“IRS uses Impala’s excess processing and refining capacity to smelt and refine concentrate and matte produced by the Group’s other operations and third parties

 

IRS uses Impala’s excess processing and refining capacity to smelt and refine the concentrate and matte produced by the Group’s other operations and third parties. The business also does ad hoc toll refining.

Manufactured capital

Platinum production from mine-to-market operations decreased by 1.2% from the previous year to 567 500 (2014: 574 700) ounces, mainly due to the lower volumes from Zimplats following the temporary closure of the Bimha Mine, as well as the industrial action and safety stoppages experienced at Marula. This was offset to some extent by increased production from Mimosa.

Refined platinum production from third-party purchases, recycling and toll volumes decreased from 192 300 to 133 200 ounces, largely due to the once-off treatment of Northam concentrate in the previous comparable period.

(’000oz)	2015	2014
Zimplats	215.6	226.3
Marula	70.5	76.8
Mimosa	113.2	103.3
Two Rivers	168.2	168.3
Mine-to-market operations	567.5	574.7
Third-party purchases and toll	133.2	192.3
Grand total	700.7	767.0

Outlook

Access to spare smelting and refining capacity from Impala positions IRS well to process additional material from new customers. Opportunities in this regard are continuously evaluated.  

Impala Refining Services – key statistics

		2015	2014	2013	2012	2011
Sales	(Rm)	18 824	18 495	14 696	14 069	14 273
Platinum		10 016	10 389	8 481	7 982	8 104
Palladium		4 491	4 035	2 675	2 464	2 169
Rhodium		1 173	959	794	1 113	1 376
Nickel		1 559	1 390	1 164	1 236	1 305
Other		1 585	1 722	1 582	1 274	1 319
Cost of sales	(Rm)	(17 303)	(16 794)	(13 287)	(12 730)	(12 860)
Metals purchased		(15 840)	(16 665)	(12 926)	(12 147)	(12 649)
Smelting		(327)	(308)	(297)	(225)	(232)
Refining		(471)	(450)	(399)	(378)	(366)
Selling and administration		(34)	(31)	(37)	(37)	(30)
Change in metal inventories		(631)	660	372	57	417
Gross profit IRS	(Rm)	1 521	1 701	1 409	1 339	1 413
Metals purchased – adjustment on metal prices and exchange rates*	(Rm)	(580)	244	177	(195)	(20)
Inventory – adjustment for metal prices and exchange rates	(Rm)	352	(132)	(189)	191	(4)
Gross profit in Implats Group	(Rm)	1 293	1 813	1 397	1 335	1 389
Metals purchased – fair value on metal prices	(Rm)	741	(246)	93	511	(123)
Metals purchased – foreign exchange adjustments	(Rm)	(162)	2	(270)	(316)	143
Gross margin	(%)	8.1	9.2	9.6	9.5	10.1
Revenue	(Rm)	18 824	18 495	14 696	14 069	14 273
Direct sales to customers		43	34	111	116	401
Sales to Impala		18 327	17 935	14 139	13 702	13 427
Treatment income – external		450	521	442	248	442
Treatment income – intercompany		4	5	4	3	3
Total sales volumes
Platinum	(’000oz)	696.4	707.1	629.8	638.2	684.2
Palladium	(’000oz)	493.9	527.1	460.5	468.3	474.2
Rhodium	(’000oz)	90.6	94.4	82.5	94.1	87.1
Nickel	(t)	8 756	9 195	8 095	8 209	7 863
Prices achieved
Platinum	(US$/oz)	1 278	1 427	1 532	1 634	1 691
Palladium	(US$/oz)	807	742	659	689	655
Rhodium	(US$/oz)	1 145	982	1 099	1 549	2 254
Nickel	(US$/t)	15 884	14 702	16 314	19 723	23 757
Exchange rate achieved	(R/US$)	11.26	10.30	8.79	7.65	7.00
Refined production
Platinum	(’000oz)	700.7	767.0	872.3	697.5	895.1
Palladium	(’000oz)	511.3	513.0	669.8	541.1	680.6
Rhodium	(’000oz)	94.7	107.3	118.4	111.0	134.8
Nickel	(t)	12 320	11 939	11 983	10 582	10 829
PGM refined production	(’000oz)	1 480.8	1 604.5	1 854.9	1 527.9	1 918.2
Metal returned
Platinum	(’000oz)	–	94.5	188.6	120.7	219.5
Palladium	(’000oz)	0.5	28.2	190.0	147.5	210.0
Rhodium	(’000oz)	–	9.0	35.5	24.8	41.7
Nickel	(t)	3 344	3 186	3 193	3 093	3 370

*	Adjustments on metal prices and exchange rates have been reallocated to gross profit from other income and expense and foreign exchange profit or loss respectively in the statement of comprehensive income.