get Rating). These companies have strong balance sheets and solid business models. We think they are well-positioned to deliver higher sales volumes and take full advantage of the robust rhodium price rise.

https://stocknews.com/news/impuy-sbsw-2-mining-stocks-to-buy-as-rhodium-prices-surge/

[JD400]

Platinum hits 6-year peak Today

Platinum prices rallied to their highest

in six years on Wednesday as economic recovery hopes boosted

demand for the auto-catalyst metal.

Platinum rose 4.2% to $1,254.80

https://finviz.com/futures_charts.ashx?p=d1&t=PL

[Panzer]

Any reason why platinum popping?

[Panzer]

Sold!

[JD400]

Yes it doubled bagged since they bought out PALDF last year.

I think 'Impala Canada' was the name change

I think the less chatter is due to the big fish Implats buying the little fish thing.

this will continue to go for years because of supply and demand

They are North Americas Largest Pure Play Palladium Producer

[Panzer]

Looks like a gem here no one is talking about

[Panzer]

Panzer getting on platinum bandwagon

[JD400]

Competition court says global banks can be fined in South Africa over rate rigging

Submitted by cpowell on Fri, 2020-02-28 16:26. Section: Daily Dispatches

By Emma Rumney
Reuters
Friday, February 28, 2020

JOHANNESBURG -- South Africa's Competition Appeal Court has overturned a decision that a host of international banks cannot be fined if found guilty for alleged exchange rate rigging, the country's Competition Commission said today.

The watchdog has been investigating the case since 2015, but when it tried to bring charges against the banks last year South Africa's Competition Tribunal said that banks without a presence in South Africa could not be fined, though they could be declared anti-competitive if the commission could prove their case.

The banks, including Bank of America Merrill Lynch, JP Morgan, and Credit Suisse and the commission appealed that decision, with the banks arguing that there was no jurisdiction for even a declaratory order to be handed down.

But the appeals court dismissed the banks' application with costs and upheld the commission's appeal, ruling that the banks could in fact be fined, the commission said as it welcomed the decision. ...

... For the remainder of the report:

https://www.reuters.com/article/us-safrica-currency-rigging/competition-...

[JD400]

Mining veteran’s $2.2bn palladium bet to pay dividends

There isn’t a ‘lot of upside and not much downside either’ for palladium.


Felix Njini, Bloomberg / 3 February 2020 14:10


When dealmaker Neal Froneman acquired Stillwater Mining Co. three years ago, critics lined up to say he had overpaid for the palladium producer. Now, his $2.2 billion bet on the metal is set to pay off for Sibanye investors.

Sibanye may declare its first dividend in three years in August, Chief Executive Officer Froneman said. It will be a sweet moment for the veteran dubbed “Mr. Fix-It” for his turnaround successes in the 1990s. Froneman’s latest renaissance comes after the indebted company lost more than half its value as it was pummeled by strikes and soaring fatalities at its gold mines.

“I don’t want to be so bold as to say I told you so,” Froneman said in an interview at Sibanye’s modest Roodepoort office in western Johannesburg. “We get people apologising for comments they made a few years ago.”

Froneman concedes the rally in palladium has exceeded his expectations. It’s helped Sibanye more than triple in value over the past 12 months, trailing only rival Impala Platinum among the best performers on the Johannesburg Stock Exchange. By the end of June, Sibanye will have trimmed enough debt to be in a position to reward shareholders, the CEO said.

“We have de-risked the company it’s almost done,” said Froneman, who will join other executives at the African Mining Indaba in Cape Town next week. “The next opportunity to declare or consider a dividend will be in August.”

For the full year, Sibanye will consider a payout equivalent to a minimum of 35% of normalised earnings, he said. The company suspended dividends after piling on debt to pay for Montana-based Stillwater.

The South African platinum miners attending the conference will have an upbeat story to tell after the benefits from higher metal prices were compounded by a weaker rand that lowers costs. Anglo American Platinum, which resumed paying dividends in 2017, expects to report that profit more than doubled last year.

Sibanye’s debt is now less of a concern to most investors, said Rory Kutisker-Jacobson, a portfolio manager at Cape Town-based Allan Gray, which holds shares in many of the biggest platinum miners.

“You give credit to Neal, he timed the cycle quite well,” Kutisker-Jacobson said. “When he purchased Stillwater, the market punished him, but it turned out to be a good transaction. They have to reduce debt, but they would be paying a dividend in a relatively short period.”

As for palladium’s white-hot run, Froneman expects the metal to hover around current levels until automakers find ways of substituting it with platinum in catalytic converters.

There isn’t a “lot of upside and not much downside either” for palladium, Froneman said. With the current palladium price of about $2,300 an ounce roughly triple the production costs at its flagship Stillwater mine, Sibanye will continue to churn out cash.

Still, Froneman is concerned by the longer-term outlook. With producers unable to easily boost output, there is a risk the supply deficit in palladium will eventually exhaust inventories of the silvery-white precious metal.

“If we don’t introduce substitution to address the shortages, you will run short and when that happens it will be a catastrophe for all of us,” Froneman said. “There is an urgent need to find a solution, and platinum substitution is a very good alternative for palladium.”

© 2020 Bloomberg

https://www.moneyweb.co.za/news-fast-news/mining-veterans-2-2bn-palladium-bet-to-pay-dividends/

[JD400]

North American Palladium and Impala Platinum Announce Creation of Impala Canada

Mining News - Published on Thu, 19 Dec 2019




North American Palladium Ltd announced the successful completion of its previously announced plan of arrangement under the Canada Business Corporations Act with Impala Platinum Holdings Limited. Pursuant to the Arrangement, Implats has acquired 100% of the outstanding common shares of the Company for a total cash consideration of approximately CAD 1.0 billion. Upon completion of the Arrangement, NAP became a wholly-owned subsidiary of Implats. With the acquisition of NAP, Implats has strengthened its competitive position by adding the Lac des lies Mine to its asset portfolio. The low-cost Lac des lies Mine immediately boosts Implats' value and strengthens cash flow to advance its journey toward delivering sustainable shareholder returns. It also diversifies the group's production base with a palladium-rich operation in an established, low-risk mining jurisdiction. Going forward, NAP will operate in Canada under the name Impala Canada Ltd.

The former Chief Financial Officer of NAP, Tim Hill, has been appointed Chief Executive Officer of Impala Canada. The NAP corporate office in Toronto will become the regional office for Implats, while NAP's finance and exploration offices will remain in Thunder Bay, Ontario.

