Implats results saw the CEO sounding surprisingly optimistic, but the key number was the cost of production per platinum ounce – R16 570. At current levels of around $1 500 for the metal and an exchange rate around R10/$, it means that the miner is receiving R15 000 per ounce and is under water. Further, this production cost is for the previous financial year and excludes the current year’s increases in costs, of which labour is certainly one of them. In short, Implats needs a 10% move in either the platinum price or the exchange rate to be at break even excluding capex spend.
Impala Platinum Holdings