Source : Strategic Research Institute, SteelGuru

[JD400]

Impala cracks 10 as spot palladium cracked 2,000.32 last night



$IMPUY

[JD400]

North American Palladium and Impala Platinum Announce Completion of Arrangement and Creation of Impala Canada
December, 13, 2019
Download PDF Format (opens in new window)

TORONTO, Dec. 13, 2019 (GLOBE NEWSWIRE) -- North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL) (OTC PINK:PALDF) is pleased to announce the successful completion of its previously announced plan of arrangement under the Canada Business Corporations Act (the “Arrangement”) with Impala Platinum Holdings Limited (“Implats”). Pursuant to the Arrangement, Implats has acquired 100% of the outstanding common shares of the Company for a total cash consideration of approximately C$1.0 billion.

Upon completion of the Arrangement, NAP became a wholly-owned subsidiary of Implats. With the acquisition of NAP, Implats has strengthened its competitive position by adding the Lac des Iles Mine to its asset portfolio. The low-cost Lac des Iles Mine immediately boosts Implats’ value and strengthens cash flow to advance its journey toward delivering sustainable shareholder returns. It also diversifies the group’s production base with a palladium-rich operation in an established, low-risk mining jurisdiction. Going forward, NAP will operate in Canada under the name Impala Canada Ltd. (“Impala Canada”).

“Impala Canada will accelerate our progress against a number of key strategic imperatives,” stated Nico Muller, CEO and Executive Director of Implats. “The acquisition is an important development in the evolution of the Implats Group into a sustainable PGM producer. Over the past three years we have developed a strong understanding of the Canadian operation and its management team and are encouraged by its focus on palladium, its reliable growth potential, its highly engaged team and the revenue-generating potential of the Lac des Iles Mine. This acquisition is a positive development for Implats and our stakeholders.”

The former Chief Financial Officer of NAP, Tim Hill, has been appointed Chief Executive Officer of Impala Canada. The NAP corporate office in Toronto will become the regional office for Implats, while NAP’s finance and exploration offices will remain in Thunder Bay, Ontario.

Mr. Hill commented, “We are proud to play a significant role within a larger, integrated global PGM producer. We are confident that Lac des Iles will continue to be one of Canada’s largest, lowest-cost and safest underground mines, producing a metal that contributes to a cleaner global environment. We look forward to benefiting from the technical, operational and financial resources of a global company as we continue to pursue our palladium production, development and exploration objectives in Canada.”

The Arrangement was approved by NAP’s shareholders at a special meeting held on December 4, 2019, and by the Ontario Superior Court of Justice (Commercial List) on December 9, 2019. Under the terms of the Arrangement, shareholders of NAP, other than Brookfield Business Partners L.P. (together with its institutional partners), will receive C$19.74 per NAP common share in cash, and Brookfield Business Partners L.P., as the majority shareholder of NAP, will receive C$16.00 per NAP common share in cash.

The Company expects that its common shares will be delisted from the Toronto Stock Exchange on or about December 16, 2019, and the Company intends to promptly apply to cease to be a reporting issuer in each of the provinces and territories of Canada. Implats trades on the JSE Limited (JSE: IMP). Implats shares may also be traded via sponsored level 1 ADR programme (IMPUY) (IMPUF) (U.S.:OTC).

A copy of Implat’s early warning report will appear on the Company’s profile on SEDAR at www.sedar.com.

Arrangement Questions

Registered NAP shareholders who have questions or require assistance with submitting their shares to the Arrangement may direct their questions to Computershare Trust Company of Canada, who is acting as depositary under the Arrangement, toll-free at 1-800-564-6253 or by email at [e-mail]. Non-registered NAP shareholders should contact their broker or other intermediary with any questions or for instructions or assistance with submitting their shares for the Arrangement. Further information regarding the Arrangement is available in the Company’s management information circular dated November 1, 2019, which is available under NAP's profile on SEDAR at www.sedar.com.

About Impala Canada Ltd.

Impala Canada Ltd. (formerly North American Palladium Ltd.) operates the Lac des Iles Mine, a palladium operation with more than 25 years of production in a low-risk jurisdiction northwest of Thunder Bay, Ontario. With over 700 employees, the Lac des Iles Mine features a unique, world-class ore body and modern infrastructure, including both an underground mine and surface operations.

About Impala Platinum Holdings Ltd.

Implats is one of the world’s foremost producers of platinum group metals (PGMs). It is structured around six main operations, including Impala, Zimplats, Marula, Mimosa, Two Rivers and Impala Canada, and has its headquarters in Johannesburg, South Africa. Implats’ operations are located on the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe, the two most significant PGM-bearing ore bodies in the world, as well as the Canadian Shield in North America. The company’s refineries operations are based in Springs, Ekurhuleni, South Africa.

For further information or to obtain a copy of the early warning report filed by Implats, please contact:

Impala Canada:

Investor Relations
1 [phone]
[e-mail]

[JD400]

Mining revival threatened as power cuts take toll

SA’s key mining industry was shut down for 24 hours following power cuts.

Felix Njini, Bloomberg / 11 December 2019 19:08
AMPLATS R1,320.12 1.76% 12/11/2019, 8:00:03 AM
ANGLO R408.05 0.38% 12/11/2019, 8:07:38 AM
HARMONY R47.85 2.64% 12/11/2019, 8:07:12 AM
IMPLATS R139.00 5.79% 12/11/2019, 8:05:19 AM
SIBANYE R34.00 6.12% 12/11/2019, 8:06:06 AM


The rolling blackouts threaten the economy and hobble miners already impacted by community protests and xenophobic violence.

The rolling blackouts threaten the economy and hobble miners already impacted by community protests and xenophobic violence. Image: Supplied

When South Africa’s state-owned utility announced record power cuts on Monday afternoon, Impala Platinum had two hours to hoist thousands of workers from 1 kilometer (0.6 miles) deep shafts.


Record blackouts force South Africa miners to halt work

The deepening crisis at debt-ridden Eskom shut down South Africa’s key mining industry for 24 hours, hitting gold and platinum producers that had been enjoying a renaissance on the back of higher metal prices. The rolling blackouts threaten to tip South Africa’s economy into recession and hobble miners already impacted by community protests and xenophobic violence.

Johannesburg-based Implats was ordered to cut electricity usage to 55 megawatts from about 300 megawatts, forcing it to reduce power to furnaces by 90% and shutting down refrigeration and compressor plants.

“It was drastic, it makes life very difficult,” said Johan Theron, a spokesman for Implats. “We can’t operate like this but if we don’t cut the power, the national grid collapses.”

“The world will still need the minerals and metals that South Africa has, but in the short term this is potentially damaging to investment prospects,” said Ross Harvey, an independent economist and mining analyst. “For as long as Eskom remains in its current state, we are not going to see the kind of investment that we need.”

Power is critical to keep South Africa’s mines running and Eskom is responsible for supplying 95% of the electricity used by the continent’s most advanced economy. Some companies, such as Anglo American Platinum Ltd., can minimise losses by using expensive diesel generators, but they remain dependent on the utility’s baseload supply.

Stability needed

“South Africa urgently needs to stabilise Eskom,” said Jana Marais, a spokeswoman for Amplats. “Frequent load curtailments pose a risk to our operations as they risk the safety of our people and can lead to loss of production and revenue.”

Implats, along with Sibanye Gold, Petra Diamonds and Harmony Gold Mining resumed operations on Wednesday as Eskom scrambled to repair broken plants.

Sibanye, which requires about 750 megawatts to run its platinum and gold operations, still doesn’t have sufficient power, said spokesman James Wellsted. The company has been forced to postpone pumping water from underground mines or reduce ventilation to manage supplies, he said.

“It’s still very uncertain and you can understand why investors are being reluctant to invest,” Wellsted said.

When platinum producers reached a wage settlement last month with the biggest and most militant labour union, it appeared to pave the way for them to capitalise on record palladium prices and for some to resume paying dividends next year. Now more problems are piling up.

While Eskom’s struggles are the biggest drag on South Africa’s economy, other issues have contributed to business confidence slumping to the lowest level in two decades. Community protests are leading to huge losses, and xenophobic violence is sapping investor appetite for South Africa, Amplats Chief Executive Officer Chris Griffith said in October.

Rio Tinto Group’s Richards Bay Minerals shuttered its operations on Dec. 4 after violence in surrounding communities led to an employee being shot on the way to work.

Illtud Harri, a spokesman for Rio Tinto, didn’t immediately respond to emailed queries.

© 2019 Bloomberg L.P.

https://www.moneyweb.co.za/mineweb/mining-revival-threatened-as-power-cuts-take-toll/

$IMPUY

[JD400]

Record blackouts force South Africa miners to halt work
As load shedding continues to cripple the economy.

Felix Njini, Bloomberg / 10 December 2019 09:38
AMPLATS R1,297.24 2.32% 12/10/2019, 8:00:07 AM
ANGLO R406.50 1.64% 12/10/2019, 8:06:41 AM
HARMONY R46.62 2.10% 12/10/2019, 8:00:23 AM
IMPLATS R131.39 3.46% 12/10/2019, 8:00:59 AM
SIBANYE R32.04 3.86% 12/10/2019, 8:06:14 AM
Sibanye Gold, the largest private-sector employer halted “all high energy-intensive activities” Monday evening, spokesman James Wellsted said. Image: Waldo Swiegers/Bloomberg

Sibanye Gold, the largest private-sector employer halted “all high energy-intensive activities” Monday evening, spokesman James Wellsted said. Image: Waldo Swiegers/Bloomberg

South Africa’s biggest platinum and gold mining companies are scaling back some operations as record power cuts, now in their sixth day, start to cripple key parts of the economy.

Eskom on Monday moved to Stage 6 load-shedding from 18h00 local time, meaning it cut 6 000 megawatts from the national grid, the most yet, after a technical problem at the new Medupi Power Station. The utility has since downgraded the status to Stage 4.

Read: Eskom steps up power cuts after flooding hits major plant

Workers at Impala Platinum didn’t start the 16h00 underground shift Tuesday and the company has stopped milling ore and shut its smelter, spokesman Johan Theron said by phone.

Harmony Gold Mining was still weighing plans to resume operations at nine underground mines shut down on Monday evening after state-owned Eskom cut 6 000 megawatts from the national grid, spokeswoman Marian van der Walt said by phone Tuesday.

“Due to safety we decided not to allow people underground and may actually be doing the same today,” Van der Walt said. “We are still assessing, but things aren’t looking much different today.”

Sibanye Gold, the largest private-sector employer halted “all high energy-intensive activities” Monday evening, spokesman James Wellsted said. “We are stopping milling operations,” he added.

Petra Diamonds stopped mining at its South African operations.

South Africa’s mining industry is a pillar of the economy despite its contribution to gross domestic product declining in recent years.

A spokeswoman for Anglo American Platinum said she couldn’t immediately respond to emailed queries.

© 2019 Bloomberg L.P.

https://www.moneyweb.co.za/mineweb/record-blackouts-force-south-africa-miners-to-halt-work/

[JD400]

$PALDF North American Palladium Announces Voting Results From Special Meeting of Shareholders
11:27 am ET December 4, 2019 (Globe Newswire) Print

North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL) (OTC PINK:PALDF) today announced the positive outcome of the shareholder ("Shareholders") vote at today's special meeting (the "Meeting") of the Shareholders regarding the previously announced arrangement (the "Arrangement") pursuant to which a subsidiary of Impala Platinum Holdings Limited (the "Purchaser") will acquire all of the issued and outstanding common shares of the Company (the "Shares") by way of a plan of arrangement. Under the terms of the Arrangement, shareholders of NAP other than Brookfield (defined below), will receive C$19.74 per Share in cash and Brookfield Business Partners L.P. (together with its institutional partners, collectively "Brookfield"), as the majority shareholder of NAP, will receive C$16.00 per Share in cash.

Approximately 96.69% of the Shares voted at the Meeting voted in favour of the special resolution approving the Arrangement. Details of the voting results will be filed under the Company's profile on SEDAR www.sedar.com.

NAP will apply for a final order of the Ontario Superior Court of Justice (Commercial List) for approval of the Arrangement on December 9, 2019. Closing of the transaction remains subject to certain customary closing conditions including court approval and the receipt of the remaining required regulatory approvals. Assuming the satisfaction of these closing conditions, the transaction is expected to close on or around December 13, 2019. Following the completion of the Arrangement, the Company will be de-listed from the Toronto Stock Exchange and the Company will make the respective applications to the relevant securities regulatory authorities in Canada to cease to be a reporting issuer for the purposes of securities legislation.

Shareholders who have questions or require assistance with submitting their Shares to the Arrangement may direct their questions to Computershare Trust Company of Canada, who is acting as depositary under the Arrangement, toll free at 1-800-564-6253 or by email at [e-mail]. Further information regarding the Arrangement is available in the management information circular of the Company dated November 1, 2019, which is available under NAP's profile on SEDAR at www.sedar.com.

[JD400]

Implats expects merger with NAP to be finalised by mid-December

26th November 2019

By: Marleny Arnoldi
Creamer Media Online Writer


JSE-listed Impala Platinum (Implats) has progressed with due diligence for the acquisition of outstanding shares in TSX-listed North American Palladium (NAP).

The $758-million, or R11-billion, merger has been approved by the Canadian and German competition authorities, as well as the South African Reserve Bank in terms of exchange control regulations.

The transaction remains subject to majority acceptance by NAP’s shareholders and approval by the Ontario Superior Court of Justice.

NAP shareholders will vote on the merger on December 4, after which the companies’ plan of arrangement will be submitted to the court for approval by December 9.

Implats had signed a bridge facility for the funds with Morgan Stanley Senior Funding, Nedbank’s London branch, RMB International in Mauritius and Standard Bank’s Isle of Man branch.

Implats expects the transaction to be concluded on or about December 13.

https://www.miningweekly.com/article/implats-expects-merger-with-nap-to-be-finalised-by-mid-december-2019-11-26

[JD400]

Implats to decide if it wants to develop Waterberg project

26th November 2019

By: Marleny Arnoldi
Creamer Media Online Writer


TSX- and NYSE-listed Platinum Group Metals (PTM) expects its Waterberg joint venture (JV) partners to approve the project’s definitive feasibility study (DFS) next month, while approval of a mining right is also pending.

PTM says the positive results of the Waterberg DFS provide a solid base for the assessment of the project’s value.

After the DFS is approved, JV partner Impala Platinum (Implats) may elect to exercise a purchase and development option to increase its stake in the Waterberg JV company from 15% to 50.01% by buying an additional 12% of equity.

The 12% equity may be bought from JV partner Japan Oil, Gas and Metals National Corporation (Jogmec) for $34.8-million, while a further 22.8% interest can be earned by making a firm commitment to spend $130-million on the project’s development.

PTM holds 50% of the Waterberg JV, while Implats owns 15%, Hanwa 9.7% and Jogmec 12.1%. The balance is held by empowerment partner Mnombo Wethu Consultants.

The Waterberg project is located on the northern limb of the Bushveld Complex, in South Africa.

The DFS states that the project can be developed as a fully mechanised, shallow, decline accessed mine, producing 420 000 oz a year of palladium, platinum, rhodium and gold for 45 years.

https://www.miningweekly.com/article/implats-to-decide-if-it-wants-to-develop-waterberg-project-2019-11-26

[JD400]

Platinum Catch-22 Prevents Miners Tapping the Hottest Metals
By Felix Njini
November 21, 2019, 9:00 PM MST
Updated on November 22, 2019, 3:25 AM MST

Palladium has surged on stricter standards for auto emissions
South African miners fear boosting output will hurt platinum

LISTEN TO ARTICLE
2:46
SHARE THIS ARTICLE
Share
Tweet
Post
Email
In this article
SGL
SIBANYE GOLD LTD
2,776.00
ZAr
-94.00-3.28%
XB1
Generic 1st 'XB' Future
167.43
USd/gal.
-3.01-1.77%
IMP
IMPALA PLATINUM
11,231.00
ZAr
-45.00-0.40%
AMS
ANGLO AMERICAN P
124,113.00
ZAr
+2,161.00+1.77%
GMKN
NORILSK NICKEL
17,476.00
RUB
-182.00-1.03%

South African miners face a conundrum: increasing palladium and rhodium output to take advantage of soaring prices risks depressing the already fragile market for sister metal platinum.

That’s because palladium and rhodium are mined as byproducts, with every extra ounce of the former typically coming with two to three additional ounces of platinum. Stricter emissions standards have boosted palladium and rhodium consumption in autocatalysts for gasoline cars. By contrast, the backlash against diesel vehicles, where most platinum gets used, has seen the metal languish.

Consequently, some of the world’s biggest platinum miners, including Sibanye Gold Ltd. and Impala Platinum Holdings Ltd., are loathe to boost production, even as palladium’s eight-year supply deficit could widen in 2020.

“They can’t increase production because the main metal is platinum and they don’t want to make the price come down,” said Rene Hochreiter, an analyst at Noah Capital Markets Ltd. in Johannesburg.
Palladium, rhodium surge as supplies trail demand

Platinum has rallied 15% this year from a decade low, but demand is forecast to drop in 2020, pushing the market back into a surplus. Palladium has jumped 41% in 2019, while rhodium has surged 144%.

“Expanding production to try and benefit from higher rhodium and palladium prices can be quite risky,” said James Wellsted, a Johannesburg-based spokesman for Sibanye. “Most companies seem reluctant to raise production in South Africa due to the possible impact it will have on the platinum price.”

The rally in palladium and rhodium is extending the life of older shafts along Rustenburg’s platinum belt, but producers aren’t rushing to invest in new mines, according to Johan Theron, a spokesman for Implats. Boosting production would make the platinum market “even more supplied,” he said.

Given the geological and market restraints, Implats expects output from South Africa’s mines to start declining over the next five years. New projects in South Africa would take years to develop, while those in neighboring Zimbabwe may be stymied by political and economic uncertainty, he said.

Anglo American Platinum Ltd., the most profitable of South Africa’s producers, will make a final decision on whether to expand its Mogalakwena mine at the end of 2020, according to spokeswoman Jana Marais. Unusually, the company’s flagship mine produces more palladium than platinum, but Amplats must weigh the prospects for power supply from South Africa’s troubled state-owned utility before moving forward, she said.

MMC Norilsk Nickel PJSC is one company planning to boost supplies. The world’s top palladium producer said its platinum-group metals output could almost double by 2030. Still, there isn’t enough metal in the near term to close the current supply gap, Sibanye Chief Executive Officer Neal Froneman said last month.

[JD400]

Impala’s Zimbabwe mine is said to be in talks on Amplats land

Implats is seeking to boost output from mines in Zimbabwe.

Godfrey Marawanyika and Brian Latham, Bloomberg / 11 November 2019 17:57


AMPLATS R1,176.14 -1.57% 11/15/2019, 8:00:08 AM
ANGLO R384.58 -0.52% 11/15/2019, 8:00:55 AM
IMPLATS R109.78 -1.21% 11/15/2019, 8:09:41 AM
SIBANYE R28.02 0.39% 11/15/2019, 8:00:27 AM

Both platinum giants, Implats and Amplats have mining operations in South Africa and neighbouring Zimbabwe, but Implats is seeking to capitalise further from its Zimbabwean operations.


Both platinum giants, Implats and Amplats have mining operations in South Africa and neighbouring Zimbabwe, but Implats is seeking to capitalise further from its Zimbabwean operations. Image: Supplied

Impala Platinum is in talks to buy land in Zimbabwe from rival Anglo American Platinum as the world’s second-biggest producer of the precious metal seeks to boost output from the southern African country, according to people familiar with the negotiations.

The purchase of the claims by the Mimosa mine, which is jointly owned by Impala and Sibanye Gold, could be finalised by the end of the year, according to the people who asked not to be identified because the discussions aren’t public.

Impala and Amplats mine most of their platinum group metals in neighbouring South Africa, which has the world’s biggest reserves of platinum. But Zimbabwe’s deposits, second only to South Africa’s, are shallower and therefore cheaper to mine.

Amplats’s Unki mine has two properties adjacent to Mimosa. “We are considering various options with regards to the mining of these claims,” Colin Chibafa, Unki’s chief financial officer, said in a written response to questions. “A decision in this regard is expected soon.”

Fungai Makoni, the managing director of Mimosa, confirmed Impala was negotiating with “another entity,” but declined to give further details. “Due to contractual obligations we can’t disclose the terms and the entity at this stage until we have finalised with them,” he said in an interview.

Impala, which operates Mimosa, and Sibanye in July said they were undertaking a feasibility study at Zimbabwe’s oldest platinum mine to assess the best way to develop the remaining resource, according to General Manager Alex Mushonhiwa.

“Mimosa has largely mined out many of the areas near the present mining infrastructure and has advanced work to potentially access some neighbouring areas across the mine boundary,” Impala spokesman Johan Theron said in an emailed response to queries. “The most obvious way to do this would be to agree a royalty payment with the neighbouring permit holder.”

A deal made commercial sense because the land was not being mined at present, one of the people said. Zimbabwean President Emmerson Mnangagwa in March this year said the government would enforce its policy of confiscating mining companies’ unused permits under a so-called use it or lose it clause, as the country seeks to boost mining and stimulate economic expansion.

© 2019 Bloomberg L.P.

https://www.moneyweb.co.za/news-fast-news/impalas-zimbabwe-mine-is-said-to-be-in-talks-on-amplats-land/

[JD400]

Platinum miners, unions sign wage agreement


15th November 2019



Platinum group metals (PGMs) miners, Anglo American Platinum (Amplats), Impala Platinum (Implats) and Sibanye-Stillwater on Friday signed a three-year wage agreement with unions, the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers (NUM) and UASA.

Amplats noted in a statement on Friday that its wage agreement included an increase of R1 000 a month in basic pay, or 5.5%, whichever is greatest, for each year of the agreement.

"We are very pleased to have reached an agreement and we welcome the collaborative and constructive engagements with the unions throughout the process. We believe this agreement will ensure the business can remain sustainable through the typical PGM price cycles, while our employees will benefit from meaningful pay and other increases,” commented Amplats CEO Chris Griffith.

In addition to the increase in basic pay, Amplats employees will also receive an ex-gratia payment of R1 000 in July 2020 and R1 500 in July 2021.

The three-year agreement will increase Amplats' total labour cost-to-company by 7.4% in year one of the agreement, by 6.1% in year two and by 6.3% in year three.

Implats, meanwhile, said its operating subsidiaries, Rustenburg operations and Marula Platinum, had agreed to a wage settlement that assures employees of increases to all major components of remuneration, including basic salaries, living-out and home ownership allowances and medical aid and pension fund contributions.

"The agreement is in line with current mining inflation of about 7% and takes into consideration the reality of inflationary pressures faced by our employees.

"This agreement secures three years of stability at Implats’ operating entities and has been achieved through a collaborative process typified by mutual respect and consideration and without requiring intervention or mediation by third parties. The agreement removes substantial uncertainty for our employees and allows a singular focus on the pursuit of safe and sustainable production," it commented.

JSE- and NYSE-listed Sibanye, meanwhile, agreed to increases to the basic wage of Category 4 to 9 surface and underground employees for both the Marikana and Rustenburg operations of R1 000 a month or 5%, whichever is the higher in the first year; R1 000 a month or 5%, whichever is the higher in the second year; and R1 000 a month or 5%, whichever is the higher in the third year.

The pensionable base pay would increase by 3.5% for the Marikana operation over each of the next three years, while the Rustenburg pensionable base pay and allowance base would increase by 5% over each of the next three years.

Further, the allowance of rock drill operators at the Rustenburg and Marikana operations would increase by R100 a month for each of the three years.

Miners, artisans and officials would receive increases of R1 000 a month or 5%, whichever is the higher per year for the three years.

Sibanye stated that the total guaranteed monthly income for an entry-level, Category 4 underground employee was now between R18 400 and R18 500 a month in year one, between R19 500 and R19 600 a month in year two and between R20 700 and R20 800 a month in year three – all before tax.

Further, the total average monthly cost to company, including average bonuses, overtime and Unemployment Insurance Fund, but before taxes, for the same employees was in the range of R21 300 to R21 400 in year one, R22 400 to R22 600 in year two and R23 600 to R23 800 in year three.

Basic pay alone was now between R12 500 and R12 700 in year one, R13 500 and R13 700 in year two and R14 500 and R14 700 in year three.

“We are pleased to have reached a wage agreement with the representative unions which results in competitive remuneration for our employees, while taking into account the longer-term sustainability of our South African PGM operations.

"It is encouraging that the negotiations were conducted in a constructive manner without any disruption. By continuing to work together in support of safe production, we will secure the sustainability of the operations, and create superior long-term value for all of our stakeholders while improving lives through our mining," commented Sibanye CEO Neal Froneman.

AMCU described the conclusion of the "progressive wage agreements" as a "monumental victory" for the union and its members.

Union president Joseph Mathunjwa said wage-led growth was the only way to grow the economy.

"AMCU’s militant trade unionism and gallantry have championed the economic liberation of the working class in the platinum sector. This latest triumph marks an elongated trail of victories in which AMCU, as the majority union in the platinum belt, has fought to recapture more than R8-billion from employers to plenish the wages of workers," the union added.

It also pointed out that the lowest-paid underground employee in the platinum sector now earned a minimum of R12 000 a month.

https://www.miningweekly.com/article/platinum-miners-unions-sign-wate-agreement-2019-11-15

[JD400]

Zimplats’ production increases 3% q/q

31st October 2019

By: Tasneem Bulbulia
Creamer Media Reporter


Zimbabwean platinum group metals (PGMs) miner Zimplats, in which JSE-listed Impala Platinum holds an 87% interest, increased its production of platinum, palladium, rhodium, ruthenium, iridium and gold (6E) PGMs by 3% quarter-on-quarter for the quarter ended September 30.

6E production for the period was 151 458 oz.

6E metal-in-matte production benefited from higher mill volumes. Mined and milled tonnages increased by 7% and 9%, respectively, quarter-on-quarter.

Operating cash costs per platinum ounce increased by 2% quarter-on-quarter.

https://www.miningweekly.com/article/zimplatss-production-increases-3-qq-2019-10-31

[JD400]

Implats maintains full-year guidance despite lower first-quarter output



31st October 2019

By: Tasneem Bulbulia


JSE-listed Impala Platinum (Implats) is confident of meeting its targets for the full 2020 financial year, despite a 4.2% year-on-year decrease in platinum-in-concentrate production and a 24% year-on-year decrease in refined platinum output in the first quarter of the financial year.

Refined platinum production decreased to 281 000 oz in the quarter ended September 30, mainly as a result of planned maintenance at Impala Rustenburg’s acid plant and at the subsidiary Zimplats' furnace.

Platinum-in-concentrate production, including managed and joint venture operations, decreased to 334 000 oz during the quarter, mainly as a result of milling constraints at the Two Rivers and Mimosa operations.

“The unforeseen challenges at Mimosa and Two Rivers were addressed by the respective management teams, with plans in place to mitigate the impact of the slow start on full-year production targets at these operations,” CEO Nico Muller said on Thursday.

Platinum-in-concentrate production at the Impala Rustenburg, Marula and Zimplats operations was, however, in line with planned output.

Plans to outsource mining operations at Impala Rustenburg’s 1 Shaft and to close 9 Shaft were also progressing.

“The markets for our primary products remain buoyant and we have taken bold steps to advance our stated strategy of repositioning the group through the induced conversion of the dollar convertible bond and, more recently, the announcement of our offer to acquire North American Palladium (NAP).

“Our leadership remains committed to securing a fair and equitable wage agreement at our South African operations and we continue to monitor developments in Zimbabwe, with close interaction and communication with the Zimbabwean government to counter the challenges presented by the uncertain macroeconomic outlook,” Muller highlighted.

Implats earlier announced its intention to acquire Canadian palladium-focused miner NAP in an R11.4-billion deal

IMPUY

PALDF

[JD400]

$IMPUY Release of first quarter production update for the period ending 30 September 2019

http://www.implats.co.za/

[JD400]

$IMPUY Having a heavy volume day at +160K normal range 75K

[JD400]

Implats opts to expand footprint outside Africa


Invests R11bn in ‘mining-friendly’ Canada, a country with reliable and cheap electricity.

Adriaan Kruger / 10 October 2019 00:21


Demand for palladium has increased much faster than that of platinum in recent years.



Implats’s past overtures outside South Africa have been nothing to brag about. Its investment in Zimbabwe a few decades ago was a source of concern whenever Implats faced its shareholders, while the small investment in an exploration project in Canada has attracted little attention from analysts and shareholders over the last 20 years or so.

Read: Impala Platinum swings to profit, delays closure of shafts

At first glance, the announcement that it decided to acquire North American Palladium – one of its partners in the Sunday Lake exploration project – did not seem significant. The smallish mine near Hudson Bay in Canada produced only 262 000 ounces of platinum group metals (PGMs) in its last financial year compared to the 1.3 million ounces that Implats produced in its financial year to June 2019.

However, several aspects of the acquisition of North American Palladium show how important the investment is.

The first clue is in the name: it is a palladium rather than platinum mine.

Palladium accounted for 232 000 ounces of the total 262 000 ounces of PGMs it produced in the year to June.

In a video conference to mining analysts and investors around the globe, Implats CEO Nico Miller listed the attraction of palladium as the biggest motivation for its interest in North American Palladium.

“The palladium-rich ore body at [its] Lac des Iles mine will improve Implats’s commodity mix to more closely match the current and expected demand of the different platinum group metals,” he said. “It will increase our exposure to the global palladium market and the current strong prices of palladium without increasing the total global supply of palladium.”

Market demand

Implats produces nearly twice as much platinum (1.4 million ounces) as palladium (770 000 ounces) as South African ore bodies naturally contain more platinum than palladium. In contrast, the market demand for palladium has increased much faster than that of platinum in recent years.

According to the authoritative Johnson Matthey, market demand for palladium has far exceeded the demand for platinum. The demand for palladium increased 8% during 2018 to 6.9 million ounces, while the demand for platinum has remained unchanged during the last four years at 6.1 million ounces.

This is also reflected in world prices. The price of palladium increased sharply over the past year, by 54% from $1 084 per ounce a year ago to the current $1 674 per ounce. Platinum prices increased by only 8% from $826 per ounce to $893 per ounce over the same period. The increase in the price of palladium is even more profound over the last six years.

Balance adjustment

While the investment in North American Palladium will add only some 14% to Implats’s total PGM output, it increases the production of the more valuable palladium by more than 30%.

Miller also pointed out that North American Palladium is a highly mechanised mine, employing only 700 workers. Operating costs are much lower, at an all-in sustainable cost of $781 per ounce compared to Implats’s cost of nearly $1 600 per platinum ounce for its mines in SA.

“The acquisition will go a long way to reposition Implats as a lower-cost producer,” says Miller.

It seems the opportunity came at just the right time for Implats. It had a few good years and built up a bit of cash, repaid a lot of debt earlier than anticipated and accumulated a few billion rands worth of its own shares through buyback programmes – probably at prices way less than the current share price given the sharp increase of more than 285% over the last year.

All this will go towards settling the acquisition price of $758 million, equal to nearly R11.4 billion.

The deal was apparently welcomed by North American Palladium shareholders. The major shareholders were offered a premium of 16% above the weighted average market price, while minority shareholders stand to receive a premium of 23% to the market price.

Of further interest are the other – mostly unmentionable – reasons for the transaction.

When mentioning that Canada is a country friendly to the mining industry, Implats says by implication that SA is not very investor-friendly or welcoming to mining companies.

Years of uncertainty around mining policy, mineral rights, the troublesome Mining Charter, militant unions, political interference, criminal activities and electricity shortages probably all added up to nudge Implats towards Hudson Bay.

SA will effectively miss out on a capital investment of R11 billion if one argues that Implats could have elected to invest in SA instead.

Implats also stated in the announcement of the acquisition that the life of the Lac des Iles mine will be increased from the current nine years to 15 years, which means the directors are open to spending more money offshore, rather than in SA. Implats has limited its capital expenditure in SA during the last few years to reduce its exposure to these higher-cost operations.

Stimulus

In addition, the latest acquisition increases Implats’s interest in the small but important Sunday Lake exploration project, and adds a bit of stimulus to the project as it is only some 60km away from the larger mine.

The investment of R11.4 billion is equal to around 15% of Implats’s current market capitalisation. Overall, it looks like a good deal. The weighted average consideration payable to the majority and minority shareholders in North American Palladium amounts to C$16.71 per share, which represents a price-earnings ratio of 14.9 times compared to Implats’s of 24.4 times.
Implats share up more than 285% in the past year

$PALDF
$IMPUY

https://www.moneyweb.co.za/news/companies-and-deals/implats-opts-to-expand-footprint-outside-africa/

[JD400]

Impala Platinum Holdings (OTC: IMPUY) shares set a new yearly high of $6.93 this morning. The stock was up 2.09% on the session.

[JD400]

Hunt for palladium riches sends South African miners abroad

8th October 2019

By: Bloomberg


JOHANNESBURG – Southern Africa is home to the world’s richest platinum deposits, but when Impala Platinum Holdings pondered how to invest its windfall profits it chose North America instead.

The acquisition of North American Palladium is partly a bet on platinum’s sister metal palladium continuing to rally, while Implats CEO Nico Muller has also stressed the appeal of a relatively quick payback from low-cost, mechanised assets. However, the deal is also a geopolitical play as the Johannesburg-based miner seeks to balance exposure to its more volatile home region.

“The diversification into North America provides a hedge against some of the socio-economic, political and structural risks the company faces in South Africa and Zimbabwe,” said Christopher Nicholson, an analyst at RMB Morgan Stanley.

The transaction comes three years after Sibanye Gold bought Montana-based Stillwater Mining, but Implats’s first deal outside southern Africa also echoes trends in the country’s gold industry. AngloGold Ashanti is selling its last remaining South African assets as it turns its back on deep-level mines in favor of more profitable deposits in West Africa, Australia and South America.

While South Africa’s platinum operations are far more robust than the nation’s gold mines, and Implats returned to profit this year on the back of record palladium prices and a weaker rand, its decision highlights some of the wider industry challenges.

Anglo American CEO Mark Cutifani last week said there are no shortage of geological opportunities in South Africa, but to attract investment requires political stability and regulatory clarity. The “parlous state” of public finances also remains a challenge, he said, adding that miners must work with the government to tackle unresolved issues in the nation’s Mining Charter, which seeks to address inequalities resulting from apartheid.

“There are many other factors besides mineral endowment that influence where investors decide to put their money, all of which drive reassurance to investors about the security of their investment over time,” Cutifani said.

While Implats had investment options in South Africa, the longer payback period involved in building a new mine was a deterrent.

“If you want exposure to a producing asset, you would have to look at North America or Russia,” said Mandi Dungwa, an analyst at Kagiso Asset Management in Cape Town. “If you are trying to reduce risk, Canada is a very attractive mining jurisdiction compared to some of the issues we have here.”

Anglo American Platinum CEO Chris Griffith said last week that South Africa’s government needs to resolve the issue of community disruptions around mines, which is leading to huge losses for producers. Labour disputes, crime and xenophobia are deterring investors, while policy differences between government and ruling African National Congress are also a concern, he said.

Sibanye, which became the largest platinum miner after acquiring Lonmin earlier this year, may move its primary listing from South Africa because of increasing uncertainty, CEO Neal Froneman said in March.

Geographical diversification is a secondary consideration, but has its advantages, said Implats CEO Muller. That includes the absence of power cuts, which have plagued South African industry as State-owned utility Eskom Holdings struggled to meet demand.

“We don’t have exposure to Eskom that side, there is lower risk associated with availability of cheap water and of course we are to a large extent shielded from the economic crisis we are experiencing in Zimbabwe,” Muller said.

Despite the challenges in southern Africa, not everyone is convinced by Implats’s overseas venture.

The deal could prove costly should palladium prices fall, according to Johann Steyn, an analyst at Citigroup. Steyn said Implats could have bought Royal Bafokeng Platinum to exploit synergies from mines adjacent to its own Rustenburg operations.

“If we are correct in our forecast that palladium will revert back to a long-term average of $850/oz, then this deal could turn out to be value destructive,” Steyn said. “If it holds, then a lot of value will be created.”

Palladium traded at about $1 645/oz as of 2:11 p.m. in London, after climbing to a record of $1 701.93/oz last week. Implats has almost tripled in value this year, making it the best performer on the Johannesburg stock exchange. The shares were up 0.2% on Tuesday.

While Implats CEO Muller said the profitability of NAP will help the company reinstate dividends, it should have prioritized making payouts, according to Rene Hochreiter, an analyst at Noah Capital Markets.

“Maybe there aren’t many assets out there, but I would have spent the money on something better,” Hochreiter said. “It’s time for them to start paying dividends instead of blowing the money on expensive acquisitions.”

$IMPUY
$PALDF

https://www.miningweekly.com/article/hunt-for-palladium-riches-sends-south-african-miners-abroad-2019-10-08

[JD400]

Implats Plans to Build Palladium Mine in 2021 on Bullish Outlook
By Felix Njini

$IMPUY

February 28, 2019, 4:24 AM MST
Updated on February 28, 2019, 7:32 AM MST

No. 2 platinum miner sees PGM prices up for next 10 years
Implats slashed debt as metal prices, weaker rand buoy income


Impala Platinum Holdings Ltd. plans to start building a new palladium mine that could begin producing as soon as 2024 as the company’s outlook for metals turns bullish.

Implats, as the second-biggest platinum miner is known, plans to start work on the Waterberg project in South Africa in 2021, Chief Executive Officer Nico Muller said. The producer is also considering boosting output at its jointly held Mimosa mine in Zimbabwe by 30 percent as it bets on a long-term shift in platinum-group metals prices, Muller said.

A surge in palladium prices and a weaker rand is dispelling the gloom that gripped South African miners just a year ago. The metal used in pollution-control devices for car engines is forecast to remain in deficit for an eighth straight year in 2019, and Implats isn’t the only company seeking new sources of supply. The world’s top platinum supplier, Anglo American Platinum Ltd., is studying plans to ramp up palladium output through the expansion of its flagship Mogalakwena mine.
An acute shortage has sent prices soaring

“I believe the change in PGMs is structural and not cyclical, so we are fully confident that the buoyant market we see today is going to prevail for the next 10 years,” Muller told reporters in Johannesburg after announcing earnings Thursday. “When you contemplate a project like this, you have to have a long-range view, and we have a very bullish position at the moment.”

See also: ‘Bubble’ warning sounds over 2019’s hottest commodity

Despite a stronger market for platinum-group metals and improved liquidity, Implats is sticking with plans to restructure loss-making mines at its Rustenburg complex, Muller said. Implats will evaluate options to boost output in existing businesses and may consider assets outside its current portfolio, the CEO said.

The shares jumped 9 percent at 4:28 p.m. in Johannesburg, headed for the highest close since 2016. They’ve rallied 63 percent this year.
Implats Ignites

Implats may exercise its options to increase its stake to more than 50 percent from 15 percent of the Waterberg project, which is being developed jointly with Platinum Group Metals Ltd. and Japan Oil, Gas and Metals National Corp. The deposit could produce about 450,000 ounces of palladium and about 290,000 ounces of platinum a year, initial studies show. The high proportion of palladium means raising money is unlikely to be a major concern, Muller said.

“I don’t see financing to be a material barrier to our ability to execute the project,” Muller said.

https://www.bloomberg.com/news/articles/2019-02-28/implats-plans-to-build-palladium-mine-in-2021-on-bullish-outlook

[JD400]

South African Impala Platinum offers $1 billion for North American Palladium


[The Canadian Press]
The Canadian PressOctober 7, 2019

A $1-billion sales agreement announced Monday represents the culmination of a six-year turnaround for Toronto-based miner North American Palladium Inc., its president and CEO says.

On a conference call to discuss the deal to sell the company to South African miner Impala Platinum Holdings Ltd., Jim Gallagher said NAP was in severe financial distress following a poorly executed mine expansion in 2013 when financier Brookfield Capital Partners stepped in with a US$130-million loan.

In 2015, with the company still struggling, Brookfield converted its loan to equity to become the majority owner, on the understanding that it would sell its stake when the turnaround was complete.

"That day has come today. We have a sale of the company in an all-cash deal at near-record palladium prices and, except for a two-day blip in March of this year, at near-record high share prices," said Gallagher on a conference call to discuss the deal.

"From virtual bankruptcy four years ago, we now have a sale to the tune of $1 billion."

Impala Platinum, which uses the nickname Implats, has offered to pay $16 per share to Brookfield Business Partners LP, the majority shareholder with 81 per cent of the stock, and $19.74 per share for the remaining stake, resulting in an average price per share of $16.77.

Negotiations with Implats began in July and the companies had unofficially set a price of around $16 per share, Gallagher explained. The higher price for minority shareholders was agreed upon in recognition of the more recent rise in share prices.

North American Palladium has been producing palladium, a lustrous white material valued for its use in pollution-control devices for cars and trucks, for 25 years at its Lac des Iles Mine at Thunder Bay, Ont. It's also involved in two exploration projects.

“Implats has had an exploration presence in Canada for more than two decades and over the past three years we have developed a strong relationship with and understanding of NAP and its management team and operations," said CEO Nico Muller in a news release.

"It is Implats' view that the palladium market will remain in a structural deficit in the medium term, which should lend considerable support to stronger-for-longer pricing."

Implats said it was attracted to North American Palladium because of its fully mechanized mine, which means low labour costs and leading safety statistics, an estimated mine life of at least 15 years, and its future exploration opportunities. About 700 people work at the mine.

The companies have agreed to a 30-day period during which a termination fee of $24.5 million would be payable to Implats if a higher bid is accepted, with the fee increasing to $37.7 million thereafter. Implats would have the right to match any offer.

Closing of the transaction is expected in the fourth quarter, subject to North American Palladium shareholder approval and other customary conditions.



This report by The Canadian Press was first published Oct. 7, 2019.

Companies in this article: (TSX:PDL)

Dan Healing, The Canadian Press

https://ca.finance.yahoo.com/news/south-african-impala-platinum-offers-191814225.html



$PALDF
$IMPUY

[JD400]

S. Africa's AMCU mining union sees imminent wage deal with Impala Platinum
[Reuters]
Reuters•October 2, 2019

JOHANNESBURG, Oct 2 (Reuters) - South Africa's militant Association of Mineworkers and Construction Union expects a deal with Impala Platinum over wages soon, the head of the leading platinum mining union said on Wednesday.

"We believe we will clinch a deal with Impala Platinum soon," AMCU President Joseph Mathunjwa said at the Johannesburg Indaba mining conference on Wednesday.

Mathunjwa has taken ongoing negotiations over wages for platinum mineworkers to the Commission for Conciliation, Mediation and Arbitration, a government dispute resolution body. (Reporting by Helen Reid, Editing by Louise Heavens)

$IMPUY

https://finance.yahoo.com/news/africas-amcu-mining-union-sees-111137455.html

[JD400]

UPDATE 1-S.Africa's Impala to buy North American Palladium for about $750 mln
[Reuters]
By Tanisha Heiberg
,Reuters•October 7, 2019

(Adds background, details of transaction, CEO comments)

By Tanisha Heiberg

Oct 7 (Reuters) - South Africa's Impala Platinum Holdings Ltd (Implats) said on Monday it would buy Canada-based North American Palladium Ltd for about C$1 billion ($751.77 million), marking the miner's first purchase outside of Africa.

Prices for Palladium, widely used in vehicle exhausts to reduce harmful emissions, have doubled from a low in August last year as tighter environmental regulations force carmakers to buy more of the precious metal.

"(The acquisition) not only signals our confidence in the prevailing platinum group metals (PGM) market but it also expedites our transition to a high-level multinational producer," Implats Chief Executive Officer Nick Muller said on a media call.

Implats pursued North American Palladium for three years, and the deal adds the Lac des Iles Mine in Thunder Bay, Ontario to the South African company's portfolio.

"It provides us with access to a well-established operational asset that employs bulk mining methods and occupies an attractive position on the industry cost curve," Muller said.

Canadian investment manager Brookfield Business Partners LP will get C$16 per share in cash for the about 81% of North American Palladium owned by the investor and its partners.

Other minority shareholders of the Canadian company will receive C$19.74 per share, the same price as the stock's Friday closing.

Implats said it will finance the deal using cash and a bridge loan facility. ($1 = 1.3302 Canadian dollars) (Reporting by Shariq Khan in Bengaluru and Tanisha Heiberg; Editing by Sriraj Kalluvila)

https://finance.yahoo.com/news/1-africas-impala-buy-north-164425613.html

$IMPUY
$PALDF

[stocktrademan]

IMPUY buy 4.21

Impala Platinum Holdings Limited
2 Fricker Road
Illovo
Johannesburg 2196
South Africa
27 11 731 9000

http://www.implats.co.za/



normal chart







log chart